Despite lack of surprises, Apple announcements seen as positive
Although Wednesday's iPod announcements were seen as a relative "non-event," analysts are still high on Apple stock, predicting that the hardware maker will continue to perform well in a down economy.
Wall Street watchers have sent out their reports in response to Apple's media event Wednesday. Here is a sampling of what they have to say:
PiperJaffray
Senior Research Analyst Gene Munster said that Wednesday's announcements were a "non-event," though he said the return of company co-founder Steve Jobs to the stage was a welcome event.
As for the products themselves, Munster said the iPod touch price cuts were a "slight disappointment," as was the lack of a camera on the device.
"We were expecting a new iPod touch model with a video camera, which Apple did not announce," he said. "The lack of a camera may be due to last-minute quality issues, or it may also be a strategic decision to differentiate the nano from the touch, and the touch from the iPhone. Ultimately we see the lack of a camera in the touch as a move to push users toward the iPhone and drive purchases of multiple devices per customer by segmenting the product lines."
In addition, Apple announced Wednesday that it has sold over 30 million iPhones to date. Munster said that means that the September quarter is tracking the way he expected it would, as the numbers imply sales of over 3.6 million so far in the quarter. The analyst believes Apple will sell 7 million iPhones for the period.
He has maintained an overweight rating for AAPL stock with a price target of $186.
Caris & Company
Analyst Robert Cihra continues to see the iPod touch as the "ace up Apple's sleeve." He predicts that the iPod will account for 23 percent of Apple's revenue in the 2009 fiscal year, and believes the iPod touch will grow to 10 percent of the company's total revenue. He said the iPod touch has a unique product angle that competitors can't offer, especially given the fact that Apple is promoting the device as a game player, in addition to a media player.
Among the other lineup changes, including a camera-equipped iPod nano and a $59 iPod shuffle, Cihra said the iPod touch is still the standout product.
He believes Apple will refresh its MacBook lineup in the December quarter, given that in June most of the lineup was moved to the unibody "Pro" category. That prediction corroborates with information relayed to AppleInsider that Apple will retain and redesign its low-end plastic MacBook family. Cihra predicts that the new MacBooks could have an entry price $100 lower than the $999 offering sold today.
Caris & Company has reiterated its buy recommendation for AAPL stock, with a price target of $200.
Needham & Co.
Analyst Charlie Wolf said that Steve Job's first public appearance since his liver transplant helps to maintain a strong buy rating for AAPL stock. He has maintained his price target of $200.
Wolf, in the past, has been critical of the App Store layout for the iPhone and iPod touch. With Wednesday's new Genius recommendation feature in iPhone OS 3.1, some of the analyst's concerns have been addressed.
"The most significant new feature, in our opinion, is 'Genius Recommendation for Apps,'" Wolf said. "Genius recommends new applications to users based on the ones they've already purchased. Discovery is a critical component in Apple's efforts to build its developer community and, in turn, the number of applications on the App Store."
Wolf believes that the biggest risk for Apple going forward is macroeconomic, particularly in how PC sales in general fare in a slumping economy.
RBC Capital Markets
Apple showed there is still life in the iPod line, analyst Mike Abramsky said in his latest note to investors. He believes that the iPod touch and iPhone offer a significant upgrade opportunity for consumers -- which is positive, because those products carry higher margins.
"The touch at $199 should help sales momentum for consumers seeking apps and browsing on a portable device, but the absence of a camera (possibly owing to quality issues) remains a drawback vs. iPhone and nano," he said.
Prior to this week's event, AppleInsider received word that technical issues with bad hardware could nix the inclusion of a camera in the iPod touch. Up until that point, mounting evidence had suggested that the camera was a foregone conclusion.
Abramsky said that Jobs' announcement of 30 million iPhones in a little over two years could signal that Apple will fall short of fourth-quarter sales projections. However, he said the company tends to round off its figures at keynotes. Given that, he has maintained a prediction that the company will sell 7.2 million for the quarter.
RBC Capital Markets has maintained its outperform rating for AAPL stock, based on four points: innovation across its entire line of products, higher margins than its peers, the growing iPhone market share, and what Abramsky calls Apple's VIP, or "Valuation Innovation Premium."
Wall Street watchers have sent out their reports in response to Apple's media event Wednesday. Here is a sampling of what they have to say:
PiperJaffray
Senior Research Analyst Gene Munster said that Wednesday's announcements were a "non-event," though he said the return of company co-founder Steve Jobs to the stage was a welcome event.
As for the products themselves, Munster said the iPod touch price cuts were a "slight disappointment," as was the lack of a camera on the device.
