Can the iPhone 5 double Apple’s lifetime iPhone unit sales?

A new iPhone is coming. This we know. Sept. 12 is the rumoured date for the device’s unveiling, which is less than a month away. Many are expecting to see unprecedented upgrade activity to drive tremendous sales, and Apple (Nasdaq: AAPL) is already seeing speculation of the new model affecting its results. iPhone unit sales dropped 9 million sequentially in the fiscal third quarter as prospective buyers held off in anticipation of the next iPhone.

The latest analyst to chime in with massive estimates is Craig Berger, an FBR Capital Markets analyst who expects the device, be it named the “iPhone 5” or otherwise, to sell upwards of 250 million units throughout its lifetime, generating incremental earnings per share of US$50 over that timeframe. Based on an average selling price of US$575, that turns into almost US$144 billion in sales and an estimated US$47 billion in profit.

Berger notes that extended upgrade policies among carriers could potentially have a negative effect on US domestic market share, but he also believes that upgrades rely more heavily on product launches nowadays instead of eligibility status. One key factor in getting to that 250 million mark is the assumption that China Mobile (NYSE: CHL) will finally be brought on as an official carrier, probably sometime in early 2013. Berger estimates that 13 million units in the first half of 2013 will be sold on China’s largest carrier.

He has dubbed it the “iPhone 5 Tsunami,” saying it will buoy the entire mobile sector, and highlights chipmakers Qualcomm (Nasdaq: QCOM) and Fairchild Semiconductor (NYSE: FCS) as key beneficiaries to the iPhone upside. Qualcomm provides the baseband modems while Fairchild sources power supply chips.

For additional context, 250 million is more iPhones than Apple has sold throughout the entire product’s lifetime. Through last quarter, cumulative iPhone unit sales stood at 244.2 million, so we’d be talking about seeing the newest model double lifetime unit sales over its life cycle, which could span several years.

If you’re in the market for some high yielding ASX shares, look no further than our “Secure Your Future with 3 Rock-Solid Dividend Stocks” report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

 More reading

The Motley Fools purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

A version of this article, written by Evan Niu, originally appeared on

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!