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Brian White, Topeka Capital Markets senior analyst, on Apple’s recent slide, and what it will take for the company to make a comeback.
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-- apple shares extending their recent slide now down.
25%.
From the all time highs so what is it going to take for the companies to turn things around at least from a stock point -- you joining me now Brian white senior analyst at Topeka capital markets.
All right Brian let I've seen some analysts who say the stock of full down into the 300 dollar range you meanwhile maintain -- thousand dollar price target.
Why I think number one the stock it's very very cheap here rights -- battery times X cash -- companies are 92% a year for eight years.
-- -- -- is -- Margaret you're still very very small.
At about 6% for mobile phones 5% PCs that thing is this is a very innovative company.
And we can't even think of the next big thing that's gonna come out of apple I think it's apple TV.
But there could be something but -- an adult looking after that so.
Lot of excitement I think still -- it's a hot company two to -- really in some ways it crushes -- estimates routinely.
It's very tight lipped about those new products out there.
Is that changing a little bit on the Tim Cook.
I think what we're going to see is maybe product cycles get shorter.
OK so instead of an -- -- every year -- a little over year we could see something every nine months maybe the lesson that I think.
What we said this week -- we think the new iPhone will probably come out may and June.
-- You know you've mentioned -- -- iphones and ipads huge pot of their revenues and bomb but competition is getting stripped its you know I mean look at Samsung -- doing very well.
On the set the biggest challenge for apple is beating down the competition.
The really the only competitor is ads and so if we look at what's happened the last few years apples grown stronger -- has grown stronger.
Rim has grown weaker -- Nokia's grown weaker an HTC recently has really started to struggle.
You know -- I think some of the Chinese vendors while -- -- TE have done well in certain markets.
Well let I was looking at some of these numbers Samsung predicted to -- about 33% chunk of the Smartphone market this year that's op.
Apple shares operated -- this is expected to inch up to about 21% from 20% last year.
But -- saying look there's only two players in his there's plenty of food to go around for those competitors.
Yeah it's a great point there's only two players in this market it in my view and I think what we'll start to see apple do with the next iPhone.
Is number one add colors and we -- -- come out do you think we could say that in the summer perhaps I think it may June.
Take time that has been talk about a -- and iPhone many other than you've heard about this which is really -- is too.
Those -- -- contract phone -- you know let the 20250.
Dollar range and that allows people to get into the iPhone experience so it's something that's good for apple do you think so -- coined that term this week when we put out our our checks on when the next iPhone is coming out and and we talked about totally different colors different screen sizes and we should at different price points and fed and at the what -- and you could have something -- -- call it an iPhone -- But let's think about it that way -- the fact is that a Smart move do you think I think it's a very Smart.
Because apple needs to expand their base not everyone in the world as a high end Smartphone user right.
So if you had something that gives you the cachet of apple the quality of apple.
At a lower price at a lower price not cheap but I lower price point I think you'll attract a lot of consumers especially in developing countries -- how much is -- ban on apple TV.
Apple TV I think it will be the next big thing -- right so that's something I think hopefully we'll hear this year or next.
And that is probably a hundred billion dollar market for apple it's probably 240 billion dollar market -- -- war.
Now so that's a big opportunity mobile phones is still a big opportunity temple to still -- big opportunity it's not over.
-- right very good and that's why you are keeping a thousand Paula price on exactly Brian Mike thank you so much for being here thanks -- thank you Brian.
Well PNC customers might have noticed the problem without.
