UBS calls Apple 'the Shake Shack of technology,' advises investors to buy in

Posted:
in AAPL Investors edited July 2015
In making its case for investors to buy Apple stock, investment bank UBS this week made an interesting analogy, comparing the iPhone maker to growing fast food restaurant Shake Shack, saying the two companies are responsible for "the era of consumer experience."


The original Shake Shack in Madison Square Park, via Wikipedia.


In a research note issued this week, a copy of which was provided to AppleInsider, analyst Steve Milunovich declared that Apple is "the Shake Shack of technology." In his view, both Apple and Shake Shack take "the oblique approach to creating profits," he said.
UBS analyst Steve Milunovich believes Apple's quick reversal on artist royalties for Apple Music is a sign of Tim Cook's smart leadership.
To drive home his point, Milunovich quoted Shake Shack founder Danny Meyer, who argued that companies like his make "tougher, more expensive choices" that ultimately resonate with consumers, and create a willingness to pay more for products.

"I want to buy food that makes me feel good to be buying it," Meyer said. "I want to do business with companies that make me feel good to be doing business with them. We've reached a critical mass where there's just no going back."

From Apple's perspective, Milunovich cited the company's quick response to critics, including megastar Taylor Swift, who slammed the company for not paying artist royalties during the three-month free trial period for Apple Music. The Cupertino, Calif., company quickly changed course, and in response, as a show of good faith, Swift allowed for her blockbuster album "1989" to be included on the streaming service, while it remains absent from competitors like Spotify.

"The company's quick reversal --?one that is hard seeing (late Apple co-founder Steve) Jobs making --?probably enhanced its brand," Milunovich wrote.

UBS has maintained its "buy" rating for AAPL stock, with a 12-month price target of $150.
«1

Comments

  • Reply 1 of 27
    MacProMacPro Posts: 17,833member
    Was this more about Shake Shack than Apple I wonder, merely using Apple as click bait? It is a ludicrous analogy by any other metric.
  • Reply 2 of 27
    mrrodriguezmrrodriguez Posts: 215member
    Actually Apple hasn't really done much in terms of innovation. It's just people fed up with other manufacturers lack of innovation that has apple as the best thing right now.

    I doubt apple has a true competitor in the near future so apple will most likely be gobbling up close to 70% of smartphone market in the future.

    Get ready for a monopoly coming
  • Reply 3 of 27
    am8449am8449 Posts: 343member
    Quote:

    Originally Posted by digitalclips View Post



    Was this more about Shake Shack than Apple I wonder, merely using Apple as click bait? It is a ludicrous analogy by any other metric.



    I agree. I don't see the similarities at all between Apple and Shake Shack. And neither this article nor the summary of the research note makes any real connection either.

  • Reply 4 of 27
    SpamSandwichSpamSandwich Posts: 30,405member
    Actually Apple hasn't really done much in terms of innovation. It's just people fed up with other manufacturers lack of innovation that has apple as the best thing right now.

    I doubt apple has a true competitor in the near future so apple will most likely be gobbling up close to 70% of smartphone market in the future.

    Get ready for a monopoly coming

    Nah. There will always be plenty of "fast followers" (aka rip offs) of Apple's latest designs.
  • Reply 5 of 27
    agramonteagramonte Posts: 345member

    Well you know crap hit the fan when apple is being used in a same sentence with a fast food place. Super marketed crap food is all shake shack is. They should make an ad with a SS burger, beats headphone and any iOS product. Perfect for the lowest common denominator of society.

     

    And people keep arguing when I say iOS is just the dumbing down of apple. 

  • Reply 6 of 27
    danny602danny602 Posts: 24member
    Except I've never heard of shake shack, who hasn't heard about apple? Definitely a shake shack plug, I expect I'll see one being built close to home very soon.
  • Reply 7 of 27
    SpamSandwichSpamSandwich Posts: 30,405member
    agramonte wrote: »
    Well you know crap hit the fan when apple is being used in a same sentence with a fast food place. Super marketed crap food is all shake shack is. They should make an ad with a SS burger, beats headphone and any iOS product. Perfect for the lowest common denominator of society.

