“Apple’s move to allow consumers to finance their iPhones by creating a lease program called Apple Upgrade Program turns Apple into a bond-like source of cash — rather than a tech company that must deliver annual innovation,” Matt Krantz reports for USA Today.
MacDailyNews Take: Let’s have both, m’kay? And, it’s called iPhone Upgrade Program, not “Apple Upgrade Program.”
“The rising conviction Apple’s financing plan will continue to get consumers to pay up for its smartphones is driving the stock higher,” Krantz reports. “If Apple is successful in convincing consumers to sign up for iPhone payments, the impact could be huge, analysts say. UBS estimates that Apple’s stock would be worth $200 a share — or about 70% more than it is today — if valued as a recurring revenue stream. Investors love predictable cash flow and are willing to pay higher multiples for predictability.”
“If the financing plan provides the power to push Apple’s stock to $200 a share, it would give Apple a market value of $1.1 trillion,” Krantz reports. “Apple would finally become the first $1 trillion company as bulls have said it can be. ‘The iPhone Upgrade Program could be a big deal,’ says UBS analyst Steven Milunovich in a note to clients. UBS has a $150 a share price target on Apple stock.”
Read more in the full article here.
MacDailyNews Take: Apple is just getting started. We haven’t seen anything, yet!
SEE ALSO:
Apple’s iPhone Upgrade Program may warrant higher earnings multiple – once Wall Street grasps what’s happened – September 15, 2015
Apple shares could rally 50% on new iPhone Upgrade Program – September 14, 2015
iPhone Upgrade Program: Apple’s brilliant strategy to turn carriers into ‘dumb pipes’ – September 11, 2015
Apple takes aim at the carriers with annual iPhone Upgrade Program – September 10, 2015
How Apple’s annual iPhone Upgrade Program works and how much it costs – September 9, 2015
Adding to the inventory of dream possibilities.
Apple Pay, Apple Watch, new AppleTV with App Store, iPhone Upgrade Program, iPhone 6S, new Macbook, 5K iMac, WatchOS 2, TVOS, iOS 9, El Capitan, Apple Music, Beats 1, iPad Pro, Apple Pencil…it’s been a crazy productive 12 months for Apple. It’s weird that Wall Street has been so negative when the company is clearly poised for the future and firing on all cylinders. Hopefully that stock price is coiled like a spring and ready to release itself soon.
But, knowing the way Wall Street feels about Apple, Apple could double its profits next year and Wall Street would reward it with maybe a $5-10 price rise…because you know, Apple is doomed to fall apart any day now. It’s still 1995, isn’t it?
Like Toyota, Apple may be getting too big and cumbersome.
Apple has world-class leadership.
Oh,oh! These pronouncements are guaranteed to drop the stock price down! I think the Negative FUD does AAPL more good than these positive predictions. Both are fresh off the rectal highway.