“Apple shares are back to their downward path, after a brief respite yesterday, falling 45 cents, or 0.4%, at $114.43, and today some of the bulls came to the stock’s defense after a bear run yesterday morning,” Tiernan Ray reports for Barron’s. “UBS’s Steve Milunovich, who has a Buy rating on the shares and a $150 price target, this morning writes that ‘two opposing forces are acting on Apple stock: decelerating growth but an inexpensive valuation: We expect an increase in iPhone units in F16 to break the tie.'”
“Milunovich thinks the iPhone “is not yet mature,” and that there’s a lot of new business to be had, as well as upgrades of existing users,” Ray reports. “Likewise, Srini Sundararajan of Summit Research, who rates the stock a Buy, writes today that ‘While some investors are bearish on the next iPhone iteration iPhone 6s or whatever it is called… based on SUPPOSEDLY no new great features except force touch… we beg to differ.’ The iPhone will dazzle with its custom ‘A9’ processor, thinks Sundararajan. ‘From a strictly semiconductor processing point of view, A9 will be fabricated at 14nm. The A9 processor will likely be 20% more powerful, 12-15% smaller in size and 35% more power efficient… Based on some numbers that Imagination provided for their Graphics processor improvement to likely A9’s GX6650 or GX 7400 from A8’s GX6500, at least a 30% graphics would be expected at a minimum.'”
Ray reports, “Sundararajan also thinks the bears have it wrong regarding the risk of China slowing down for Apple and others.”
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MacDailyNews Take: The Apple A9 is going to be an absolute beast!
With some 73% of iPhone users yet to upgrade to iPhone 6/Plus, the sales of iPhone 6s/Plus are going to set new records! Plus we have Apple Watch in stores for the holidays and, hopefully, a new Apple TV along with an all-new “Apple Television” Internet TV service, a new “iPad Pro,” and more. Apple’s current dismal stock performance simply does not match the company’s very bright future.