Analysts appear to be piling in on Apple, with a second firm questioning ‘strategic issues’ within the company.
Just a couple of days after UBS said that it was ‘unclear’ whether Apple had the same strategic approach it had under Steve Jobs’ leadership, Oppenheimer has predicted that the company is in for a ‘decade-long malaise’ …
We believe Apple lacks the courage to lead the next generation of innovation (AI, cloud-based services, messaging); instead will become more reliant than ever on the iPhone … We believe Apple is about to embark on a decade-long malaise. The risks to the company have never been greater.
Business Insider notes that Oppenheimer’s Andrew Uerkwitz points to the same issues raised by other analysts.
They believe that iPhone sales will peak in 2018; the company lacks the ability to raise prices across its iPhones, iPads and Mac products; and they see a clash between “Apple’s primary role as the hardware platform … with its secondary role as the software and service provider.”
It’s notable that both firms do, however, also have praise for Apple. UBS said that Apple has at least figured out its areas of interest and that the company’s culture remains strong under Cook, while Oppenheimer believes that there are no immediate concerns about AAPL’s performance.
We believe its strong profitability, a cash hoard for protection, and one last ‘growth’ hurrah from the tenth-anniversary phone will keep investors interested in the company. Our Perform rating is unchanged for now.
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