Here are your Apple rumors and AAPL news items for today:
Ramping Up: According to supply chain checks conducted by Seeking Alpha analyst Matt Margolis, Apple’s (AAPL) sapphire factory will produce enough of the material to meet expected demands for its upcoming next-generation iPhones and smartwatch. The factory, located in Mesa, Arizona, is a joint venture between Apple and GT Advanced Technologies (GTAT). Reports earlier this year indicated that Apple was investing heavily to install sapphire furnaces in the plant, with a goal of starting trial production during the first quarter. Margolis says that “the Mesa sapphire operations will have ample supply to cover the iWatch, the 4.7″ iPhone and the 5.5″ iPhone with full sapphire cover glass in 2014.” Margolis estimates that the plant’s maximum yearly production will be 200 million units. According to the new report, the Mesa facility now has more than 2,500 furnaces. Apple is expected to launch two iPhone 6 models this fall — a 4.7-inch iPhone and a 5.5-inch iPhone. The company is also widely expected to unveil its entry into the wearable computer market — the iWatch — in October. Sapphire is viewed as more scratch resistant than the Gorilla Glass used in previous iPhones.
Receptive: A Raymond James analyst says that even if Apple hikes the price of its upcoming iPhone 6 models, consumers are willing to pay, MarketWatch notes. In a research note published last week, Tavis McCourt said that “Apple will likely charge a $100 premium for the 5.5 inch [iPhone] version that media reports have suggested will be available a few months after the 4.7 inch version.” Despite the higher price tag, McCourt said that Apple fans were ready to dig deeper into their wallets to buy Apple’s first phablet. “Our June consumer survey points to continued growth in the willingness of iPhone users to pay $100 more for a bigger screened iPhone, with now a full one-third of survey respondents willing to pay a $100 premium,” he wrote. Despite competition from Samsung, McCourt thinks that Apple has “built a business that is sustainably capable of realizing higher than typical margins, driven by application ecosystem advantages, vertical integration across software, services and hardware, and brand positioning.” With Apple set to introduce two iPhone 6 models, each with screens significantly larger than the 4-inch display on the iPhone 5s, McCourt says that Apple is likely to see strong upgrade sales this cycle. Raymond James recently raised its price target for AAPL shares from $86 to $102.
Added: Bitcoin apps are beginning to show up in the App Store, CoinDesk notes. CoinPocket — a bitcoin wallet app — is now available for download for iOS devices through the App Store. CoinPocket allows users to send and receive bitcoins. Apple had previously banished bitcoin apps from the App Store. However, last week, Apple changed its policy, permitting apps that use “approved” digital currencies. Another bitcoin app, Betcoin appeared in the App Store shortly after Apple updated its policy. In addition to CoinPocket, the eGifter app now accepts direct bitcoin purchases of gift cards.
For more about the company, check out our previous Apple Rumors stories.
