fbpx
QQQ
+ 0.00
342.63
+ 0%
DIA
-0.17
333.13
-0.05%
SPY
+ -0.02
414.94
+ 0%
TLT
+ 0.00
145.73
+ 0%
GLD
+ 0.05
164.88
+ 0.03%

Three Apple Related Stories JPMorgan Is Following

by
May 18, 2015 1:44 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

In a report published Monday, JPMorgan analyst Rod Hall discussed three Apple Inc. (NASDAQ: AAPL) related stories he is following.

Under-The-Radar Acquisition

Apple acquired Coherent Navigation, a GPS start-up that makes high-accuracy GPS devices and software.

According to Hall, the acquisition was made “under-the-radar” and comes at a time when the company is in the midst of a major overhaul of its Maps service. The company Apple acquired combine standard GPS data with data from the Iridium satellite communications constellation.

Apple Watch Yield Rate Rumor Clarified

Hall noted that Apple clarified rumors that the Apple Watch has a poor yield rate, and the company is considering outsourcing orders to other manufacturers including Foxconn.

Quanta Vice Chairman CC Leung said that the Apple Watch devices it was contracted to manufacturer is “no longer a challenge” to the company. Due to labor shortages during the Lunar New Year, Quanta was forced to take in manpower from other manufacturers and was only able to deliver a limited shipment during the first quarter.

Hall cited Digitimes in reporting Quanta now has sufficient capacity to manufacture existing open orders which could result in Apple reporting a “large contribution” from its wearable device business in the second quarter.

Apple Partner Reports Strong Q1 Print

Hon Hai reported its first quarter earnings which were five percent better than expected while gross margin and operating margin were also higher than expected, likely due to better yields on the iPhone.

However, Hall is expecting Hon Hai to lose some share to Pegatron iPhone and iPad volumes and its Apple revenues will flatten in the second half, after growing 23 percent year over year in the first half of the year.

Hall also added that the earnings print and market share loss for Hon Hai has a “neutral impact” on Apple.

Analyst Rating And Price Target

Shares of Apple remain Overweight rated with an unchanged $145 price target.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

At War With Apple, Facebook Likely Setting Bigger Sight On Augmented Reality Dominance With Smartwatch Launch, Says Analyst

Facebook Inc’s (NASDAQ: FB) anticipated smartwatch launch in 2022 could be its gateway to gain on the next mobile computing platform — augmente read more

Apple Fitness+ Riding On Halo Effect Will Leave Peloton Trailing In Subscriptions, Munster Says

Loup Ventures analyst Gene Munster shared his take on the recently-launched Apple Inc’s (NASDAQ: AAPL) Fitness+ service and how it compares with rival Peloton Interactive, Inc (NASDAQ: PTON) on Wednesday. read more

3 Key Building Blocks Of Apple's Health Care Quest

Apple Inc (NASDAQ: AAPL) has forayed into the healthcare sector in a small way, with health features in its products and apps. read more

Qualcomm CEO-Elect Cristiano Amon Speaks At BofA Securities Event: Why Is An Analyst Bullish?

An analyst at BofA Securities came away bullish from a virtual event it hosted for QUALCOMM Inc. (NASDAQ: QCOM). read more