Analyst demands $250 Apple Watch -- but there already is one

Posted:
in General Discussion edited June 2020
An Apple stock analyst suggested today that Apple will sell 10 times the volume of Apple Watches that they do now, if they would just listen to him. However, Apple has already been doing what he wants them to do for some time.

Apple Watch Series 3
Apple Watch Series 3


It is very easy to dish out advice to Apple, but it does take some real confidence to insist the company could perform ten times better by doing exactly what it is already doing. Nonetheless, that's what Bernstein analyst Toni Sacconaghi, who regularly claims that Apple's best days are behind it, has now tried doing.

"We see an opportunity for Apple to offer a less expensive [Apple Watch] (say under $250)," he says in a research note seen by StreetInsider. "We believe such a market could be huge (500M for continuous monitoring candidates, and potentially billions who might want to better track their health/key vitals)."

Sacconaghi argues that Apple could pull this off if they just cut back on the functionality of the Apple Watch, so that they could sell it for a lower price. He's adamant that this would increase sales of the Apple Watch by ten times, and he's a Senior Technology Research Analyst, so he should know.

The one thing he doesn't say is that Apple would need to come up with a name for this cheaper, less fully-featured Watch. But, most of what he wants is already in the Apple Watch Series 3.

He does think it should have fall detection, which didn't come in until the Apple Watch Series 4. But then he also thinks it should have the ability to detect the coronavirus somehow.

We'll also go out on a limb, otherwise known as checking Apple's website, and bet that the company could just possibly manage to sell this Watch for quite a little less than Sacconaghi's recommended $250. Such as around the $199 that it retails for, and often cheaper from vendors. If he's right that it's fall detection that will ignite sales, then you can regularly get the Apple Watch Series 5 -- not even the 4, the latest 5 -- from $299.

To be fair to Sacconaghi, you might presume that this wisdom had come off the cuff. Perhaps he was caught unprepared during one of his many appearances on CNBC to talk about the company. If that were the case, you might find a way to excuse him not happening to know the products and prices of a company he was telling people about.

However, this was a written note to clients, a prepared document intended for investors to rely on. And it's a little harder to take financial recommendations seriously when he hasn't looked those up, either.

Sacconaghi's tip is that investors should stick with Apple shares. His present advice is that investors should hold Apple stock, and that it will someday trade at $285.

It's currently at $325. And doing quite well.

It's one thing to be wrong about future Apple product predictions -- that's fine, it happens. After all, Apple has an entire security division dedicated to preventing and stamping out leaks. But, finding an analyst who is being paid to be this wrong about what they are doing in the present is a bit harder.
beeble42mwhitewatto_cobra

Comments

  • Reply 1 of 11
    anantksundaramanantksundaram Posts: 20,182member
    Appoint him Chief Marketing Officer of Apple! Now!! 

    /rolleyes 

    From where do these people crawl out...
    watto_cobra
  • Reply 2 of 11
    TomETomE Posts: 167member
    Bernstein analyst Toni Sacconaghi needs to look for another job.  Better yet, Bernstein needs to look for his replacement.  I sure would not give them any of my money.

    watto_cobra
  • Reply 3 of 11
    apple ][apple ][ Posts: 9,233member


    Sacconaghi's tip is that investors should stick with Apple shares. HIs present advice is that investors should hold Apple stock, and that it will someday trade at $285.


    Some of these "analysts" are truly dumber than a sack of potatoes.

    Why the hell would anybody hold Apple stock in the hope that it will somebody trade at $285?

    As for the dumb Apple Watch suggestions, I'm glad that these asshats are not in charge of Apple. These analysts couldn't even run a lemonade stand.
    mwhitewatto_cobra
  • Reply 4 of 11
    JapheyJaphey Posts: 616member
    Thanks for the chuckle. 

    This made me wonder about which watch Apple will keep around as the budget option once the 6 is released. Do they bring back the 4? Stick with the 3, which will be 3 years old by that time. Or will it be the 5?  
    watto_cobra
  • Reply 5 of 11
    lkrupplkrupp Posts: 9,109member

    However, this was a written note to clients, a prepared document intended for investors to rely on. And it's a little harder to take financial recommendations seriously when he hasn't looked those up, either.

    Any AAPL investor who relies on analyst's recommendations needs their head examined. In the entire history of the company no analyst has EVER been right about Apple.
    watto_cobra
  • Reply 6 of 11
    DogpersonDogperson Posts: 86member
    I am surprised he is not demanding a watch that will foretell when Apple stock will rise. Again.
    anantksundaramwatto_cobra
  • Reply 7 of 11
    stoneygstoneyg Posts: 34member
    Japhey said:
    Thanks for the chuckle. 

    This made me wonder about which watch Apple will keep around as the budget option once the 6 is released. Do they bring back the 4? Stick with the 3, which will be 3 years old by that time. Or will it be the 5?  
    Even though it seems weird to bring back the Series 4 after it was pulled, that seems most likely to me. I can't imagine Apple making the Series 5 the 'affordable' option like the Series 3 was, especially with the extra cost of the display. 
    edited June 2020 watto_cobra
  • Reply 8 of 11
    Rev2LivRev2Liv Posts: 7unconfirmed, member
    He reminds me of Henry Blodget, a tech  analyst during the dot.com bubble who would wax on heavy hyperbole and talk out of his ass.

    He “magically” predicted that Amazon would hit $400 in the late 90’s and once it did, his fame shot up only later to be uncovered as a charlatan and certainly not a tech guy.
    watto_cobra
  • Reply 9 of 11
    mattinozmattinoz Posts: 1,566member
    TomE said:
    Bernstein analyst Toni Sacconaghi needs to look for another job.  Better yet, Bernstein needs to look for his replacement.  I sure would not give them any of my money.

    Why he seems on par with analysts - "Fill the space with shit" so no one knows the truth?

    edited June 2020 watto_cobra
  • Reply 10 of 11
    I'm glad he's available to save Apple from Apple.
    watto_cobra
  • Reply 11 of 11
    GeorgeBMacGeorgeBMac Posts: 9,405member
    Propaganda and smear campaigns most frequently rely on telling only part of the truth.  In this case, William ignored part of the message the analyst sent.

    Yes, he did say that market share of the Apple Watch could benefit from a lower price.   That doesn't take a marketing genius to figure out.
    But, the other part of the message was to simplify the watch down into being JUST a health monitoring device (activity, heart rate, etc).   Essentially, although he didn't say it directly, he's recommending going after the FitBit market

    And that recommendation has logic to it:   The Apple Watch has progressed to being a large, clunky iPhone on your wrist -- it only lacks a camera and large screen.  
    Conversely, the FitBits are small, simple, unobtrusive, fashionable bands that one can wear on their wrist.

    So, yes, Apple could put out a lower cost, scaled down FitBit type watch and people would undoubtedly buy it if not flock to it.
    But, Apple has smart analysts -- both in marketing and in finance.   Only they know if such a product would be in the best, long term interests of Apple.
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