The launch of the iPhone 5 is not only going to be big for Apple and its faithful fans, it’s also going to flood the coffers of Apple’s component suppliers with cash.
Apple’s sixth-generation iPhone could be a “tsunami” that floods the coffers of companies such as Qualcomm (QCOM) and Fairchild Semiconductor (FCS), FBR analysts said in a research report Wednesday. FBR expects Apple to announce the iPhone 5 in early to mid-September (reports have said Sept. 12) and launch it a couple of weeks later.
The FBR report says the iPhone 5 could be “one of the most important catalysts” for chip companies and wireless service providers this year. Predicting that 50 million to 52 million iPhone 5 units could be built in the fourth quarter.
The report predicts that the device will be a “home run” for critical component suppliers.
iPhone suppliers that should benefit from the new handset include Qualcomm, Fairchild, Avago Technologies, Broadcom, Cirrus Logic, Maxim Integrated Products, ON Semi, Skyworks Solutions, Texas Instruments, and TriQuint Semiconductor.
As for Apple itself, the report says that the iPhone 5 could generate more than $50 per share in earnings over its life cycle.
“We estimate that Apple should sell 250 million iPhone 5 units at an (average selling price) of $575, generating nearly $144 billion in revenue, $77 billion in gross profit, and $47 billion in net income,” the FBR report says.
As of yet, Apple has announced nothing about its next-generation handset. However, analysts believe the new iPhone will have a larger display, 4G LTE wireless capability and a faster processor.