Apple upgraded by UBS, seen launching new integrated service
Less bullish on Apple stock than other investors recently, UBS Investment Research has had a change of heart this week, and upgraded its long-term recommendation from neutral to buy.
Analyst Maynard Um had issued a new price target of $265 for AAPL stock, up from $170. The improvement is based on the strength of the iPhone platform, as well as a push toward integrated services across the company's entire line of products.
"We believe AAPL may be working on building out a foundation for a service to provide seamless access & mobility of digital content across all of its products," Um wote. "We envision a service that seamlessly allows access to media-focused content of iTunes & user-generated content of MobileMe (pictures/videos/email/caleendar) as well as social networking integration from any existing Apple product."
By tying users in to Apple services, he believes that the company will draw consumers to purchase other products. Essentially, it's the iPod "halo effect" taken to the next level.
Um said that Apple's capital expenditures related to infrastructure and corporate facilities has been growing steadily every year. That number hit $702 million in 2008, Um estimated will be $840 million in Apple's 2009 fiscal year -- both well up from the $128 million spent in 2005.
"We believe a material portion of (these capital expenditures) may be related to the size out of a data center/network operating center (NOC) which we hypothesize will be the foundation for a service that provides seamless access and mobility of digital content across all its products, at any time, and from any place," he said.
The UBS upgrade also stems from high expectations for the iPhone. Um sees recurring hardware revenue from an expanding install base and "stickiness" of the App Store with consumers. Um now believes that Apple will ship 36 million phones in its 2010 fiscal year, up from a previous prediction of 25.9 million.
Margins for iPods are expected to be above 20 percent, Mac margins in the high 30 percent range, and iPhone margins above 40 percent.
Um also said he sees more products on the way from Apple, namely a data-only product at Verizon and a tablet. The report suggested that the new Verizon hardware could be a "smart book." Um also sees the iPhone being made available on additional carriers in the next year, and an upcoming refresh to the Mac desktop line.
After Apple reported a record third quarter this summer, UBS was not as enthusiastic about the company's stock as other analysts. The firm, at that point, maintained its neutral rating.
In August, Um upgraded the recommendation to a short-term buy, based on MacBook Pro and iPod refreshes and iPhone 3GS expansion. At the time, the long-term forecast remained neutral based on global economic weakness.
Analyst Maynard Um had issued a new price target of $265 for AAPL stock, up from $170. The improvement is based on the strength of the iPhone platform, as well as a push toward integrated services across the company's entire line of products.
"We believe AAPL may be working on building out a foundation for a service to provide seamless access & mobility of digital content across all of its products," Um wote. "We envision a service that seamlessly allows access to media-focused content of iTunes & user-generated content of MobileMe (pictures/videos/email/caleendar) as well as social networking integration from any existing Apple product."
By tying users in to Apple services, he believes that the company will draw consumers to purchase other products. Essentially, it's the iPod "halo effect" taken to the next level.
Um said that Apple's capital expenditures related to infrastructure and corporate facilities has been growing steadily every year. That number hit $702 million in 2008, Um estimated will be $840 million in Apple's 2009 fiscal year -- both well up from the $128 million spent in 2005.
"We believe a material portion of (these capital expenditures) may be related to the size out of a data center/network operating center (NOC) which we hypothesize will be the foundation for a service that provides seamless access and mobility of digital content across all its products, at any time, and from any place," he said.
The UBS upgrade also stems from high expectations for the iPhone. Um sees recurring hardware revenue from an expanding install base and "stickiness" of the App Store with consumers. Um now believes that Apple will ship 36 million phones in its 2010 fiscal year, up from a previous prediction of 25.9 million.
Margins for iPods are expected to be above 20 percent, Mac margins in the high 30 percent range, and iPhone margins above 40 percent.
Um also said he sees more products on the way from Apple, namely a data-only product at Verizon and a tablet. The report suggested that the new Verizon hardware could be a "smart book." Um also sees the iPhone being made available on additional carriers in the next year, and an upcoming refresh to the Mac desktop line.
After Apple reported a record third quarter this summer, UBS was not as enthusiastic about the company's stock as other analysts. The firm, at that point, maintained its neutral rating.
In August, Um upgraded the recommendation to a short-term buy, based on MacBook Pro and iPod refreshes and iPhone 3GS expansion. At the time, the long-term forecast remained neutral based on global economic weakness.
