Analyst: Apple’s key competitive advantage is ‘its large and still growing user base’

KeyBanc Capital Markets analyst Brandon Nispel this week placed an “Overweight” rating on Apple, calling it “an attractive buy.” Nispel placed a $191 price target on AAPL, which is some 16% higher than the stock’s current price.

Apple Park in Cupertino, California
Apple Park in Cupertino, California

Dani Romero for Yahoo Finance:

“The key competitive advantage for the company is really in its large and, and still growing user base, particularly on the iPhone side,” Nispel told Yahoo Finance Live on Tuesday. “That user base really fuels Apple’s competitive advantage in that its ecosystem continues to grow and it becomes very important for the longer terms story.”

“It’s really driven by the active user base and we think the user base continues to grow at, call it 7%, which on a base of a billion that’s really key,” Nispel said…

Nispel is a bit more sanguine about [“Apple Car”] reports, saying KeyBanc wants to be “able to touch and feel, at least see a product before coming to a conclusion on how to value it.”

He added: “A car makes a lot of sense. Apple’s user base, that’s still growing, they have fanatic customers. So that user base is gonna most likely purchase any product that Apple comes out with.”

MacDailyNews Take: In January 2021, Apple said in a conference call with analysts that active iPhones had passed the 1 billion mark and that there were now 1.65 billion overall Apple devices in active use, a number that is surely larger today, nearly one year later.

Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

1 Comment

  1. Apple’s “competitive advantage” is offering products no one else can offer (or easily copy). Only Apple has Mac, because of MacOS and now the Apple Silicon. Ditto iPhone, iPad, TV, and Watch. And (most important) the integration of all devices and services into a cohesive ecosystem. That’s why Apple has a large and growing user base. It grows because Apple customers are loyal to Apple’s ecosystem and do not want to leave. Most Android and Windows users have no particular motivation to remain loyal to a brand.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.