“UBS’s Steve Milunovich this morning reiterates a Buy rating on Apple, and a $140 price target, as he relates the findings of a panel of experts he assembled during his firm’s technology conference last week, the question pondered being, ‘Is Apple a hits or annuity business?'” Tiernan Ray reports for Barron’s. “Milunovich’s conclusion is that it’s both.”
The Apple ecosystem results in an annuity-like business that is delivered as hit products. The top priority is customer loyalty — everything Apple does is for customer satisfaction and brand loyalty. Each Apple product generates about $1 per day in revenue. Panelists expect Apple to make a car, the ultimate mobile device — the question is how many? Company threats include dependence on the iPhone and internal turmoil. — UBS analyst Steve Milunovich
Ray reports, “Apple, according to the panelists — Mark Gurman, Senior Editor of 9to5Mac; Adam Lashinsky, Assistant Managing Editor of Fortune Magazine; and Horace Dediu, Fellow at the Clayton Christensen Institute — is that Apple is a hit factory sort of like Disney’s Pixar studio (which was sold to Disney by late Apple founder Steve Jobs).”
Read more in the full article here.
MacDailyNews Take: So true.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]