The analysts have recently started to raise target price for Apple Inc. (NASDAQ:AAPL) from$60 up to $85 emphasizing the new sell rate for the company. After enjoying a successful quota sale of iphone 6 and 6 plus, and unveiling its new global marketing ambitions, the analyst firms have started to place big target price for company’s stock in the market. Ahmed Adnan, an analyst from Berenberg gave the new number of $85 and insists that this is the company’s new market penetrating stock rate.
Apart from giving incredibly big target price numbers, he has also dropped a surprise bomb on the investors, when he gave revised estimates for the quarters of 2015’s fiscal year of the company, as acceleration can be seen in iphone6 and 6 plus sales in the market. However, his remarks also included some cautions and alarms, saying that the sales of both iphones will slowdown and start to reduce the next year after reaching their peak. After this the year 2016 will put a little pressure on the company as the year over year sales volume will decline amid the decrease in the sales cycle of both phones. Moreover, he also suggested that the company should make some counter preparations for that, as it will not be able to rely on just its new iWatch sales in the market. According to him, iWatches cannot replace the iphones.
He further added, this product life cycle will decrease the company’s market stock price as well resulting in loss of the momentum, which it has currently gained, and no one liked a declining ecosystem. However, he further adds, that Apple Inc. (NASDAQ:AAPL) has a pretty unique vertical ecosystem which is famous for its customers retaining ability that will prevent any possible damage to Apple Inc.’s (NASDAQ:AAPL) customer churn. However, the secret ingredient of Apple Inc. (NASDAQ:AAPL) which keeps it successful is innovation. The company wins the market against android through its innovation oriented approach. The notorious iphone was responsible for group revenue of about 70% with 85%+ profits generated through company’s operations. Now in the same way once this momentum is gone, the company might have to face desperate times if it does not come up with a contingency plan. He further added that the company its iphone 6 and 6 plus wise has reached its saturation point, and must come up with a new phone to hit the market.
He also thinks that the company should move into new market segments apart from iwatches, iphones, ipads, and ipods, and finally introduce something new. The allover popular rumors which have also been clarified by the company that it will soon be bringing an electric car with automated Apple Inc’s (NASDAQ:AAPL) I/Os software, perhaps this is the company’s new big move. However, it will not be enough to sustain the billion dollar market, and the company must find a new healthy sustainable alternative market segment and mix it up with its magic of innovation.
