Jefferies & Co.’s Peter Misek this morning makes the case that Apple’s (AAPL) shipments of its iPad this quarter are going to be better than most of the Street expects, even though he’s cutting his own estimate for the device.
Misek, back from a recent trip to Japan, writes that iPad shipments are “not as weak as feared,” with many failing to factor the inventory that is already at assembly partner Hon Hai when they make production estimates. And, the iPad 3 is in production this quarter, he writes.
Misek cut his estimate for the quarter from 17 million units to 14 million, because of macroeconomic weakness, especially Europe’s malaise, but he notes that’s still above the Street’s 13 million consensus.
Misek also sees Apple developing a special relationship with Sharp (6753JP) to develop displays for future iPads, something that will help mitigate Apple’s dependence on Samsung Electronics (SSNLF), with which Apple’s relationship is increasingly strained:
Our checks indicate Sharp will provide panels for iPads, iPhones, and iTVs. We believe Apple has purchased $500M to $1B in equipment, Sharp and Apple have modified the IGZO (indium, gallium, zinc) technology to make much-improved displays, and Sharp and Apple may jointly produce OLED panels with a new production technology that has led to significant yield improvements. The Sharp relationship will enable Apple to diversify away from Samsung and gain additional display capacity with leading-edge technology. Given Apple is fronting the capital spending, we also see these panels being procured at good prices, which means better-than-expected margins.
Apple shares today are up $4.92, or 1.3%, at $373.95.
Tags: 2012 Transportation Stocks ,Great Stocks To Buy 2012 ,Great Transportation Stocks To Buy ,MSFT ,Transportation Stocks ,YHOO ,Yahoo! - Stifel Ups To Buy; Prospects Of A Sale Rise
No comments:
Post a Comment