Posted on 03/02/2015 1:19:25 AM PST by Blue Highway
A German investment firm has predicted Apple Inc’s downfall as it sets a stock price target of $60 per share. Berenberg Bank believes the financial model of the Cupertino-based company relies too much on the iPhone.
Berenberg has forecasted a more than 50 percent decline of Apple shares. According to Apple Insider, the German firm’s price target is so “extreme” that it doesn’t appear to be plausible prediction but more of a statement.
In a note to investors, Berenberg issued the extremely bearish forecast on Apple stock. Even a few investment firms who remain bearish on Apple have maintained price targets of above $100. As of the morning of Feb. 26, Apple stock was trading at $128 per share.
Berenberg analyst Adnaan Ahmad noted that 70 percent of Apple’s revenues and 85 percent of operating profit come from iPhone sales. He said the “law of large numbers” might soon catch up with Apple. He believes that as the accelerated replacement cycle slows down, iPhone volumes will move towards negative in terms of growth.
The analyst doesn’t think much of the company’s new Apple Watch...
(Excerpt) Read more at au.ibtimes.com ...
This guy is always wrong on Apple.
Are you referring to the author or the investment firm?
On a personal basis, I have no need of a Apple Watch. I don’t have a need of an iPhone either. But there are a lot of people who do seem to have that need. So with that said, I don’t see the stock price dropping down to $60.
He makes a valid point - all their eggs in one iPhone basket so to speak.
Personally, my 9-month LG-G3 is a better product - MUCH higher resolution (QuadHD) than 6/6+ plus a Hi-Rez laser camera all in a sleeker. thinner case.
The iWatch will be a failure - who the heck wants a watch that needs recharging at least once a day?
The apple car? Really? Low margins that require MASSIVE capital investment...and union goons? Really?
The normal people are tired of the apple faggot fanbois cult...and their days are numbered.
This same analyst, Adnan Ahmad, suggested Apple buy Tesla a couple of years ago and made some pretty good arguments.
Since then, Elon Musk at Tesla has hired over 150 ex Apple employees. Musk is seen as a "Steve Jobs" like personality - "mercurial temper and an obsessive attention to detail".
I wouldn't be surprised to see some kind of merger in the future, with Musk taking over the old Jobs position in the merged company.
Apple must diversify to survive long-term.
I don’t ever recall so many early sign-up FReepers posting on such insignificant posts.
A real headscratcher ....
Your point about cameras is spot on. I’ve been so impressed with the images we create with just the darn phone we take that when we go off on the trail rather than lugging around the 12 lb camera pack. I’m sure a professional could get far superior results with the camera, but for casual shooting it’s camera phone over massive camera every time.
I made money on the short when the first $1000 calls were made by the hucksters in the media, and for some strange reason I closed it out, made my money and then went long a couple of times.
AAPL’s business model; iPhone 6, stock buy backs, and Tim Cook is gay.
The purchase of Tesla (a half billion, or so) would be but a drop in the bucket in the cost of producing an Applemobile. For starters, there's the Federal Motor Vehicle Safety Standards (FMVSS) certification to deal with. This means a myriad of crash tests, brake tests, lighting, mirrors, restraints, flammability, tires, rims, wipers, fluids, etc. Failure to meet any one of these standards means the car can't be sold. Often the development to fix one of the problems means that other standards may be compromised. The company cannot just say that the vehicle was designed to meet the standard, it must be certified, and failure to meet a certification is a crime.
Then there are some more government agencies to deal with. Vehicle emissions must be limited. Even with no tailpipe in an electric vehicle, the vehicle can't emit other "pollutants" during manufacture and operation. It can't make too much noise when passing by. Each of these items must be demonstrated, not just assumed.
Most important is what customers demand. The air conditioner must pump cold air in a few seconds. The heater must pump heat. You should be able to drive the vehicle for at least 50,000 miles before ever returning to the dealer, if you choose. The car must withstand pot holes and curbs. It must go around corners quickly and stop when the brakes are applied. It must be quiet on textured roads, and noisy when backing up around pedestrians. There are any number of additional customer needs which, if not met, doom the vehicle to just a few die hard customers.
These are just a few of the requirements for a successful vehicle. The cost of meeting these is billions, not just millions. Many have tried, few have succeeded.
I have some money I want to invest. I would love for the stock to go down as I would buy it. There are new phones coming that have flexible screens that should be big sellers. The stock would go back up.
One thing about stocks is when a stock goes up there are articles about the stock going down.
Berenberg Bank believes the financial model of the Cupertino-based company relies too much on the iPhone.Yeah, and the financial model of OPEC relies too much on oil.
60 is ridiculous. The translation of such a position is: We screwed up and didn't buy Apple when it was lower. Now we want it to come back so we can buy some. THEN, it can go back up. Sorry, it doesn't usually work that way, except when the market tanks, like 2000 or 2008-09. But then, when the market bottoms, and it really is time to buy the good companies, most of the brave traders talking down the market are so scared that they are too late to get back in. Maybe that's what happened to you.
That's why I have an iPhone 6, a phone that won't go obsolete anytime soon because unlike most Android phones, Apple will constantly upgrade the phone operating system for at least 2-3 years and still make it a viable phone.
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