Asia Trip Shows Robust Apple (AAPL) Enthusiasm, Innovation;
iWatch Could Be Announced 'Any Time' - Jefferies
May 28, 2014 7:05 AM EDT
Jefferies analyst Peter Misek reiterated a Buy rating and $700 price target on Apple (NASDAQ: AAPL)
following its Asia trip. Misek notes suppliers remain optimistic about the iPhone 6 and build plans remain
unchanged at roughly 80M (>50% than iPhone 5s).
Misek also notes Samsung Galaxy S5 builds have been cut from 65-70M to ~60M, and Xiaomi builds have
been raised from 40M to 50-60M.
The analyst also said more prototypes are floating around than is typical including a 5.5" OLED phone, iTV,
touchscreen MacBook Air running on A8, 4" OLED iPhone that unfolds into an iPad mini, smart watches,
and wearables.
On the iWatch, Misek said full production is finally ready to go so it could be announced at any time. On the
5.5" iPhone, the analyst sees the earliest launch in Nov., but if there are any delays (and delays at this point
seem likely) then CQ1 next year. Also, despite yield issues we think Apple might use in-cell for the display
due to a new coating technology from Nitto Denko that improves electron mobility. Our checks indicate it
could be 5mm-5.9mm thick (iPhone 5s 7.6mm, S5 8.1mm, Note 3 8.3mm).
Misek also said in contrast to investors' fears, the supply chain thinks Apple's innovation may be
accelerating. "With more than the usual number of prototypes floating around, here are some highlights
(with the caveat that Apple might be purposely leaking to confuse competitors): 5.5" OLED phone with 2k
>660ppi display; iTV with full gesture control, voice control, and 4K; touchscreen MacBook Air running on
A8; 4" OLED iPhone that unfolds into an iPad mini; smartwatch prototypes including curved bangle-type
and curved-screen; and wearables including health care appliances and payment authentication modules."
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