Also in this playlist...
This transcript is automatically generated
With a -- to our next guest says expectations for apple sales are so high that the company cannot just break records -- smash them.
Which it didn't.
-- out his take on Apple's iPhone 5 sales and the stock press reaction today's.
Colin Gillis an analyst at BGC partners' calling welcome to you -- to be here is it possible for apple at this point in time to lower the bar and expectations -- apple bus far has really spoiled eighteen Hester is candidates product yet.
Absolutely -- -- impacted for the bar work to be lowered -- you have that -- UT even bigger pullback in the stock what you're hearing today you're hearing a lot of sank.
-- the phone is in the mail.
Thank you -- may not -- opponents -- the -- all right I don't worry everything's going to be fine but there are some very large numbers of people were expecting I mean there there is talk about.
But the sell ten million units over the opening weekend we only -- five that were sold.
You -- compare that to the -- for us wants but those four million units accede to a million more than that's better by most metrics but yet you know apple Kansas beat records pass -- smash them.
Yeah although I mean you're price target is pretty low a lot of people who look at the -- -- in the stock today and say maybe this is an opportunity you don't think so yeah.
You know I'm a little bit more cautious view on apple than most my peers out there I do think the law of large numbers just aren't -- -- a couple of things to recall the Smartphone market itself is starting to slow down right in of people in developed countries like the United States were already.
Past the 50% penetration market right so it you've got your Smartphone that incremental advantage of a new one deal is much less than the advancement of people -- -- -- -- Trading up their Smartphones amended its not like you're gonna have total saturation I mean you have when you're always expecting to get the new model you dropping you break get -- -- It it's not like you're not gonna get another one.
But but the unit expectations of growth are also explain -- people are talking about fifteen million iphones being sold in the December quarter that's the baseball are you know that's the expectation apple these kind of beat dot hurdle to keep its forward momentum.
You wouldn't when you only -- 150 million total units in the June quarter alone and worldwide on all the vendors want to say yeah I -- authority marketplace are you -- -- of course it's possible right.
-- -- even make them fast enough for that that's going to be an issue Rihanna.
Backlash setting in at offer apple I was watching TV -- the Samsung galaxy commercial that makes fun of all of the people waiting in line for the apple iPhone 5.
Everywhere you go you see the Samsung galaxy posters -- you can just.
You know point your phone up and you get five free songs and yeah fierce competition right now on the Smart.
And so of course because it's one of the most lucrative markets out there and this is another reason to be mildly concerned for apple because -- the highest average selling price -- -- phones go for about 650 dobbs subsidized.
And competition has one lever which is price and they wanna use that -- -- -- -- to try to get market -- and they're willing to take less margin apples margins -- you know unbelievable those top of the charts and close to fifty cents on every dollar revenue that they have.
So if there's any -- traction you know on price than they -- that that's -- -- -- concern.
And then there's also competition from within apple because you know it you would think that the iPhone sales will eat into iPad if they come out with an iPad -- -- that the next possibility.
-- -- -- iPods are now.
Well you know let's say her iphones you know it's at slightly didn't it's gonna -- iPad sells itself right in its going to be -- ballistic.
To -- and this is on the things like in the June quarter apple commitments -- our iPhone four S sales were weak because of consumer expectations of new product and are referring to.
The iPhone 5 which -- September.
Well we don't think what's going up.
Pat and I was talking on an iPad nick who doesn't know that apple might be rolling out a smaller version of its iPad so how iPad sales gonna be in this current quarter and fun and -- minute -- public not gonna be strong enough to come up for any shortfalls in the iPhone Colin quick comment on what you anticipate from Apple iPhone packed -- holiday season we're gonna make up.
You -- you know again we will get up 47 million units a little bit lower than the street is looking for -- -- not when those people out the senate that you know that there is upside to those numbers are great company a Bill Cox is here Collin Gillis with this 600 dollar per share price target on apple great to have you with us this afternoon.
Filter by section