“Not everyone loves Apple. Take Fort Pitt Capital’s Kim Caughey Forrest,” Christina Medici Scolaro reports for CNBC. “The portfolio manager and equity analyst says it’s a fantastic phone company, but her accolades stop there.”
“Forrest gave three reasons for her lukewarm analysis of Apple,” Scolaro reports. “First, Apple’s record-high stock prices reflect a willingness to believe that the tech giant can reinvent an entire product category every few years, Forrest said.”
“Second, Forrest said Apple will have a tough time shifting consumer tastes back to wrist-pieces when the Apple Watch launches in April,” Scolaro reports. “Forrest added: ‘I don’t really understand how they think they’re going to change behavior other than it’s cool and that’s about it.'”
MacDailyNews Take: “I don’t really understand.” A smart person would’ve stopped there, not appeared on CNBC.
“Lastly, Forrest questions the growth prospects of the iPhone, even after setting sales records with the iPhone 6 last year,” Scolaro reports. “Forrest is neutral on the stock and says she has to question the fact that people are buying the stock based on the notion that market share of iPhones is going to continue to grow. She said that gives her pause.”
Full article here.
MacDailyNews Take: Nobody with a least half a brain is buying AAPL “based on the notion that market share of iPhones is going to continue to grow.”
Apple understands that it’s not amassing market share that matters per se, it’s the demographics of the market share you’ve amassed that matters most.
With iPhone, as they will with Apple Watch, the company will continue to amass the vast majority of the best, most-desireable customers while leaving the dreck for the also-rans, just as they’ve done with personal computers, portable media players, and tablets.
Here’s a list of everything that Fort Pitt Capital’s Kim Caughey Forrest understands about Apple:
[Thanks to MacDailyNews Reader “Lynn Weiler” for the heads up.]
Apple grabbed 93% of mobile industry profits in fourth quarter 2014 – February 9, 2015