“Apple shares are down $1.10, or 0.9%, at $121.27, despite getting a new bit of positive coverage from the Street this morning, from Nomura Equity Research’s Jeffrey Kvaal, who took over coverage from Stuart Jeffrey, who had had a Neutral rating on the stock,” Tiernan Ray reports for Barron’s. “”
“Kvaal boosts the firm rating up to Buy, with a $145 price target, writing that ‘We expect Apple to extend its share gains in 2016’ and ‘the strong iPhone 6 cycle still leaves plenty of scope for growth both with the 6S cycle and in China,'” Ray reports. “Kvaal describes the company as ‘bestriding the consumer electronics industry like a colossus’ and notes that it should be able to avoid the fate of prior colossi such as Nokia, writing ‘We do not consider Apple vulnerable to such a rapid reversal of fortune given its ecosystem of devices, software, and services.'”
MacDailyNews Take: Especially since Apple was responsible for it. 🙂
Ray reports, “Kvaal thinks the Street expectations are much too low for the next model of the iPhone, presumably an ‘iPhone 6S.’ He’s modeling units of iPhone moving up from 230 million this fiscal year to 250 million next year, versus Street expectations for things to be roughly flat.”
Apple has managed to hold share as the market moved away from its sweet spot in the high end of the smartphone market —an impressive feat indeed. Apple held ~20% share of the global smartphone market in 1Q15, down modestly from 1Q12. We believe Apple has been able to do this in part by converting Android users over to the iOS ecosystem and in part by expanding its distribution. According to a recent survey conducted by CRR, the research arm of CLSA, more Chinese consumers are switching from Android to iPhone. The survey showed that 53% of the respondents that own an iPhone have switched from Android; and, perhaps more important, 32% of Android users who plan to buy a new phone within the next 12 months intend to switch to iPhone. This supports our view that Apple has been faring well in China and the switch rate from Android is at historical highs. Aside from China, iPhone is gaining traction in Europe and the U.S. as well. Switch rates from Android were 18% and 12% in Europe and US, respectively, in 4Q14; these numbers increased to 33% and 14% in 1Q15, respectively. — Nomura Equity Research analyst Jeffrey Kvaal
Read more in the full article here.
MacDailyNews Take: If it’s not an iPhone, it’s not an iPhone.
SEE ALSO:
Samsung will never overcome Apple’s advantage in mobile device profitability – July 30, 2015
Apple iPhone shipments show impressive growth as Samsung falls – July 30, 2015
Samsung offers downbeat outlook for year ahead of new Apple iPhones – July 30, 2015
Apple’s indomitable iPhone 6/Plus sales unfazed by Samsung’s anemic Galaxy S6/Edge – June 2, 2015
iPhone 6, killer: Beleaguered Samsung’s Galaxy S6 sales are a total disaster – May 22, 2015
Beleaguered Samsung reports 30 percent decline in operating profit – April 28, 2015
Samsung Galaxy S6 phones suffer weaker than expected sales in South Korea homeland – April 22, 2015
15 percent of Samsung Electronics execs quit amid profit slump – April 2, 2015
Significant Android to iPhone switching weakens market for Samsung Galaxy S6 – March 24, 2015
Apple iPhone takes smartphone market share from Android around the world – March 4, 2015
Poor man’s iPhone: Android on the decline – February 26, 2015
[Thanks to MacDailyNews Reader “David E.” for the heads up.]