Apple Inc. (AAPL): First-To-Market Strategy Is Hugely Important


Self-navigating cars, talking watches and intuitive televisions are just the beginning of Apple Inc. (NASDAQ:AAPL)’s future endeavors. The trick to gaining the lead in these new markets is to be the first to introduce new products, and Apple is working hard to do just that. Yet, Apple is not ready to produce final products for all of its latest frontiers, and in the case of TV, the company has recently announced that they are looking to partner with Comcast Corporation (NASDAQ:CMCSA) (NASDAQ:CMCSK).

The Wall Street Journal says, “the two companies are holding talks that could result in Comcast delivering an Apple-branded TV service the same way it delivers phone calls and cable video-on-demand. As Apple continues on this trajectory into the future, top analysts are eager to recommend BUY Apple Inc. (NASDAQ:AAPL).

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Macquarie analyst Ben Schachter recently recommended BUY Apple Inc. (NASDAQ:AAPL) with a price target of $630. Ben recognizes the success of iTunes and other services that he thinks “will be a profitable, high-growth business,” at the same time when “hardware business growth will fade.” Ben is also looking towards the future and has identified six key categories where “Apple could attack and create new, high-growth businesses.”  Ben lists cars, Apple television, iWatch/wearables, mobile payments, home automation and exclusive media content, as key junctures of product and innovation to watch out for Apple. Ben has a  +7.2% average return and a 70% success rate of recommendations.

Analyst Trip Chowdhry of Global Equities, also acknowledges Apple’s key presence in these innovative markets and recommends BUY Apple Inc. (NASDAQ:AAPL). Trip put some pressure on Apple saying, “They only have 60 days left to either come up with something or they will disappear.” Adding, Apple “will become a zombie, if they don’t come up with an iWatch.” Trips’ fear comes from his concern about an oversaturated market for wearables, and wants Apple to make sure that it doesn’t lose, “its innovative edge” or “miss out on the massive opportunity that is available in the growing wearable segment.” Trip has a +4.9% average return over S&P-500 and a 53% success rate over S&P 500 (INDEXSP:.INX).

Trip has seen success recommending Apple in the past, including the time he recommended BUY Apple Inc. (NASDAQ:AAPL) in September of 2013. Trip reiterated his overweight rating on Apple and raised his price target from $650 to $725 noting, “extremely strong secular growth trends.” Trip argued that, “demand for Apple products are at an all-time high, and probably twice the level it was last year. He sees customers switching from BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB), Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V), iPhone 4 &4S and feature phones.” This recommendation earned Trip +8.8% over S&P-500.

Whether you’re wearing the latest fashionable Apple watch or your watching your favorite shows via Apple TV, it is clear that the future includes new Apple products. To continue following these analysts as Apple Inc. (NASDAQ:AAPL) unveils its latest inventions and services, be sure to download TipRanks, and start making informed decisions with advice you can trust.