An analyst believes the iPhone 5 could generate revenue upwards of $144 billion.
BR Capital analyst Craig Berger states that the unannounced device will be Apple’s “most impactful” device so far.
He believes that Apple could sell a quarter of a billion units for the iPhone 5 over its life cycle, which would consequently result in substantial revenue and indeed profit margins. According to the analyst, the smartphone will generate a staggering $144 billion in revenue, $77 in gross profit, and $47 in net income.
We expect the iPhone 5 … has the potential to generate the most promising device upgrade cycle in Apple’s history. We calculate that the device represents an opportunity to generate earnings of $50 per share throughout its life cycle. 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.
Will Apple’s iPhone 5 live up to the astronomical hype its been receiving ever since (literally) the iPhone 4S’ launch? Several analyst firms have predicted that it could even best the hype by making Apple the world’s first one trillion dollar company, as well as becoming the biggest electronics product release in history.
Apple will announce the iPhone 5 come September 12th with the first batch of units set to hit store shelves on September 21st.