Apple (AAPL) iPhone 5 WON'T Launch on China Mobile in 1st-Half 2013 - Analyst

November 16, 2012 11:34 AM EST
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Those looking for Apple's (Nasdaq: AAPL) iPhone 5 launch on China Mobile's (NYSE: CHL) massive network in the first-half of 2013 can stop holding their breath. It's not going to happen.

According to Jefferies' Peter Misek, at Qualcomm's (Nasdaq: QCOM) analyst day the company noted that they are unlikely to gain much TD-SCDMA (China Mobile's 3G technology) penetration until the ramp of TD-LTE, which is not expected to start wider trials until H2:13 with a full ramp later.

"We do not believe the lack of the iPhone 5 in China is due to any business or technical issue but rather is a political decision," Misek said. "We had hoped China Mobile would represent potential upside in 2013, but due to the uncertain timing, we did not include any units in our iPhone estimates and leave our model unchanged."

Other notes on Apple from Qualcomm's call, according to Misek, were: average smartphone ASPs will likely trend lower; smarthhone penetration rates will continue to grow globally; emerging markets will offer high double digits growth, while developed markets will see low double digit growth; market will be barbell-shaped going-forward which is positive for iPhones.

Jefferies maintained a Buy rating and price target of $900 on AAPL.

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $525.62 yesterday.

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