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Ok, we get it – the iPhone 5 is going to be huge

Zach Epstein
August 20th, 2012 at 10:35 AM

Apple (AAPL) is now less than a month away from unveiling its sixth-generation iPhone, and analysts are tripping over themselves with excitement. That excitement is spilling over to investors of course, as shares of Apple stock hit an all-time high on Friday thanks to “iPhone 5” hype and rumors surrounding the “iPad mini” and Apple’s purported upcoming HDTV. Just how big is the next-generation iPhone going to be? According to FBR Capital analyst Craig Berger — and just about every other Apple analyst on the planet — really, really big.

“[The iPhone 5] has the potential to generate the most promising device upgrade cycle in Apple’s history,” Berger wrote in a recent research note. “We calculate that the device represents an opportunity to generate earnings of $50 per share throughout its life cycle.”

In terms of end-user sales, Berger wasn’t shy in dishing out a huge estimate. “We estimate that Apple should sell 250 million iPhone 5 units at an average ASP of $575, generating nearly $144 billion in revenue, $77 billion in gross profit, and $47 billion in net income,” the analyst wrote. He sees huge hype, big volume from smartphone buyers coming off contracts and a massive China Mobile launch in early 2013 as potential catalysts.

Apple’s next iPhone will be unveiled during a press conference on September 12th. The device is expected to become available for preorder that same day, and a report suggests it will go on sale the following week on September 21st. Rumored specs include a 4-inch display, 4G LTE, NFC and a new design that is just 7.6 millimeters thin.

Zach Epstein

Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.

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