Market Overview

HomePod 'Immaterial' To Apple Sales, Earnings: Deutsche Bank

Share:
HomePod 'Immaterial' To Apple Sales, Earnings: Deutsche Bank

Investors counting on Apple Inc. (NASDAQ: AAPL) to extract a meaningful boost in sales and earnings from its HomePod smart speaker may want to reconsider their thesis, at least according to Deutsche Bank.

The Analyst

Deutsche Bank's Sherri Scribner maintains a Hold rating on Apple stock.

The Thesis

Apple could have become a "major player" within the smart home market with the introduction of its HomePod speaker in 2017, Scribner said in a note — but the launch was quickly followed with poor user reviews and a notable drop in demand after the initial launch.

Apple simply "missed the market," the analyst said. 

A major drawback of Apple's smart home strategy is tethering control to the iPhone, Scribner said, adding that Cupertino placed too much emphasis on music functionality and limited its use to Apple Music.

Deutsche Bank projects that Apple will ship less than 5 million HomePods in 2018, implying the smart speaker will be "immaterial" to Apple's sales and earnings. 

Price Action

Shares of Apple were trading lower by 0.6 percent Tuesday morning.

Related Links:

BofA: Don't Write Off Apple's Hardware Business Just Yet

Gene Munster: Apple's HomePod Set To Be Long-Term Winner Among Home Assistants

Photo courtesy of Apple. 

Latest Ratings for AAPL

DateFirmActionFromTo
Nov 2019MaintainsOverweight
Nov 2019MaintainsOverweight
Nov 2019MaintainsOutperform

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Apple Hardware Deutsche Bank HomePod Sherri Scribner Smart HomeAnalyst Color Reiteration Analyst Ratings Best of Benzinga

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
TORCCantor FitzgeraldDowngrades3.0
CIDMCanaccord GenuityMaintains1.5
TDGCanaccord GenuityMaintains620.0
DLPNCanaccord GenuityMaintains1.6
WBCLSADowngrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
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.
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

19 Companies Google Could Buy With Its $102 Billion In Cash

A Near-Term View On Leveraged Energy ETFs