I'm not that surprised on the 10" I-Pad, but the I-Phone 5 perplexes me, since there was just an article out that said both the I-Phone 5 and 4S beat Samsung during the November and December timeframes. Other that the Blackberry 10 there has been no phones introduced this year. Its hard to believe Apple has lost ground since January unless Smartphone in general are down overall. Which could be the case. This is generally a slower qtr.
Barclays’s Ben Reitzes target for Apple now $530 based on his view that “new products are more second half loaded” and there’s increased pressure on the iPhone.
Reitzes met with Apple executives Phil Schiller, head of worldwide marketing, and CFO Peter Oppenheimer at the company’s headquarters in Cupertino, he writes, to discuss “the value of Apple’s ecosystem, the prospects for more return of cash, the puts and takes for margins, prospects for the iPhone and the market potential for the iPad mini” and came away with the impression that “the company is very optimistic about the general product pipeline and its market position.”
“We believe that there is an undying dedication at Apple to innovate – and its leadership is working hard to prove bears wrong.”
Separate from that meeting, Reitzes has been contemplating increased pressure on the iPhone, and thinks it will not be offset until the introduction of an ” “iPhone 5S” later this year, causing him to cut his estimates:
Given that our collaborative research with colleagues points toward new product ramps more in C2H13, we are taking this opportunity today to adjust estimates. This adjustment is NOT a result of the meeting – but something we have been considering for days given extensive checks with our teams. That being said – we believe that the investment community is about to embark on a similar estimate revision trend that is healthy for the stock and finally puts it in a place to work ahead of new product catalysts and further carrier additions like China Mobile (CHL) and NTT Docomo. We still believe Apple will introduce a lower cost phone based on the iPhone 5 and an ‘iPhone 5S’ in mid-2013. We also still believe the most important advances for the iPhone in 2013 will actually be improvements to iOS and its services, with the best opportunities for value creation in payments and TV integration. However, we do believe that a 5” phablet is needed – and Apple should address this need by C1Q14.