Apple Opportunity Is Knocking

Overnight, Digitimes reported that Apple has increased its parts and components orders for the iPhone 7 significantly  for the fourth quarter. The report stated that the company has increased orders for touch panels by as much as 20%-30% higher than previously ordered.

Digitimes stated in  its report that the two Taiwan based touch panel OEMs, TPK Holding and General Interface Solutions (GIS is a subsidiary of Chinese giant OEM, Foxconn) are expecting significant revenue growth in the fourth quarter of 2016 thanks to Apple.

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According to the report, shipments of the iPhone 7 are expected to reach 80-84 million units, higher than most Street estimates at the moment. Comparatively, Apple shipped 85-90 million iPhone 6s post launch in 2015.

Yesterday, there was a press release from Aetna that said they have entered into a partnership with Apple that will allow the company to offer their employees, fifty thousand of them, free Apple watches as part of its efforts to get more employees to exercise and improve their health. In addition, Aetna will also work with its 48 million customers to offer subsidized Apple watches. The subsidies will be in conjunction with the companies that use Aetna as their insurance carrier for employees.

That alone should add up to fairly big sales for the Apple watch right off the bat as  customers/companies insured through Aetna roll out these subsidized programs among its employees.

This morning Bank of America Merrill Lynch revealed the results of a survey that that showed that Apple iPhone upgrades alone should lead to 11% year-on-year sales growth for the company in the first half of 2017.

Finally, also this morning, Bernstein indicated that ASPs (average selling prices) for the iPhone 7 could increase to $679/unit in FQ1:17 (December quarter) from $595/unit in FQ3:16 (June quarter). That is pretty big, no?

Opportunity is knocking as far as an investment in Apple is concerned.

The question remains whether we are there to open the door.

Words to the wise.

(Long aapl shares and options)