O'Grady's PowerPage

Tag: Maynard Um

  • Rumor: Apple gearing up supply chain for September launch of next-gen iPhone

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    When there are rumblings in the supply chain, it sometimes leads to cool new stuff.

    Per AppleInsider, a key Apple supplier has revealed that its largest North American customer is gearing up for the launch of a next-generation smartphone, suggesting Apple could be in the midst of preparing for a September launch of its next iPhone.

    The comments come from Avago Technologies, the maker of custom wireless chips featured in Apple’s iPhone lineup. Analyst Maynard Um of Wells Fargo Securities interpreted them on Thursday as “signs of life” in Apple’s supply chain, and an indication of a likely September launch for a so-called “iPhone 5S.”

    “Avago noted it is already seeing an initial ramp of a new product transition (we believe iPhone 5S) and expects a greater ramp in the following quarter (October quarter),” Um wrote in a note to investors. “We anticipate more positive supply chain news from Apple suppliers through the summer and as we get closer to product launch.”

    The details put Apple’s next iPhone on track to launch a year after the iPhone 5, as that device was officially unveiled on Sept. 12 of last year. While some optimistic market watchers had hoped that Apple would launch its “iPhone 5S” at a sooner date, company CEO Tim Cook softened those expectations with comments made last month, when he signaled that major new products would arrive this fall.

    Wells Fargo has maintained its “outperform” rating for AAPL stock, with a share valuation range of US$485 to US$525.

    As for Apple’s next-generation iPhone hardware, analyst Ming-Chi Kuo of KGI Securities has claimed that Apple plans to embed a fingerprint sensor beneath the home button on its next handset. This addition would allow users to bypass manual password entry, and could even open up the possibility of new functionality such as secure e-wallet transactions.

    Apple first signaled its interest in fingerprint scanning technology when it acquired Florida-based AuthenTec last year. That company’s flagship product was a “Smart Sensor” component that reads fingerprints and can be embedded into devices such as smartphones.

    Beyond that, numerous reports have claimed that Apple’s 2013 iPhone will come with more color options beyond the current black and white offerings, while still other reports have claimed the device will include an improved camera that could capture pictures up to 12 megapixels in size.

    Stay tuned for additional details as they become available.

  • Mid-2010 MacBook Pros selling well, 13″ model becoming harder to find

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    The new MacBook Pro notebooks are out.

    And if you can find a 13″ one, you’re in luck.

    Per AppleInsider, demand for Apple’s newly upgraded line of MacBook Pro notebooks was strong on the first day, with scattered reports of the low-end 13″ model selling out in some retail locations.

    Analyst Maynard Um with UBS Investment research said checks with various Apple stores indicated that the Mac maker is sold out of the new 13″ MacBook Pro model, introduced Tuesday. The Core 2 Duo-equipped machine has the Nvidia GeForce 320M, a graphics processor created especially for Apple’s new low-end MacBook Pro machine.

    The 13-inch MacBook Pro is available in two configurations: one with a 2.4 GHz Intel Core 2 Duo and 250GB hard drive priced at US$1,199; and one with a 2.66 GHz Intel Core 2 Duo and 320GB hard drive priced at US$1,499. It has graphics 80 percent faster than its predecessor, and offers an Apple-estimated 10 hours of battery life.

    Customers ordering the new 13″ MacBook Pro from Apple’s online store have also reported that shipping times have lagged to between one and three business days, instead of a standard 24 hours according to MacNN. The 24-hour cap still applies to Apple’s more powerful and expensive 15- and 17-inch systems.

    Um said he has also found that some stores are out of stock of iPads, supporting the announcement made earlier Wednesday by Apple, that a hardware shortage would delay the device’s international launch until late May. The analyst said this news means it is likely his estimate of 1.2 million iPads sold in the June quarter will likely prove conservative, depending on manufacturing constraints.

  • Rumor: Additional Tablet Supplier/Content Details Surface

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    With January 27th and Apple’s expected tablet release date approaching, the rumors are flying in interesting new directions.

    First, sources close to Time Inc. have informed MediaMemo that “Apple has only recently started” sharing details about its forthcoming device, and even those discussions have minimal details. Most of the talks between Time and Apple reportedly took place within the last few weeks.

    As a result, Time Inc. isn’t expected to have anything to present at next week’s tablet unveiling. The source was quoted as stating that Time remains “intensely interested” in the device.

