Analyst: Apple doesn’t believe in the success of the new iPhone
Piper Jaffray analyst gene Munster believes that Apple changes the strategy of the company in Cupertino tend increasingly to be a service company than an electronics manufacturer.
My opinion Munster, which in recent years has specialized in Apple, expressed in a note to investors. According to renowned expert, services will play a key role in the Apple business in the next five years. In recent years, the iPhone maker was concerned that the company demonstrates a high level of innovation and captures the weak dynamics of growth of sales of devices. The anxiety of investors will continue, if Apple can’t give the services of proper attention, says an analyst.
In July, Apple CEO Tim cook said that by 2017, the company expects to receive revenue from services includes revenue from iTunes, iCloud, Apple Music, Apple Pay, Apple Care and the Americans, at the level of total sales one of the companies from list Fortune 500.
For the fourth quarter of 2016 financial year closed at the end of September 2016 calendar, service Apple’s revenue amounted to 6.3 billion dollars, which is 24% higher than a year earlier. While the turnover of the Corporation has decreased by 9%, to 46.9 billion dollars.
Thus, the services bring Apple a little more than 13% of revenue. In order for the investors believed the business important to the company, its share should not exceed 30%. If Apple wants to be a service brand, this business needs to bring the company more than half of revenue, said Munster.
According to the analyst, to focus on services Apple needs to revise the scheme of equipment sales. For example, the company could offer low-cost devices or sell them bundled with paid services.
Munster also noted that the release of the iPhone 7 contributed to the fact that smartphone sales, Apple has exceeded the expectations of wall street in the second and third fiscal quarters. The new model, which will be released in 2017, will help the company to increase sales of phones by 8-12%.
Gene Munster has published its forecast before leaving the company Piper Jaffray. Munster decided to create his own investment firm Loup Ventures, which will focus on development of technologies of virtual and augmented reality.