UBS analyst Maynard Um expects Apple's new deal with China Unicom (announced on Friday) to add one million iPhones to Apple's sales during fiscal 2010. The deal makes China Unicom the sole iPhone carrier in China, where it will go on sale in the fourth quarter of this year.
"Although the China Unicom deal does not come as much of a surprise, we believe a formal announcement with specific timing of a launch may be viewed as a modest positive," Mr. Um wrote in a research note to clients obtained by The Mac Observer.
He said that deal could add one million unit sales for fiscal 2010 (Apple's fiscal year ends in September), for which he had already estimated 25.9 million units. An additional million units would add $.04 per share in profits on a GAAP basis ($.25 to pro forma earnings per share).
Mr. Um maintained the same price target of US$170 per share on AAPL, as well as his "Buy" rating on the stock.
AAPL ended the day higher, closing at $170.05 per share, a gain of $0.60 (+0.35%), on moderately strong volume of 16.19 million shares trading hands.
*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.