Apple Recap: More iPhone Worries, Amazon’s Trickery, A Strong Bull Case
Apple (NASDAQ:AAPL) closed 0.67 percent down at $502.68 on Thursday after a research report predicted long-term problems for the iPhone. Even a reiteration of a $1,111 price target from mega Apple bull Brian White was not enough to lift the stock out of the red. Here’s a cheat sheet to the main headlines on the day:
iPhone Trouble Ahead?
Apple’s share of the global smartphone market will grow to 22 percent this year, but will peak at that point and flatten through 2018, according to a projection from market researcher ABI Research. And rival Samsung (SSNLF.PK) will be there to fill in the growth holes, the report added. “Barring an unlikely collapse in Samsung’s business, even Apple will be chasing Samsung’s technology, software, and device leadership in 2013 through the foreseeable future,” ABI’s Michael Morgan said in a statement. Apple accounted for just under 15 percent of the global market in the third quarter of last year according to a recent report from IDC, up from 13.8 percent a year earlier… (Read more)
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Amazon Pulls a Fast One
Apple is already unhappy with and in litigation over Amazon’s (NASDAQ:AMZN) Appstore, and the online retailer appears to be pulling one over on Apple with its music store as well. Amazon’s Cloud Player, which sits in direct competition to iTunes, already poses a real threat to Apple’s music service with its competitive pricing. Now, Amazon is letting users access its MP3 store through their iOS device’s Safari browser and make the music purchases online, where Apple has no right to a share in revenue. The music is then streamed from the cloud on the iOS device without Apple ever seeing a cent of the purchases. (Read more)
Shooting for the Stars
The negativity of the last few days around Apple’s stock may have turned many believers away, but Topeka Capital Markets’ Brian White has stuck to his ultra-positive outlook for the iPhone maker. In a new research report sent out to investors, White said he saw several positive indicators for the company in the near- and long-term future and reiterated his aggressive price target of $1,111. That prediction is more than double Apple’s current stock price. “Our top large-cap stock pick in the IT Hardware & Networking group for 2013 is Apple,” White wrote. (Read more)
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