UBS, Summit defend the iPhone cycle as Apple shares slide again

“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.”

Read more in the full article here.

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.


  1. Apple’s growth rate could slow dramatically based upon two new factors.

    1. Tim Cook’s redirection of the company to one primarily serving the LGBTQMIA demographic
    2. The extraordinary expenditures Tim Cook is planning to save the world from the weather. The weather, being somewhat fuzzy, will require vast sums to fully control so the entire world has the precise temperature and humidity that Tim and Al deem to be right according to Gaia.

    1. It is bad enough that you are an idiot, kent. But to copy and paste your drivel from one article to the next?

      To borrow from Steve Jobs—

      The main problem with kent and his ilk is they just have no taste. They have absolutely no taste. And I don’t mean that in a small way, I mean that in a big way, in the sense that they don’t think of original ideas, and they don’t incorporate much rationality into their opinions.

    1. I just listened to the CBS call, and while their revenue only increased a paltry 1 percent, their tone was extremely bullish for the future. I think a deal with Apple is finally at hand. This is just one pertinent excerpt from the call:

      “Plus, as we read about all the time, there are a number of new players preparing to enter the streaming marketplace. I assure you that CBS is a must-have for each of them. This is especially important with any kind of skinny bundle that comes along, and they are coming along”

      It also sounds like most of their affiliates are onboard.

  2. blah, blah, blah,
    I am not any of the acronyms you post and hear the truth from apple and Tim Cook, but i do know you doth protest too much, what is your fear of coming out?

    and what part of science are you unwilling to face?
    start with the fact the earth is not the center of the universe, and study the advances in knowledge and understanding that arose from that (or are you committed to a flat earth? AND AN EMPTY HEART?)

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