J.P. Morgan, Rosenblatt upbeat on Apple following launch of new Macs and iPad Pros

Posted:
in General Discussion edited October 2018
Analysts have offered more opinions on Tuesday's Apple special event, with J.P. Morgan and Rosenblatt Securities issuing generally positive notes to investors about the refreshed MacBook Air and Mac mini, but were more enthused about the prospects of the new iPad Pro.

Apple CEO Tim Cook presenting the new iPad Pro
Apple CEO Tim Cook presenting the new iPad Pro


The refreshed iPad Pro lineup is the "most impactful" change among the new arrivals announced during Apple's event, suggests J.P. Morgan in an investor note provided to AppleInsider, due to the degree of innovation and "the ability to drive a refresh cycle of the installed base."

Suggesting it was losing relevance since 2013 due to the proliferation of large-screen smartphones, J.P. Morgan notes the iPad Pro's launch brought the platform closer to the capabilities of a notebook, sparking a revival in the third quarter of 2017. The announcements continued "on the path of increasing the capabilities" of the iPad, while simultaneously making it more portable via a tighter and a lighter form factor.

The addition of Face ID and the redesigned Apple Pencil are said to provide more convenience to users.

In a separate note, Rosenblatt analyst Jun Zhang states it is positive about this iPad Pro cycle due to its fully-upgraded design, with the addition of Face ID being a good thing for 3D-sensing component suppliers.

Zhang also expects the shipments of the new models to "offset some of the weakness seen in iPhones" in the fourth quarter. This is cited as the main reason the firm believes the quarterly results will be in line with, or better than, its estimates after recently trimming iPhone shipment expectations.

J.P. Morgan suggests the update to the MacBook Air is unlikely to drive a major upgrade cycle, despite the upgraded components, as the "target use case is still centered around personal use" relative to the "greater opportunity" for driving MacBook Pro upgrades for professional users. However, while the changes are thought to be less relevant to existing users, the changes may be more attractive for new users, especially considering Apple's data revealed 51 percent of Mac buyers were new customers.

The analysts did note the updates made to the Mac mini, including a massive processor performance jump from the previous generation, but suggested it to be a "more normal course" of upgrades compared to the iPad Pro.

On the Rosenblatt side, the updated MacBook Air's addition of Touch ID is expected to "finally lead to the move to 3D sensing in 2019," possibly referring to the potential use of Face ID in the MacBook range. The Mac mini is thought to possibly "drive some PC sales growth in the mid-end market" due to its reasonable pricing.

J.P. Morgan's estimates and assessments of Apple's offerings are generally unchanged from previous analyses. The Rosenblatt examination is uncharacteristically positive for the firm -- yet the target price for the stock still remains at $200, well below the current value.

The investor notes from J.P. Morgan and Rosenblatt Securities follow after other comments made by Loup Ventures analyst Gene Munster, which suggested the new launches were "incrementally positive" to Apple's overall story. The iPad Pro's improvements and addition of USB-C makes it "more ambiguous" as a tablet and making it a lower point of entry to owning a fully-fledged "computer," Munster advised, while also praising Apple's retail efforts as an "underappreciated competitive advantage."

Comments

  • Reply 1 of 12
    Of course Wall Street is happy.

    Rodrigo Araujo (@rodrigoaraujo) 10/31/18, 5:40 AM ⁦‪@stroughtonsmith‬⁩ Yesterday price surges:
    MacBook Air: 999 -> 1199 (+20%)
    Mac Mini: 499 -> 799 (+60%)
    iPad Pro 10.5: 649 -> 799 (+23%)
    iPad Pro 12.9: 799 -> 999 (+25%)
    This is unreal. I find it hard to believe that only a handful of people are talking about this.


  • Reply 2 of 12
    sirozhasirozha Posts: 551member
    I agree that the largest iPad Pro can be thought of as a computer replacement, barring one important missing component: mouse/trackpad. If Apple were just not so stubborn and brought about the mouse/trackpad capability, I would say that casual and non-professional computing could be done entirely on the iPad. 

