Barclays Capital analyst Ben Reitzes speculates that Apple is likely to broaden its iPhone line with a low-end model, but not until calendar Q3 2009 at the earliest. The analyst also asserted that it ‘makes complete sense’ for the company to introduce an ultra-portable device to fill the price gap between the $399 high-end iPod Touch and the $999 MacBook.
“This $600 gap needs to be filled and we think it can be with a premium ultra-portable device using multi-touch technology,” he wrote in his latest note to clients. “We believe an ultra-portable can be done right… Apple, in our view, would only introduce a premium product that doesn’t dilute its brand.”
Reitzes imagines a touchscreen tablet capable of video chat, with a front-facing iSight camera, and the ability to view documents and perhaps access more Apple software and content via MobileMe or “the cloud.” He thinks such a product would be “prefect” for partnering with wireless carriers “who can even subsidize the product.” Concludes Reitzes: “Net net, Apple needs to fill a gap in terms of price and its current $600 gap is mysterious.”
To reflect his lower iPhone forecast, Reitzes today cut his FY 2009 EPS estimate to $4.95 from $5; which by the way would be down from $5.36 in fiscal 2008. For 2010, he now sees $6, down from $6.16. His price target on the stock drops to $121, from $125; he maintains an Overweight rating on the stock.
Source : palluxo.com
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