With most major companies already using iOS, Piper Jaffray doesn't see IBM deal surging Apple sales

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Comments

  • Reply 21 of 97
    constable odoconstable odo Posts: 1,041member
    Quote:

    Originally Posted by fjose1929 View Post



    This from a guy who ups amzn eStimates to $420.



    Just shows you which way he wants the stock to trade the next two weeks. Come blowout earnings let us see what he does. If successful in getting cover for the price machinist ions,he may go the other way.



    Probably smarting from not being privy to the deal. Meanwhile amazon will earn in the next 50 years nothing close to what apple will earn in a year.



    I kind of suspected that Wall Street would play down this deal.  I'm starting to believe that there isn't anything Apple can do to significantly move the share price the way Google, Amazon or Netflix would move.  Apple would likely have to double its revenue or something nearly else as impossible to impress Wall Street.  It's pretty obvious that neither Google or Amazon are going to have to earn their P/Es as Apple does.  I'm certain Google can't double its revenue and it would be even harder for them if Apple built its own search engine to replace Google's.  Let's face it, Wall Street is not going to give Apple a P/E of 17 or 18 and there's something insidious about that.  Tim Cook is doing an excellent job but Wall Street keeps going on about innovation not being there but never quite explaining what type of innovation they're demanding.  Maybe they're expecting Apple to successfully develop fuel cells for computers where most every other company in the world has failed at building economical fuel cells in almost every application possible.  I think expectations for Apple are nearly impossibly high for the top tech company in the world.  This enterprise move would seem to give Apple full credence as being a company that makes useful devices for the enterprise and business world, but Munster says it's no big deal, so maybe I'm missing something.

  • Reply 22 of 97

    There is a difference between "being tested or deployed" at 92% of G500 corps, and "being purchased as a standard" by 92% of G500 corps.  You can "test" using between one and 100 units.  But when you standardize on it, you're buying orders of magnitude more.  I believe PJ is completely wrong on this.  I have seen salespeople walking around, struggling with goofy Surface tablets. But with IBM's enterprise software, these folks will quickly shift to iPads.  Microsoft is going to be the loser here.  And while it wasn't voiced, I expect that IBM will be working with Apple to produce a truly functional suite of iWork apps, since you can be sure that Microsoft won't put much effort into their existing bloatware.

     

    I think AI has it right in the title of this article "Piper Jaffray doesn't see IBM deal surging Apple sales".  

     

    The key phrase being that "Piper Jaffray doesn't see".

  • Reply 23 of 97
    mpantonempantone Posts: 2,022member

    Munster's track record is so poor that one should bet against what he says, rather than believe him.

     

    Clearly, the Apple rumor sites love quoting him, but it's essentially a grave disservice to the readership to mention him.

  • Reply 24 of 97
    addicted44addicted44 Posts: 830member
    Quote:

    Originally Posted by sog35 View Post

     

     

    Wrong again.

     

    Munester gives an example that a Fortune 500 company would buy 3,000 iOS devices.  WRONG.  A complete roll out would be TENS of THOUSANDS of devices.

     

    Second there are way more than 500 companies that Apple/IBM is targeting with this.  IBM has over 100,000 sales staff/implementation staff.  You think they are only selling to 500 companies?




    You are ignoring the fact that iOS ALREADY is in those 500 companies, doing pilot operations. The real question you have to ask with regards to this partnership's effect on the stock (which Muenster is trying to determine) is which of those rollouts would have not happened without IBM.

     

    In addition, even if you assume 1000 cos rollout 10000 iOS devices BECAUSE of the IBM partnership (i.e. they wouldn't have done it if it was Apple only) within the next year, then that is still only 10mn additional sales for Apple.

     

    IBM has 100000 sales/implementation people because they don't make money by reselling devices. They make tons of money in consulting and by selling software and services. As an example, their Application Lifecycle Management tool costs something like $1000/user/month. That's like selling 2 iPhones per employee per month in revenues, and something like 4 iPhones in terms of profits.

     

    This is a great partnership for both, because this makes IBM the preferred choice for services for any company which wants to have an iOS based stack, and it is great for Apple because it suddenly makes it as strong a player in the Enterprise as a Microsoft, at least from a perception perspective. Great partnership for the long term, but one that is unlikely to affect the numbers in the short term.

  • Reply 25 of 97

    In no way is IBM looking to have an iOS window into the impressive amount of solutions that IBM is already selling based on DB2 / WebSphere and their AIX and Mainframe business, where these companies already have all their data.

     

    Nope.  That's not what their after at all.  They certainly aren't using this as a play to keep people from moving to Oracle or Microsoft.

     

     

    (the previous post may have been drenched in sarcasm.)

  • Reply 26 of 97
    Quote:

    Originally Posted by sog35 View Post

     

     

    You are absolutely wrong.

     

    This IBM deal could setup a huge movement to electronic payments with TouchID/iBeacons.  IBM does a ton of POS systems for massive companies.  That one aspect alone would move the needle.


    All due respect to Blasty...I agree with you on this sog. IBM has the cred. to go into any firm and say everyone should have an iPhone, iPad and Mac today and it would increase efficiency 10x's within a week.

  • Reply 27 of 97
    zoetmbzoetmb Posts: 2,652member
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  • Reply 28 of 97
    ralphmouthralphmouth Posts: 192member

    How is this turd still employed when his forecasts have been wrong so many times? 