    During the latest Apple event where the new iPads were revealed, it was mentioned that the CPU on the new iPad is more powerful than in 95% of computers sold worldwide. I believe that this is a hint that soon we will see a new device coming out of Apple. I think the Apple's A chips are now powerful enough to power laptops, so there may, after all, be a hybrid device coming out within a year that will combine the MacBook and the iPad Pro in one device. This, by the way, may be the reason why there currently exists such a confusing field in the Apple's non-Pro laptop lineup. It may very well be that the MacBooks will go away next year and will be replaced by a hybrid MacBook/iPad Pro device that will run on the next iteration of the Apple's A chip, while the Apple's non-Pro laptops will continue as the MacBook Air based on the late 2018 MacBook Air design. 
    edited October 2018
  • Reply 3 of 12
    MacProMacPro Posts: 18,225member
    sirozha said:
    I agree that the largest iPad Pro can be thought of as a computer replacement, barring one important missing component: mouse/trackpad. If Apple were just not so stubborn and brought about the mouse/trackpad capability, I would say that casual and non-professional computing could be done entirely on the iPad. 

    During the latest Apple event where the new iPads were revealed, it was mentioned that the CPU on the new iPad is more powerful than in 95% of computers sold worldwide. I believe that this is a hint that soon we will see a new device coming out of Apple. I think the Apple's A chips are now powerful enough to power laptops, so there may, after all, be a hybrid device coming out within a year that will combine the MacBook and the iPad Pro in one device. This, by the way, may be the reason why there currently exists such a confusing field in the Apple's non-Pro laptop lineup. It may very well be that the MacBooks will go away next year and will be replaced by a hybrid MacBook/iPad Pro device that will run on the next iteration of the Apple's A chip, while the Apple's non-Pro laptops will continue as the MacBook Air based on the late 2018 MacBook Air design. 
    Just trying to get my head around a trackpad for an iPad ... 
    fastasleep
  • Reply 4 of 12
    MacProMacPro Posts: 18,225member
    Of course Wall Street is happy.

    Rodrigo Araujo (@rodrigoaraujo) 10/31/18, 5:40 AM ⁦‪@stroughtonsmith‬⁩ Yesterday price surges:
    MacBook Air: 999 -> 1199 (+20%)
    Mac Mini: 499 -> 799 (+60%)
    iPad Pro 10.5: 649 -> 799 (+23%)
    iPad Pro 12.9: 799 -> 999 (+25%)
    This is unreal. I find it hard to believe that only a handful of people are talking about this.


    To take but one example, this from AI:

    "Before the October 30 event, a Mac mini would've cost you $499 and you've have got a 1.4GHz machine with 4GB RAM and a 500GB hard drive. Since the event, you do start out at $799 but you get a quad-core Intel i3 3.6GHz machine with 8GB RAM and 128GB SSD storage."
    fastasleepjony0
  • Reply 5 of 12
    sirozhasirozha Posts: 551member
    MacPro said:
    sirozha said:
    I agree that the largest iPad Pro can be thought of as a computer replacement, barring one important missing component: mouse/trackpad. If Apple were just not so stubborn and brought about the mouse/trackpad capability, I would say that casual and non-professional computing could be done entirely on the iPad. 

    During the latest Apple event where the new iPads were revealed, it was mentioned that the CPU on the new iPad is more powerful than in 95% of computers sold worldwide. I believe that this is a hint that soon we will see a new device coming out of Apple. I think the Apple's A chips are now powerful enough to power laptops, so there may, after all, be a hybrid device coming out within a year that will combine the MacBook and the iPad Pro in one device. This, by the way, may be the reason why there currently exists such a confusing field in the Apple's non-Pro laptop lineup. It may very well be that the MacBooks will go away next year and will be replaced by a hybrid MacBook/iPad Pro device that will run on the next iteration of the Apple's A chip, while the Apple's non-Pro laptops will continue as the MacBook Air based on the late 2018 MacBook Air design. 
    Just trying to get my head around a trackpad for an iPad ... 
    Trackpad for an iPad is not for wrapping your head around. It's about being able to use the iPad in prop-up position on the desk with an external keyboard. This is how the true computing is done. Apple has pushed back on the touch screen capability for Macs because it's non-ergonomic to extend your arm horizontally for using touch. For one, your arm gets tired pretty quickly, but another reason is that you lose a second or two every time you have to touch the screen in this setup compared to using a trackpad or a mouse. Apple can't be on both sides of this fence at the same time. If it's not ergonomic to use touch in this setup for Macs, it's not ergonomic to do this for iPads either when an iPad is propped up and is used with an external keyboard. 

    As for the UI, the UI can adapt itself to which mode the device is used. If it's used without an external keyboard, the UI can adapt to touch, and when the iPad is used with an external keyboard, the UI can adapt to the pointing device (trackpad/mouse). I can't help it if you are not seeing that all the pieces are falling in place. There's now both the CPU and the graphics chip designed by Apple that are on par with or better than most of mid-range Intel analogs, while consuming much less power. Some Apple apps designed for iOS have now been ported to macOS (Stocks, Home, Apple News, and Voice Memos.) The new iPad Pros lost the home button, and the Lightning port (which is iOS-only interface) was replaced by USB-C. Finally, the new iPad Pro can now be used with any external monitor (up to 5K), leveraging the USB-C connector.