"We were expecting a new iPod touch model with a video camera, which Apple did not announce," he said. "The lack of a camera may be due to last-minute quality issues, or it may also be a strategic decision to differentiate the nano from the touch, and the touch from the iPhone. Ultimately we see the lack of a camera in the touch as a move to push users toward the iPhone and drive purchases of multiple devices per customer by segmenting the product lines."
In addition, Apple announced Wednesday that it has sold over 30 million iPhones to date. Munster said that means that the September quarter is tracking the way he expected it would, as the numbers imply sales of over 3.6 million so far in the quarter. The analyst believes Apple will sell 7 million iPhones for the period.
He has maintained an overweight rating for AAPL stock with a price target of $186.
Caris & Company
Analyst Robert Cihra continues to see the iPod touch as the "ace up Apple's sleeve." He predicts that the iPod will account for 23 percent of Apple's revenue in the 2009 fiscal year, and believes the iPod touch will grow to 10 percent of the company's total revenue. He said the iPod touch has a unique product angle that competitors can't offer, especially given the fact that Apple is promoting the device as a game player, in addition to a media player.
Among the other lineup changes, including a camera-equipped iPod nano and a $59 iPod shuffle, Cihra said the iPod touch is still the standout product.
He believes Apple will refresh its MacBook lineup in the December quarter, given that in June most of the lineup was moved to the unibody "Pro" category. That prediction corroborates with information relayed to AppleInsider that Apple will retain and redesign its low-end plastic MacBook family. Cihra predicts that the new MacBooks could have an entry price $100 lower than the $999 offering sold today.
Caris & Company has reiterated its buy recommendation for AAPL stock, with a price target of $200.
Needham & Co.
Analyst Charlie Wolf said that Steve Job's first public appearance since his liver transplant helps to maintain a strong buy rating for AAPL stock. He has maintained his price target of $200.
Wolf, in the past, has been critical of the App Store layout for the iPhone and iPod touch. With Wednesday's new Genius recommendation feature in iPhone OS 3.1, some of the analyst's concerns have been addressed.
"The most significant new feature, in our opinion, is 'Genius Recommendation for Apps,'" Wolf said. "Genius recommends new applications to users based on the ones they've already purchased. Discovery is a critical component in Apple's efforts to build its developer community and, in turn, the number of applications on the App Store."
Wolf believes that the biggest risk for Apple going forward is macroeconomic, particularly in how PC sales in general fare in a slumping economy.
RBC Capital Markets
Apple showed there is still life in the iPod line, analyst Mike Abramsky said in his latest note to investors. He believes that the iPod touch and iPhone offer a significant upgrade opportunity for consumers -- which is positive, because those products carry higher margins.
"The touch at $199 should help sales momentum for consumers seeking apps and browsing on a portable device, but the absence of a camera (possibly owing to quality issues) remains a drawback vs. iPhone and nano," he said.
Prior to this week's event, AppleInsider received word that technical issues with bad hardware could nix the inclusion of a camera in the iPod touch. Up until that point, mounting evidence had suggested that the camera was a foregone conclusion.
Abramsky said that Jobs' announcement of 30 million iPhones in a little over two years could signal that Apple will fall short of fourth-quarter sales projections. However, he said the company tends to round off its figures at keynotes. Given that, he has maintained a prediction that the company will sell 7.2 million for the quarter.
RBC Capital Markets has maintained its outperform rating for AAPL stock, based on four points: innovation across its entire line of products, higher margins than its peers, the growing iPhone market share, and what Abramsky calls Apple's VIP, or "Valuation Innovation Premium."
Comments
Apple appears to have been aware of the weakness of its efforts in regards to the Touch in that an awful lot of yesterday's keynote came across as a glorified ad for the Touch.
My belief going into the presentation is that the Touch is due for an upgrade that involves a bigger screen. After all, the Touch, as Apple spent a lot of time pointing out, has become a browser/gaming platform/video player. All of those would be more enjoyable on a bigger screen and there is room to provide more screen real estate without significantly compromising the Touch's portability.
The catch, from Apple's perspective, is that the Touch form factor is ideal for the iPhone and to offer a Touch with a larger form factor would increase development costs. Cost is an issue but I can't help but conclude that the Touch is a compromised product because it is so closely linked with the iPhone.
To me, what works with the iPhone is less appropriate for what Apple itself notes the Touch has morphed into.
Apple is progressively upping the ante with the Nano's screen getting larger with each generation. Why, one wonders, isn't something similar happening with the Touch. By leaving the Touch unaltered, it restricts where the Nano can go over the long haul.
