Apple is planning to introduce a small,cheap tablet with a 7" screen and selling for around 200 dollars.Is this the wrong move for the consumer electronics titan?They are planning to go after a small market,said Todd Schoenberger,Managing Principal at The BlackBay Group.This is gonna squeeze them down the road.It means thin margins.This will cut into the iPad's 37% profit margins.
Apple is a category-killer.Reversing course,going after another market that they don't need right now is disturbing to a shareholder and investor.The profit margins are gonna be squeezed.Apple's challenge going forward is to break into new markets,emerging markets.You don't want to overlap product development.This happens with car companies,and it doesn't work.
The BlackBay Group is an asset management firm.The Payson,Illinois company says it will organize and simplify your financial affairs and help you make the informed decisions needed to achieve your financial goals.
Apple co-founder the late Steve Jobs explicitly rejected the idea of a small tablet.On the other hand,it is inevitable that new CEO Tim Cook will want to leave his own mark and take his own risks.He won't just be following the party line.Whatever changes he makes will be viewed critically by some.
Apple Computer(AAPL)
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Showing posts with label iPad. Show all posts
Showing posts with label iPad. Show all posts
Tuesday, July 10, 2012
Monday, June 27, 2011
Research in Motion Isn't Dead
With the ascent of the Apple iPad,many have abandoned Research in Motion as hopelessly behind in the telecom space.We've seen a total catharsis of the stock,says analyst Kevin Smithen of the Macquarie Group.The sentiment has never been worse.Yet its international business grew 68% year over year and has never been healthier.
The Chinese,Asian and European markets are largely prepaid.RIM is more competitive in those markets.Foreign carriers do not have the spectrum the U.S. does.
We're frankly perplexed at the valuation at a multiple typically reserved for companies that are highly leveraged and cyclical at the trough of the cycle.We rate the stock as an outperform.
We're not optimistic about their hope for the U.S. consumer business,but our 12 month price target for the stock is 40.00.They have tremendous Blackberry momentum in Indonesia and Thailand.We think it's the product of choice in those areas,Mr.Smithen noted.
Macquarie Group,Ltd. is a full service financial firm operating in 28 countries.It cites its expertise,performance and growth as strong points for its global clientele and investors.The Australia-based company has 320 billion dollars U.S. under management.
Research in Motion(RIMM),Apple(AAPL),Macquarie Group,Ltd.(MQG)
The Chinese,Asian and European markets are largely prepaid.RIM is more competitive in those markets.Foreign carriers do not have the spectrum the U.S. does.
We're frankly perplexed at the valuation at a multiple typically reserved for companies that are highly leveraged and cyclical at the trough of the cycle.We rate the stock as an outperform.
We're not optimistic about their hope for the U.S. consumer business,but our 12 month price target for the stock is 40.00.They have tremendous Blackberry momentum in Indonesia and Thailand.We think it's the product of choice in those areas,Mr.Smithen noted.
Macquarie Group,Ltd. is a full service financial firm operating in 28 countries.It cites its expertise,performance and growth as strong points for its global clientele and investors.The Australia-based company has 320 billion dollars U.S. under management.
Research in Motion(RIMM),Apple(AAPL),Macquarie Group,Ltd.(MQG)
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