Analyst predicts neutral performance from Apple’s stock due to high expectations

News / Mobile phones

Analyst predicts neutral performance from Apple’s stock due to high expectations

  • 2015-02-13 13:05:52
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News / Mobile phones Analyst predicts neutral performance from Apple’s stock due to high expectations

While most analyst have raised their expectations from Apple’s performance in the last quarter of 2014, analyst Maynard Um from Wells Fargo has gone against the grain and estimates that the Cupertino company’s share prices will fall due to a “high sentiment bar.”

Um did revise his estimate to $100-110, which is lower than Apple’s current stock price of $112.50 and well below the estimates made by other analysts. While Um predicts that Apple shipped 67 million iPhones in Q4, 2014, he is cautious about the lack of a major new carrier in Apple’s lineup in the October-December timeframe.

“Apple is coming up on tougher compares and, in particular, we are cautious on the lack of new large carrier additions in the December quarter, which has had at least one new large carrier addition in the past,” Um wrote in a note to investors.

Apple has usually added major new carriers to its lineup every year in the October to December quarter. Last year, it started selling iPhones on China Mobile — the world’s largest network operator in the world — that helped in greatly increasing its market share in the country.

Um was also cautious about Apple’s next product cycle. With 16GB of storage space being insufficient for today’s apps and mobile OS, the company might be forced to switch the base storage option on the iPhone and iPad to 32GB. However, doing this might negatively affects the company’s Average Selling Price (ASP) and profit margins.

Apple is scheduled to release its financial report for the last quarter of 2014 after the market closes tomorrow (January 27th).

[Via Apple Insider]


Categories: Mobile phones

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