It doesn't have to be all that drastic an increase in size. Even adding an inch to the Touch would help differentiate it from the Nano and produce a device better suited to being a netbook alternative.
On the other hand, the Touch upgrade announced yesterday is so lame a few months from now Apple could easily bring out a new version and no one would wonder why.
Although Wednesday's iPod announcements were seen as a relative "non-event," ...
As a long time Apple user and watcher, what I find ironic is how apologetic these analysts are being.
I love Apple, but truly they've never under-performed as much as they are right now, they have never made as many mistakes, slip-ups, missed deadlines, and product defects as they have right now. Their typically stellar (award winning in fact), performance on the supply chain has never been as bad as it is now (and it's really, really quite awful lately).
Yet the stock price has never been higher, the targets from the analysts never more optimistic, and the praise never as lavish as it is now.
All through the years when Apple was performing with laser-like precision and had products and staff that outperformed giants like Microsoft, these same analysts held Apple's stock value in the basement and criticised them at every step (when they noticed them at all). Now Apple screws up left, right, and centre and they can do no wrong in the analysts eyes.
Wednesday's iPod announcements were seen as a relative "non-event," ...
Now that's an understatement if ever there was one. Apple has reached a point where they have a product line like any other electronics company in which all they need to do is release this years model with a press release. Especially for iPods. Unless its a new product like the iTab- why bother?
Does anyone recall Sony having such hoopla in all its years of turning out model after model of Walkmen?
A VERY disappointing "event," with nothing to compel an upgrade.
It's a little strange that Apple has chosen to do an underwhelming update of the Touch considering the major overhaul of the Nano.
Apple appears to have been aware of the weakness of its efforts in regards to the Touch in that an awful lot of yesterday's keynote came across as a glorified ad for the Touch.
My belief going into the presentation is that the Touch is due for an upgrade that involves a bigger screen. After all, the Touch, as Apple spent a lot of time pointing out, has become a browser/gaming platform/video player. All of those would be more enjoyable on a bigger screen and there is room to provide more screen real estate without significantly compromising the Touch's portability.
The catch, from Apple's perspective, is that the Touch form factor is ideal for the iPhone and to offer a Touch with a larger form factor would increase development costs. Cost is an issue but I can't help but conclude that the Touch is a compromised product because it is so closely linked with the iPhone.
To me, what works with the iPhone is less appropriate for what Apple itself notes the Touch has morphed into.
Apple is progressively upping the ante with the Nano's screen getting larger with each generation. Why, one wonders, isn't something similar happening with the Touch. By leaving the Touch unaltered, it restricts where the Nano can go over the long haul.
It doesn't have to be all that drastic an increase in size. Even adding an inch to the Touch would help differentiate it from the Nano and produce a device better suited to being a netbook alternative.
On the other hand, the Touch upgrade announced yesterday is so lame a few months from now Apple could easily bring out a new version and no one would wonder why.
steve jobs addresses your ipod-touch concerns with a david pogue interview yesterday >>>
It seems there;s a new fork in the road like the ipod classic slowly improves yet is an important back water product and all the other pods continue to grow >>and then then the touch/iphone became a new fork in the pod road
the touch has frozen as a game player/WIFI device with faster gpu,memory and price is where steve wants to improve . The app store's is where new things will show up on the touch
That leaves open a new high end device for the all in one crowd that don't want to make phone calls but want the rest of iphone stuff .
A tablet ?? i dunno
i feel steve wants to make a NEW APP store for a new netbook/tablet device that runs a lite version of osx . It will be an ever increasing all in one device platform with different sizes from tablet>book reader 10 x6 in size down to a doctors lab coat pocket 8x6 in size .
or i am completely wrong and the touch will get a camera .
yet I SEE a MIFI TOUCH COMING
and i see A STRIPPED DOWN NANO PHONE COMING with no carrier needed ,pay as you go
9
i talk too much lately
grrr
As a long time Apple user and watcher, what I find ironic is how apologetic these analysts are being.
I love Apple, but truly they've never under-performed as much as they are right now, they have never made as many mistakes, slip-ups, missed deadlines, and product defects as they have right now. Their typically stellar (award winning in fact), performance on the supply chain has never been as bad as it is now (and it's really, really quite awful lately).
Yet the stock price has never been higher, the targets from the analysts never more optimistic, and the praise never as lavish as it is now.
All through the years when Apple was performing with laser-like precision and had products and staff that outperformed giants like Microsoft, these same analysts held Apple's stock value in the basement and criticised them at every step (when they noticed them at all). Now Apple screws up left, right, and centre and they can do no wrong in the analysts eyes.
