Shares of Apple (Nasdaq:AAPL) got crushed on Wednesday, plummeting by 4.5 percent after being downgraded.
That has been somewhat answered by Credit Suisse (NYSE:CS) today, who launched coverage on Apple with an "Outperform" rating and a $500 price target. That is a 52 percent upside from Apple's Wednesday close.
Assuming the price target is accurate, it would make Apple the most valuable company in the world. It makes a nice headline and attracts interest, but that 52 percent upside isn't exactly you can turn on or off as a company.
"In its rating, Credit Suisse analyst Kulbinder Garcha concluded that Apple should be able to deliver outsized revenue and earnings growth of 50% and 46%, respectively, over the next two years. This would be significantly greater than the consensus expectations," said TheStreet.
"Garcha said Apple's iPhone is still the driver. He sees Apple's smartphone share rising to 20 percent in 2012 driving volume of 72 million units in 2011 and 112 million in 2012. This would translate into revenue for Apple of $47 billion and $67 billion, respectively.
"On the iPad, Garcha sees the tablet market rising to $120 billion in 2015. In the segment, Apple will continue to dominate and they see the company maintaining share as high as 50 percent long-term. By 2012, the Apple's iPad could become a $34 billion business. In addition, iPad gross margins could expand to 35 percent by the end of this year, up form 27 percent in 2010.
"Garcha said he still sees room for an extra $10 per share in earnings, driven by a low-end iPhone, a greater push into emerging markets, along with enterprise traction."
Apple was trading at $338.55, gaining $8.54, or 2.59 percent, as of 12:14 PM EDT.
Source
Showing posts with label Apple Tablets. Show all posts
Showing posts with label Apple Tablets. Show all posts
Thursday, March 17, 2011
Wednesday, March 2, 2011
Apple's (AAPL) Unigue iPad Pricing Advantage
While Apple (NASDAQ:AAPL) competitors in the past have been able to compete on the price factor across products offered by the company, in the case of its iPad, they have turned that around, and now are not only competing with their strong brand, but at prices far below what their competitors are able to offer for their tablets.
Sanford Bernstein analyst Toni Sacconaghi said today there are four reasons for this.
The lack of a “price umbrella,” advantage on component costs, structural distribution advantage (sells through own stores), and Apple’s custom “A4″ processor.
Sacconaghi concluded, "We believe that Apple’s aggressive pricing for the iPad is consistent with (1) the increasing returns nature of the tablet market; (2) Apple’s view that the tablet market will be “huge” and “bigger than the PC market” and will attract competition from smartphone and PC vendors alike; and (3) the company’s desire to fully capitalize on Tim Cook’s assertion that the iPhone is the “mother of all halos”. We note that aspiring tablet competitors are further thwarted currently by reported shortages in key components including touch panels, which makes it harder to bring a product to market, let alone at competitive prices."
He maintains an "Overweight" rating on Apple, which was trading at $351.78, up $2.47, or 0.71 percent, as of 1:12 PM EST.
Sanford Bernstein analyst Toni Sacconaghi said today there are four reasons for this.
The lack of a “price umbrella,” advantage on component costs, structural distribution advantage (sells through own stores), and Apple’s custom “A4″ processor.
Sacconaghi concluded, "We believe that Apple’s aggressive pricing for the iPad is consistent with (1) the increasing returns nature of the tablet market; (2) Apple’s view that the tablet market will be “huge” and “bigger than the PC market” and will attract competition from smartphone and PC vendors alike; and (3) the company’s desire to fully capitalize on Tim Cook’s assertion that the iPhone is the “mother of all halos”. We note that aspiring tablet competitors are further thwarted currently by reported shortages in key components including touch panels, which makes it harder to bring a product to market, let alone at competitive prices."
He maintains an "Overweight" rating on Apple, which was trading at $351.78, up $2.47, or 0.71 percent, as of 1:12 PM EST.
Thursday, February 10, 2011
Hewlett-Packard (NYSE:HPQ) Offering Tablet, Smartphones
Hewlett-Packard (NYSE:HPQ) announced their first foray into the tablet and smartphone sectors, as the tech giant scrambles to become relevant in the rapidly growing markets.
As for the tablet, which they probably have a better chance of generating revenue and earnings with in the short term, it's a 9.7-inch screen called the TouchPad.
