Roger Fingas
Investment bank FBR this week rated Apple stock with a massive $185 price target, forecasting that the iPhone maker will eventually become the world's first corporation valued at $1 trillion.
In a memo supplied to AppleInsider, FBR analyst Daniel Ives argued that Apple's main strength is actually its closed software ecosystem, since mobile hardware is becoming "increasingly commoditized," and a closed system helps drive shoppers into picking Apple electronics and services. In the long-term however FBR says that its optimistic appraisal is based on three main factors, including a greater emphasis on services, rising mobile sales in China, and "upside" from new device categories such as the Apple Watch.
Services are in fact claimed to be Apple's "secret sauce." FBR estimates that profit margins on Apple services are over 90 percent after concent costs, and that by the company's 2017 fiscal year, they could form 32 percent of overall profits. By comparison, services are projected to make up just 12 percent of 2015 profits.
Apple is in the "early days" of services such as the App Store, Apple Pay, and streaming TV, the memo remarked. Apple is rumored to be working on TV subscription packages that could launch late this year.
Another potential growth area in FBR's view is the enterprise world. Trends toward BYOD (bring your own device) support may spur iPhone and iPad sales, as could a growing number of productivity apps, including those developed jointly by Apple and IBM.
Andrew Orr
Amber Neely
William Gallagher
Christine McKee
AppleInsider Staff
27 Comments
SJ "that is not why our customers bought our products; that is not why we come to work out ass off everyday ".
The article is fantastic and whatnot, but man...that ?watch in the photo is...just gorgeous.
$185 sounds good to me!
By the way, where is the news article about the Apple fan and the Fandroid who were roommates and who were arguing with each other about which phone is best, and then they began stabbing each other!
The link doesn't say who won, but my money is on the Apple fan, because the Apple fan probably spent a few bucks for their stainless steel knife, while the Fandroid ended up using a plastic knife that they got with their takeout dinner last night, because it was free.
Dumb: Smartphone Debate Ends With Stabbings
Apple vs. Android argument turned violent, police report
http://www.thesmokinggun.com/documents/stupid/smartphone-debate-ends-with-stabbings-908541
This 'analysis' is not about Apple. It's just about this analyst tried to promote himself.
Unfortunately, the only thing his analysis shows is that he is capable of dividing $1Trillion by the number of public shares and rounding to 5.
[quote name="mubaili" url="/t/185840/fbr-capital-markets-gives-apple-trillion-dollar-valuation-with-185-price-target#post_2711639"]SJ "that is not why our customers bought our products; that is not why we come to work out ass off everyday ".[/quote] Butchering the English language is how come we to work out ass off everyday.