Flextronics International (NASDAQ: FLEX),Jabil Circuit (NYSE: JBL) Could Deliver Up to 82% Even If the New iPhone Flops

Traders did not seem to be impressed by the newest products introduced by Apple (NASDAQ: AAPL). A less expensive, more colorful iPhone and thumbprint security measures might not drive a significant sales increase for AAPL, a company that reported revenue of more than $169 billion in the past 12 months, but it is likely to boost revenue for its suppliers.

AAPL has been in a downtrend since peaking in September 2012. Investors are rightfully concerned that Apple might have trouble continuing to grow at its historically high rates given the size of the company. Over the past five years, annual increases in sales have averaged 44.8%. If Apple maintained that pace, sales would top $1 trillion in five years.

Growth in earnings per share (EPS) has averaged 73% a year over the past five years. If that growth rate continued, in five years, EPS would be more than $600 a share. That would make AAPL worth about $6,000 a share at 10 times earnings. (more)

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