According to a report, Hitachi and Sony are working on supplying Apple (NASDAQ:AAPL) with 4-inch LCD displays for an unknown iOS device that will hit the market in 2012. Additionally, Apple may also be working on a fundamentally distinct display technology for the iPad 4. [1] However, the report lacks specifications details on the new device and the iPad 4, which is important to understand if the products will find mass market acceptance in future.
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Unknown specifications for new Apple devices
We believe that if Apple is indeed working on a new device, markets will welcome the fact that Apple might be entering into a new product segment. However, the report does not shed any light on what type of device could be used with 4-inch LCD displays and what features will iPad 4 have. Hence we believe that the stock price impact on Apple’s stock cannot be made with certainty. Our $500 price estimate for Apple stock is about 35% above market price.
New iPads could move Apple stock though
In our earlier note titled New iPads Could be the Next Trigger for Apple Stock, we discussed that irrespective of the specifications and timings of iPad 3 and iPad mini, Apple will continue to dominate the tablet market despite competition from the likes of Amazon (NASDAQ:AMZN), Research In Motion (NASDAQ:RIMM) and HP (NYSE:HPQ). In the note we discussed that iPad 3 could be a much powerful iPad with some attractive features, while iPad mini could be a low cost iPad for Apple to compete in the low end tablet market, which will help Apple keep ahead in the tablet market.
Understand How a Company’s Products Impact its Stock Price at Trefis
Notes:- Sony Mobile Display and Hitachi Displays, and 4-inch LCD Apple, start shipments of LCD panels for iPad 3?, Macotakara, November 27th, 2011 [↩]
