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.
The sales of iPhone 6 have resulted in the decrease in the demand for iPad, according to the CEO of the Silicon Valley company.
According to recent Apple news, the company reported its earnings for the quarter in which it discussed issues that have long been bothering the firm. The CEO of the firm was seen talking about the decline in the sales of iPad which has become a constant issue that the company has been facing for a couple of quarters now. In the most recent quarterly earnings, Tim Cook told the press that the iPad sales have fallen yet again, witnessing a massive decline, with the revenue coming down by 29% whereas the shipments saw a dip of around 23%. This further fall in the sales has raised concerns of the investors only a little bit keeping in mind the exceptionally great sales that the company has managed to make the iPhone sales.
One reason that was given by Apple’s CEO Tim Cook was that the iPhone making company reduced the units that were normally shipped by around one million units which were why the decline in sales was being witnessed. However, analysts believe that this reason is not good enough because even if the company had not cut down on the shipments, the decline on a year over year basis was still recorded at around 16.7%.
The statement of Cook that caught everyone attention was when he said that the dip in the sales of iPad that was being faced was due to the overpowering sales of Apple iPhone 6 and iPhone 6 Plus as well as the sales of Mac. According to analysts, the fact that Steve Jobs, the previous CEO of Apple, believed in competing with the company and its products is something that is being followed by Tim Cook now as well, as the competition that has been built within the company is the main reason why sales of one significant product of the producers have seen a decline.
Analysts believe that even though the issue of the dip in iPad sales has been brought up every now and then, it is a fact that Apple is not as much concerned about the decrement in the iPad demand as, on the other hand, the extraordinary sales of iPhone have solved many of the problems that the company could have faced.
Furthermore, it was seemingly surprising for analysts to hear that iPhone was not the only product affecting the Apple iPad demand, but the sales of Mac has also increased over the past couple of quarters, hence becoming a reason of hindrance in iPad sales too.
Customers who are using the iPhone 6 and 6 Plus have a rational reason for not going for an iPad update as the phones that they are using are expensive and big in size too, eliminating the need for another gadget of the same kind.
