Analysts from Barclays Equity Research believe that Apple Inc. (NASDAQ:AAPL) is disrupting all sectors in the technology industry, and it is generating profits and revenues from PC, mobility, printing, and retail stores.
The firm noted that this is an updated version of their previous report, in this recent report they have corrected the time period of the decline in Apple’s stock from “November” to “September”.
Last week, both IDC and Gartner released worse-than-expected PC sales figures, as weak consumer demand and a pause ahead of Windows 8 depressed shipments. Barclays also believes that Apple Inc. (NASDAQ:AAPL) hurt PC sales by driving demand for disruptive mobility products.They believe that Apple Inc. (NASDAQ:AAPL) is at the forefront of the “Disruptive Mobility” trend – i.e. forcing change in the way we compute through smart mobility platforms. The PC market faces challenges in maintaining its “share of the wallet” as Apple and others continue to innovate in tablets, smartphones, and potentially TV’s.
The research firm believe the cannibalization of PC’s by tablets could continue with a smaller iPad, since it represents yet another smart device with connectivity that can handle certain PC-related tasks.
Since late September, Apple Inc. (NASDAQ:AAPL) shares have shown a relatively steady decline to current levels, as shares have fallen 10% (as of 10/15) since Apple reached a high of $705.07 on 9/21 vs. -1.4% for the S&P 500. In the past, there have been multiple “corrections” or occasions when Apple Inc. (NASDAQ:AAPL)’s stock price has declined more than 10% compared to its 60- period trailing high, whether on account of macro trends or company specific issues.
Barclays however, believes that Apple Inc. (NASDAQ:AAPL) shares are most correlated to iPhone data points – and investors are worried about iPad mini production & overall demand for the iPhone 5. However, they remain confident that the expansion of iPad TAM long-term & roll out of the iPhone in more international markets can help ease concerns.
Apple Inc. (NASDAQ:AAPL) has solid prospects for high organic growth, with open-ended potential to gain share in phones, tablets & Macs. Barclays views Apple’s upside scenario at $930 based on about 15x their FY14 EPS estimate of $62.10.