Seeking Alpha

Apple roundup: 5S fingerprint sensor confirmed, big marketing push on tap?

  • Ahead of today's 1PM ET iPhone event (live blog), the WSJ has confirmed the iPhone 5S will include a fingerprint sensor. However, the cheaper 5C isn't expected to have one.
  • AdAge reports Apple (AAPL -0.8%) is "significantly expanding" its internal ad design/marketing team. One exec thinks its ranks could grow to 500-600 from a current 300. In June, Apple released a high-profile TV ad that was likened to a manifesto.
  • Analysts have been tripping over themselves to predict the impact of the 5C and the reportedly pending China Mobile and NTT DoCoMo deals. FBN (Outperform) thinks adding China Mobile could boost calendar 2014 EPS by $2, assuming a relatively low ASP ($425) and gross margin (30%). The firm observes Apple was estimated by Strategy Analytics to have only a 4.3% share of the Chinese smartphone market in Q2.
  • Deutsche's Brian Whitmore is more bullish, estimating China Mobile and DoCoMo could drive 35M extra iPhone sales in 2014, and lift EPS by $5. He observes ~35M China Mobile subs already use "gray market" iPhones, and thinks most will upgrade if given a chance to buy subsidized hardware.
  • Citi's Glen Yeung remains cautious, arguing the 5C's ability to take share could be limited by the fact $400+ phones only accounted for 13.7% of the Q2 smartphone market (per Gartner), and estimating every "5% move in mix" from the 5S to the 5C will affect gross margin by 315 bps and EPS by 2.1%.
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Comments (19)
  • iloewy
    , contributor
    Comments (55) | Send Message
     
    Watch AAPL jump higher after market close
    10 Sep 2013, 12:33 PM Reply Like
  • TheLittleGoat
    , contributor
    Comments (104) | Send Message
     
    Nope.

     

    After Hours: 493.57 -1.07 (-0.22%)
    10 Sep 2013, 10:44 PM Reply Like
  • jeezuz30
    , contributor
    Comments (392) | Send Message
     
    How innovative, a fingerprint sensor
    10 Sep 2013, 12:40 PM Reply Like
  • Energysystems
    , contributor
    Comments (1660) | Send Message
     
    lol yeah...my 2 year old HP has one too.
    10 Sep 2013, 12:43 PM Reply Like
  • nguyenvanphuoc
    , contributor
    Comments (388) | Send Message
     
    How's the cell reception on your 2 year old HP?
    10 Sep 2013, 12:45 PM Reply Like
  • Energysystems
    , contributor
    Comments (1660) | Send Message
     
    Am I supposed to be impressed by a "new" product that has something that's been widely available on other platforms for years? Apple is supposed to innovate, this doesn't. If anything, it should have been a retina scanner.
    10 Sep 2013, 12:48 PM Reply Like
  • anhlai
    , contributor
    Comments (2) | Send Message
     
    No one has integrated a finger print sensor into their ecosystem to assist in authentication and more importantly commerce. Touch ID is accessible by applications via iOS7. When you let the applications out there like Paypal/Square/Amazon have access to it, fun things are sure to be had.
    10 Sep 2013, 03:25 PM Reply Like
  • TheLittleGoat
    , contributor
    Comments (104) | Send Message
     
    But right now it doesn't have value until other services build on it at which point others will add the same thing if it is successful so I don't see how the user benefits from having a early finger sensor that they can't user for awhile anyways. Also I'm not sure I want my fingerprints flying around the internet and being stored on various servers.
    10 Sep 2013, 10:44 PM Reply Like
  • macnorm@midatlanticconsulti...
    , contributor
    Comment (1) | Send Message
     
    Wait until Visa & Mastercard jump on this
    11 Sep 2013, 08:44 AM Reply Like
  • krames
    , contributor
    Comments (176) | Send Message
     
    I was saying the announcement of China Mobile deal would have been at $25 to $50 pop!! I guess I was wrong..I sold a Oct $445 call for $25 not sure if I should take the money and run..Hate being a pig
    10 Sep 2013, 12:52 PM Reply Like
  • Energysystems
    , contributor
    Comments (1660) | Send Message
     
    CHL deal should be a big deal. But there's a lot of competition over there. I can't see how it isn't a positive for both today and long term. Was there any word on the subsidies?
    10 Sep 2013, 12:54 PM Reply Like
  • TheLittleGoat
    , contributor
    Comments (104) | Send Message
     
    People in China can already buy iPhones for cash and considering the CHL isn't a subsidy-based carrier, I don't see how them selling iPhones for cash does much except provide some marketing and buzz.
    10 Sep 2013, 10:41 PM Reply Like
  • TheLittleGoat
    , contributor
    Comments (104) | Send Message
     
    "He observes ~35M China Mobile subs already use "gray market" iPhones, and thinks most will upgrade if given a chance to buy subsidized hardware."

     

    But the China phone market is very different than the US. Most people don't have long-term contracts and get subsidies. They pay cash for phone and have monthly contract or buy prepaid plan. Don't see how this works in China. Don't see CHL, etc changing their business model just for iPhone which is already available in China, just not officially.

     

    If someone in China wants an iPhone, they already have one. Don't see how this would change much except make it a bit easier to get but that is a marginal improvement, not a leap forward.
    10 Sep 2013, 01:12 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    Until recently mainland Cn did not have 4g LTE.

     

    There are some contractual phones in Cn, the user is obliged to spend a minimum.

     

    I'll probably be going to Hong Kong to buy my next Apple product.
    10 Sep 2013, 09:58 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2798) | Send Message
     
    Apple Store HK

     

    iPhone 5c HK$ 4688
    iPhone 5s HK$ 5588

     

    no wonder HKers are moving over to Galaxies ...
    11 Sep 2013, 12:54 AM Reply Like
  • SoldHigh
    , contributor
    Comments (1013) | Send Message
     
    A link to live streaming of the event would be nice that does NOT have stupid talking heads talking over the event!
    10 Sep 2013, 01:18 PM Reply Like
  • Finlow
    , contributor
    Comments (63) | Send Message
     
    CHL targets customers in places other Chinese mobile providers dont cover. The market is huge. This plus the deal in Japan. Obviously Apple is on the up.
    10 Sep 2013, 01:52 PM Reply Like
  • mphill47
    , contributor
    Comments (576) | Send Message
     
    Great new phones but where's the beef?
    10 Sep 2013, 02:28 PM Reply Like
  • Bob Hu
    , contributor
    Comments (93) | Send Message
     
    I guess you can get the beef from MCD? I just want great new phones.
    10 Sep 2013, 02:57 PM Reply Like
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