Some fund managers aren't so hot on Apple; Larger iPhone 6
Some fund managers are not so big on Apple (AAPL) stock, but the company has big plans for the iPhone 6. That comes ahead of the company's much anticpated earnings report after the close.
A report from Goldman Sachs says that Apple is one of the most underweighted stocks by large cap fund managers. The managers say that the company isn’t a growth stock anymore and hasn’t introduced a truly new product since in 2010, when it released the iPad.
Yahoo Finance Senior Columnist Michael Santoli, said that the largest-cap stocks tend to be slightly underweighted by active fund managers. He also said skepticism is healthy for Apple stock, and is preferable to the way investors were overconfident in 2012.
Meanwhile, The Wall Street Journal reported that Apple plans to manufacture 70 million to 80 million units of its iPhone 6 through December 2014. That's more than the initial shipments of the company's 5S and 5C models. The two versions of the iPhone 6 are expected to be larger than Apple’s current offering, in an effort compete with other larger smartphones, like the popular Samsung models.
With Apple expecting to see a 15% rise in iPhone sales, Santoli said Apple is a good story. “It’s not something that says Apple really, really needs the next thing,” he said. “They need it, but not because they’re desperate, given what they’re selling right now."
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