OT: Say What? Goldman Sachs cuts Apple price target from $187 to $165?
- Thread starter gr82baspartan
- Start date
Apple is selling fewer units (a lot fewer but they won't say how many less) so they have been trying to prop up their stock price by pricing new models at $1000. But that depresses sales even more, and Wall Street is catching on.
They still have this incredibly loyal customer base but those people don't want to spend $700-$1000 on a phone that works pretty much the same as their 3-4 year old phones. So they keep holding on to their old phones. Nobody wants to switch to Android, but there are some really compelling Android phones now for $250-$400 such as the Pixel 3A.
At some point the dam's doing to break, Apple will have to cut prices and accept lower margins and Wall Street will have a cow.
They still have this incredibly loyal customer base but those people don't want to spend $700-$1000 on a phone that works pretty much the same as their 3-4 year old phones. So they keep holding on to their old phones. Nobody wants to switch to Android, but there are some really compelling Android phones now for $250-$400 such as the Pixel 3A.
At some point the dam's doing to break, Apple will have to cut prices and accept lower margins and Wall Street will have a cow.
Last edited:
Don’t forget Apple Music which is basically a worse version of everything else also.
Apple is living on it's brand name at this point. they can do that because they built a brand name and loyalty that was one of the greatest ever. But they have have not come out with anything new since Iwatch which really never caught on like the original MAC computer, IPod, iPhone, and then iPad. Apple literally revolutionized the world. But since Jobs died, they have only lived on the past and have really done nothing of any consequence in years. Not sure they have the ability now to do it again but they have so much cash and so many users out there they can survive another decade on that alone and still make money. But unless they figure out a way to innovate again, which appears to have died under Tim Cook so until they get a new CEO who values that the stock will go down.
I always pay attention to any analyst who downgrades a stock because it does take b***s. I'm not following the Apple story having exited the stock 10 months ago but in the big picture I know having worked on the street you can be bullish and be wrong and your job is safe but if you're bearish and wrong there's a good chance you're updating your resume.
I doubt it. It costs Apple about $400 to manufacture a phone that they sell for $1200. So even with 25% tariffs that phone's only costing them $500. The margin is still insane.
No the problem is that they're selling a LOT fewer $1000 phones than they told Wall Street they'd be selling. And they're starting to crack on pricing by cutting prices of old models.
It's a fantastic company by any standard but the stock price is assuming certain levels of sales that are not going to happen unless something comes along to change the trends.
I finally ditched my android (thanks to my wife) for an iPhone. Will never use an android again. Isn't Apple coming out with an electric car or did I dream that?
no you didn't dream that, they have considered that, and also that of partnering with somebody on the car part, and them doing the technology, but nothing to date.
i'm perfectly happy with my iPhone 4S.
In my opinion, Apple rushed-to-market, feature-deficient phones. There is a reason why they are announcing iPhone 11...
In my opinion, Apple rushed-to-market, feature-deficient phones. There is a reason why they are announcing iPhone 11...
At half-time, Wake Forest is kicking the ass of the academically-suspect Fighting Mack Browns.
It isnt about being fine. It is about sustaining their elevated stock price.
If their margins take a hit the stock will x 10.
LdN
No innovation after the iPad?
“Wearables” in Q2 of this year:
iPad sales were also up, no doubt buoyed by the release of the fifth-gen iPad mini and the new iPad Air. The iPad posted $4.9 billion in sales versus $4.1 billion in 2018’s second quarter. Tim Cook noted that the "blockbuster" quarter represented Apple’s “strongest iPad growth in six years, and we are as excited as ever about our pipeline of innovative hardware, software and services.” Mac sales were relatively flat at $5.5 billion as compared to $5.8 billion last year.
Wearables were another bright spot. Apple sold $5.1 billion worth of Apple Watches, AirPods, and other accessories in the quarter, a 30 percent increase over the year-ago quarter. Tim Cook said Apple's Wearables division is now about the size of a Fortune 200 company.
Similar threads
