Could Apple, Inc. Sell 200 Million iWatch and iPhone 6 Devices?

Could Apple's fiscal 2015 be a bigger year for the company than analysts are predicting?

Jun 16, 2014 at 8:30PM

While there have been numerous claims that Apple's (NASDAQ:AAPL) sapphire crystal plant for building displays, operated by GT Advanced (NASDAQOTH:GTATQ), wouldn't be able to provide the production capacity for both rumored versions of the iPhone 6 in fiscal 2015, one analyst now suggests the storyline is shifting. In fact, his new predictions insinuate that Apple could be planning for a blockbuster year.


Apple uses sapphire glass to protect the camera in its iPhones and on the home button of the iPhone 5s for Touch ID.

Not just any analyst
Matt Margolis, who is often found writing on Seeking Alpha, isn't your average Apple analyst. Going by the Twitter handle @sapphirecover24, his 11 articles on Seeking Alpha mostly cover Apple's partnership with GT Advanced for manufacturing sapphire crystal displays. The majority of his analysis on the matter ends up highly cited across the web. His in-depth analysis on GT Advanced Technologies' partnership with Apple is arguably among the best.

In February, Margolis projected GT Advanced was readying the equipment for a yield of 100 to 200 million smartphone displays that would fit the 4.7- to 5.5-inch range of the two alleged iPhone 6 models Apple is working on.

At 100 million units, however, Apple could have end up having too little supply for the iPhone. Sure enough, the reliable Apple analyst from KGI Securities, Ming-Chi Kuo, soon reported Apple would be forced to only use the sapphire crystal in the larger of the two iPhone models.

But Margolis has shifted gears on his predictions. Apple and GT Advanced may be ready to ramp up production capacity to handle both iPhone models and the iWatch, he predicts.

As a result of my most recent supply chain check I believe 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. Additionally, the maximum sapphire screen capacity of the Mesa facility is likely to exceed 200m annual units.

Apple Store China

Another sign of optimism from Apple?
While Margolis' prediction may certainly have implications for GT Advanced investors, it also offers Apple investors another sign that management has an optimistic outlook for fiscal 2015. Possibly planning for 200 million plus combined iPhones and iWatch devices suggests the company could be expecting a big year.

To understand how big an expectation for 200 million devices is, consider that Apple sold just about 160 million iPhone units in the past 12 months -- some of which, of course, were not the flagship model.

If Apple pushes GT Advanced toward maximum capacity with its latest-generation iPhone models and the iWatch, Apple could be in for a great year. Perhaps Apple executive Eddy Cue was serious when he said at the Code Conference last month that, later this year, Apple has its best product pipeline in 25 years.

Leaked: Apple's next smart device
Apple recently recruited a secret-development Dream Team to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out... and some early viewers are even claiming its everyday impact could trump the iPod, iPhone, AND the iPad. In fact, ABI Research predicts 485 million of these type of devices will be sold per year. But one small company makes this gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

Daniel Sparks owns shares of Apple. The Motley Fool recommends and owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information