Apple Inc. NASDAQ:AAPL’s price to earnings multiple could expand as it kicks off the new product cycle, according to analysts at Cantor Fitzgerald. They call this year’s cycle another “super cycle” and likened it to the 2001 product cycle in which the iPod was introduced, the 2007 cycle which brought the iPhone to market, and the 2010 cycle in which Apple released the iPad.
Did investors take profits in Apple?
In a report dated Sept. 15, 2014, analysts Brian White and Isabel Zhu said many investors seemed to be taking profits heading into Apple’s event last week. They think that view is shortsighted, however, and may end up being “costly” because they think this year’s product cycle is another “super cycle” and note that it extends into next year because the Apple Watch won’t be up for sale until then
They say consumers’ appetite for the iPhone 6 Plus appears “insatiable,” as preorder shipment times continue to extend. They think the Apple Watch will be a “home run” and garner record first-year unit sales volume for the company. They also believe it will provide Apple with a foothold in what they expect to be a large wearable technology market.
Chris Hohn the founder and manager of TCI Fund Management was the star speaker at this year's London Value Investor Conference, which took place on May 19th. The investor has earned himself a reputation for being one of the world's most successful hedge fund managers over the past few decades. TCI, which stands for The Read More
The analysts don’t think Apple is done with entering new product categories. They also think that the company’s expertise in designing products and services that work together will end up being “invaluable.”
Apple’s P/E multiple may expand
The Cantor Fitzgerald team notes that Apple’s price to earnings multiple has contracted by more than 50% compared to the S&P 500 Index. They think that might change though, and they maintain their Buy rating and $123 per share price target on the company.
They believe that last week’s product unveilings offer Apple an even more diversified revenue base while also improving the stickiness of its ecosystem and providing a “stronger platform for accelerated momentum for new product categories going forward.
The analysts also think investor concerns about competition, a lack of innovation, a narrow portfolio, CEO Tim Cook’s leadership and a disregard for shareholders are “exaggerated.”
Shares of Apple slumped by as much as 1% in morning trading today.
Updated on
After the abuse you’ve given AAPL in every forum at every opportunity for the last few months, I don’t think anyone here believes you ever owned a single AAPL share.
BBRY maybe…
yes they going to use a watch to do what look at patients records LMAOOO
or look a t celebs nude pics
So, you’d think that after just announcing record preorders for the iPhone 6, Apple’s shares would be surging to new highs, right? Actually, no — Apple shares are falling on Tuesday morning and the biggest reason why is that new reports out of China indicate that the world’s largest mobile carrier might not even launch theiPhone 6 this year.
RELATED: Apple announces record-smashing iPhone 6 preorders: 4 million in just 24 ..hours
Bloomberg brings us word that China Mobile “will focus on selling cheaper phones that don’t require subsidies as the world’s largest carrier said it doesn’t know when Apple’s iPhone 6 will be available in the nation.” The decision to push cheaper phones to customers comes as China Mobile is looking to cut $2 billion in subsidy costs it pays for high-end smartphones from Apple and Samsung.
Just how much more expensive is the iPhone in China compared to other 4G phones? According to Bloomberg, China Mobile is selling the iPhone 5s for 5,288 yuan with a contract, whereas a new 4G-capable phone from Huawei costs 1,199 yuan without a contract.
Given that China Mobile has nearly 800 million subscribers, news that the device might not launch on the carrier this year would obviously have a big impact on Apple’s holiday quarter iPhone sales. Because of this, Apple shares fell by more than 1.7% in pre-market trading and immediately dropped by 1.4% once trading officially started on
You need medical attention! All the best!
you are probably one of the biggest idiots to ever comment. STFU you moron amateur investor. You and the rest of the fools who follow you believe apple is a 1 SKU company. They literally have more money as cash to buy a bank if they felt to do so. They have enough money to lend to the US government if they wanted. They have signed deals with IBM (they can buy IBM in a blink if they wanted), they have made deals with major retail outlets including mcdonalds, bloomingdales, macys etc and will charge 15 cents on every transaction over $100 with apple Pay. The watch has numerous other industrial applications, its a new communication device. In the healthcare field (which i work in) it will be used with the elderly to monitor vitals and give live streaming data to first aid responders. Most doctors will get this watch so they can stop pulling their phones out during consultations to see who is calling. Get your head out of your ass and actually study apples business.
start looking for a new JObs apple sheep as Cook will start laying you off to compensate for big loss in rev CHINA
to make matters worse they increases dividends lmaooo ATA BOY COOK
apple ALL WASHED UP SELL SELLL SELLL THE BIG DROP COMING
oh yeah so why did u put your hand in the junk at all?
apple crapple loosing 20 percent of its rev in china as china mobile pushes its own iphone in and apple crapple out sell sell sell before its too late APPLE GOING TO TANk
I think the super cycle sprung a Chinese leak lmaooo
SOLD AT 103 lmaooooo wont touch this JUNK ANYMORE till next year
SELL SELL SELL HEADED TO 88 apples rev taking a big hit
Apple’s IPhone 6 May Miss China Shelves This Year, Shares Fall
By Jennifer BootonPublished September 16, 2014MarketWatch Pulse
Apple’s shares slumped 2% to $99.67 in early Tuesday trade after reports emerged that the new iPhone 6 may not hit store shelves in China this year. The China-based newspaper 21st Century Business Herald, citing a source close to the company, said that Apple failed to reach an agreement with the country’s Ministry of Industry and Information Technology this month, which might push back an agreement until next year. Apple did not immediately respond to MarketWatch for a comment. Elsewhere, other reports indicated that Apple’s near-field communication technology will be exclusive to Apple Pay for at least a year, making the chip temporarily unavailable to developers for use in third-party apps
So, you’d think that after just announcing record preorders for the iPhone 6, Apple’s shares would be surging to new highs, right? Actually, no — Apple shares are falling on Tuesday morning and the biggest reason why is that new reports out of China indicate that the world’s largest mobile carrier might not even launch theiPhone 6 this year.
RELATED: Apple announces record-smashing iPhone 6 preorders: 4 million in just 24 hours
Bloomberg brings us word that China Mobile “will focus on selling cheaper phones that don’t require subsidies as the world’s largest carrier said it doesn’t know when Apple’s iPhone 6 will be available in the nation.” The decision to push cheaper phones to customers comes as China Mobile is looking to cut $2 billion in subsidy costs it pays for high-end smartphones from Apple and Samsung.
Just how much more expensive is the iPhone in China compared to other 4G phones? According to Bloomberg, China Mobile is selling the iPhone 5s for 5,288 yuan with a contract, whereas a new 4G-capable phone from Huawei costs 1,199 yuan without a contract.
Given that China Mobile has nearly 800 million subscribers, news that the device might not launch on the carrier this year would obviously have a big impact on Apple’s holiday quarter iPhone sales. Because of this, Apple shares fell by more than 1.7% in pre-market trading and immediately dropped by 1.4% once trading officially started on
stop flooding the market with your Junk APPLE CRAPPLE your iphones same as last years ur watch is a piece of junk
ur icloud got hacked im sure apple pay will get hacked ur finger print scanner easily hacked
ur new junk is over priced and useless
you mean appl crapple is ALL WASHED UP
Asian markets slipped on Wednesday following a slide on Wall Street, with Tokyo hurt by a pick-up in the yen, while Apple (NasdaqGS: AAPL – news) suppliers turned lower as investors were left unimpressed with the US giant’s latest iPhone and watch
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