Actually, on Dec.28 /07 Apple's stock was at 199.83 ..... As well, all the recent customer satisfaction reports that I've seen still rate Apple way ahead of it's rivals. I think you're an example of the problem Apple faces ..... they've set the bar so high with past performances that anything less than perfection (an unrealistic expectation) seems to disappoint ... I, for one, will choose to cut them some slack. Just consider how hard it must be to keep up with their incredible growth with iPhone and App store alone. not to mention what they have to do on R & D. ..... Nice to see SJ back, eh?
This happens after every iPod refresh, and arguably, after most of Apple's other product refreshes. Then a few months later we all look back and are forced to concede that it was a smart move after all. And then the cycle begins again.
Apple promised unspecified updates. That's all. And that's all we got.
Once again the tech community on the ass-end of the internet proves to be its own worst enemy. Meanwhile SJ and board members are probably sitting around the baoardroom table munching on their watercress sandwiches and sushi having a good laugh.
Apple did nothing wrong here. The entire iPod line got better, meanwhile the competition is still either non-existent or just floundering. Apple's numbers, quarterly, yearly, all the reports, tell the tale.
Jokes on all of you.
- Over a billlion streams on YouTube a day
- More that 100 million Nano's sold to date
- The Apple Nano is the most popular music player in the world
Job's statements worth considering. Ref: Apple Special Event September 2009. Minute 56:44?*- "?this market has really exploded."
- "And we want to get in on it."
- "?we are going to start off?"
Prediction: The new Nano will- continue to be the most popular music player in the world.
- be one of the hottest wishes this Christmas
- drive over two billion streams within its first year
- be used seriously for recording class lectures, meetings, etc., like never before
- be the precursor to the iPod touch video camera
- be just the tip of the iceberg of what will come
- be the precursor to a new market
Boring?- Not to the 6 billion or so that don't even have a digital music player
- Not for those who don't know what to get little Johnny for Christmas, birthday, etc.
- Not for the 6 billion or so that didn't watch, or hear/read about the event.
- Not for the competition or photocopiers
The Best Part of All: The return of Steve Jobs- Healthier
- Who can bore me anytime he wants
* http://events.apple.com.edgesuite.ne...rnal=ijalrmacuSteve is back !!!
THE classic is saved and at sweet 160g size
The nano has fm / video/ mic
The world can now afford the touch
and the two top models are now faster
and more gigs ,
New itunes store SW
And dozens of minor stuff
plus WE NOW HAVE lean mean snowy .
Yes the rumour mills worked overtime
I am thrilled with the show and all ther great improvements
A cheap mass market nano phone is coming
And a lab coat sized 9x6 tablet will be here soon also .
The beatles must come too the itunes only the greed of apple corps is stopping this .
The coming video deluge with the new nano will be a culture changing event . Many missed unique moments will now be caught on video. No one will ever be safe again with 20 million of these around .
9
Most of you got taken in by all the rumours.
This happens after every iPod refresh, and arguably, after most of Apple's other product refreshes. Then a few months later we all look back and are forced to concede that it was a smart move after all. And then the cycle begins again.
Apple promised unspecified updates. That's all. And that's all we got.
Once again the tech community on the ass-end of the internet proves to be its own worst enemy. Meanwhile SJ and board members are probably sitting around the baoardroom table munching on their watercress sandwiches and sushi having a good laugh.
Apple did nothing wrong here. The entire iPod line got better, meanwhile the competition is still either non-existent or just floundering. Apple's numbers, quarterly, yearly, all the reports, tell the tale.
Jokes on all of you.
Fact:
- Over a billlion streams on YouTube a day
- More that 100 million Nano's sold to date
- The Apple Nano is the most popular music player in the world
Job's statements worth considering. Ref: Apple Special Event September 2009. Minute 56:44?*- "?this market has really exploded."
- "And we want to get in on it."
- "?we are going to start off?"
Prediction: The new Nano will- continue to be the most popular music player in the world.
- be one of the hottest wishes this Christmas
- drive over two billion streams within its first year
- be used seriously for recording class lectures, meetings, etc., like never before
- be the precursor to the iPod touch video camera
- be just the tip of the iceberg of what will come
- be the precursor to a new market
Boring?- Not to the 6 billion or so that don't even have a digital music player
- Not for those who don't know what to get little Johnny for Christmas, birthday, etc.
- Not for the 6 billion or so that didn't watch, or hear/read about the event.
