The launch of Apple's (AAPL) iPhone 5 handset is going to be a huge event not only for Apple, but for a host of semiconductor companies.
Apple's sixth-generation iPhone could be a "tsunami" that floods the coffers of companies such as Qualcomm (QCOM) and Fairchild Semiconductor (FCS), FBR analysts said in a research report Wednesday. FBR expects Apple to announce the iPhone 5 in early to mid-September (reports have said Sept. 12) and launch it a couple of weeks later.
The iPhone 5 could be "one of the most important catalysts" for chip companies and wireless service providers this year, the FBR report said. It predicts that 50 million to 52 million iPhone 5 units could be built in the fourth quarter, which is well above most Wall Street estimates.
The iPhone 5 will be a "home run" for critical component suppliers, driving large volume production, the report says.
"Qualcomm could see its baseband content grow from about $8 in the iPhone 4S to $15-$18 in the iPhone 5 as Apple upgrades to a 4G LTE slim baseband modem," FBR analyst Craig Berger wrote.
Fairchild Semi could get more analog and field-effect transistors in the new handset and increase AC/DC content in the device charger. Apple will approach 10% of Fairchild's revenue in 2013, Berger wrote.
Other iPhone suppliers that should benefit from the new handset include Avago Technologies (AVGO), Broadcom (BRCM), Cirrus Logic (CRUS), Maxim Integrated Products (MXIM), ON Semi (ONNN), Skyworks Solutions (SWKS), Texas Instruments(TXN) and TriQuint Semiconductor (TQNT).
The iPhone 5 could hold opportunities for Wolfson Microelectronics and NXP Semiconductors (NXPI), depending on what features Apple ultimately includes in the new handset. Wolfson could benefit if Apple uses a new 19-pin connector and NXP could benefit if Apple adds NFC payment processing functionality.
As for Apple itself, the iPhone 5 could generate more than $50 per share in earnings over its life cycle, FBR says. "We estimate that Apple should sell 250 million iPhone 5 units at an (average selling price) of $575, generating nearly $144 billion in revenue, $77 billion in gross profit, and $47 billion in net income," the FBR report says.
If China Mobile (CHL) launches the iPhone in early 2013, it could sell 13 million units, or 13% of projected iPhone unit sales in the first half of 2013, FBR analyst Scott Thompson wrote. China Mobile has 683 million subscribers.
FBR sees "positive share price momentum" for U.S. wireless carriers AT&T (T), Sprint Nextel (S) and Verizon (VZ) related to the iPhone 5 launch.
The "iPhone 5 represents the most impactful device in Apple's history," Thompson wrote.
For its part, Apple has said nothing about its next-generation handset, which doesn't even have an official name.
Analysts believe the new iPhone will have a larger display, 4G LTE wireless capability and a faster processor.
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