Apple downgraded by HSBC to sell rating on concern about new services: ‘Too late to the game’

“Apple shares were downgraded to ‘reduce’ by HSBC on concern its pivot into services will have lower margins and the new offerings including its streaming TV product will fall short of expectations,” John Melloy reports for CNBC.

Recent announcements on services has Apple putting money where its mouth is but returns could take some time to extract. While the new offerings may garner consumer attention, we do not expect these services to move the needle significantly. We believe Apple has come too late to the game and its offering, by and large do not differ much or are below par to offerings from competition. — HSBC analyst Erwan Rambourg in an April 10, 2019 note to clients

Melloy reports, “The analyst also noted that the services business is likely to be less successful at gaining and keeping customers in emerging markets than it is in the U.S.”

Read more in the full article here.

MacDailyNews Take: Mountains of money in the hands of experienced professionals can quickly cure a lot of confused floundering and lateness. Watch and see.

Beware any so-called analyst who claims to have “concerns” about a service for which the price has not even yet been announced!

Rambourg’s comments have been iCal’ed for future use.

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    1. Yes and no. Apple’s ‘phone’ is no longer just a phone but a handheld computer that happens to handle phone calls. In both cases phone/music player, Apple brought something markedly different. With the current services being announced it is closer to a me too. The analyst probably also took into account that based on past actions Apple would not set prices lower than competitors for any reason to maintain their customarily higher margins. That is unless they have some kind of agreement with providers akin to the ebook fiasco in which they participated.

  1. Holy shit, then why didn’t the geniuses at HSBC downgrade Apple oh, three moths ago? Weren’t they late to the game then? Or two months ago? Or one month ago? That’s because HSBC are fucking frauds and thieves.

  2. “Beware any so-called analyst”, especially those employed by HSBC, they have never been right.

    Apple was 5 years “late” to the digital music player market. iPod crushed the industry.

    Apple was 11 years “late” to the mobile phone market.
    iPhone crushed the industry.

    Apple was 25 years “late” to the tablet market (MSFT shipped the first in 1995).
    iPad crushed the industry.

    Apple was 4 years “late” to the large format mobile phone market.
    iPhone now owns the over $800 mobile phone market.

    Apple was 3 years “late” to the video (rental) on demand market.

    Apple was 6 years “late” to the “smartwatch” market.
    Apple Watch dominates (>50% share) of the “smartwatch” market.

    Apple was “late” to the wireless ear pod market.
    Apple’s AirPod dominates (>50% share) of the wireless ear pod market.

    Apple was “late” to the streaming music market.
    Apple’s Apple Music has surpassed Spotify in total paid subscribers in the US and is growing domestically and internationally faster than Spotify.

  3. The usual Financial Institution nonsense when they are attempting to move investors into sell/buy mode because they really get fed up with astute long term investors who just sit in a stock like AAPL and enjoy the dividends. Nothing more, nothing less!!

  4. This is so dumb on it’s face:

    A. If they didn’t enter streaming HSBC would have downgraded Apple for not entering the game…

    B. Apple enters then game but it’s too late. That’s not stock analysis, that’s crystal ball time in the most negative space possible.

    Trying to manipulate AAPL down when it has only northern momentum at this time looks downright stupid, if not unethical on its face.

  5. I’m keeping an eye on Apple’s Gaming platform vs Google’s Stadia. As I understand it, Stadia will work on any platform that is running Chrome (or at least its kernel).

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