Apple remains 'very optimistic' about upcoming products as analysts cut targets
A number of analysts reduced their price targets for Apple on Wednesday, though one who just met with the company's executives said those officials are "very optimistic" about the product pipeline and market position.
Ben A. Reitzes of Barclays Capital met on Wednesday with Apple Chief Financial Officer Peter Oppenheimer and Senior Vice President of Worldwide Marketing Phil Schiller. At the company's Cupertino, Calif., headquarters they discussed a number of topics including potential uses for the company's cash as well as future prospects for the iPhone and iPad.
Apple's predicted 2013 product pipeline by KGI Securities.
Unsurprisingly, the officials did not hint at where Apple may go in the future. But they did express confidence to Reitzes about where Apple is positioned.
"We believe there is an undying dedication at Apple to innovate ??and its leadership is working hard to prove bears wrong," he said. "We believe the company has a strong product pipeline ramping in (the second half of calendar 2013) ??with new platform innovations as well, in our opinion."
Reitzes still believes that Apple will introduce a lower-cost phone based on the iPhone 5 design later this year, along with a next-generation "iPhone 5S."
But the analyst still lowered his price target on Wednesday, from $575 to $530. Reitzes stressed that this reduction was not a result of his meeting with Schiller and Oppenheimer, but was instead something that his team has been considering for days.
Source: Barclays Capital.
Barclays wasn't alone on Wednesday in reducing its price target for AAPL stock, as Citigroup ? which has been bearish on Apple for months ??lowered its projection from $500 to $480. As noted by Philip Elmer-Dewitt of Apple 2.0, Citi's target is one of the lowest forecasts among Wall Street analysts.
And Adnaan Ahmad of Berenberg Bank went one step further, calling the smartphone investment "dead" in a note to investors on Wednesday. He believes investors should concentrate on the smartphone "trade" with companies like Apple and Samsung, rather than long-term holdings.
"Apple and Samsung margins are peaking and growth is going to be driven by the margin-dilutive mid-to-low-end segment in the next 24 months," he said. "In our opinion, this will translate into poorer industry fundamentals."
Ben A. Reitzes of Barclays Capital met on Wednesday with Apple Chief Financial Officer Peter Oppenheimer and Senior Vice President of Worldwide Marketing Phil Schiller. At the company's Cupertino, Calif., headquarters they discussed a number of topics including potential uses for the company's cash as well as future prospects for the iPhone and iPad.
Apple's predicted 2013 product pipeline by KGI Securities.
Unsurprisingly, the officials did not hint at where Apple may go in the future. But they did express confidence to Reitzes about where Apple is positioned.
"We believe there is an undying dedication at Apple to innovate ??and its leadership is working hard to prove bears wrong," he said. "We believe the company has a strong product pipeline ramping in (the second half of calendar 2013) ??with new platform innovations as well, in our opinion."
Reitzes still believes that Apple will introduce a lower-cost phone based on the iPhone 5 design later this year, along with a next-generation "iPhone 5S."
But the analyst still lowered his price target on Wednesday, from $575 to $530. Reitzes stressed that this reduction was not a result of his meeting with Schiller and Oppenheimer, but was instead something that his team has been considering for days.
Source: Barclays Capital.
Barclays wasn't alone on Wednesday in reducing its price target for AAPL stock, as Citigroup ? which has been bearish on Apple for months ??lowered its projection from $500 to $480. As noted by Philip Elmer-Dewitt of Apple 2.0, Citi's target is one of the lowest forecasts among Wall Street analysts.
And Adnaan Ahmad of Berenberg Bank went one step further, calling the smartphone investment "dead" in a note to investors on Wednesday. He believes investors should concentrate on the smartphone "trade" with companies like Apple and Samsung, rather than long-term holdings.
"Apple and Samsung margins are peaking and growth is going to be driven by the margin-dilutive mid-to-low-end segment in the next 24 months," he said. "In our opinion, this will translate into poorer industry fundamentals."
Comments
That's nice. How about announcing some of those products so we can share in your optimism because we're kind of tired of watching our stock holdings yoyo on a daily basis, or otherwise just keep quiet until you actually have something to talk about?
Only some stock weenie actually knows when "Q2" ends and "Q4" begins. Why not use those "Month" things on the chart so we can actually know what your prediction is?
Talk about "content free"
Mark my words. Investors whose horizons are 3 - 5 years out -- and not that of noise-traders and hedge funds -- will look back and wonder why they did not double up on AAPL at this price.