Two smartphones are in the works, with one, the Pre3, being developed for office workers. The other called the Veer, includes a screen about the 3" wide.
All the new products will be run on its WebOS operating system, which they obtained in their acquisition of Palm in 2010.
The problem and challenge for Hewlett-Packard is the products won't be available at earliest by the spring, and by latest, the summer.
Jon Rubinstein, a Hewlett-Packard senior vice president, said the reason for announcing so far ahead was to give developers an opportunity to create apps for the devices.
The Veer won't be introduced until the spring, and the Pre3 and tablet won't be released until the summer.
As mentioned, the tablet will probably have a far better chance of doing some damage and gaining share than the smartphones, as it seems the smartphone market is solidifying and consumers are settling into their decision. At least that appears the case for early responders and core users.
Those still making their minds up are the customers available to grab, and in that regard HP could get a piece of that market, as could all the emerging contenders.
With Apple (NASDAQ:AAPL) being the only real contender last year in tablets, that market has a lot of room to grow market share in, and if HP creates good products, it could generate some significant revenue over time.
As for the tablet, which they probably have a better chance of generating revenue and earnings with in the short term, it's a 9.7-inch screen called the TouchPad.
Two smartphones are in the works, with one, the Pre3, being developed for office workers. The other called the Veer, includes a screen about the 3" wide.
All the new products will be run on its WebOS operating system, which they obtained in their acquisition of Palm in 2010.
The problem and challenge for Hewlett-Packard is the products won't be available at earliest by the spring, and by latest, the summer.
Jon Rubinstein, a Hewlett-Packard senior vice president, said the reason for announcing so far ahead was to give developers an opportunity to create apps for the devices.
The Veer won't be introduced until the spring, and the Pre3 and tablet won't be released until the summer.
As mentioned, the tablet will probably have a far better chance of doing some damage and gaining share than the smartphones, as it seems the smartphone market is solidifying and consumers are settling into their decision. At least that appears the case for early responders and core users.
Those still making their minds up are the customers available to grab, and in that regard HP could get a piece of that market, as could all the emerging contenders.
With Apple (NASDAQ:AAPL) being the only real contender last year in tablets, that market has a lot of room to grow market share in, and if HP creates good products, it could generate some significant revenue over time.
Tuesday, February 8, 2011
Hewlett-Packard (NYSE:HPQ) Tilting PC Attracting Business Interest
Certain segments of the business community are strongly attracted to the latest PC offering from Hewlett-Packard (NYSE:HPQ), which was built to compete with the increasingly popular tablet computers like the Apple (NASDAQ:AAPL) iPad.
Dubbed the TouchSmart 9300 Elite, the 23-inch touch-screen PC can be tilted to a 60-degree angle, which is almost horizontal with a flat surface.
The TouchSmart product line was originally developed as a consumer PC, but interest from fields such as health care, hotels and retailers, where there is a lot of interaction with customers, has created a business demand for the product.
Essentially, it could be considered a giant tablet for the desktop.
A price for the TouchSmart Elite hasn't be released yet. The TouchSmart for consumers starts at $900, and goes on sale Wednesday. The business version will go on sale in May.
Dubbed the TouchSmart 9300 Elite, the 23-inch touch-screen PC can be tilted to a 60-degree angle, which is almost horizontal with a flat surface.
The TouchSmart product line was originally developed as a consumer PC, but interest from fields such as health care, hotels and retailers, where there is a lot of interaction with customers, has created a business demand for the product.
Essentially, it could be considered a giant tablet for the desktop.
A price for the TouchSmart Elite hasn't be released yet. The TouchSmart for consumers starts at $900, and goes on sale Wednesday. The business version will go on sale in May.
Friday, January 21, 2011
Apple (NASDAQ:AAPL) Goes on Offensive Against Google (NASDAQ:GOOG)Over Tablets, Smartphones
It appears it's going to be an all out war between tech giants Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOG), both of which reported blockbuster quarterly results, with Google reporting their results after closing on Thursday.
Apple considers Google their chief competitor in the tablet and smartphone market, as noted when Apple CEO Steve Jobs called them Apple's public enemy #1 several months ago.
Jobs said the Android platform and Google's stewardship of it was "disingenuous, fragmented, and cumbersome for developers and inconvenient for customers."
