UBS: Apple iPhone gaining share of high end growth; up to 20% of Samsung users considering iPhone upgrade

“UBS’s Steve Milunovich reiterates a Buy rating and a $150 price target, after raising his estimate for Apple’s fiscal 2016 iPhone sales by 10 million units, to 225 million units, causing him to revise up his profit estimate for fiscal ’16 to $10.31 per share from $10.01,” Tiernan Ray reports for Barron’s. “That’s only 5% unit growth, he notes, which might be a disappointment after potential growth of 25% this year, but then, any growth after a big iPhone 6 cycle is good thing, he asserts.”

Ray reports, “Among Milunovich’s chief assumptions are that Apple is going to gain market share against Samsung Electronics and others in the high end of the smartphone market: ‘Apple will gain 5-10 points of high-end market share. After a difficult 2013 when the Samsung Galaxy S3/4 were hot, Apple has recovered momentum with its high-end share over 50% now. Up to 20% of Samsung users are considering switching to Apple, according to the UBS Evidence Lab Survey.'”

Ray reports, “More surprising, perhaps, is that Milunovich asserts the high end of the market is growing faster than the low end, citing data from Gartner: ‘Gartner unit sales statistics indicate that premium smartphone adoption (roughly over $250) is highest in North America, Western Europe, and especially in Japan, where Apple has maintained dominant share for some time. Basic (low-end) device growth has slowed to single digits with higher-end devices driving overall smartphone growth, which is good for Apple.'”

Read more in the full article here.

MacDailyNews Take: 🙂

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An iPhone with a larger screen option will hurt Samsung immeasurably more than myriad, unending traipses through the legal morass.MacDailyNews Take, May 2, 2014

Apple grabbed 93% of the mobile industry’s profits in fourth quarter 2014.

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6 Comments

  1. “profit estimate for fiscal ’16 to $10.31 per share from $10.01,”

    Yep, over $10eps. Last year was $6.45. That would be 60% earnings growth. How does the most profitable company in the World grow profit at 60%? Amazing.

    1. It’s still being said that Apple is a high risk investment and how growth is going to slow to a standstill. That’s being said all the time. No matter how well Apple does one year, the future always said to remain bleak the next year or so. That’s a really odd outlook Wall Street has about Apple. They can believe Amazon will suddenly sprout wings of profit, but Apple can only grind to a halt. There are the worst sort of crooks running Wall Street.

      1. Any Institution that thinks this way should be promptly bitch slapped and booted out of the market for being wankers of Wall Street. Apple has more then proven themselves over many years, especially this last year. I can understand mom or pop being scared out of their shares because of the FUD marketing/news stories paid by Samsung or some fund not wanting to give up their long shares, but Pros honestly thinking Apple will suddenly fail should go jerk each other off in a corner, incessantly comment on how their tin-foil hats slopily adorn their lice-filled coifs and then bounce nickles into each other’s buttocks – they would probably make more money.

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