Apple: Analyst color on new product launches (97.99 )
- Mizuho notes that Apple introduced its payment technology enabling easy, contact-less payments, with enhanced security relative to traditional use of credit cards. Apple Pay works with the top bank issuers that handle >80% of cc volume, and will be available in the US in 10/14. They do expect Apple Pay to gain some traction, but there are multiple new technologies trying to penetrate the market and it remains to be seen how successful each of them will be. The firm raised its AAPL target to $110 from $105. Buy Rating maintained.
- Cowen said Apple Watch, while, for now, not available until early '15 and somewhat limited by a necessary iPhone tether, represents both a big new vertical and contains an important technology "trojan horse". In addition to sapphire glass, new S1 processor contains a MEMS-based force touch controller that effectively creates a 3rd dimension to the display - a key development they think proliferates across product line and opens opportunities in areas like new keyboards, gaming, etc. Lastly, rather than fighting an uphill battle to make money in payments. Outperform Rating maintained.
- Oppenheimer says AAPL proved itself again to be the master with the introduction of a new payment solution, "Apple Pay," and a watch (a physical dial called "Digital Crown"). While both should add incremental revenue over time, they greatly broaden the ecosystem and improve the human experience. They see this driving a faster refresh cycle for all product classes including the all-important one, the iPhone. They say as expected, iPhone 6 features faster CPU/GPU power and longer battery life. It continues to improve image-capturing capabilities with better image signal processing without upgrading its cameras to higher pixel count.
- Briefing Note: AAPL shares are trading are little pre-market, while GT Advanced Technologies (GTAT) shares are trading lower by 9%. Investors were disappointed as there was no mention of sapphire screens in the iPhone. However, the sapphire screens will be in the Apple Watch. (see 15:08 from yesterday for complete follow up to event). In addition, GTAT received downgrades from Goldman and Piper Jaffray.
- Apple tgt raised to $116 from $110 at Barclays; Overweight
- Apple downgraded to Sector Perform from Outperform at Pacific Crest
- Apple (AAPL 97.99) target raised to $110 from $105 at Mizuho
- AAPL supplier stocks include: IDTI, QCOM, SNDK, SWKS, NUAN, BRCM, CRUS, TQNT, AVGO, GTAT, SNE, STM, NTE, NXPI and LPL