UBS starts Apple coverage with claims of ultraportable Mac delay
A relative newcomer to covering Apple's financial health, UBS Investment Research is beginning its examination of the electronics firm with a positive outlook on the 'stickiness' of the company's brands but also the assertion that it has had to delay shipping a new ultra-mobile Mac.
Analyst Maynard Um echoes analyst reports and leaks that anticipate new Macs (including a revamped MacBook line) and iPods in the second half of 2008 but cites industry checks which point to a "sub-notebook" originally intended for this year but which has allegedly been pushed back to a launch for the first half of 2009.
While the researcher doesn't elaborate on what the mystery Mac would entail, he doesn't see any immediate causes for concern.
"Product slips are typical in the technology industry," Um says.
These checks would also have Apple release additional iPhone colors in time for 2008's holiday season as well a new iPhone the following year, again in the first half.
Much of UBS' outlook, which gives Apple stock a "buy" rating and a target share price of $195, is tied to future products. Um observes that Apple's potential for success hinges in no small part on its ability to generate an attachment to its products, particularly Macs, that isn't really possible with Windows-based systems, where the experience is largely interchangeable between one system and the next.
"We think the Apple 'experience', driven by its ownership of the entire software ecosystem, creates a ?sticky? user base that drives recurring hardware revenue," the analyst explains. "Those accustomed to Apple?s 'ease of use' and interfaces are unlikely to purchase a Microsoft-based PC. Rather, we believe these users will be more inclined to purchase another Mac when it?s time for an upgrade, which, in essence, creates a recurring hardware venue for Apple."
The Cupertino, Calif.-based company also helps itself by handling some of the administration that would normally be supplied by another company: since iTunes customers often buy songs from the same company that produces the rest of the software and hardware, this enhances the experience and may give Apple more opportunities for a similar experience in the future.
And while other market observers are concerned at Apple's warnings of a drop in its gross profit margins next quarter through a mystery product transition, Um sees this as a sales grab that should still boost the Mac maker's earnings higher as it both ensures that 'stickiness' and draws in customers through a more competitive price.
Analyst Maynard Um echoes analyst reports and leaks that anticipate new Macs (including a revamped MacBook line) and iPods in the second half of 2008 but cites industry checks which point to a "sub-notebook" originally intended for this year but which has allegedly been pushed back to a launch for the first half of 2009.
While the researcher doesn't elaborate on what the mystery Mac would entail, he doesn't see any immediate causes for concern.
"Product slips are typical in the technology industry," Um says.
These checks would also have Apple release additional iPhone colors in time for 2008's holiday season as well a new iPhone the following year, again in the first half.
Much of UBS' outlook, which gives Apple stock a "buy" rating and a target share price of $195, is tied to future products. Um observes that Apple's potential for success hinges in no small part on its ability to generate an attachment to its products, particularly Macs, that isn't really possible with Windows-based systems, where the experience is largely interchangeable between one system and the next.
"We think the Apple 'experience', driven by its ownership of the entire software ecosystem, creates a ?sticky? user base that drives recurring hardware revenue," the analyst explains. "Those accustomed to Apple?s 'ease of use' and interfaces are unlikely to purchase a Microsoft-based PC. Rather, we believe these users will be more inclined to purchase another Mac when it?s time for an upgrade, which, in essence, creates a recurring hardware venue for Apple."
The Cupertino, Calif.-based company also helps itself by handling some of the administration that would normally be supplied by another company: since iTunes customers often buy songs from the same company that produces the rest of the software and hardware, this enhances the experience and may give Apple more opportunities for a similar experience in the future.
And while other market observers are concerned at Apple's warnings of a drop in its gross profit margins next quarter through a mystery product transition, Um sees this as a sales grab that should still boost the Mac maker's earnings higher as it both ensures that 'stickiness' and draws in customers through a more competitive price.
Comments
"Those accustomed to Apple’s 'ease of use' and interfaces are unlikely to purchase a Microsoft-based PC. Rather, we believe these users will be more inclined to purchase another Mac when it’s time for an upgrade, which, in essence, creates a recurring hardware venue for Apple."
This analysis sounds like it could have been done any time in the last 20 years. This UBS guy sounds like an idiot and should quit while he is ahead. Get a clue, bookworm...
This analysis sounds like it could have been done any time in the last 20 years. This UBS guy sounds like an idiot and should quit while he is ahead. Get a clue, bookworm...
A bit harsh, eh? When reading any analyst, you need to assume they are writing to the average potential Apple investor, which means it's someone who does not read Apple web sites. So they need to state what seems to us quite obvious.
In this case, however, I think "stickiness" is being mentioned because there are some who see Microsoft's soon-to-arrive marketing blitz as a threat. And Um is trying to point out that the blitz will have no effect on those who've already bought Macs; the ads may slow down those with PCs who may be thinking of switching to Macs, but they will not cause switching to PCs from Macs.
