Analyst

Google paying Apple $1 billion annually in per-device iOS search fees

Christian Zibreg ∙ February 11, 2013

Analyst Scott Devitt of Morgan Stanley has estimated that Google pays Apple up to a billion dollars each year to be the default search engine choice on iOS. That's $1 billion in pure profit.

The two companies apparently have a per-device deal in place rather than a revenue sharing deal, he wrote in a report titled "The Next Google Is Google." The fee-based co-operation was agreed on in order to simplify accounting and it lets Apple collect upfront payments.

By contrast, Devitt estimates that Google pays around $300 million annually to Mozilla to be the default search engine for Firefox.

While one billion in traffic acquisition costs isn't much relative to Apple's $13 billion in holiday quarter profit, it ain't spare change either. Moreover, it just shows that Google is very much keen on having iOS users search the web using Google search...

Analyst: Apple is ‘leaving money on the table’ by not pursuing phablets

Christian Zibreg ∙ Updated March 29, 2017

With half the respondents voting for an Apple phablet in our non-scientific poll and the growing number of pundits making the case for a 5+ inch form-factor iOS device, little wonder that analyst are joining the fray and calling for a jumbo-sized iPhone. A good example is Sterne Agee's Shaw Wu, who opines that Apple is losing out by not pursuing a phablet of its own.

We're not sure what to make of this. Apple under Steve Jobs stubbornly stuck with the '3.5 inch fits all' philosophy. With the iPhone 5, four inch became the new 3.5 inch. But with the growing number of users yearning for an even larger iPhone and with ten million Galaxy Notes shipped in 2012 and another ten million expected in 2013, maybe analysts are right...

Analyst reinvents the wheel, says iPhone 5S will look the same as iPhone 5

Christian Zibreg ∙ Updated October 12, 2018

Apple's 10-Q filing with the United States Securities and Exchange Commission shows purchase commitments for the March quarter dropping from $4.5 billion two quarters ago to just $904 million. Of course, two quarters ago Apple was ramping up iPhone 5 production and investing heavily in then new in-cell touch displays. Still, that's a huge drop.

One clever interprets this data point as a sign of the iPhone 5S not needing new manufacturing processes, in turn proving it's gonna look just the same as the current-generation iPhone 5. Notable changes will be from the inside, like the speedier CPU/GPU, better cameras and what not. Man, I should have been an analyst...

Are analysts responsible for AAPL decline?

Ed Sutherland ∙ Updated April 10, 2018

So... Exxon passed Apple to reclaim the title of the World's Most Valuable Corporation. But how much did Wall Street's prognosticators have to do with Apple's drop in value following its earnings report earlier this week?

While investors realize the company is facing stiff competition and potentially lower profits, a number of financial observers were way off in the predictions ahead of Wednesday results. Indeed, while Apple reported $54 billion in fourth-quarter revenue, analysts had forecast between $51.7 billion and $65.69 billion.

According to Fortune, some analysts were up to 17 percent wrong, while some well-known Wall Street Apple watchers came within 3 percent of the iPhone maker's final numbers. Partially as a result of such wildly-varying forecasts, Apple is changing the way to releases its revenue guidance...

Munster (again) sees Apple shipping iTV and new remote in 2013

Christian Zibreg ∙ Updated April 18, 2016

You gotta give it to Piper Jaffray's Gene Munster, arguably for years the most vocal proponent of a full-fledged Apple television set. Speaking to Bloomberg today, Munster re-iterated his belief Apple is working on releasing a standalone television set in 2013. His thinking is apparently based in checks with Apple's suppliers and he also sees the Cupertino firm shipping an intelligent remote that, in his mind, should be an important part of the rumored iTV...

Verizon numbers suggest Apple sold over 50M iPhones last quarter

Cody Lee ∙ Updated April 18, 2018

Apple is set to announce its iPhone sales and other figures from the holiday quarter tomorrow, in what many are calling its most important earnings report of the last decade. Recently, rumors of slipping iPhone and iPad demand have driven the company's stock down to $500. And this is its chance to start turning things around.

The focal point will be on iPhone numbers, since the handsets account for half of Apple's business. And it needs to have sold in upwards of 50 million of them to avoid disappointing the Street. Well according to analyst Brian White, they hit that mark and then some...

Supply cuts? Think a major technology shift ahead of iPhone 6

Christian Zibreg ∙ January 18, 2013

There has never been so much hoopla surrounding Apple's supply chain like recent talk of a severe cut back in orders of screens for the iPhone 5, and now iPads as well. The negative sentiment in those unverified reports has already sent AAPL below $500 ahead of the impending earnings call.

But one analyst isn't worried at all. In his mind, the cutbacks are the result of an upcoming "evolutionary technology update" for the next iPhone rather than a sign of a lack of demand for the new Apple handset...

Analyst: remember Steve – Apple’s best days lie ahead

Ed Sutherland ∙ January 17, 2013

A Wall Street analyst Wednesday gave investors a pep talk, invoking the words of the late Apple CEO Steve Jobs to point out the iPhone maker is hardly ready to head for the exit. Instead, Topeka Capital Market analyst Brian White issued a record target price for a stock battered by negative headlines.

"The negative sentiment around the stock has reached epic levels that we haven't seen in recent memory and yet we believe [Apple's] product portfolio has never been stronger", White said in an investment note. He also quoted Jobs in response to naysayers who recently came out of the woodwork spelling doom for Apple...

Could booming iPad sales save the iPhone?

Ed Sutherland ∙ January 17, 2013

If Wall Street analysts went in for such things, J.P. Morgan's Mark Moskowitz would have a sign saying "It's the supply, stupid." Moskowitz Thursday morning issued a note to investors, reducing his iPad sales forecast for the fourth quarter of 2012. No, it's not due to flagging demand - the misconception dogging the Apple shares - but a shortage of tablets leading up to December.

According to Moskowitz, Apple next week may announce it sold 18.4 million iPads to close out last year, down from his previously projected 20.1 units. Coming into 2013, the popular device may become the chief revenue producer for Apple, the analyst adds...

Analyst says Apple sold 52 million iPhones last quarter

Cody Lee ∙ January 16, 2013

Apple's quarterly earnings call is coming up next Wednesday, where the company will reveal its iPhone sales and other figures from the holiday quarter. And given its recent stock drop due to iPhone demand concerns, all of Wall Street will be watching.

Essentially, if the Cupertino company wants to stop the bleeding, it needs to report big numbers for last quarter. And according to KGI Securities' well-connected analyst Ming-Chi Kuo, it will. He thinks Apple sold 52 million iPhones and 23 million iPads...

Apple’s 2013 product roadmap said to include multiple iPhones, Retina iPad mini and more

Cody Lee ∙ January 16, 2013

With all of the bad publicity Apple's been getting lately, and its stock down 30%, the company could sure use some fresh new products. And according to a new report, it has a number of them in the pipeline for 2013.

KGI Securities analyst Ming-Chi Kuo, who actually has a pretty good track record in predicting Apple's product plans, has just issued a new report outlining what he thinks the company has planned for the year...

Apple said to begin iPhone 5S production in March ahead of summer launch

Cody Lee ∙ January 15, 2013

With so much talk about the current-gen iPhone seeing weaker-than-expected demand swirling about, analysts and industry watchers have already begun to look forward to Apple's next-generation handset, believed to be the 'iPhone 5S.'

The company is widely expected to break its handset's traditional, annual release cycle this year, releasing the new iPhone well before fall. And a new report today supports that theory, saying Apple's next smartphone will land in June...