Morningstar: Apple iPhone business undervalued, Android impact overstated

“The stock market is undervaluing Apple’s smartphone assets while overestimating the impact that Google Android is having on Apple’s business, research firm Morningstar says,” Patrick Seitz reports for Investor’s Business Daily.

“In a report out Tuesday, Morningstar analysts say investors are confused by the battle of the smartphone platforms, which pits Apple’s iPhone against rivals using Google’s Android operating system,” Seitz reports. “Morningstar says Apple will be able to preserve a large user base and maintain a narrow moat around its smartphone business. At the same time, Google’s ‘shepherding of Android protects its wide economic moat in the mobile Internet segment,’ the report says.”

MacDailyNews Take: How does Google do that when Amazon and Samsung, by far the two most dominant Android peddlers – co-opt Android and herd the Kindle/Galaxy ignorati into their own stores and services, not Google’s?

Seitz reports, “Morningstar says Google stock is ‘slightly overvalued’ while Apple stock is ‘attractively priced.’ …Unlike Google’s Android, Apple controls the entire “smartphone value stack,” which includes hardware, operating system (iOS), applications, app store and content… Morningstar predicts that Apple will stick with its strategy of maintaining a premium brand and not chase market share with a lower-cost device, as has been rumored.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

Related articles:
Apple iPhone increases its dominant U.S. smartphone market share lead – June 4, 2013
Yankee Group: iPhone ownership in the U.S. will top Android by 2015 – April 26, 2013

18 Comments

        1. that’s a diversion, the REAL elite group of the world’s most powerless, least influential poor people will be at Holiday Inn where they will be discussing NASCAR, tractor pulls and professional wrestling. The Ignorati can be identified by their CNN caps and “Obama ’16” badges.

    1. Exactly. Hard to understand ITC siding with Samsung, seeing that they refused to license 3G SEP (Standards Essential Patents) at REASONABLE F.R.A.N.D. rates (the R stands for reasonable) as they are REQUIRED to do.

  1. And this in the news: Daytime is over valued for its predicted lightness but the evening and night are slightly darker. The prognosticators expect this situation to last into the foreseeable future. Daytime will steer the course and continue to offer premium light.

  2. “investors are confused”

    You don’t say… A big chunk of the market always confused is and some of them are not really interested in the actual companies. They trade stocks on psychology an head lines. And when it comes to Apple I actually think its a very small part of the investor base that actually understands the company. Allot of the people, funds and hedge funds that have sold on the way down was only in the stock because it went up not because it was and still is a great company. Such share holders, or shall I say share traders Apple can do without.

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