“UBS’s Steve Milunovich [yesterday] reiterated a Buy rating and a $600 price target on shares of Apple (AAPL), while asking if the company has an ‘identity crisis’ because it seems to be in the unusual position of ‘drawing significant and competent competition,'” Tiernan Ray reports for Barron’s.
Yet now that the company is so large due to iPhone success, investors are clamouring for product expansion with larger as well as lower-priced phones with Android gaining favor. Innovation remains the key… Perhaps Apple will meet its internal need for differentiated product while covering more product space to grow revenue as it did with the iPod. If not, it probably will err on the side of yielding revenue dollars though giving up less in profit share. The only way out might be innovation in new categories, which will require investor patience. Most companies would rush out a 5-6” phone; Apple probably won’t. – UBS analyst Steve Milunovich
Read more in the full article here.
Another water is wet article.
Not really:
“Yet now that the company is so large due to iPhone success, investors are clamouring for product expansion with larger as well as lower-priced phones with Android gaining favor.”
See the article about market share here on MDN. iOS is accelerating faster than Android, and Apple is gaining on Samsung in market share. Samsung and Android are losing steam.
The best defense is still a good offense.
“investors are clamouring for product expansion with larger as well as lower-priced phones with Android gaining favor. Innovation remains the key”
All investors want is for Apple to introduce a new product every 6 month so their stocks continues climbing and they make a killing; more, more. If they wanted to make a killing they should have purchased gold back went Bush took office when it was just under $300.00. Making lower priced phones isn’t innovation, it is expanding market share.
That’s what Apple’s competitors call “innovation”, releasing a copy of Apple’s products with a bigger screen and cheaper in cost. The real question is can Apple’s competitors play offense. Time after time they have only been able to copy. Apple lawsuits against these companies have proven that. Apple has an R&D lab while their competitors have a RE lab (Reverse Engineering).
Analysts, get a real job mon. The sky isn’t falling.
What! You can’t differentiate when everyone else is copying what you do. The courts will not protect Apple’s IT property. So, ONLY Apple can innovate and the Samsungs of the world will copy as best they can.
Why can’t Apple forward their design specification and a prototype to these sad pathetic copiers so they can copy quicker. It just isn’t fair!
As for defense, no one is stopping Apples board,Tim Cook or anyone else at Apple from defending Apple or it’s investors. THEY JUST DON’T WANT TO. THEY WANT US TO “BE PATIENT”. Really! Do you tell a drowning swimmer to “BE PATIENT”! TILL WHEN TIM!!! Until AAPL is at CASH value so Apple can go private or until anyone else takes over Apple using Apple’s own money!!!
And Tim and the board, do you still feel AAPL isn’t a good buy yet? If you can turn the investors $137 billion into $192 billion buy the end of the year when AAPL hits $600 a share some where else, DO IT! Or put Apple cash where Apple’s investors have, in AAPL! Or step down and let anyone else do your job that will man up!
Wall Street will simply take the other side of whatever strategy Apple adopts (Lose – Lose). By simply not responding, Apple frustrates Wall Street and maintains full control (Win – Win). Only Apple fully knows the true value of it’s enterprise. Why buy back your shares now when Wall Street insists on making it cheaper every day?
$600/share? Really? Damn!
The Wall Street tells of nowadays popular mentality and well basically, our integrity toward life. That we are walking further away from intuitive greatness but rather toward perceptual driven bullshit.