China Sales Could Boost Apple (AAPL) EPS by $10 in FY12 - Analyst
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Morgan Stanley is getting bullish on Apple's prospects in China, seeing strong sales for the iPhone in 2012 as partnerships expand in the country.
According to the firm, Apple's (Nasdaq: AAPL) efforts with China Telecom (NYSE: CHL) and China Mobile (NYSE: CHL) will lead to potential sales of 40 million iPhone units in China for 2012.
Currently, Apple's deal with China Unicom (NYSE: CHU) allows access to just 10 percent of the 150 million "high-end" mobile subs in China. The addition of the other two carriers could bring iPhone sales in China to 26 million incremental units for 2012, adding at least $10 to earnings per share.
Apple could sell up to 24 million handsets on China Mobile's network alone, said the Morgan Stanley analyst, assuming a 20 percent penetration rate. With the acceleration of smartphone sales, that number could jump to 36 million in 2013.
The Street is modeling for earnings of $41.72 per share for Apple in fiscal 2012. That number compared with earnings of $27.68 per share reported for 2011.
Apple shares are indicated for a lower open Monday.
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According to the firm, Apple's (Nasdaq: AAPL) efforts with China Telecom (NYSE: CHL) and China Mobile (NYSE: CHL) will lead to potential sales of 40 million iPhone units in China for 2012.
Currently, Apple's deal with China Unicom (NYSE: CHU) allows access to just 10 percent of the 150 million "high-end" mobile subs in China. The addition of the other two carriers could bring iPhone sales in China to 26 million incremental units for 2012, adding at least $10 to earnings per share.
Apple could sell up to 24 million handsets on China Mobile's network alone, said the Morgan Stanley analyst, assuming a 20 percent penetration rate. With the acceleration of smartphone sales, that number could jump to 36 million in 2013.
The Street is modeling for earnings of $41.72 per share for Apple in fiscal 2012. That number compared with earnings of $27.68 per share reported for 2011.
Apple shares are indicated for a lower open Monday.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
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