“Apple shares will rise as consumers buy more expensive iPhones, according to one Wall Street firm,” Tae Kim reports for CNBC. “”
“UBS raised its price target to $210 from $190 for Apple shares, representing 12 percent upside to Thursday’s close,” Kim reports. “The firm cited the premium nature of the company’s brand.”
Buying intent [for smartphones] is down slightly across the world though the mix of iPhone X appears strong. The brand remains aspirational… We do think the P/E could rise over time as Apple is perceived more like Nike than like Nokia. — UBS analyst Steven Milunovich
Kim reports, “He noted that 44 percent of planned purchases in the UBS survey of consumers are for the more expensive iPhone X, which is up from the 30 percent level in the previous October survey.”
Read more in the full article here.
MacDailyNews Take: The aplomb with which Steve Jobs pancaked the likes of deer-in-the-headlights Nokia won’t soon be seen again.
SEE ALSO:
Apple’s iPhone X made 5 times the profit of 600 Android OEMs combined – April 18, 2018
Apple’s iPhone captured 86% of global handset profits in Q417; iPhone X alone took 35% of global handset profits – April 17, 2018
Apple’s iPhone X is the UK’s most popular smartphone – April 9, 2018
Apple’s iPhone X and 8 Plus offer superior battery life vs. Samsung’s Galaxy S9 – April 3, 2018
Apple’s iPhone X sales continue to disappoint, some analysts say – March 22, 2018
Ignore the iPhone X naysayers – March 10, 2018
iPhone X drives smartphone revenue dominance; Apple made more money in Q417 than the rest of the smartphone makers combined – February 16, 2018
Apple iPhone took more than half of worldwide smartphone revenue share in Q417, a new record – February 15, 2018
Will the naysayers admit they were wrong about Apple’s iPhone X? – February 5, 2018
Strategy Analytics: Apple has shipped 1.2 billion iPhones in the past 10 years; $760 billion in global revenue to date – September 8, 2017
Apple took 83% of smartphone market profits in calendar first quarter – May 16, 2017
LOL, the tittle is hilarious “UBS: Apple is ‘more like Nike than like Nokia’”. Is Nokia still in business?. Do you guys seen anyone holding Nokia phones in their hands?.
Why would anyone even mention Nokia for heaven sake. They might as well have said that Apple is more like Nike than Polaroid for all the relevance it has. All it does is make USB is still living in the circa 2005 which hardly makes them look on the ball. Hell its like watching your grandad looking for the floppy disc drive on your iPad.
Well news for you UBS most people with half a brain know that Apple is nothing like Nokia thanks. Mind you that might exclude Applecynic but I am sure he will reveal that himself and far better than I could possibly do him justice.
Steven Milunovich argues that Apple’s products are aspirational. Nokia offered the cheap mass market product, which is something that Apple doesn’t do.
It’s worth looking at total sales by model. For phone models which sold over 100 million devices, Nokia holds ten of those thirteen spots, Apple has the number three spot ( iPhone 6 ), Samsung the number eight spot ( E1100 ), with Motorola’s Razr at number ten. Every other spot is held by a Nokia phone. That’s why Steve Milunovich used Nokia as the example of mass market success. It’s also remarkable that Apple is so far up that chart at #3 with a premium offering when so many of the other phones in that chart are ultra-low price dumb phones which were frequently given away free as part of a contract.
I’m not sure that I’m comfortable with his implication that people are buying them because of the name because it’s getting a bit close to the old chestnut that Apple products were only bought be fanboys. When well over a billion iPhones have been sold, it’s kind of hard to suggest that they must have been bought by a billion fanboys.
Milunovich seems to be somewhat of a “Pump and Dump” kinda guy. While the PT is a good number I wouldn’t be surprised if he issued a downgrade near the next quarterly results. Gotta get that trading income for the company.
It’s easy enough to search for what he’s predicted in the past and then come to your own conclusion about the worth of his analysis.
I’m not at all impressed by his track record and have highlighted some of his false calls before.
On a different point, I never pay attention to surveys of buying intentions. The only number that matters is how many people actually buy the product.