Piper Jaffray’s Gene Munster shaves Apple price target to $875 on margin pressure from rumored cheaper iPhone

“A little less optimism about profit margins means a lower price target for the stock, Apple bull Gene Munster of Piper Jaffray said Thursday on CNBC,” Bruno J. Navarro reports for CNBC.

“Munster, considered one of the most positive analysts on Apple, adjusted his price target from $910 to $875 per share,” Navarro reports. “‘Yes, the narrative reads that we’ve cut our price target a couple of times, but at the end of the day, it’s still 70 percent upside to the current stock,’ he said. ‘We still feel very good about owning Apple in 2013.'”

– Piper Jaffray analyst Gene Munster

Navarro reports, “On ‘Fast Money,’ Munster said that he was factoring in lower margins on a potential sub-$400 phone from Apple, while also excluding the potential acceleration from any increase in market share in the price segment.”

More info and video in the full article here.

MacDailyNews Take: Who needs an actual product, pricing, or release date when you can just factor in speculation and a couple of vague newspaper reports to concoct a new AAPL price target? Gene might be losing not only his credibility, but also his mind.

[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]

Related articles:
A cheap Apple iPhone would mean the end of Tim Cook at Apple – January 10, 2013
Newsflash: Apple sells premium products at premium prices to premium customers – October 23, 2012

Why a cheaper iPhone model makes economic sense; next-gen iPhone, budget model may both sport 4-inch screens – January 9, 2013
Low cost iPhone? Apple has no problem cannibalizing its own business, typically with good results – January 9, 2013
Cheaper iPhone could boost Apple’s market share but ding margins – January 9, 2013
Gene Munster: 60-70% chance Apple debuts $199 iPhone for emerging markets – January 9, 2013
Bloomberg: Apple developing cheaper, smaller iPhone for 2013 holiday release – January 9, 2013
WSJ: Apple prepping less-expensive iPhone – January 8, 2013
Apple to launch low-cost iPhone with 5-inch display for emerging markets in 2H13, sources say – January 8, 2013
Barclays: Cheaper iPhone for emerging markets ‘key’ for Apple – December 4, 2012


  1. There is a never-ending supply of rumors, scare tactics, and FUD that seems to be thrown around with AAPL. Gotta love mass social media where every person gets to voice every single thought they have. The name of the game seems to be in generating “hits” rather than the quality of the information.

    1. It’s all about hits. Jim Cramer hired Rocco Pendola to generate hits for the street. Henry Blodget (owner) and Jay Yarow do so for business insider. Their hit pieces are extremely predictable. Problem is that the major networks (cnn, LA times, etc) pick their news from these hit whores.

      Apple needs to address this because in the end it is affecting customer perception of the company.

  2. Hmm. I wonder what would happen if I were to hear a rumor that 50 million Android users planned to switch to iPhone next quarter, and another 50 million in the following quarter? I wonder what that would do.

    Rumor me this.

  3. “Gene might be losing not only his credibility, but also his mind.”

    So sad. He used to be the only analyst I trusted on AAPL. He was the first to understand the impact that the iPhone would have on the company. Now? I’m not sure what he’s thinking.

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