3 Important Apple (AAPL) Questions Answered

Global Equity Research analyst Trip Chowdhry answered three important question that Apple (NASDAQ: AAPL) investors may be asking themselves ahead of the iPhone 5C/5S launch.

Q1) Do you think that there is not enough supply of finger print sensors for iPhone?
A) We don't know. We don't have insights into Production schedules

Q2) Stock movement is indicating that the new iPhones will be a Disaster. Why are we at GER still optimistic?
A) Many things... Let us present the way we are seeing the consumer and market, based on our Research:

1) One cannot Judge the Book by the Cover, the Book Needs to be read. Let us elaborate on this:

64 bit CPU is the real innovation in the iPhone. It is the core innovation that we cannot see at the first glance but will experience it, once we start experiencing the 64 Bit Applications

This 64 bit CPU innovation is even more substantial considering, that form factor has not increased. Very few companies can pull this technological miracle

About 2 days back Samsung indicated they will also come with 64 Bit CPU's to power their smart phones...but this is not enough

To successfully pull out a 64 Bit Shift, the new 64 Bit CPU needs to be created, the new 64 Bit OS needs to be created, the new 64 Bit compilers need to be created, a new 64 bit development and debugging environment needs to be created. A cross-complier for 32bit and 64 bit needs to be created

Apple is the only company that has been able to pull this Complete 64 bit innovation, by bringing 64 bit A7 chipset, 64 bit iOS7 Operating System and Xcode 5 development and debugging and compiler

Samsung and Android ecosystem is probably 12 months to 18 months behind Apple on 64 Bit Technology

2) Why do customers care for 64 Bit Systems?

About 54% Applications purchases on Apple AppStore is Games.

Gaming experience on a 64 Bit System is an Order of Magnitude superior to that currently available 32 bit Games

along with M7-coprocessor, Health and Fitness applications could be another driver for Apple iPhones

3) Why is GER still optimistic on Apple new iPhones ... "Form Factor has not changed, why will iPhone Sell, People buy Phones based on Industrial Design"?

We tend to disagree with the above assertion. If one buys a Phone and decides on the Phone, without Powering ON the device, we would have agreed with the above assertion that "People buy Phone base on Industrial Design only". During our research, we have not seen a single person making a purchasing decision on a Phone, without first trying out the applications

The above observation is very important, because fundamentally it is the Application Experience that ultimately drives the sale of the Device

Everything we know as of right now, Application Experience on 64 Bit iOS is far superior to anything else out there, and Application Experience will likely be the driver for the iPhone Sales

We think the right equation is: Application Experience = new Device Sales vs. Hardware Industrial Design = new Device Sales

Q3) Apple did not disclose pre-order sales booking...why?
A) Because it just does not make sense for Apple to disclose that:

Pre-order on Apple iPhone5C started on September 13th

New iOS7 will be launched on September 18th

On-line Ordering of iPhone 5S will Start on September 20

Both Apple iPhone 5C and 5S will be available for Sale on September 20

With these events happening so close to each other, it just does not make sense for Apple to announce pre-orders of iPhone 5C

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• UBS Reiterates Neutral Rating on Apple (AAPL)
• Evercore ISI Reiterates Outperform Rating on Apple (AAPL)
• Argus Starts SpaceX (SPCX) at Hold