Comments
After Apple reported a record third quarter this summer, UBS was not as enthusiastic about the company's stock as other analysts. The firm, at that point, maintained its neutral rating.
....."stickiness" of the App Store.....
Has Apple allowed porn in the App Store now?
Clown.
...seamless access & mobility of digital content across all of its products,"...seamlessly allows access to media-focused content of iTunes & user-generated content of MobileMe... seamless access and mobility of digital content across all its products, at any time, and from any place,"
This reminds me of that video of Jobs and Schiller using all the same words at that presentation
Um also said he sees more products on the way from Apple, namely a data-only product at Verizon and a tablet. The report suggested that the new Verizon hardware could be a "smart book."
AND A TABLET??!?! Apple is going to release a Smart book AND a Tablet.
This guy is so clueless.
Apple would never release two major new products at the same time.
Why didn't Apple release the iPhone and the iPod touch at the same time?
Why did they wait till after they sold a couple million iPhones to say "oh by the way we have a cheaper product that is similar and doesn't require selling your soul to AT&T."
CLUE #1: Apple is going to release a Tablet.
CLUE #2: It will require a data contract with Verizon.
Sounds like someone has infiltrated the new server farm in NC.
Yeah, they are sitting in the middle of a field, gathering important, long term plans of Apple.
CLUE #1: Apple is going to release a Tablet.
CLUE #2: It will require a data contract with Verizon.
No it will not. And who are Verizon btw?
If you think Apple's tablet will "require" a data contract you may not have thought that through. Requiring a data contract for a phone is one thing, but for a tablet just doesn't fit. The simply wouldn't be able to ask consumers for that, there would be too much push back. The tablet itself will be around $999 anyway. At least it will if it's as much a Mac as I think it will be. Decent processor and all that touch screen etc.
What's a data-only product? What's a smart book? What would a data-only smart book be?
Why didn't Apple release the iPhone and the iPod touch at the same time?
Why did they wait till after they sold a couple million iPhones to say "oh by the way we have a cheaper product that is similar and doesn't require selling your soul to AT&T."
In the UK, they released the iPod Touch 3 months before the iPhone.
In the UK, they released the iPod Touch 3 months before the iPhone.
Yes, they often do things backwards in third world countries.
I think Jim Cramer summarized Apple best on one of his Mad Money episodes here:
http://www.thestreet.com/story/10598...nge-final.html
I think Jim Cramer summarized Apple best on one of his Mad Money episodes here:
http://www.thestreet.com/story/10598...nge-final.html
and you listen to ANYTHING Cramer says?
John Stewart nailed him to the toilet.
http://www.thedailyshow.com/full-epi...009-jim-cramer
http://www.huffingtonpost.com/2009/0..._n_174503.html
and you listen to ANYTHING Cramer says?
John Stewart nailed him to the toilet.
http://www.thedailyshow.com/full-epi...009-jim-cramer
http://www.huffingtonpost.com/2009/0..._n_174503.html
It's called the Cramer effect and boy I have made some money on it!
If he says buy it now, RUN AWAY AND SELL SELL SELL (push the button for me).
If he says SELL, you buy it.
Forget what article I read a couple years ago, but they did a MOCK of just that and made more than 3x's the money than taking his advice. It's been working for me. He said to sell Apple at $75, 4 months later it's over 120... Nuff said.
In the UK, they released the iPod Touch 3 months before the iPhone.
You guys/gals get Clarskon into the PM Seat yet?
This is incredible!
CLUE #2: It will require a data contract with Verizon.
Apple has been seriously burned by this ATT thing. no way would they go to bed with anyone else in such a way.
also, at this point Verizon doesn't have LTE up and running, only CDMA and it will likely be that way for another year. but Apple isn't likely to put CDMA in the tablet and have GSM in the phones. more logically they would have the same in all. So Verizon couldn't handle the tablet from a tech point either.
What's a data-only product?
what they mean by that is a device that can access the cell signals but for data only, no voice. which actually can be done if you get an external card. the move is now to have the antenna built in, alongside wifi. typically it means having to add a line to your account cause the card needs a phone number.
It's called the Cramer effect and boy I have made some money on it!
If he says buy it now, RUN AWAY AND SELL SELL SELL (push the button for me).
If he says SELL, you buy it.
Forget what article I read a couple years ago, but they did a MOCK of just that and made more than 3x's the money than taking his advice. It's been working for me. He said to sell Apple at $75, 4 months later it's over 120... Nuff said.
hehe , that doesn't surprise me.