Apple Inc. (AAPL) stock received another push after Morgan Stanley (MS) analyst Katy Huberty reiterated her Buy rating and target price of $110.
In a bullish note, Ms. Huberty added the Cupertino-based giant to the “Best Ideas List of Investments.” She feels that the super product cycle that the company has entered promises higher margins, giving the stock room for significant upside.
China Mobile Ltd. (CHL) has already started accepting pre-orders for both variants of Apple’s (AAPL) new iPhone 6, as the world eagerly anticipates the launch of the next iteration of the wildly-popular smartphone on September 9. China Mobile, being the biggest telecom operator in China, holds the key to Apple’s success in China.
It is tough to see the exact catalyst for the collapse in AAPL's share price in recent days (though it is clear that no China Mobile news is not good news) - but then aside from Carl Icahn's tweets it was hard to see what the exuberance in August was. Now a month later, AAPL has retraced all Icahn's gains and then some and is trading at 5 week lows. Today's weakness - in the face of a surging broad market - is being pinned on talk of Chinese telecoms firms cutting subsidies - not exactly strategically in line with AAPL's growth goals.
In the latest confirmation that the long-awaited rebound in demand for AAPL products keeps getting delayed, even as a surge in low-priced Chinese competition continues to steal market share, overnight the WSJ reported that the tech giant is forcing its suppliers to accept both price cuts and volume reductions in order to preserve profit margins: "as Apple Inc.
Apple Inc.'s (AAPL) launch of the iPhone 6 and iPhone 6 Plus took the company into a new product cycle. The tech giant sold over 10 million iPhone 6/6 Plus units on its debut weekend last month, beating initial expectations, and posting an 11% growth over iPhone 5s and iPhone 5c sales last year. But the initial launch did not include China, the second-largest market for Apple after the US.
China Telecom Corporation Limited (ADR) (CHA), one of China’s largest state-owned carriers, increased 1.9%, as the carrier’s rating was upgraded from Neutral to Overweight by JPMorgan Chase &Co. (JPM).
With Apple’s (AAPL) media event today (Sept. 10) nearing, speculation is rife that the company has signed a deal with China Mobile (CHL) for the low-cost iPhone. Both The Wall Street Journal and Bloomberg have reported that Apple is preparing to ship iPhones to the world’s largest carrier in what is likely to be a landmark deal for both companies.