UBS starts Apple coverage with claims of ultraportable Mac delay

Posted:
in Future Apple Hardware edited January 2014
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.
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Comments

  • Reply 1 of 27
    cg81cg81 Posts: 6member
    This is not bad news. Apple can take as long as they like. Just get this one right. No more screw-ups. It isn't like apple to botch things up as much as they have the past few months. They just need to take things a bit slower. It doesn't matter if they make it to market first with the latest greatest product. In the end their products will speak for themselves and win out because of their easy of use, and interoperability. I am really looking forward to what they can do with the tablet market. Just my 2 cents.
  • Reply 2 of 27
    Quote:
    Originally Posted by CG81 View Post


    "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...
  • Reply 3 of 27
    mark2005mark2005 Posts: 1,158member
    Quote:
    Originally Posted by megatrick View Post


    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.
  • Reply 4 of 27
    paxmanpaxman Posts: 4,602member
    Quote:
    Originally Posted by AppleInsider View Post


    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!
  • Reply 5 of 27
    Classic, an analyst announcing a shipping delay for a product that hasn't been announced or assigned a ship date yet.
  • Reply 6 of 27
    Cool! (if it's true)
  • Reply 7 of 27
    Computer industry analyst is a sweet job if you can get it. You read some tech blogs, skim over a few forums, then check out the Inquirer and the Register. Make some crap up and get paid, aww-yeah.
  • Reply 8 of 27
    Quote:
    Originally Posted by AppleInsider View Post


    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.
  • Reply 9 of 27
    quinneyquinney Posts: 2,525member
    Um Wu
  • Reply 10 of 27
    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?
  • Reply 11 of 27
    ivladivlad Posts: 740member
    These people are never right. They always predict Apple to act like Microsoft or any other computer company.



    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.
  • Reply 12 of 27
    mdriftmeyermdriftmeyer Posts: 7,280member
    They and Piper Jaffrey merged a few years ago. So with the Piper guys moving into the UBS realm they continue their coverage of Apple and are just adding more analysts.
  • Reply 13 of 27
    zunxzunx Posts: 620member
    Ultraportable Mac?



    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.
  • Reply 14 of 27
    wingswings Posts: 261member
    Like most analysts this one is an idiot too.



    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.
  • Reply 15 of 27
    monstrositymonstrosity Posts: 2,204member
    Quote:
    Originally Posted by McDavies View Post


    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?
  • Reply 16 of 27
    If you ask me, only Apple knows what product Apple will release. It's easy to get sidetracked by all this speculation, and frankly most of it has been pretty inaccurate. Steve Jobs is a master of fooling the experts, and he plans to definitely put on a show while he's CEO.
  • Reply 17 of 27
    The ultra-portable will augment the current iPod line-up. There will be three screen sizes, Nano, standard iTouch, and a new mini-tablet. The mini-tablet will fill the gap between the Macbook Air and the iTouch.



    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 )))
  • Reply 18 of 27
    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"
  • Reply 19 of 27
    allblueallblue Posts: 393member
    Although it was believed that something may or may not be happening at some indeterminate point in the future, it is now believed that something may or may not be happening at some other indeterminate point in the future. I think I've got that clear, thanks.
  • Reply 20 of 27
    zanshinzanshin Posts: 350member
    why do I get the feeling that here's someone in their 50s with a BA, a bad haircut, and a bong who's been laid off?



    Quote:
    Originally Posted by taojones View Post


    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"



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