FBR Capital Markets Analyst Craig Berger expects that Apple’s next-generation iPhone will spur big results for both its consumers and investors. The so-called “iPhone 5” is deemed to be the most promising update in the company’s history, generating as much as 250 million units over its life cycle.
Other than consumers and investors, the positive effect of the upcoming mobile phone will extend beyond Apple’s chip manufacturing partners and service providers. According to Berger, possible gainers from the launch are Qualcomm and Fairchild Semiconductor. In relation to this, AppleInsider reported last month how both companies, together with the rest of Apple’s U.S.-based supply chain, were increasing their production.
Effects to Telecommunication Companies
The hype for the upcoming handset, or what Berger calls iPhone 5 Tsunami, is also believed to help telecommunication companies. Apple’s next mobile phone will “help the industry migrate to a better balance between content provider and end-user revenue sources to support continued investment.”
By investing in ultra-fast 4G LTE networks, regulating high-bandwidth users, and setting up Wi-Fi offloads, some carriers were able to reduce their costs. Meanwhile, application service providers such as Apple, Google, Facebook, and Netflix have been working closely with telcos to enhance scalability and minimize their network efforts.
Apple’s iPhone and China Mobile
The analyst also believes that if China Mobile started selling the next-generation iPhone by 2013, it could drive 13 million units in the first six months of the year. This would make the Apple handset a “true world phone,” with the network carrier having over 650 million subscribers.
Prior to this, it was rumored that Apple made a partnership with China Mobile. Last June, Sterne Agee’s Shaw Wu heard that support for the telcos’ TD-SCDMA 3G network will be a “key feature” to the next-generation iPhone. However, the handset is not yet officially available for the world’s largest wireless carrier.
Upgrade Eligibility Status
On the other hand, Berger said that the upgrade eligibility status of wireless subscribers could pose negative effect on the company’s total market share in the United States. He also speculates that upgrade policies could decrease eligible subscribers by 3.9 percent in 2013. However, he expects that it will be offset by product launch-based upgrades instead of eligibility status.
Apple is expected to reveal the next-generation iPhone on September 12, with the pre-order starting on the same day and the U.S. shipping coming on September 21. There were also reports that a release of a redesigned iPad and the so-called iPad Mini will follow suit.
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