Market Overview

Apple Watch Buzz Continues To Fall, But It Won't Hurt Investors

Apple Watch Buzz Continues To Fall, But It Won't Hurt Investors
Related AAPL
Are These Tech Companies Too Reliant On One Major Customer?
IBM Kicks Off The Big Tech Earnings Season
Guggenheim S&P 500 Equal Weight: Is It A Good Alternative? (Seeking Alpha)
Related FIT
Watch These 7 Huge Call Purchases In Tuesday Trade
10 Stocks That Have Short Sellers' Attention So Far In 2017
New Deal Talk As Tesla Hits Ludicrous Speed (Seeking Alpha)

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 2017OTR GlobalDowngradesNegative
Jan 2017GuggenheimInitiates Coverage OnBuy
Dec 2016PiperJaffrayAssumesOverweightOverweight

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: UBSAnalyst Color Long Ideas Reiteration Top Stories Analyst Ratings Tech Trading Ideas Best of Benzinga


Related Articles (FIT + AAPL)

View Comments and Join the Discussion!