COO Tim Cook, who has taken over the day-to-day operations of Apple while Jobs is on medical leave, said recently that the Android tablets offered by Google are just "a scaled-up smartphone."
Analysts do agree Apple's most important competitor in these segments will be Google, and has cranked up the rhetoric in anticipation of an all-out war with them.
Apple considers Google their chief competitor in the tablet and smartphone market, as noted when Apple CEO Steve Jobs called them Apple's public enemy #1 several months ago.
Jobs said the Android platform and Google's stewardship of it was "disingenuous, fragmented, and cumbersome for developers and inconvenient for customers."
COO Tim Cook, who has taken over the day-to-day operations of Apple while Jobs is on medical leave, said recently that the Android tablets offered by Google are just "a scaled-up smartphone."
Analysts do agree Apple's most important competitor in these segments will be Google, and has cranked up the rhetoric in anticipation of an all-out war with them.
Tuesday, January 18, 2011
Jefferies on Apple (NASDAQ:AAPL) Before Earnings Report
Jefferies sees Apple (NASDAQ:AAPL) getting most of the benefit from the tablet and 4G trend, providing them with catalysts throughout 2011.
Jefferies noted, "We believe Apple's product leadership, vertical integration, and vast scale means that it will receive the lion's share of the economic benefit from the two biggest multi-year trends in technology with 4G and tablets."
Of the 49 analysts covering Apple, 44 have a Buy rating on Apple and 5 a Neutral rating
Jefferies & Co. maintains a "Buy" rating on Apple, which closed Friday at $348.48, gaining $2.80, or 0.81 percent. Jefferies raised their price target on Apple from $365 to $450.
Jefferies noted, "We believe Apple's product leadership, vertical integration, and vast scale means that it will receive the lion's share of the economic benefit from the two biggest multi-year trends in technology with 4G and tablets."
Of the 49 analysts covering Apple, 44 have a Buy rating on Apple and 5 a Neutral rating
Jefferies & Co. maintains a "Buy" rating on Apple, which closed Friday at $348.48, gaining $2.80, or 0.81 percent. Jefferies raised their price target on Apple from $365 to $450.
Tuesday, January 4, 2011
No New Apple (NASDAQ:AAPL) Product Categories in 2011 Says Piper Jaffray (NYSE:PJC)
Piper Jaffray analyst Gene Munster said he believes there will be no new Apple (NASDAQ:AAPL) product categories in 2011, but the company will instead focus on improving their growing line of products.
Also noted by Munster was the probability that Apple would launch an iPhone compatible with Verizon (NYSE:VZ), saying it's almost a certainty in the March quarter. A fifth-generation iPhone should also be released sometime in the summer, Munster added.
A new iPad is also expected to be released sometime in the spring, as well as an cloud-based iTunes service in 2011.
As far as Apple TV, Munster said, "While Apple's commitment to the living room remains a 'hobby,' we continue to believe the company will enter the TV market with a full focus, as an all-in-one Apple television could move the needle when connected TVs proliferate. Moreover, in terms of markets that would be entirely new categories for Apple and could move the needle, we believe the television market makes the most sense."
An Internet, connected TV will probably be released in the next 2 to 4 years, according to Munster.
Piper maintains an "Overweight" rating on Apple, which closed Monday at $329.57, up $7.01, or 2.17 percent. They have a price target on Apple of $438.
Also noted by Munster was the probability that Apple would launch an iPhone compatible with Verizon (NYSE:VZ), saying it's almost a certainty in the March quarter. A fifth-generation iPhone should also be released sometime in the summer, Munster added.
A new iPad is also expected to be released sometime in the spring, as well as an cloud-based iTunes service in 2011.
As far as Apple TV, Munster said, "While Apple's commitment to the living room remains a 'hobby,' we continue to believe the company will enter the TV market with a full focus, as an all-in-one Apple television could move the needle when connected TVs proliferate. Moreover, in terms of markets that would be entirely new categories for Apple and could move the needle, we believe the television market makes the most sense."
An Internet, connected TV will probably be released in the next 2 to 4 years, according to Munster.
Piper maintains an "Overweight" rating on Apple, which closed Monday at $329.57, up $7.01, or 2.17 percent. They have a price target on Apple of $438.