    And people keep arguing when I say iOS is just the dumbing down of apple. 

    It's just a moronic comparison from the point of view of a moronic investor. They may as well have written that Shake Shack was the Apple of fast food joints.
  • Reply 8 of 27
    jungmarkjungmark Posts: 6,590member
    Actually Apple hasn't really done much in terms of innovation. It's just people fed up with other manufacturers lack of innovation that has apple as the best thing right now.

    I doubt apple has a true competitor in the near future so apple will most likely be gobbling up close to 70% of smartphone market in the future.

    Get ready for a monopoly coming

    So much wrong with this comment.

    Shouldn't it be Shake Shack is the Apple of the food industry?
  • Reply 9 of 27
    sirlance99sirlance99 Posts: 1,110member
    Nah. There will always be plenty of "fast followers" (aka rip offs) of Apple's latest designs.

    One day one of those so called followers will surpass Apple. History says that all great companies come and go. Apple will surely stay at the top for sometime into the future but one day will come down. Or is it your thinking that they will stay at the top forever because "Apple"?. Apple was the small fry once as well. Another company can do the same.
  • Reply 10 of 27
    wood1208wood1208 Posts: 1,699member
    Apple is way up in it's own league(may be closet comes Tesla) than shack-shack. No comparison. We all know Apple will keep innovating making our lives better and Shacl-Shack will keep feeding unhealthy food making our lives worse and there is nothing their to innovate in burgers. So, comparison should be 180 degree opposite.
  • Reply 11 of 27
    paxmanpaxman Posts: 4,589member
    sog35 wrote: »
    WTF man.

    No innovation by Apple?  What do  you call iPod, iPhone, iPad, Watch, MacBook Air, App Store, iTunes?  WTF man
    And those are just the banner products under which much of the innovative development work happens. The thoughtless quest for 'innovation' is like when People claim the iPhone is getting old and that Apple needs come out with a completely 'innovative' new version that will 'blow our minds'.
  • Reply 12 of 27
    sirlance99sirlance99 Posts: 1,110member
    sog35 wrote: »
    And 'One day' you will be dead.  Whats your point.

    Why do you have to be so harsh? I was making a simple point. No need for you to come at me like that.
  • Reply 13 of 27
    slurpyslurpy Posts: 5,076member
    Quote:

    Originally Posted by mrrodriguez View Post



    Actually Apple hasn't really done much in terms of innovation. It's just people fed up with other manufacturers lack of innovation that has apple as the best thing right now.



    I doubt apple has a true competitor in the near future so apple will most likely be gobbling up close to 70% of smartphone market in the future.



    Get ready for a monopoly coming

     

    Not sure who you're upset at in your post. Apple, for being so successful and making decisions that has let it fend off the massive number of potential threats it has faced? Other companies, for not managing to take down Apple? Yourself, for consistently being wrong, and an insufferable troll? You sound really confused. I love people like you, who claim to like Apple and their products, but get all frustrated when the company does well, and continually wish and fantasize for their demise. The list of innovations Apple has brought to market, both in software and hardware over the past couple years is too long to list. Of course, wouldn't expect trolls like you to notice. 

  • Reply 14 of 27
    slurpyslurpy Posts: 5,076member
    Quote:

    Originally Posted by agramonte View Post

     

    Well you know crap hit the fan when apple is being used in a same sentence with a fast food place. Super marketed crap food is all shake shack is. They should make an ad with a SS burger, beats headphone and any iOS product. Perfect for the lowest common denominator of society.

     

    And people keep arguing when I say iOS is just the dumbing down of apple. 


     

    Not a word in your absurd statement makes any sense whatsoever. So some random analyst attempts to make a POSITIVE (if misguided) Analogy about Apple, and to you this is evidence that "crap has hit the fan" with Apple, then you go on a random attack against iOS, which is responsible for Apple's explosive growth and the best thing to ever happen to the company? An OS that is 100X more capable, feature filled, and flexible than the one released in 2007 by Steve Jobs? Sorry, what's wrong with you?

