Seeking Alpha

Apple (AAPL -0.6%) sell-side roundup: 1) CES sources tell Topeka's Brian White a 2nd-gen iPad...

Apple (AAPL -0.6%) sell-side roundup: 1) CES sources tell Topeka's Brian White a 2nd-gen iPad Mini will be launched in March, along with the expected 5th-gen iPad. 2) Barclays' Ben Reitzes calls new corporate controller Luca Maestri a "champion of shareholder return." Maestri's new boss has already shown an interest in that subject. 3) CLSA and Canaccord become the latest to slash estimates while reiterating bullish stances. Canaccord says checks indicate the iPhone 4 remains popular, something it thinks drives home the value of a cheaper iPhone.
From other sites
Comments (13)
  • MajorDude
    , contributor
    Comments (259) | Send Message
     
    This is not complicated.

     

    Look at the evolution of the ipod. Released as a premium product. Then nano, then shuffle.

     

    Then new versions, then dramatic reductions in the original.

     

    And so on. Each price cut allows the entry of new users.
    11 Jan 2013, 05:26 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1118) | Send Message
     
    True. I never understand why the AAPL bears are so focused on overall gross margins. The incremental ROIC from cheaper products (even after accounting for cannibalization) is very high. Plus it brings new users into it's ecosystem who will likely continue to be Apple customers long term. It's too bad some "investors" don't understand this basic concept.

     

    There's a risk of hurting the premium brand, but it seems Cook is very aware of this issue and managing it well.
    12 Jan 2013, 04:59 PM Reply Like
  • Dean Scarpinato
    , contributor
    Comments (372) | Send Message
     
    Brian White (Topeka) analyst sticks to $1111 call on CNBC today
    And calls all the pessimism "noise." Today on FM Half, despite Wapner's practically BEGGING him and offering him one of his children to reduce his target, White refused to cave. He stuck by his prediction and declared all the current negative sentiment "noise." Take that, Gartman, Kass, Lee, and Kaminsky. Someone who can stand up to you vultures, looking for Apple's demise. My hats off, Mr. White.
    11 Jan 2013, 05:33 PM Reply Like
  • labas112
    , contributor
    Comments (379) | Send Message
     
    I love how every 6 months they need to revamp the product. This will get old and tiresome. Why buy one now, when in 6 months a new one will be better. Where is the incentive to buy them at this rate?
    11 Jan 2013, 06:59 PM Reply Like
  • lordmorgul
    , contributor
    Comments (39) | Send Message
     
    You can wait forever to get a new product and languish without anything in your hands... or buy one and understand it is not going to be the best forever. Get used to the 20th century. A modern electronic device is a short lived product that represents just a snapshot in the technological timeline... something new will always be better in an information age.
    11 Jan 2013, 08:05 PM Reply Like
  • Kevin Murphy
    , contributor
    Comments (91) | Send Message
     
    I first asked that question when shopping for PCs. I was right. I held off for years, then finally bought a Macbook Pro, not long before the iPad. We'll at least I skipped the DOS era. And early windows.

     

    So why should I buy an iPhone now. I think I'll wait until phones integrated into eyeglasses are in their 4th generation. Then after I get one of those, I'll wait til the 4th generation of implants.
    11 Jan 2013, 09:14 PM Reply Like
  • XRTrader
    , contributor
    Comments (610) | Send Message
     
    I hate to call your comment silly. But, when you think about what you said, it is kind of silly.

     

    BMW's new 2014 model will come out next december, why not wait?
    Hugo Boss new line of jeans is coming out in 4 months, why not wait?
    Definitive Authors Edition of The Color Purple is coming out in 6 months, why not wait?
    The new mini is coming out in March, why not wait?

     

    The answer is pretty clear. Some people will wait for next years car model - but some need a new car now. Similarly, some people will wait for the next phone/pad/pod model - but some people need it now.

     

    There are cycle upgrades in everything (computers, TVs, cars, books, the list is endless). That's just how the game is played. It may defer a tiny fraction of consumption, but that's meaningless to the bottom line - because its deferred one quarter or 2, not lost.
    13 Jan 2013, 03:14 AM Reply Like
  • Dialectical Materialist
    , contributor
    Comments (4708) | Send Message
     
    "Similarly, some people will wait for the next phone/pad/pod model - but some people need it now. "

     

    And in fact the impact of "perpetual upgrades" is just the opposite of what the poster suggests. If a product comes out every couple of years, there will be a marked decline in sales of the old product in the months leading up to the release of the new product. But if a new upgrade comes more frequently, there is LESS incentive to wait for the next generation because by definition it will be less of an improvement.

     

    Apple is doing precisely what it needs to do to put an end to the sluggish quarters that were seen before the release of a new phone. By stepping up releases, they will see fewer sales deferred, not more.
    13 Jan 2013, 01:05 PM Reply Like
  • sduris
    , contributor
    Comments (576) | Send Message
     
    Hey DM - I am cautiously optimistic about your last paragraph. I think it is more the gap is closing and AAPL needs to be alert to competition and if they feel they need to rush something to market, they will do so. I anticipate prod dev/launch cycles will be shorter. That's not just AAPL by the way - it's everyone - too many players these days - time is not on peoples' side.
    14 Jan 2013, 12:58 PM Reply Like
  • ManoLive
    , contributor
    Comments (437) | Send Message
     
    What good is a price target if the analyst can change his price target at will? Anybody can name a price, then change it. These "analysts" are beyond useless.
    11 Jan 2013, 07:40 PM Reply Like
  • Snoopy1
    , contributor
    Comments (1118) | Send Message
     
    The worst part about these price target changes is that they're almost always in response to what the stock price already did, up or down. Even with small changes in EPS estimates, these sell-side clowns simply change their P/E to justify their price target changes.
    12 Jan 2013, 05:04 PM Reply Like
  • Tylerdurden7331
    , contributor
    Comments (66) | Send Message
     
    Anyone has any idea how good the CLSA analyst Avi Silver's sales estimates were in the past? The analyst from CLSA who gave Apple 770 price target was Steven Fox. It seems to me, they changed the analyst who covers Apple?
    11 Jan 2013, 11:46 PM Reply Like
  • rperson
    , contributor
    Comments (367) | Send Message
     
    I love it. Glowing support from analysts. A signed agreement with the largest cell phone retailer in China/the world, another deal with a Japanese dealer, hints of a new IPad in March and a less expensive iphone for developing countries in the works. What happens? The stock goes down. This stock isn't being manipulated? Right.
    12 Jan 2013, 08:33 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs