Apple Inc. (NASDAQ:AAPL) shares have been hovering around $400 all week, even dipping below that price a couple of times. So when will it rally and how much will it go up? One analyst sees the stock going back up toward $500 per share within the next six to 12 months.


Presenting The Apple Bull Case

Speaking on CNBC’s “Fast Money,” UBS Managing Director Steve Milunovich made his case for why Apple Inc. (NASDAQ:AAPL) isn’t done yet. He admits that the company has been in “an innovation lull,” and he says we might begin seeing some more “really exciting products” next year. He believes that it will take about six to 12 months for this to happen, but he sees some other important catalysts for the company along the way.

Potential Catalysts For Apple

According to Milunovich, iPhone 5S shipments would have to go to 35 million or 40 million units “in the next couple of quarters.” He points out that that the bar has been set very low right now with expectations of 24 million units in this time frame.

He also believes that the biggest change in the iPhone is going to be iOS 7 when it comes out in the fall, although he said the next iPhone could also have a fingerprint sensor, as others have been saying it might have. In addition, he’s looking for Apple Inc. (NASDAQ:AAPL) to release an electronic pen device and also an iPad Mini with a Retina display.

Other Views On Apple

Oppenheimer analyst Ittai Kidron agrees that Apple Inc. (NASDAQ:AAPL) won’t bounce back until it introduces new hardware, but he emphasizes hardware over software, reports Business Insider’s Jay Yarrow. Yarrow points to rumors of an iWatch that have been circling, but Kidron doesn’t think such a device would change the game for Apple Inc. (NASDAQ:AAPL), especially since so many companies have tried to make a popular smart watch, only to see it relegated to being a niche item.

Apple Inc. (NASDAQ:AAPL) CEO Tim Cook has said that they’re working on some great hardware, but unfortunately there’s no sign of that hardware in sight yet. This is making it difficult for investors to keep the faith when it comes to Apple Inc. (NASDAQ:AAPL). Even the company’s employees are beginning to look down on it apparently, as its falling stock price has created retention problems.