- Not for the competition or photocopiers
The Best Part of All: The return of Steve Jobs- Healthier
- Who can bore me anytime he wants
* http://events.apple.com.edgesuite.ne...rnal=ijalrmacu2 great posts that say it better than me
9
steve jobs addresses your ipod-touch concerns with a david pogue interview yesterday >>>
It seems there;s a new fork in the road like the ipod classic slowly improves yet is an important back water product and all the other pods continue to grow >>and then then the touch/iphone became a new fork in the pod road
the touch has frozen as a game player/WIFI device with faster gpu,memory and price is where steve wants to improve . The app store's is where new things will show up on the touch
That leaves open a new high end device for the all in one crowd that don't want to make phone calls but want the rest of iphone stuff .
A tablet ?? i dunno
i feel steve wants to make a NEW APP store for a new netbook/tablet device that runs a lite version of osx . It will be an ever increasing all in one device platform with different sizes from tablet>book reader 10 x6 in size down to a doctors lab coat pocket 8x6 in size .
or i am completely wrong and the touch will get a camera .
yet I SEE a MIFI TOUCH COMING
and i see A STRIPPED DOWN NANO PHONE COMING with no carrier needed ,pay as you go
9
i talk too much lately
grrr
I can understand Apple not including a camera and, frankly, who needs another mediocre video device? I also understand that Apple is working on holding the line on prices considering the current economic climate.
But over the long haul, the Touch needs to evolve. To me, if the idea is for it to be more of a pocketable computer, then a bigger screen is a logical upgrade. Not bigger as in 10" but bigger than the current model. To do this Apple would have to develop the Touch on a track independent of the iPhone but this is what Apple should do. The Touch needs to be something more than an iPhone minus the phone.
I can understand Apple not including a camera and, frankly, who needs another mediocre video device? I also understand that Apple is working on holding the line on prices considering the current economic climate.
But over the long haul, the Touch needs to evolve. To me, if the idea is for it to be more of a pocketable computer, then a bigger screen is a logical upgrade. Not bigger as in 10" but bigger than the current model. To do this Apple would have to develop the Touch on a track independent of the iPhone but this is what Apple should do. The Touch needs to be something more than an iPhone minus the phone.
iPhone. Total device convergence. In time, it will kill the Touch and all other phoneless devices like it. If Apple releases a tablet in the near future and if it will be the game-changer everyone expects oit to be, the iPod Touch will die a lot sooner.
As a long time Apple user and watcher, what I find ironic is how apologetic these analysts are being.
I love Apple, but truly they've never under-performed as much as they are right now, they have never made as many mistakes, slip-ups, missed deadlines, and product defects as they have right now. Their typically stellar (award winning in fact), performance on the supply chain has never been as bad as it is now (and it's really, really quite awful lately).
Yet the stock price has never been higher, the targets from the analysts never more optimistic, and the praise never as lavish as it is now.
All through the years when Apple was performing with laser-like precision and had products and staff that outperformed giants like Microsoft, these same analysts held Apple's stock value in the basement and criticised them at every step (when they noticed them at all). Now Apple screws up left, right, and centre and they can do no wrong in the analysts eyes.
Utter rubbish!
A snooze fest through and through. Something seems fishy that a 16GB touch wasn't offered at a lower price point.
A VERY disappointing "event," with nothing to compel an upgrade.
The don't upgrade.
50% of iPod buyers are new purchasers, so they will be even more interested now.
It is not all about you!
I love Apple, but truly they've never under-performed as much as they are right now, they have never made as many mistakes, slip-ups, missed deadlines, and product defects as they have right now.
Dude! Put down the crack pipe and calm down.
Or, alternatively, take another big hit, then motor on over to Best Buy and pick up a nice HP machine for a "great" price (featuring Winblows, of course), and one of those awesome Zune players, and then do another reality check.
I love Apple, but truly they've never under-performed as much as they are right now, they have never made as many mistakes, slip-ups, missed deadlines, and product defects as they have right now. Their typically stellar (award winning in fact), performance on the supply chain has never been as bad as it is now (and it's really, really quite awful lately).
I have no idea what you're referring to.
Apple in fact, has never done better. The rate of updaets and product rollouts have been at a pretty blistering pace.
What defects? Which product? Alleged by whom?
Missed deadlines? Snow Leopard was early. Brand new kernel, fully 64-bit. problems were no greater than with Leopard. Apple was quick to release a point update back then as well.
Only issue is that demand is so high Apple has to keep up.
Or is this all about that stupid camera Apple never promised for the Touch?
Hate to break it to ya, but Apple knows EXACTLY what they're doing - what to do, and when to do it. Like I said a few months ago, wait for the next quarterly report to tell the tale.
Main problem: WE ARE SPOILED. And we just want more, and we want it right now, and we'll whine endlessly to get it.