Apple needs a low-cost iPhone, says analyst

Uncategorized | Monday March 11 2013 6:07 PM | Comments (0) Tags: , , , , ,

Apple needs a low-cost iPhone, says analyst

Apple 's iPhone 5.

(Credit: Apple )

Apple needs to launch a low-cost iPhone to boost earnings and market share, says BTIG analyst Walter Piecyk.

In an investors note out today, Piecyk said he raised his opinion on Apple stock to “buy” from “neutral” based partly on the assumption that a low-cost iPhone will launch before the year is over.

The analyst’s crystal ball sees around 36.5 million such iPhones sold in fiscal 2014 at an average non-subsidized price of $300. Assuming that projection comes true, the lower-cost iPhone could add $11 billion in revenue to Apple ‘s next fiscal year, which kicks off October 2013.

“As we have previously detailed, we believe a product that addresses the more than 70 percent of global wireless subscribers that are unsubsidized pre-paid is necessary in order for Apple to grow its EPS (earnings per share) next year,” Piecyk said. “This is not rocket science and our belief is based on basic logic not questionable ‘channel checks’ or trips to Asia.

A low-cost iPhone could be achieved without compromising the Apple philosophy of “only making great products,” the analyst added, pointing to such lower-priced devices as the iPad Mini and the iPod Nano. Piecyk also had strong words of advice for Apple stockholders if the company fails to deliver a less expensive iPhone .

“If the management team does not follow this basic logic, as we expect … [Read more]

Apple needs a low-cost iPhone, says analyst

Apple needs a low-cost iPhone, says analyst

Apple needs a low-cost iPhone, says analyst

Apple needs a low-cost iPhone, says analyst

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