Apple's 64-Bit iPhone 5S Processor Delivers An 'Order Of Magnitude' Difference (AAPL)
Apple (NASDAQ: AAPL) has received an excessive amount of hype for adding a fingerprint scanner to its next-generation iPhone.
While that might be a game-changing element that allows the company to become the champion of mobile commerce, it may not prove to be the most groundbreaking feature Apple has introduced.
After all, it's not as if fingerprint scanning is something new. Hewlett-Packard (NYSE: HPQ) and other companies were happily using AuthenTec's technology long before Apple acquired the firm.
There is one thing that Apple did first, however. The company developed a 64-bit processor exclusively for the iPhone 5S.
Some bloggers have been quick to dismiss the value of a 64-bit processor, but Global Equities Research analyst Trip Chowdhry believes the processor's value has been severely underestimated.
Chowdhry told Benzinga that gaming on a 64-bit processor is an "order of magnitude" ahead of a 32-bit processor.
"The 64-bit innovation is fabulous," he said.
Apple has gained more critics over the past 12 months, especially after analysts proclaimed that the firm would sell 10 million iPhone 5 units in three days. When Apple sold five million units instead, some investors were disappointed – even though the company had still set a new record for iPhone sales.
Rather than assuming Apple will sell an arbitrary number of phones, Chowdhry is taking the stance that the iPhone 5S and iPhone 5C will set a new record as the company's most successful product launch.
This should not be hard for Apple to pull off. If the iPhone 5 can sell five million units (beating all previous iPhone sales records), Apple should be able to find at least six million people who want to buy an iPhone 5S or iPhone 5C this weekend.
Thus far, iPhone 5C pre-orders do not seem to have set any new sales records. But the combined sales of both new iPhones are likely to provide Apple with something to brag about.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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