Cook calls everything they release "great' and "perfect" even when the newest items is modifying a prior product that was also "perfect." Hey, it's great to be optimistic, but if everything is always "great" then great becomes the new average. Not saying they wont continue to be a cash cow, but EPS contraction will start next quarter and continue unless they come up with a new, high margin product that would have mass appeal. So lets get the dividend up to 3.5% and at least make the wait more enjoyable.
It's Raining Men! Hallelujah! - It's Raining Men! Amen!
The year old 4s outsold the Samsung flagship and the iPhone 5 DOUBLED the S 3's sales.
That's a lot of money appeal and that's what piles up the cash. Not loss leader "marketshare" filler.
I doubt anyone at Apple is working hard to 'prove' anything to anyone. They're working to create great stuff. Why "react" when you can "create"?
$325… At current earnings levels…? Are we really heading down to below a 5x multiplier on Apple?
I agree with anantksundaram. Not doubling down on Apple at these prices is something people will look back on with regret…
Quote:
Originally Posted by Cash907
That's nice. How about announcing some of those products so we can share in your optimism because we're kind of tired of watching our stock holdings yoyo on a daily basis, or otherwise just keep quiet until you actually have something to talk about?
I actually think being so quite is hurting them these days. If their new schedule is to go 6 months without any product announcement (assuming we won't see anything until WWDC) that's a long time to be silent and creates a vacuum that right now is being filled with FUD and D&G. Part of me is hoping they have something to announce in April or May. But another part is not wanting them to release anything that's not ready, and not to release just for the sake of it, just to fill a lull in the calendar.
Quote:
Originally Posted by tkell31
Cook calls everything they release "great' and "perfect" even when the newest items is modifying a prior product that was also "perfect." Hey, it's great to be optimistic, but if everything is always "great" then great becomes the new average.
Care to name a major Apple product that's not great?
That is the 'average' for Apple. You're confusing Apple and the industry.
Quote:
Originally Posted by Cash907
That's nice. How about announcing some of those products so we can share in your optimism because we're kind of tired of watching our stock holdings yoyo on a daily basis, or otherwise just keep quiet until you actually have something to talk about?
Thank goodness my computing devices are NOT made by a company who "watches their stock holdings on a daily basis."
Long-term (read: smart) investors are glad too.
Quote:
Originally Posted by tkell31
Cook calls everything they release "great' and "perfect" ...
I don't believe he does.
It's somewhat strange that the Goldman Sachs forecast of $660 somehow slipped from the news reports. They ranked Apple at $442 a bargain! In any case, after spending 40 years in high tech sales and marketing, I'm comfortable with their numbers and outlook. Forbes called them the most respected Company in the world and a positive cash flow last quarter of $23 Billion isn't all that bad. Time will tell, but I believe Apple is an 800 pound gorilla that is under attack for not inventing the wheel twice a year.
Quote:
Originally Posted by Ricochet
"We believe there is an undying dedication at Apple to innovate and its leadership is working hard to prove bears wrong," he said.
I doubt anyone at Apple is working hard to prove anyone wrong. They're working to create great stuff. Why "react" when you can "create"?
Exactly. Some of us actually care about the future of technology and creating/using great products which enrich and fundamentally change our lives. Unfortunately, the people who only know money have somehow been heralded as the technological visionaries in recent times.
Quote:
Originally Posted by anantksundaram
Mark my words. Investors whose horizons are 3 - 5 years out -- and not that of noise-traders and hedge funds -- will look back and wonder why they did not double up on AAPL at this price.
Nope, because by that time the financial fantasy world that the US Government and economy have been living in will have collapsed and the sales of expensive goods like Apple's products will take a major tumble.
-kpluck
And where's the MacPro system? That should be announced either later this month or next quarter. There's 3 years of pent up demand for that product. While it's not a HUGE amount of money like the iPhone, it should at least help matters with regards to June quarter sales if it gets announced this month, if they delay it until next quarter, then it will improve the Sept quarter numbers.
Quote:
Originally Posted by Cash907
That's nice. How about announcing some of those products so we can share in your optimism because we're kind of tired of watching our stock holdings yoyo on a daily basis, or otherwise just keep quiet until you actually have something to talk about?
Are you as limited as them?
Aren't you tired of watching Apple not being able to keep up with demand, selling more and more of everything, making more money than all OEMs + Microsoft and google together?
Originally Posted by tkell31
Cook calls everything they release… …"perfect" even when the newest items is modifying a prior product that was also "perfect."
Citation needed.
Originally Posted by virtua
New design retina mac book pro in q3 doesn't make sense and there is no mention of the imminent Mac Pro.
That chart has ALWAYS been BS. I have no idea why AI keeps using it.
Um, let's see . . . If you divide a 12 month calendar into quarters, how many months would each quarter have? - Stock Weenie : )