Neil Hughes
In its latest note to investors, Caris & Company said Tuesday that its analysts recently met with Apple Chief Financial Officer Peter Oppenheimer, who gave insight on a number of subjects. Among the topics discussed: the Apple TV, which has been long-rumored to receive some cable box-type functionality, including live TV recording and integration with cable providers. But according to analyst Robert Cihra, Oppenheimer effectively doused that rumor with a clear statement that the move doesn't make sense for Apple.
"While some have wondered whether Apple might ultimately try to integrate traditional cable set-top box (decoding) functionality into its Apple TV product, Mr. Oppenheimer pretty much killed that concept and said that it just doesn't fit Apple's business," the report said.
Though there had been speculation that a possible refresh or price drop of the Apple TV could occur at the Sept. 9 event, one report said industry watchers should not expect an appearance by the hardware at Apple's media-centric keynote.
Caris' conversation with Oppenheimer covered a number of other subjects. In one point, the company's research notes states that Apple's chief financial officer implied that the company would continue to lower prices on its Mac lineup — or offer new products at lower price points. However, Cihra noted that he does not expect Apple to join the low-end PC market.
The report also noted that the popularity of the iPhone has made it difficult for Apple to keep up with demand. Though Oppenheimer did not provide any specifics to Caris, he did say that the company has had trouble keeping its new iPhone 3GS in stock. Caris predicts that Apple will sell 27 million iPhone units in 2009, bolstered, in part, by the upcoming upcoming debut of the handset in China.
"Mr. Oppenheimer said he was simply happy to now be able to 'check that box,' with iPhone's launch into China have been a long-awaited milestone," the report said. "And while the vast majority of China's cell phone market is pre-paid, Apple sees no reason why iPhone should have any disadvantage taking share of pre-paid markets vs. its post-paid success."
The one downside the Caris note mentioned from the company's meeting with Oppenheimer was that supply of components for devices remains "tight," and costs continue to rise. Cihra said he does not see this as a major concern for Apple, but it is noteworthy because it demonstrates that no one in the tech industry is immune to the ongoing component supply issues.
Cihra reiterated his "Buy" rating for AAPL stock and maintains a price target of $200. With iPhone and Mac sales "tracking strong" this quarter, the Caris note said that only tight component costs could hold back Apple.
"We continue to believe Apple has proved itself the single most innovative and profitable consumer technology company in the world and continue to see headroom for growth via both iPhone and Mac (market) share gains."
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57 Comments
After this experience with ATT and the nonsense Tivo HD customers have to deal with to get CableCARDS, who can argue?
Besides, there are plenty of more-important shortcomings they need to correct.
By "continuing to lower prices", I am hoping this means that now that Apple has 'dealt' with thier macbooks/macbook pros (and presumably freed up some engineers mid-iphone cycle, and what-not) they could move on to the iMac..
I'm very keen on buying one - but don't want the existing model - I'm hoping for something with a bit of 'boom'.
That said, I think Apple have probably adjusted their product cycles slowing the current one down a bit to keep prices down rather than go for the exiting but equally expensive successor.
Is it Flash that is holding up iPhone production? I wonder because that could negative impact the roll out of new iPods. I'm really hoping it is an issue with the 3G chipset as this would not be a negative with respect to the iPods, especially iTouch. The last thing we need is another round of 16 & 32 GB touch devices.
As to lowering the price of it's Macs this should be very easy. If they can't do it then I will offer up myself to replace Ive and take Apple forward with easy to produce and service hardware. As innovative and compact as the Mini and iMac are I'm amazed that Apple can't do better with the layout of the hardware. Especially the iMac which is a bit of a servicing joke. Even the Mini concept is ripe for overhaul.
Dave
i have always seen the Apple TV as a way to promote video on the itunes store. so anything that cuts into that (hulu integration etc) is unlikely in my opinion.
as for the product cycle and such. I have to wonder if they aren't in the process of shifting the calendar. before they did laptops in the fall and desktops in the spring. which to me doesn't make a lot of sense. would it not be better do to laptops in the late spring so the students (or rather parents) aren't griping about ripoffs when a new machine (or at least cheaper) comes out 3 weeks after the back to school ends (the price adjustment/return period being 2 weeks after purchase). and then do the desktops in the fall since the imac is more the 'something for the family to use together' machine. i mean come on they put imacs on their kids game demo table even. they want folks to make that connection.
and given the june refresh and February's refresh on desktops if they aren't moving that way.
as for what they might do. I don't see them ever going cut rate on the prices but certainly as component parts drop they will upgrade HDs, drop prices, offer bigger solid state etc. though I suspect that we have probably seen the lowest prices we'll ever see (maybe another $100-200 off but that's it). it will be bigger and better insides. at least for the foreseeable future. but a $200 mini and a $600 imac ain't gonna happen.
ok no set top box for the Apple TV, but PLEASE a refresh tomorrow with full HD support for my full HD camera.