Apple Inc. (AAPL) CEO, Tim Cook spoke at a Goldman Sachs conference today. The ‘Apple guru’ Gene Munster has released a report about Cook’s comments. Overall, he is satisfied by what Tim Cook said and is still bullish on the tech giant. Munster believes that the two key takeaways from Tim Cook’s recent public comments were:
• He has greater confidence that there will be a slight increase to the dividend when Apple reports the March quarter.
• He continues to expect Apple Inc. (NASDAQ:AAPL) will have a cheaper iPhone related product. Munster is also including this information in his model for the September 2013 quarter.
Bottom Line: Munster remains positive on shares of Apple Inc. (NASDAQ:AAPL) given Street numbers have adequately reset after the December earnings report and investors will return to the stock once the potential of new products comes into focus over the next 3-6 months.
• Apple Inc. (NASDAQ:AAPL) Will Continue To Analyze Cash Distribution. Cook said they are “very serious” about returning additional cash to shareholders and that they will analyze the recent shareholder proposal regarding preferred stock. Gene Munster continues to expect a slight increase to the dividend after Apple reports its March quarter.
• Continue To Expect Cheaper Device To Address Emerging Markets. Munster still believes that Apple will have a cheaper phone product to address the emerging markets, which may or may not be similar to the existing iPhone. Tim Cook noted that the original iPod cost $399 and eventually the company released a $49 iPod Shuffle which addressed a broader market. He thinks that Apple Inc. (NASDAQ:AAPL) will likely introduce a cheaper device in the September quarter. Additionally, he notes that over time, something like the rumored smart watch could be an option in addressing emerging markets with a lower cost product through a different form factor (iPad as cheap Mac).