toggle

AAPL Stock: 112.65 ( + 3.24 )

Printed from http://www.macnn.com

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

POST TOOLS:

TAGS :

toggle

Comments

Login Here

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

toggle

Network Headlines

toggle

Most Popular

MacNN Sponsor

Recent Reviews

Dell AD211 Bluetooth speaker

For all of the high-priced, over-engineered Bluetooth speakers in the electronics market, there is still room for mass-market solution ...

VisionTek 128GB USB Pocket SSD

USB flash drives dealt the death blow to both the floppy and Zip drives. While still faster than either of the old removable media, sp ...

Kodak PixPro SL10 Smart Lens Camera

Smartphone imagery still widely varies. Large Megapixel counts don't make for a good image, and the optics in some devices are lackin ...

toggle

Most Commented