Apple Iphone Rumours Run Rampant

We can use our data to track individual stocks, industries, sectors, and indices. For today’s bulletin, we take a look at some of the latest rumors about every investor’s favorite tech behemoth, Apple Computer.

One rumor concerns the implementation of a new screen for the flagship iPhone. Anonymous sources told the Wall Street Journal that the company will use flexible organic LED screens (OLED) similar to those already deployed by arch-rival Samsung.

The flexible screen technology, which allows the phone screen to curve and wrap around the phone bezel, would seem to be right up Apple’s alley given the firm’s long-standing focus on form and cutting-edge design. This is especially important for the firm given the fact that the latest model iPhone–the iPhone7, did not deviate that much design-wise from its predecessor, the iPhone6 and thus impacted sales as users saw even less reason to upgrade.

Other news indicates that the company may finally ditch its reliance on a series of non-standard charging ports, which have been an ongoing hassle for users who need specialty connectors and accessories to charge their devices. Instead of the current “lightning port,” the company will be switching to a more standard USB cable– Apple’s many rivals utilize the far more standard USB-C jack for charging. This means that current Android users typically have an easier time when low on juice and lacking a charger–because it’s easier to find the “regular” USB-style charging cord from a nearby co-worker, friend, etc.

And, Apple is also reported to be doing away with the home screen button on the front of the iPhone. This also brings the company’s phones more in line with competitors who made that switch already.

This all provides a new illustration of the shifting sands at Apple. The company is no longer driving innovation in devices it invented or “perfected,” it is merely adapting the changes and features of competitors.

Once more, we see evidence that the firm is no longer “Mac,” but maybe more “PC” and thus reminiscent of longtime rival Microsoft in its current stage of development. And that is not necessarily a bad thing. Despite the warnings of analysts that the company simply cannot sustain huge growth, this has had little negative effect on share prices. The company has hit record highs over-and-over again lately.

In fact, analysts believe that if the company can hook “fan boys” and the usual devoted customers into buying the rumored top-model iPhone8 with the new OLED screen, the bottom line will be further bolstered given the fact that the proposed retail price is hitting the $1000 level. As we saw with the iPhone6 vs iPhone7, Apple really gets a pop with the totally new iPhones rather than the incrementally-improved models.

In any case, the rumours and gossip has lots of time to percolate. The unveil of the new iPhone and other products will not occur until September.

Below is today’s data on Apple Computer (AAPL ).

Recommendation: We continue with a BUY recommendation on Apple Computer for 2017-02-28. Based on the information we have gathered and our resulting research, we feel that Apple Computer has the probability to OUTPERFORM average market performance for the next year. The company exhibits ATTRACTIVE Company Size and Sharpe Ratio.

 

 

ValuEngine Forecast

 

Target
Price*

Expected
Return

1-Month

137.82 0.60%

3-Month

140.86 2.82%

6-Month

144.35 5.37%

1-Year

146.88 7.22%

2-Year

160.83 17.40%

3-Year

172.71 26.08%

Valuation & Rankings

Valuation

23.27% overvalued

Valuation Rank

27

1-M Forecast Return

0.60%

1-M Forecast Return Rank

89

12-M Return

41.68%

Momentum Rank

73

Sharpe Ratio

0.50

Sharpe Ratio Rank

78

5-Y Avg Annual Return

12.42%

5-Y Avg Annual Rtn Rank

78

Volatility

25.04%

Volatility Rank

62

Expected EPS Growth

9.86%

EPS Growth Rank

41

Market Cap (billions)

797.93

Size Rank

100

Trailing P/E Ratio

16.33

Trailing P/E Rank

76

Forward P/E Ratio

14.87

Forward P/E Ratio Rank

64

PEG Ratio

1.66

PEG Ratio Rank

32

Price/Sales

3.66

Price/Sales Rank

30

Market/Book

6.43

Market/Book Rank

21

Beta

1.22

Beta Rank

29

Alpha

0.02

Alpha Rank

52

Valuation Warning: Overvalued stocks now make up 67.49% of our stocks assigned a valuation and 32.06% of those equities are calculated to be overvalued by 20% or more. Sixteen sectors are calculated to be overvalued.

Disclaimer: ValuEngine.com is an independent research ...

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