While the researcher doesn't elaborate on what the mystery Mac would entail, he doesn't see any immediate causes for concern.
Whoopie! Another analyst. These guys are so smart!
A relative newcomer to covering Apple's financial health, UBS Investment Research is beginning its examination of the electronics firm with a positive outlook on the 'stickiness' of the company's brands but also the assertion that it has had to delay shipping a new ultra-mobile Mac.
Analyst Maynard Um echoes analyst reports and leaks that anticipate new Macs (including a revamped MacBook line) and iPods in the second half of 2008 but cites industry checks which point to a "sub-notebook" originally intended for this year but which has allegedly been pushed back to a launch for the first half of 2009.
While the researcher doesn't elaborate on what the mystery Mac would entail, he doesn't see any immediate causes for concern.
"Product slips are typical in the technology industry," Um says.
These checks would also have Apple release additional iPhone colors in time for 2008's holiday season well a new iPhone the following year, again in the first half.
Much of UBS' outlook, which gives Apple stock a "buy" rating and a target share price of $195, is tied to future products. Um observes that Apple's potential for success hinges in no small part on its ability to generate an attachment to its products, particularly Macs, that isn't really possible with Windows-based systems, where the experience is largely interchangeable between one system and the next.
"We think the Apple 'experience', driven by its ownership of the entire software ecosystem, creates a ?sticky? user base that drives recurring hardware revenue," the analyst explains. "Those accustomed to Apple?s 'ease of use' and interfaces are unlikely to purchase a Microsoft-based PC. Rather, we believe these users will be more inclined to purchase another Mac when it?s time for an upgrade, which, in essence, creates a recurring hardware venue for Apple."
The Cupertino, Calif.-based company also helps itself by handling some of the administration that would normally be supplied by another company: since iTunes customers often buy songs from the same company that produces the rest of the software and hardware, this enhances the experience and may give Apple more opportunities for a similar experience in the future.
And while other market observers are concerned at Apple's warnings of a drop in its gross profit margins next quarter through a mystery product transition, Um sees this as a sales grab that should still boost the Mac maker's earnings higher as it both ensures that 'stickiness' and draws in customers through a more competitive price.
I registered an account just to tell you about this mistake so you can fix it. I might check in for therapy.
But what Apple does is totally unexpected. That's how they drive their sales.
So this guy can go and research more on next Zune or something.
Yes, but let it be really ULTRA-PORTABLE. The MacBook Air is too large and too heavy for us. No more than about 5-inch screen or so. The full and complete Mac in your hand and in your pocket. LIke this, but with Mac OS X 10.5.4, FireWire and Ethernet:
OQO model e2
http://www.oqo.com
THE ULTIMATE presentation remote for full blown NATIVE Keynote and PowerPoint files with all that you would get from a laptop (transitions, animations, video, etc).
We need thousands for our University.
If a product has not been announced (not even ACKNOWLEDGED that there IS such a product), then how is it possible to push back the release date?
UBS seems to just to want to pretend it's in-the-know, but in reality they know absolutely nothing.
Also, if this guy's confidential informant said that the ultra-portable was to be released this year, and then later tells him that it's been delayed till 2009, why does he lay the blame on Apple for the delay? Seems to me the blame lies in the unreliable informant.
I am so ready to be an analyst. All you have to do is restate what everyone knows after the facts are proven. After Apple makes a huge run they start coverage? Really? Then they point to a delay in unannounced product. Genius! How can you argue it?
Indeed, I woopass 95% of these so called 'analysts', as do many people on this forum. Where do we sign up for the job?
The new "pocket Macs" will have a full OS installed and will be able to be used in conjunction with various peripherals (e.g. wireless keyboard, mouse, and a DVI dock to hook-up to a large screen).
The future is not only in mobile computing devices, themselves, but also is "marrying" those mobile computing devices with the standard work environments (home & office) with docking stations and new work environments (car) with Bluetooth and plug-in ports.
Smaller margins but better experience!
Я гатов )))
where would we be today if our trusted wordsmiths (or the nations lawyers for that mater) had pointed out that Colon Powell was holding up a baggy of baking soda and it was an "exhibit" not "evidence" same with the picture of the truck with the crappy labels and stupid arrow.
in the words of Robert Zimmerman "don't follow leaders, watch your parking meters, the pumps don't work cause the vandals took the handles"
I wish Apple analysts were the only problem . In general the press has taken this safe get fed a sound byte and repeat it method of "journalism" our universities have produced literary cookie cutters . the warning when liberal arts programs were being phased out was" you will have a generation of great spellers with nothing to say" has come home to roost big time. this poor sucker is just a product of his times.
where would we be today if our trusted wordsmiths (or the nations lawyers for that mater) had pointed out that Colon Powell was holding up a baggy of baking soda and it was an "exhibit" not "evidence" same with the picture of the truck with the crappy labels and stupid arrow.
in the words of Robert Zimmerman "don't follow leaders, watch your parking meters, the pumps don't work cause the vandals took the handles"