Wednesday, December 15, 2010
Apple (Nasdaq:AAPL), Flextronics (Nasdaq:FLEX) Look Good in Asia
Commenting on ODM barometer sales for November in Asia, Ticonderoga Securities said they rose for the month, but aren't meeting expectations yet. Apple Inc. (Nasdaq:AAPL) and Flextronics (Nasdaq:FLEX) were cited as two companies positioned strong in certain segments of the market
Ticonderoga said, "November ODM Barometer Sales Rise 2%, But Below Average. In November, unconsolidated sales for the ODM Barometer increased by 1.8% M/M but below the five-year average November sales increase of 3.6% for the group. Keep in mind, this represents the sixth consecutive month of below-average performance. The ODM Barometer is a basket of 13 leading Taiwan-based ODM companies, which we believe provide a read into sales trends in the technology world and are competitors to the North American EMS providers for certain programs. These 13 ODM companies were operating at an annualized revenue run rate of approximately US$134 billion during November.
"Except for Apple, PC and Notebooks Show Poorly During China Trip. During our China Technology Tour to China and Taiwan over the last two weeks, we thought the commentary around the PC and notebook market was weak, with further signs of order cuts recently. Additionally, the transition to the Huron River platform from Calpella during 4Q10 and 1Q11 appears to be negatively impacting demand trends. However, the one standout during our trip was Apple with the recent launch of the new MacBook Air that was sold out (i.e., the 11-inch model) at certain resellers in China, and we sensed overall strong demand for the company's existing notebook and PC lineup in the supply chain. As such, we believe Apple has the potential to deliver upside in its Mac businesses during the December quarter. Within our EMS coverage universe, the most important competitor to the leading Taiwan ODMs and Hon Hai Precision is Flextronics, which is expecting to ramp its notebook business."
Apple closed Tuesday at $320.29, down $1.38, or 0.43 percent. Flextronics closed at $7.80, up $0.09, or 1.10 percent.
Ticonderoga said, "November ODM Barometer Sales Rise 2%, But Below Average. In November, unconsolidated sales for the ODM Barometer increased by 1.8% M/M but below the five-year average November sales increase of 3.6% for the group. Keep in mind, this represents the sixth consecutive month of below-average performance. The ODM Barometer is a basket of 13 leading Taiwan-based ODM companies, which we believe provide a read into sales trends in the technology world and are competitors to the North American EMS providers for certain programs. These 13 ODM companies were operating at an annualized revenue run rate of approximately US$134 billion during November.
"Except for Apple, PC and Notebooks Show Poorly During China Trip. During our China Technology Tour to China and Taiwan over the last two weeks, we thought the commentary around the PC and notebook market was weak, with further signs of order cuts recently. Additionally, the transition to the Huron River platform from Calpella during 4Q10 and 1Q11 appears to be negatively impacting demand trends. However, the one standout during our trip was Apple with the recent launch of the new MacBook Air that was sold out (i.e., the 11-inch model) at certain resellers in China, and we sensed overall strong demand for the company's existing notebook and PC lineup in the supply chain. As such, we believe Apple has the potential to deliver upside in its Mac businesses during the December quarter. Within our EMS coverage universe, the most important competitor to the leading Taiwan ODMs and Hon Hai Precision is Flextronics, which is expecting to ramp its notebook business."
Apple closed Tuesday at $320.29, down $1.38, or 0.43 percent. Flextronics closed at $7.80, up $0.09, or 1.10 percent.
Friday, December 10, 2010
Intel (NASDAQ:INTC) Ready to Implement Tablet Strategy
Intel Corp. (NASDAQ:INTC) is finally mounting a challenge in the tablet space, and they're ready to enter it in a big way in 2011, as they've reportedly signed agreements with 35 tablet makers to put their chips in them.
Chief Executive Officer Paul Otellini said that even though Apple Inc. (NASDAQ:AAPL) has a big lead at this time, he expects to overtake them and be the No. 1 company in the space.
Companies Intel has made agreements with include Lenovo, Toshiba and Dell (Nasdaq:DELL).
Analysts see a long road to climb in the mobile processor segment for Intel because they're so late to the game.
Tablets with Intel chips in them will be available sometime in the first half of 2011.
