With the release of new Apple products, suppliers are seeing a 29% boost in profits.
Apple’s key suppliers are seeing a 29% growth, much greater than the usual 2% increase. Also, much higher than September’s 1% increase. Wall Street analyst Brian White told investors that the reason was Apple’s new line of products. The iPad mini, iPhone 5 and thinner line of MacBooks are doing the heavy lifting.
White of Topeka Capital Markets said that new products should make up 80% of Apple’s sales in the holiday quarter. We see this behavior already with the launch weekend of the iPad Mini. It accounted for most of Apple’s tablets sold that weekend. Even more impressive is White renewed his prediction that Apple would reach a share price target of $1,111 to become the world’s first trillion dollar company.
As Apple grows it become more responsible to the economic ecosystem. It is no longer just responsible for its investors, but to the companies it works with in supply. For now it’s all golden eggs, but should Apple hit a snag a lot of other business are going to fall too.