iPhone 5S Will Be Apple's 'Most Successful Launch Ever'
How much success will Apple (NASDAQ: AAPL) enjoy when the next iPhone is released later this year?
Trip Chowdhry, the Managing Director of Equity Research at Global Equities Research, is convinced that it will set a new record for the company.
"The new iPhones will be massively successful," Chowdhry told Benzinga this morning. "This will be the most successful product launch ever in the history of Apple."
These are surprising words from Chowdhry, who has been very critical of Apple's managers. He frequently criticizes Apple for failing to deliver new and innovative products on a regular basis.
"Innovation does not exist at Apple," Chowdhry affirmed. "Where is Apple TV? Where is iWatch?"
Chowdhry said that Apple needs to have a "complete innovation equation in place" and that it is time for CEO Tim Cook to move on to other work.
"He's an operational guy," said Chowdhry. "I'm not saying he's a bad guy. He should be heading up operations."
With so much pessimism toward Apple, some investors may wonder why Chowdhry would ever think that the iPhone 5S (and its cheaper companion) will be successful.
Chowdhry outlined a few reasons as to why the new iPhone will persevere:
- Chowdhry's research shows that many smartphone users in India, Malaysia and Thailand buy cheaper Android phones thinking they are essentially iPhones.
- By releasing a low-cost iPhone, Apple can close the gap and cash in on those customers.
- The ongoing patent battle (including Apple's win versus Samsung's (OTC: SSNLF) loss) will help Apple differentiate between its products and those of its competitors.
Chowdhry also believes that Jobs, the upcoming movie about the life of Apple co-founder Steve Jobs, will evoke positive emotions toward Apple and its products.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
Latest Ratings for AAPL
|Oct 2016||Goldman Sachs||Maintains||Buy|
|Oct 2016||Credit Suisse||Maintains||Outperform|
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.