  • Reply 29 of 97
    rogifanrogifan Posts: 10,669member
    What's incredibly annoying is Wall Street keeps moaning about Apple needing new product categories, new revenue streams yet the only thing that seems to move the stock is iPhone. Apple announces this huge deal with IBM and Wall Street basically shrugs. Stock up less than 1%. :rolleyes:
  • Reply 30 of 97
    Every garden needs a little rain to flourish. Muenster has a point of view worth consideration. It is probably, however, a major turning point in Apple's development towards being THE major developer and supplier of business and lifestyle information systems and hardware. Apple is already in the systems game. When you buy an Apple computer, iPad or iPhone, you aren't just buying a box, you are buying into a whole system. A doorway into the 21st Century info tech world.
  • Reply 31 of 97
    rs9rs9 Posts: 68member
    Many here are missing the point. It's not about the hardware. It's about the "Enterprise" software. Imagine the possibilities of Apple becoming involved in IBM's ecosystem.
  • Reply 32 of 97
    MacProMacPro Posts: 19,693member
    sog35 wrote: »
    You are absolutely wrong.

    This IBM deal could setup a huge movement to electronic payments with TouchID/iBeacons.  IBM does a ton of POS systems for massive companies.  That one aspect alone would move the needle.

    Agreed, plus there's a major push into digital data and patient access through portals coming to the US health system soon. I have to believe this will help Apple and I suspect Oracle also favors Apple of they who shall not be named.
  • Reply 33 of 97
    SpamSandwichSpamSandwich Posts: 33,407member
    greatrix wrote: »
    Every garden needs a little rain to flourish. Muenster has a point of view worth consideration. It is probably, however, a major turning point in Apple's development towards being THE major developer and supplier of business and lifestyle information systems and hardware. Apple is already in the systems game. When you buy an Apple computer, iPad or iPhone, you aren't just buying a box, you are buying into a whole system. A doorway into the 21st Century info tech world.

    Gene Munster is more like a swarm of aphids.
  • Reply 34 of 97
    MacProMacPro Posts: 19,693member
    sog35 wrote: »
    Apple is up 57% last 12 months
    Apple is up 20% YTD

    Goog  is up 29% last 12 months
    Goog  is up 7% YTD

    AMZN is DOWN 10% YTD

    but go ahead and keep spewing your non sense

    Exactly! You have to wonder where so many folks negative on Apple actually get their information?
  • Reply 35 of 97
    blastdoorblastdoor Posts: 3,209member
    Quote:

    Originally Posted by sog35 View Post

     

     

    You are absolutely wrong.

     

    This IBM deal could setup a huge movement to electronic payments with TouchID/iBeacons.  IBM does a ton of POS systems for massive companies.  That one aspect alone would move the needle.


     

    No, it really wouldn't. Mobile payments is a feature, not a product. 

     

    The needle moves on the stock price when more iPhones, iPads, Macs, or some new product (iWatch maybe) are sold. This IBM deal makes those products more appealing to business users, but many of those business users were going to buy Apple products anyway. 

     

    Say adding these new features increases iPhone sales by 1 million a year --- that's less than a 1% increase. Nice to have, but the stock isn't going up more than 1% as a result. 

  • Reply 36 of 97
    blastdoorblastdoor Posts: 3,209member
    Quote:

    Originally Posted by ClemyNX View Post

     

     

    Most companies use iOS. That doesn't mean that they exclusively use iOS.

    Apple has a huge growth opportunity here.


    They have a growth opportunity. But it's not clear at all that it's a huge growth opportunity. 

     

    In the absence of this deal, Apple was probably going to cross the 200 million unit mark in annual iPhone sales next year or the year after that anyway. Increasing iPhone sales another 1% means 2 million more iPhone sales per year. I think that's the most one could hope for from this deal and it just isn't that much compared to Apple's overall size. 

     

    Don't get me wrong -- I think it's a nice deal that makes sense to do. It's good for Apple. But some of you guys are just not grasping how big Apple has become and how much it takes to move the needle on profits and stock price. In 2007 this deal would have been enormously important. Today it's just not. 

  • Reply 37 of 97
    Quote:

    Originally Posted by digitalclips View Post





    Exactly! You have to wonder where so many folks negative on Apple actually get their information?

     

    From the fact that last year at this time Apple was down 40% from its high of $100.

     

    The stock market is not based upon YTD or 12 month performance.

  • Reply 38 of 97
    blastdoorblastdoor Posts: 3,209member
    Quote:

    Originally Posted by digitalclips View Post





    Agreed, plus there's a major push into digital data and patient access through portals coming to the US health system soon. I have to believe this will help Apple and I suspect Oracle also favors Apple of they who shall not be named.

    iPads are already all over the health system. I've had more contact with the health system lately than what I would like, and I see them everywhere. 

     

    This deal adds some nice capabilities to devices that businesses are already buying. This is adding features to an existing product. It's second order. 

  • Reply 39 of 97
    jungmarkjungmark Posts: 6,926member
    Gene says (off the record): " you know what'll move Apple's gauge? an IBM-Apple partnership on an Apple TV set for biz. Predicting 50 MM Apple-IBM TV sets in first year. "
  • Reply 40 of 97
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