Apple hits $600 a share in trading despite Wintek worries

Apple closed at $599.41 last night, just a few cents short of the day’s high of $600. It’s the first time since 27 April that the stock has broken back into the $600s, and was despite concerns about Apple’s manufacturing partner, Wintek, who saw June sales fall 34 per cent compared to May’s level.

Topeka Capital Markets analyst Brian White thinks that it is more likely that Wintek, a touch panel supplier for the iPad and iPhone, is losing Apple business, rather than Apple sales weakening. According to a Barron’s report, White suggests that: “Clearly, Apple has many next generation products on the horizon and the Company may be adjusting its suppliers.”

White noted: “In the past, we estimate Wintek generated over 50 per cent of total sales from Apple as an important touch panel supplier in products such as the iPhone and iPad; however, we believe the company may be losing market share in next generation products.”

White suggests that the next generation iPhone 5 may be using touch panels from Sharp and Toshiba rather than Wintek. He referred to reports that Apple may launch a 9.7in iPad in September that features IGZO panels from Sharp.

White also thinks that an iPad Mini could launch in September.

Apple’s share price first hit $600 in March, with a number of analysts projecting that the stock could reach $1,000x a share within twelve months. White has reiterated his Buy rating on the stock and his $1,111 price target.

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