    These are the clues that the hybrid iOS/macOS device is in the works. Price-wise, this hybrid device can be kept under $2,000 with 16 GB of RAM 512 GB of SSD storage, FaceID, and LTE connectivity, while still having the manufacturing cost under $1,000, partially due to the fact that the CPU and graphics adapters used in such a device will be designed by Apple. 

    I don't know if a hybrid device will ever be released by Apple into the wild, but I'm 100% sure they have this device in their labs already. Apple has already overcome the technical challenge in making such a device; I'm sure it's in the hands of the CIO and CFO now to decide if this device will add to the Apple's bottom line or if it will hurt the bottom line by cannibalizing the MacBook line. However, judging by how confusing the MacBook (non-Pro) line is now, chances are the next iteration of MacBook will be a hybrid iOS/macOS device. 

    Frankly, I would jump on the opportunity to buy such a hybrid device; perhaps, I will buy two or three of them (for other family members). Both my wife and my son would be able to use this device for everything they do computing-wise. I might even be able to use such a device exclusively for what I do professionally. I would, for sure, use such a device with an external monitor, external keyboard, and external pointing device when utilizing it as a computer replacement. Frankly, even though we have iPads, we haven't powered them up for months now, as between newer iPhones and Macs, the need for the iPad is almost non-existent in our household. 
    edited October 2018
  • Reply 6 of 12
    MacProMacPro Posts: 18,225member
    sirozha said:
    MacPro said:
    sirozha said:
    I agree that the largest iPad Pro can be thought of as a computer replacement, barring one important missing component: mouse/trackpad. If Apple were just not so stubborn and brought about the mouse/trackpad capability, I would say that casual and non-professional computing could be done entirely on the iPad. 

    During the latest Apple event where the new iPads were revealed, it was mentioned that the CPU on the new iPad is more powerful than in 95% of computers sold worldwide. I believe that this is a hint that soon we will see a new device coming out of Apple. I think the Apple's A chips are now powerful enough to power laptops, so there may, after all, be a hybrid device coming out within a year that will combine the MacBook and the iPad Pro in one device. This, by the way, may be the reason why there currently exists such a confusing field in the Apple's non-Pro laptop lineup. It may very well be that the MacBooks will go away next year and will be replaced by a hybrid MacBook/iPad Pro device that will run on the next iteration of the Apple's A chip, while the Apple's non-Pro laptops will continue as the MacBook Air based on the late 2018 MacBook Air design. 
    Just trying to get my head around a trackpad for an iPad ... 
    Trackpad for an iPad is not for wrapping your head around. It's about being able to use the iPad in prop-up position on the desk with an external keyboard. This is how the true computing is done. Apple has pushed back on the touch screen capability for Macs because it's non-ergonomic to extend your arm horizontally for using touch. For one, your arm gets tired pretty quickly, but another reason is that you lose a second or two every time you have to touch the screen in this setup compared to using a trackpad or a mouse. Apple can't be on both sides of this fence at the same time. If it's not ergonomic to use touch in this setup for Macs, it's not ergonomic to do this for iPads either when an iPad is propped up and is used with an external keyboard. 

    As for the UI, the UI can adapt itself to which mode the device is used. If it's used without an external keyboard, the UI can adapt to touch, and when the iPad is used with an external keyboard, the UI can adapt to the pointing device (trackpad/mouse). I can't help it if you are not seeing that all the pieces are falling in place. There's now both the CPU and the graphics chip designed by Apple that are on par with or better than most of mid-range Intel analogs, while consuming much less power. Some Apple apps designed for iOS have now been ported to macOS (Stocks, Home, Apple News, and Voice Memos.) The new iPad Pros lost the home button, and the Lightning port (which is iOS-only interface) was replaced by USB-C. Finally, the new iPad Pro can now be used with any external monitor (up to 5K), leveraging the USB-C connector.

    These are the clues that the hybrid iOS/macOS device is in the works. Price-wise, this hybrid device can be kept under $2,000 with 16 GB of RAM 512 GB of SSD storage, FaceID, and LTE connectivity, while still having the manufacturing cost under $1,000, partially due to the fact that the CPU and graphics adapters used in such a device will be designed by Apple. 

