AAPL Stock: 117.81 ( -0.22 )

Printed from

UBS: Component plans boost evidence of CDMA iPhone

updated 10:35 am EDT, Fri October 29, 2010

Warranty issues may have hurt Apple margins

Industry data backs the possibility of a CDMA iPhone, according to UBS' Maynard Um. The analyst cites checks as showing a potential 50 percent sequential increase in first-quarter capacity "for a certain iPhone component," believed to be related to a CDMA model. While sparse on details, the claim is in line with numerous other reports backing the launch of a Verizon iPhone early next year, possibly as soon as January.

In regards to the company's recent 10-K filing with the SEC, Um comments that warranties may have contributed to lower profit margins. "Based on our analysis, an 'over accrual' of product warranties of ~$170mm (warranty accruals increased by $300mm q/q while warranty claims only increased $131mm) drove 90bps of the margin miss (& impacted EPS by $0.18)," he writes in a new memo. "Any potential accrual reversals in F1Q could help mgns w/ every $50mm of reversal = 20bps of gross mgn or $0.04 EPS."

by MacNN Staff




Login Here

Not a member of the MacNN forums? Register now for free.


Network Headlines

Follow us on Facebook


Most Popular


Recent Reviews

Ultimate Ears Megaboom Bluetooth Speaker

Ultimate Ears (now owned by Logitech) has found great success in the marketplace with its "Boom" series of Bluetooth speakers, a mod ...

Kinivo URBN Premium Bluetooth Headphones

We love music, and we're willing to bet that you do, too. If you're like us, you probably spend a good portion of your time wearing ...

Jamstik+ MIDI Controller

For a long time the MIDI world has been dominated by keyboard-inspired controllers. Times are changing however, and we are slowly star ...


Most Commented