Apple Watch Buzz Continues To Fall, But It Won't Hurt Investors
In a report published Tuesday, UBS analyst Steven Milunovich maintained a Buy rating on Apple Inc. (NASDAQ: AAPL), with a price target of $150.
"Our latest Apple Watch Monitor continues to find lackluster interest as measured by global search activity," analyst Steven Milunovich wrote. Interest for Apple products had declined, as had interest for many consumer electronic launches.
UBS estimated that Apple sold 2.2mn units in the June quarter, while reducing the estimate for Apple Watches by 50 percent to 20mn units, worth about $10bn in revenue, for FY16. Milunovich added, however, that a sluggish start did not mean the Watch could not be a success "as native apps are created and more functionality added over time."
"Interest typically declines over time; the rate of decline for the Watch since introduction is slightly better than for other Apple product releases," Milunovich commented, while adding, "Two positives are Cook's comment that sales ramped in June and NPD's finding that traditional watch sales were down in June, likely in part due to the Apple Watch."
The analyst also pointed out that global search interest for Apple Watch was slightly higher than for the wearables from Fitbit Inc (NYSE: FIT). The UBS report noted, "We do think wearables will become more important over time, especially as an interface to the Internet of Things."
Latest Ratings for AAPL
|Jan 2017||OTR Global||Downgrades||Negative|
|Jan 2017||Guggenheim||Initiates Coverage On||Buy|
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