Apple (AAPL) iTV Not Ready for 'Primetime'; Major iPad 5 Upgrade Expected - Cantor

October 4, 2013 9:38 AM EDT
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Apple's (Nasdaq: AAPL) rumored 'iTV' is unlikely to be ready for primetime this year, said a source cited by analyst Brian White of Cantor Fitzgerald. A major upgrade to the iPad Mini is also not expected. However, the iPad 5 upgrade could be a major one, said the source.

"Given our contact's position as a competitor to a potential "iTV" product, the company follows the development of this potential new product closely but indicated that he believes that "iTV" is not ready for primetime this year and expects an unveiling in 2014. This timing would be in line with our Apple initiation report published a month ago, where we indicated that we expect a full blown "iTV" by the end of calendar 2014," said White.

"Regarding Apple, there has been a steady stream of media attention around the next iPad refresh in October, and our contact believes the iPad 5 will be a major upgrade based on the fact that the iPad form factor has changed little over the past few iterations. We concur that the iPad 5 has the potential to be a significant iPad upgrade cycle, especially since the installed base of the iPad is now sizable with Apple shipping a total of 155 million iPads through 3Q:FY13

The analyst continued, Our contact expects a lighter, thinner and retrofitted form factor iPad 5 to be part of the widely anticipated October event; however, there was no conversation around the iPad mini. As such, we believe the higher-resolution iPad mini is unlikely to be launched in October, especially given the limited capacity around IGZO technology; however, we believe there is the potential for Apple to update the aesthetics of the current iPad mini.

Cantor Fitzgerald has a Buy rating on Apple with a price target of $777.

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 $483.41 yesterday, with a 52 week range of $385.10 to $674.25.


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