Chief Executive Officer Paul Otellini said that even though Apple Inc. (NASDAQ:AAPL) has a big lead at this time, he expects to overtake them and be the No. 1 company in the space.
Companies Intel has made agreements with include Lenovo, Toshiba and Dell (Nasdaq:DELL).
Analysts see a long road to climb in the mobile processor segment for Intel because they're so late to the game.
Tablets with Intel chips in them will be available sometime in the first half of 2011.
Tuesday, November 23, 2010
Citigroup (NYSE:C) Says Tablet Effect on Microsoft (Nasdaq:MSFT) Overestimated
Some analysts believe the effect on Microsoft (Nasdaq:MSFT) of tablet PC sales will be extremely detrimental to the software company, with some estimating a loss of $3 a share. Citigroup (NYSE:C) says they see that as overly pessimistic, and see losses at most of about $1 a share annually.
In a worst case scenario, if growth in the tablet PC market was 40 percent annually, Citigroup sees a potential cannibalization rate of about 70 percent and market share for Microsoft at about 15 percent.
That scenario would create about a $3 a share drop for Microsoft if it were to happen, according to Citi.
As mentioned though, Citi sees a loss of $1 a share the more likely consequences.
In a worst case scenario, if growth in the tablet PC market was 40 percent annually, Citigroup sees a potential cannibalization rate of about 70 percent and market share for Microsoft at about 15 percent.
That scenario would create about a $3 a share drop for Microsoft if it were to happen, according to Citi.
As mentioned though, Citi sees a loss of $1 a share the more likely consequences.
Apple (NASDAQ:AAPL) iPad Drawing Mixed Estimates Says DigiTimes
A report from DigiTimes says tablet sales could be under pressure as a result of consumers deciding to wait for the release of the second-generation Apple (NASDAQ:AAPL) iPad tablet computer.
DigiTimes said, "Since consumer demand for tablet PCs is still limited, while most upstream and downstream players are over-optimistic about the market, tablet PCs may see a sharp drop in demand as soon as the third quarter of 2011, after a big battle in the second."
Analysts' estimates vary widely for iPad tablet sales, with some like
Needham & Company seeing only 18 million iPads being shipped in 2011, while others believe they could sell as many as 48 million.
For the general tablet market, a number of analysts estimate overall sales to reach a range of 45 million to 55 million in 2011, equal to about the iPad estimates of some themselves.
DigiTimes extracted their data primarily from overseas suppliers to draw their conclusions.
DigiTimes said, "Since consumer demand for tablet PCs is still limited, while most upstream and downstream players are over-optimistic about the market, tablet PCs may see a sharp drop in demand as soon as the third quarter of 2011, after a big battle in the second."
Analysts' estimates vary widely for iPad tablet sales, with some like
Needham & Company seeing only 18 million iPads being shipped in 2011, while others believe they could sell as many as 48 million.
For the general tablet market, a number of analysts estimate overall sales to reach a range of 45 million to 55 million in 2011, equal to about the iPad estimates of some themselves.
DigiTimes extracted their data primarily from overseas suppliers to draw their conclusions.
Monday, November 22, 2010
Apple (NASDAQ:AAPL) CDMA iPhone Sales Could Drop by 10 Million
Apple Inc. (NASDAQ:AAPL) will apparently be drastically cutting back on its production plans for a CDMA version of the iPhone, as RBS analyst Mike Abramsky said he's downwardly adjusting his sales forecast from 30 million units to 20 million units.
CDMA iPhones would be compatible with the Verizon (NYSE:VZ) wireless network. The CDMA iPhone is expected to be available for Verizon in the early part of 2011.
On the other hand, Abramsky noted it appears iPads are going to outperform during the Christmas season, and after, with about 40 million of them projected to be sold, or at least built.
Cannibalization from Apple Tablets and Google's (NASDAQ:GOOG) Android-based tablets remains a concern for the iPad.
CDMA iPhones would be compatible with the Verizon (NYSE:VZ) wireless network. The CDMA iPhone is expected to be available for Verizon in the early part of 2011.
On the other hand, Abramsky noted it appears iPads are going to outperform during the Christmas season, and after, with about 40 million of them projected to be sold, or at least built.
Cannibalization from Apple Tablets and Google's (NASDAQ:GOOG) Android-based tablets remains a concern for the iPad.
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