    “But for now, Time Inc. executives are thinking about this stuff in a bit of vacuum, because they don’t know exactly what Steve Jobs has up his sleeve,” the report said. “Tease that out a bit and you can tell the story of most media companies: They’re excited to start taking advantage of the tablet–as soon as they find out what it is, exactly.”

    In December, Time Inc. released a video demonstrating how users might read Sports Illustrated on a tablet-like device. Some members of the press were also allowed to test working demos of the concept.

    In an interesting development, a new note Wednesday from UBS Investment Research cited industry checks in forecasting that the Apple tablet will be powered by a processor designed by P.A. Semi and built by Samsung. Analyst Maynard Um said it would likely be a complex system on a chip design.

    Per AppleInsider, Um pegged Hon Hai Precision Co. as the manufacturer for the tablet, and said LG Display will likely supply most of the screens, with AUO being a second source.

    Other parts noted by UBS were:

    – Connectors from Chen Uei and Hon Hai.
    – Wintek, Sintek and TPK as touch suppliers.
    – Batteries from Simplo and Dynapack.
    – NAND flash memory from Samsung.
    – Broadcom to provide a “combo” chip for connectivity.

    The note said the tablet is expected to hit the market at some point in the first half of 2010.

    “Key will be timing and price points, in order to asses how material it could be for suppliers,” Um wrote. “In addition, how convincing the device will be could generate debate as per whether the tablet device category could be revived and help overall demand.”

    Apple purchased chip designer P.A. Semi for US$278 million in 2008. The company specialized in sophisticated low-power designs.

    Finally, Publishers Marketplace has said that “secret” negotiations are taking place between Apple and “nearly all (and most likely all) of the six largest trade publishers” in the U.S. The talks are reportedly underway in New York as Apple preps to unveil its tablet next week.

    Those involved said that it’s possible a deal may not be reached in time for the January 27th event. It also noted that publishers could be “seeking greater control over pricing and supply of digital material.”

    The rumors follow a report from earlier this week that Apple was in talks with publisher HarperCollins to sell e-books on the tablet, with a business model that would follow that of the existing App Store for the iPhone and iPod touch. Typical bestseller releases could cost about US$9.99, and Apple would give publishers 70% of the revenue, while keeping a 30% share for itself.

    It’s speculation at this point, but it’ll be resolved in a week over at the Yerba Buena.

    Stay tuned for additional details as they become available and let us know what you think in the comments.

  • Apple, Verizon Cited as Disagreeing Over Pricing Terms for 2010 iPhone

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    With rumors of Apple and wireless carrier flying that the two companies are in negotiations over a summer 2010 CDMA iPhone launch, Verizon is apparently angry with Apple over pricing structures.

    According to AppleInsider, in a new note to investors Tuesday morning, Maynard J. Um of UBS Investment Research said that a new iPhone is expected to launch in mid-2010. Whether that phone would be available for Verizon’s CDMA network remains to be seen.

    “We believe a CDMA-iPhone is also in the works,” Um wrote, “though believe Verizon Wireless and Apple may currently be apart on pricing.”

    Um also stated that even if Apple and Verizon can’t arrive at terms, a CDMA iPhone is a possibility in 2010, as China and Japan include carriers which operate on CDMA networks.

    Last fall, conflicting reports within chip maker Qualcomm suggested a Verizon-capable iPhone could arrive in mid 2010. Whether that handset would be a dual-mode world phone, or a Verizon-only CDMA model was disputed.

    Though Qualcomm plans to release dual-carrier chips that would allow future phones to work on CDMA/EVDO carriers such as Verizon and Sprint, as well as rival 3GPP carriers using UMTS/HSPA+ technologies like AT&T and T-Mobile, those chips will not arrive until the second half of 2010. Some have said that timeframe would not allow Apple to release a dual-mode phone until 2011 at the earliest.

    And others believe a Verizon iPhone deal is more wishful thinking than anything else. Given that both companies tend to be focused on consumer control, analyst Shaw Wu of Kaufman Brothers has predicted that the conflicting interests of the two companies would get in the way of an agreement.

    Currently, it is estimated that Apple gets a favorable US$700 average selling price per iPhone, subsidized through exclusive carrier AT&T. Compare that with the ASP of the Motorola Droid, exclusive to Verizon, which costs an estimated US$450 per sale.

    Stay tuned for additional details as they become available and if you have your own two cents on this, we’d love to hear them.