iPhone Another analyst believes that Apple is losing its shine. Toni Sacconaghi of Bernstein Research on Thursday trimmed his price target for the company, citing concerns that growth may be slowing. The analyst believes that iPhone sales will remain strong for at least the next two years, however Apple (AAPL) is expected to lose overall market share if it does not bring out a lower-price device in the wake of a changing industry. Sacconaghi notes that the iPad should continue to see success in a tablet market that is a rocket an absolute juggernaut, with tablet PC shipments estimated to more than triple over the next five years. It is believed, however, that Apple will likely become a single digit growth company by 2015, unless it releases a new major product such as an HDTV.
[More from BGR: RIM s biggest problem: It s still scrambling to catch yesterday s hottest mobile app]
That said, it will have a pristine balance sheet, and be generating a mind-boggling $49 billion in free cash flow a year after paying its current dividend, Sacconaghi wrote in a note to investors, according to Forbes. More importantly, we believe that Apple s innovation offers significant option value, which is not in our forecast. Three years ago, the iPad did not exist. Today it generates $32 billon in annual revenues, and as a standalone business would be the 11th biggest U.S. tech company. Potential options for Apple investors include a lower-end iPhone, a television solution, a larger iPad or converged device and monetizing advertising, e-commerce and search from its iOS platform (and credit card database) of 435 million users.
[More from BGR: WhatsApp goes free for iPhone for a limited time]
The analyst kept his Outperform rating on shares of Apple, although he trimmed his price target from $800 to $750 and lowered his 2013 fiscal year EPS forecast to $49.41 per share, from $50.57.
This article was originally published by BGR
Blog List
-
Kaley Cuoco Shows Off Fit Physique In Skin-Revealing Yoga Outfit - By Suzy Byrne Kaley Cuoco leaving yoga class in L.A. on Monday. (X17online.com)Kaley Cuoco gave new meaning to hot yoga on Monday when she emerged from cla...10 years ago
Pageviews
33,857
Popular Posts
-
In a news conference today (Dec. 21), National Rifle Association Executive Vice President and Chief Executive Officer Wayne LaPierre blamed ...
-
1. Eiffel Tower - Paris, France When Apple Maps launched in September, there was a funny picture of the Eiffel Tower looki...
-
HONOLULU (AP) The Hawaii state Senate passed the so-called Steven Tyler Act Tuesday, a bill that seeks to protect celebrities from overeager...
-
Mashable's Anita Li contributed to this report from Toronto. Research in Motion , maker of the once-treasured but now beleaguered BlackB...
-
Tonight Doctor Who fans get to gorge on their annual Christmas fix -- a full-length special episode the series has produced every year for ...
-
As any fan of Doctor Who knows, the title character's ship does some pretty incredible things even when it's not traveling through ...
-
A jury in California has determined that Best Buy ( BBY ) must pay $22 million in damages for improper use of another companys trade secre...
-
NEWTOWN, Conn. (AP) He was the awkward kid who wore the same clothes to school every day. He rarely spoke and even gave a school presentatio...
-
NEW YORK (AP) Michael Smerconish is jumping from traditional talk radio to satellite, saying the media form he has loved essentially left hi...
-
The following list represents the top streamed tracks on Spotify from Monday, Dec. 17, to Sunday, Dec. 23: UNITED STATES 1. The Lumineers,...