Apple Watch Sales Better Than Expectation

Analyst at UBS claims Apple Watch Sales to be better than expected.

UBS analysts have again given Apple Inc. a BUY rating where the price target for Apple stocks is now $150. The firm recently conducted a survey for a smartphone which clearly highlights how Apple (AAPL) iPhones have been doing well in the market. The company has maintained a strong hold in the market with its top-notch products and services.

The survey involved 8.650 respondents; however, the results obtained did not really boasts of very astonishing results when considering their previous track record. According to this survey, a drop has been observed in the retention rate, but Apple’s market share has substantially risen.

The survey clearly shows that the retention rate of AAPL has dropped where initially it was at 84 per cent and now it has been recorded at 78 per cent. However, analysts at the firm expect the company’s performance to get better with the times to come despite the retention rate has slacked. The reason why Apple will continue to do well is fairly simple since now users are more inclined towards Apple than any other brand including Samsung. A 14 percent increase has been observed in the company’s stocks this annum.

There are several reason so as to why Apple products have more demand in the retail business than any other firm which includes battery life, size of the screen, network quality etc. according to the survey, almost 30 percent of iPhone users are likely to spend more time on the smartphone that is manufactured with a lifespan of 2.1 years. The company is known for high quality and top notch products that are far unique than any other smartphone in the market. However, the tech behemoth needs to work on the value for money factor.

However, despite the popularity of the smartphone a decline has been observed in the number of people interested to buy Apple Watch. Previously it had a 10 per cent market share but now it stands at 8 per cent. On the other hand, all Apple Watches together have done better than expectation where orders are rolling in for sports and edition.

Apple’s price target is $150 which is based on the company’s FY15 performance which has estimated price earnings of 16.5x. A poll happened on Bloomberg in which out of 57, 39 analysts gave the company a BUY rating, 15 rated the stock as HOLD and the remaining rated as SELL. The approximated price target for FY15 is $148.71.