“Apple Inc.’s shares rallied on Monday, reversing from a three-week downspin, as a handful of brokers reiterated their bullish views of the company’s flagship iPhone business,” Dan Gallagher reports for MarketWatch.
“By midday, Apple (AAPL) was trading up more than 4% to $553. The shares had previously shed as much as 12% from late-April to last Friday’s close,” Gallagher reports. “Goldman Sachs said it does not expect U.S. carriers ‘to make any material changes to retail prices for leading smartphones,’ since the market has four major carriers all pushing hard to grow their smartphone businesses. ‘From Apple’s perspective, we view the conclusions of the report as positive, and we continue to believe that reductions in smartphone subsidies are unlikely to significantly impact the Apple model or the longer-term value of the platform,’ wrote Goldman analyst Bill Shope, who covers Apple for the broker.”
Gallagher reports, “In another report, Piper Jaffray analyst Gene Munster maintained his iPhone shipment target, despite the risk of the 28nm chip shortage. He said there is an 80% chance the company can meet his target of shipping nearly 50 million iPhone units in the December quarter, when he expects the company to launch the iPhone 5. ‘We expect Apple is likely to get favorable treatment in terms of access to 28nm inventory,’ he wrote, adding that even if the launch was constrained by supply, he thinks consumers would simply wait for available units instead of opting to buy a rival product.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Carl H.” for the heads up.]