     

    Clearly you despise the company and desperately look for any way to bash it, like twisting the words of an analyst and using it to come to some random assertion, you've been hating on and trolling Apple since as long as I can remember- so why do you even post here? 

  • Reply 15 of 27
    radarthekatradarthekat Posts: 2,897moderator
    sirlance99 wrote: »
    One day one of those so called followers will surpass Apple. History says that all great companies come and go. Apple will surely stay at the top for sometime into the future but one day will come down. Or is it your thinking that they will stay at the top forever because "Apple"?. Apple was the small fry once as well. Another company can do the same.

    I agree with you that there's a company out there that will definitely disrupt Apple's business model in the future. Where is suspect we disagree is in my view that the company that will do so... is Apple. P
  • Reply 16 of 27
    slurpyslurpy Posts: 5,076member
    Quote:

    Originally Posted by sog35 View Post

     

     

    my point is everything ends.  Even the Sun will burn out one day.

     

    Yet that's your argument for not giving Apple credit for their massive success.  That one day they won't be the king of the hill.


     

    Yep. I can never wrap my head around the vapid nature of the statement, "Apple won't be at the top forever". It's the last bastion of trolls that have turned out wrong again and again predicting Apple's demise, so in order to validate their cynicism and pretend that Apple's success is sheer luck, they give a timeline that goes on to the end of time for Apple falling from the top, while making obtuse comparisons to other companies that have fallen, as "proof".  Cowardly, meaningless, and vapid assertion, consistent with the worst kind of trolling. 

  • Reply 17 of 27
    Quote:
    Originally Posted by digitalclips View Post



    Was this more about Shake Shack than Apple I wonder, merely using Apple as click bait? It is a ludicrous analogy by any other metric.



    I never even heard of Shake Shack. (Are they in California?)

     

    Now I have.

     

    Well, they suckered me in. Mission accomplished. :\ 

  • Reply 18 of 27
    Quote:

    Originally Posted by mrrodriguez View Post



    Actually Apple hasn't really done much in terms of innovation. It's just people fed up with other manufacturers lack of innovation that has apple as the best thing right now.



    I doubt apple has a true competitor in the near future so apple will most likely be gobbling up close to 70% of smartphone market in the future.



    Get ready for a monopoly coming

    Apple will never have 70% of the global smartphone market.  Apple will never have a monopoly.  They could never build that many iPhones.  There are too many people who can't afford iPhones and there are dozens of companies who are happily willing to undercut Apple by selling inferior products.  Most consumers will continue to buy low-quality products as long as they're cheap.  Most investors already know Apple will never have a monopoly and that's why the stock is valued as low as it is.  Even Microsoft's P/E is much higher than Apple's P/E because of Apple's low OSX and iOS market share.  Market share is everything to Wall Street investors.

  • Reply 19 of 27
    dasanman69dasanman69 Posts: 12,969member
    Actually Apple hasn't really done much in terms of innovation. It's just people fed up with other manufacturers lack of innovation that has apple as the best thing right now.


    I doubt apple has a true competitor in the near future so apple will most likely be gobbling up close to 70% of smartphone market in the future.


    Get ready for a monopoly coming
    Apple will never have 70% of the global smartphone market.  Apple will never have a monopoly.  They could never build that many iPhones.  There are too many people who can't afford iPhones and there are dozens of companies who are happily willing to undercut Apple by selling inferior products.  Most consumers will continue to buy low-quality products as long as they're cheap.  Most investors already know Apple will never have a monopoly and that's why the stock is valued as low as it is.  Even Microsoft's P/E is much higher than Apple's P/E because of Apple's low OSX and iOS market share.  Market share is everything to Wall Street investors.

    Sure they can. How many iPhones do they sell in a quarter? At the very least it's 50 million. What happens to those phones when the original owner sells it?
  • Reply 20 of 27
    jfc1138jfc1138 Posts: 3,090member

    Not that closely related: Shake Shack has MUCH more consistent lines.... well, at least at the Madison Square Park mothership...

    https://www.shakeshack.com/location/madison-square-park/

     

    Yes that's realtime....

Sign In or Register to comment.