Neil Hughes
An overhaul of Apple's lineup and anticipated strong sales of those new products have resulted in a major growth spike among Apple's suppliers.
Brian White of Topeka Capital Markets tracks Apple's supply chain in his monthly "Apple Monitor" report. His latest report on Thursday revealed that key Apple suppliers saw their sales grow 29 percent year over year in the month of October.
That increase handily exceeds the average 2 percent year-over-year growth seen in the month of October over the last 7 years. The strong performance also follows a decrease of 1 percent that came in the month of September.
White said Apple's new product lineup — which includes the iPhone 5, iPad mini, and new iPods and Macs — is an "unprecedented" transition. He expects the recently announced products will account for 80 percent of Apple's total sales in the company's December quarter.
He acknowledged that AAPL stock has been under "selling pressure" in recent weeks, but he remains bullish on the company going forward. In fact, he has reiterated a 12-month price target of $1,111 — a number more than double Apple's stock price as of Thursday morning.
"The iPhone 5 and iPad mini are blockbuster new products that we believe will prove to be big hits this holiday season and into 2013, combined with the new iPad, MacBook Pro, iMac and iPod lineup," White wrote.
His "Apple Monitor" tracks sales trends across the Taiwan supply chain at leading Apple suppliers. The companies, he said, generate a high percentage of their revenues from supplying components for Apple's products.
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24 Comments
Apple is obviously doomed.
FWIW - Corning Gorilla glass is on EVERYTHING mobile out there. Corning stock $12/share...
Apple is obviously doomed.
Apple suppliers' sales surge 29% thanks to product lineup overhaul ???
Having followed AAPL closely for years and now knowing how stock prices can be and are manipulated by analysts, fund managers, the media, et al, it makes me very suspicious of investing my retirement nest egg in the stock market. It all appears to be smoke and mirrors. The tech world seems to have done a 180 on Apple literally over night. Everywhere you look the mantra is the same. Almost as if its coordinated.