    I don't know if a hybrid device will ever be released by Apple into the wild, but I'm 100% sure they have this device in their labs already. Apple has already overcome the technical challenge in making such a device; I'm sure it's in the hands of the CIO and CFO now to decide if this device will add to the Apple's bottom line or if it will hurt the bottom line by cannibalizing the MacBook line. However, judging by how confusing the MacBook (non-Pro) line is now, chances are the next iteration of MacBook will be a hybrid iOS/macOS device. 

    Frankly, I would jump on the opportunity to buy such a hybrid device; perhaps, I will buy two or three of them (for other family members). Both my wife and my son would be able to use this device for everything they do computing-wise. I might even be able to use such a device exclusively for what I do professionally. I would, for sure, use such a device with an external monitor, external keyboard, and external pointing device when utilizing it as a computer replacement. Frankly, even though we have iPads, we haven't powered them up for months now, as between newer iPhones and Macs, the need for the iPad is almost non-existent in our household. 
    Thank for the lecture on 'true' computing. As I've only been using them since 1978 and owned every Mac there ever was and owned a bunch of Apple Dealerships as well as a software company I'll definitely be contacting you for guidance in the future and  I and sure Tim and Jony Ive will be soon too.
    Rayz2016dewmefastasleep
  • Reply 7 of 12
    sirozhasirozha Posts: 551member
    Since you've owned a bunch of "Apple Dealerships," and have used every Mac since 1978, tell me how many of the Macs have there been made to be used without a pointing device? Have there been any Macs made with a touch screen? IMHO, a device without a mouse/trackpad interface cannot be considered to be a personal computer replacement. Obviously, you think you can replace a computer with an iPad and an Apple Pencil. I'm sure you can check your retirement accounts this way just fine.  

    Nice *touch*, by the way, putting yourself in the same company with Tim and Jony. I'm sure you go out for a beer with them quite often and share all those good ol' stories of owning "Apple Dealerships" and "software companies". Good job.  
  • Reply 8 of 12
    Rayz2016Rayz2016 Posts: 4,591member
    MacPro said:
    sirozha said:
    MacPro said:
    sirozha said:
    I agree that the largest iPad Pro can be thought of as a computer replacement, barring one important missing component: mouse/trackpad. If Apple were just not so stubborn and brought about the mouse/trackpad capability, I would say that casual and non-professional computing could be done entirely on the iPad. 

    During the latest Apple event where the new iPads were revealed, it was mentioned that the CPU on the new iPad is more powerful than in 95% of computers sold worldwide. I believe that this is a hint that soon we will see a new device coming out of Apple. I think the Apple's A chips are now powerful enough to power laptops, so there may, after all, be a hybrid device coming out within a year that will combine the MacBook and the iPad Pro in one device. This, by the way, may be the reason why there currently exists such a confusing field in the Apple's non-Pro laptop lineup. It may very well be that the MacBooks will go away next year and will be replaced by a hybrid MacBook/iPad Pro device that will run on the next iteration of the Apple's A chip, while the Apple's non-Pro laptops will continue as the MacBook Air based on the late 2018 MacBook Air design. 
    Just trying to get my head around a trackpad for an iPad ... 
    Trackpad for an iPad is not for wrapping your head around. It's about being able to use the iPad in prop-up position on the desk with an external keyboard. This is how the true computing is done. Apple has pushed back on the touch screen capability for Macs because it's non-ergonomic to extend your arm horizontally for using touch. For one, your arm gets tired pretty quickly, but another reason is that you lose a second or two every time you have to touch the screen in this setup compared to using a trackpad or a mouse. Apple can't be on both sides of this fence at the same time. If it's not ergonomic to use touch in this setup for Macs, it's not ergonomic to do this for iPads either when an iPad is propped up and is used with an external keyboard. 

    As for the UI, the UI can adapt itself to which mode the device is used. If it's used without an external keyboard, the UI can adapt to touch, and when the iPad is used with an external keyboard, the UI can adapt to the pointing device (trackpad/mouse). I can't help it if you are not seeing that all the pieces are falling in place. There's now both the CPU and the graphics chip designed by Apple that are on par with or better than most of mid-range Intel analogs, while consuming much less power. Some Apple apps designed for iOS have now been ported to macOS (Stocks, Home, Apple News, and Voice Memos.) The new iPad Pros lost the home button, and the Lightning port (which is iOS-only interface) was replaced by USB-C. Finally, the new iPad Pro can now be used with any external monitor (up to 5K), leveraging the USB-C connector.

