Market Overview

Is There Anything Innovative Expected From Apple Near Term?

Share:

Apple Inc. (NASDAQ: AAPL) doesn't have anything innovative in the works near term, and the next big thing could still be years off, Maxim Group technology analyst Nehal Chokshi told CNBC.

The bearish comments from the analyst come as Apple is expected to report lower earnings and sales for the second quarter.

"What I would be pretty excited about, but it's three or four years down the line, is an iCar," Chokshi told CNBC's "Squawk Box."

Related Link: This Expert Thinks The Street May Be Too High On Apple's Bottom Half

"If you look at the annuity value of a car relative to a phone and on a per person basis and the profits that you can be associated, that's very significant," he argued. "That's a needle mover."

Chokshi noted that service business (App Store, Apple Music, Apple Pay and iCloud) is a bright spot in Apple earnings.

"It's a high-margin business," he said. "The importance of the services is it gives you an indication as to what is the stickiness of the Apple ecosystem. It also gives a way to actually gauging how big is the ecosystem; how much it's actually growing."

Shares of Apple were down 0.57 percent to $104.48 at time of writing.

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: App StoreAnalyst Color Earnings News Previews Tech Media Trading Ideas

Latest Ratings

StockFirmActionPT
QEPPiper SandlerDowngrades1.0
HEIJefferiesDowngrades85.0
MKCCFRAMaintains140.0
CAGCFRAReiterates35.0
CALMStephens & Co.Reiterates55.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com