Tim Arcuri, the analyst at Cowen Group, talked about Apple Inc.’s (NASDAQ:AAPL) stock. According to Mr. Arcuri, Apple Inc. (NASDAQ:AAPL) has done well in coping with the “supply and demand” issue with the iPhone. The supply of iPhones has been going well. However, he predicts that there will be a supply and demand mismatch issue with the Apple Watch as its release date nears.
The iPhone has built up strongly. Mr. Arcuri is of the view that the iPhone maker may even cross the projections for their iPhone units, for the first quarter of the calendar. The company has implied that they may sell more than 50 million iPhones in the CQ1. Mr. Arcuri has made another interesting prediction that in the future Samsung Electronics (KRX:005930), the rival of Apple Inc. (NASDAQ:AAPL), will be a supplier of OLED for iPhones.
About the Apple smart watch, he says that there is a shortage in supply of the wearable. Apple Inc. (NASDAQ:AAPL) is already looking to boost the production of the Apple Watch. For this purpose, the company has collaborated with Foxconn and developed an infrastructure in Japan. Arcuri crunched some numbers and predicted that by June, Apple Inc. (NASDAQ:AAPL) will achieve a rate of 6 million units. Mr. Arcuri believes that the demand of the Apple Watch will be higher than the production rate. He has made another prediction, but this one is regarding the device itself. He believes that there is a possibility that the second edition of the Watch will be released later in the current year. The new version will be able to connect to the internet independently, without the interjection of the iPhone. Mr. Arcuri foresees that the Apple Watch edition 2.0 will be the first device that will incorporate and OLED screen from Samsung Electronics (KRX:005930).
Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) is willing to take the production and manufacture of the A9 chips from Apple Inc.’s (NASDAQ:AAPL) hands. This is another speculation by Mr. Tim Arcuri; but it isn’t reported. The Cowen Group has rated Apple Inc.’s (NASDAQ:AAPL) stock at Outperform, which was their previous rating as well. The target price that the firm set on the stock is $115 for each share.
Currently, 58 analysts are covering Apple Inc.’s (NASDAQ:AAPL) stock. Out of these analysts, 15 analysts rate the company’s stock at hold and 41 have rated it at buy. The consensus price target on the company stock is $139.06 on a 12-month basis.
Toni Sacconaghi is an analyst from Sanford C. Bernstein & Co. Apart from Mr. Tim Arcuri, Mr. Sacconhagi’s firm is the only other that rates Apple Inc.’s (NASDAQ:AAPL) stock at outperform. He has given a price target of $135 to the Apple Inc.’s (NASDAQ:AAPL) shares in the next year.
Apple Inc.’s (NASDAQ:AAPL) shares increased by 0.74%. The shares were priced $124.51 during the trading session today in the afternoon. The stock has increased by 10.58% on a year-over-year basis. The iPhone maker may see a supply issue with the Apple Watch but they are well-positioned to handle it.