    These are the clues that the hybrid iOS/macOS device is in the works. Price-wise, this hybrid device can be kept under $2,000 with 16 GB of RAM 512 GB of SSD storage, FaceID, and LTE connectivity, while still having the manufacturing cost under $1,000, partially due to the fact that the CPU and graphics adapters used in such a device will be designed by Apple. 

    I don't know if a hybrid device will ever be released by Apple into the wild, but I'm 100% sure they have this device in their labs already. Apple has already overcome the technical challenge in making such a device; I'm sure it's in the hands of the CIO and CFO now to decide if this device will add to the Apple's bottom line or if it will hurt the bottom line by cannibalizing the MacBook line. However, judging by how confusing the MacBook (non-Pro) line is now, chances are the next iteration of MacBook will be a hybrid iOS/macOS device. 

    Frankly, I would jump on the opportunity to buy such a hybrid device; perhaps, I will buy two or three of them (for other family members). Both my wife and my son would be able to use this device for everything they do computing-wise. I might even be able to use such a device exclusively for what I do professionally. I would, for sure, use such a device with an external monitor, external keyboard, and external pointing device when utilizing it as a computer replacement. Frankly, even though we have iPads, we haven't powered them up for months now, as between newer iPhones and Macs, the need for the iPad is almost non-existent in our household. 
    Thank for the lecture on 'true' computing. As I've only been using them since 1978 and owned every Mac there ever was and owned a bunch of Apple Dealerships as well as a software company I'll definitely be contacting you for guidance in the future and  I and sure Tim and Jony Ive will be soon too.

    Yes, he wrote yet a page of text that said, "I want Apple to give me a machine that does everything and I also want to set the price."


  • Reply 9 of 12
    MacPro said:
    Of course Wall Street is happy.

    Rodrigo Araujo (@rodrigoaraujo) 10/31/18, 5:40 AM ⁦‪@stroughtonsmith‬⁩ Yesterday price surges:
    MacBook Air: 999 -> 1199 (+20%)
    Mac Mini: 499 -> 799 (+60%)
    iPad Pro 10.5: 649 -> 799 (+23%)
    iPad Pro 12.9: 799 -> 999 (+25%)
    This is unreal. I find it hard to believe that only a handful of people are talking about this.


    To take but one example, this from AI:

    "Before the October 30 event, a Mac mini would've cost you $499 and you've have got a 1.4GHz machine with 4GB RAM and a 500GB hard drive. Since the event, you do start out at $799 but you get a quad-core Intel i3 3.6GHz machine with 8GB RAM and 128GB SSD storage."
    Sure the point still is prices have gone up. Toyota could replace a Camry with a Lexus and charge more but if someone doesn’t need a Lexus...
    Rohittyagi@123
  • Reply 10 of 12
    Of all the FANG stocks and tech stocks, in general, Apple's stock was the most laggard. Yes, it was up, but less than stocks that had no exciting event. I'm only saying that the Apple event didn't really charge up investors all that much to double-dip on Apple. Those iPad Pros seemed really exciting but I'm not sure if the enterprise is going to be turning to Apple for tablets even if they are powerful. I don't actually know what enterprise users are looking for but I would think it's some device with a keyboard. I hope Apple is wiser than I am. The whole tablet market seems rather weak as though people aren't quite interested in them. I think I'd always choose a laptop with a keyboard over a tablet without a keyboard.
    Rohittyagi@123
  • Reply 11 of 12
    MacPro said:
    Of course Wall Street is happy.

    Rodrigo Araujo (@rodrigoaraujo) 10/31/18, 5:40 AM ⁦‪@stroughtonsmith‬⁩ Yesterday price surges:
    MacBook Air: 999 -> 1199 (+20%)
    Mac Mini: 499 -> 799 (+60%)
    iPad Pro 10.5: 649 -> 799 (+23%)
    iPad Pro 12.9: 799 -> 999 (+25%)
    This is unreal. I find it hard to believe that only a handful of people are talking about this.


    To take but one example, this from AI:

    "Before the October 30 event, a Mac mini would've cost you $499 and you've have got a 1.4GHz machine with 4GB RAM and a 500GB hard drive. Since the event, you do start out at $799 but you get a quad-core Intel i3 3.6GHz machine with 8GB RAM and 128GB SSD storage."
    Sure the point still is prices have gone up. Toyota could replace a Camry with a Lexus and charge more but if someone doesn’t need a Lexus...
    ...then they buy last year’s Camry. Are you new here? I feel like you might have chronic amnesia. 
    Rohittyagi@123
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