Piper Jaffray's Gene Munster answers the three most important questions investors need to know about Apple right now.
It's that time of year again. No, not football season (although Giants fans probably wish it weren't). It's time to behold the newest and hopefully greatest iPhone.
Apple has invited the world's press to its Cupertino, California headquarters to behold its latest invention, and speculation has already gone wild - mostly involving the number "5" and the letters "s" and "c" in regards to both a high-end and low-end iPhone - about what it could be.
The various rumors are too lengthy to dissect for this pithy column, so in order to separate fact from fiction, Talking Numbers enlisted the expertise of one of the most respected Apple authorities, Piper Jaffray's Gene Munster, to answer the three most important questions investors need to know.
Talking Numbers: “Will a low-end phone ruin Apple's industry-leading margins?”
Gene Munster: “The low end has the potential to be a significant positive for Apple. Currently, about 40% of global spending on smartphones is below $400, and Apple has not addressed that market. This cheaper phone will give Apple a shot at this large lower end market.”
TN: “If the new iPhone is a dud, how much pressure will Tim Cook face?”
GM:” Tim Cook has been under pressure to innovate given the lack of exciting products over the past year, but we believe that pressure will lift as investors see Apple come out with new products and new product categories in 2014 including a watch, TV, and larger screen iPhone.”
TN: “Speaking of this so-called iWatch, when can we expect to see it?”
Watch the video above to find out.
- Technology & Electronics
- Piper Jaffray