Moscow, February 4 — “News. Economy,” Morgan Stanley Analyst Katy Huberty believes that during the 2019 quotes American manufacturer of consumer electronics will jump another 27%.
According to experts, the main driver of the rise of the Apple stock should be new services, including service for watching videos, the launch of which is expected in spring 2019. According to insiders, the company has already informed its content partners about the readiness of their content by the middle of April. The service will include content from Apple, but will also allow you to subscribe to third-party streaming services: for example, to buy a subscription to HBO Now, not to go into the app HBO.
Apple plans to launch streaming video service on your Apple TV for iPhone, iPad and consoles Apple TV. The company discussed its launch with several content providers. Now app for Apple Apple TV allows you to search shows, for example, from ABC or HBO within the service, but to pay subscriptions and view them redirects users to third-party applications. According to sources, to compete with Amazon Prime Video and other, the company will launch its video service.
The Apple team was joined by the former head of Amazon Fire TV Timonty D. Twerdahl as Vice President of product marketing, the former head of YouTube and Spotify Shiva, Rajaraman, two top managers of Sony TV, Jamie Erlicht and Zack van Amburg and many others. In June 2018, Apple and Oprah Winfrey has signed a multi-year partnership to create original content. Apple has also begun talks with developers in the past year to launch a subscription service for games.
Morgan Stanley analyst expects Apple to sell some services within the package rate, including a fee for access to future video portal, Apple Music and news app Texture. This product will be every year to add 2 percentage points to growth in service revenues of the Corporation until 2025, the expert believes.
In addition, the company can expand business in the field of advertising and payments, she added.
Investment Bank Morgan Stanley has set a target price of Apple shares at a 12-month term, at $211, which is 27% higher than at the close of the exchange on Friday. “Replacement cycles iPhone currently reached the level of readiness that gives hope for the stabilization of the growth next year. Comments from leaders about improving demand in January are also encouraging”, said Huberty.
Last week (January 28 — February 3) Apple shares rose by 7% due to publish financial results above market expectations. The company reported a better than expected on wall street, though, rather to say that analysts had expected a more negative scenario for the copertina.
They have a good reason — since the end of last year began to appear the rumors that the sales of the new iPhone models are not as good as suggested in the Apple. A recent financial report confirmed it — revenues from iPhone sales declined by 15% compared with a year earlier, while quarterly revenue was $84.3 billion, which is 5% less compared to a year earlier.
Apple predicted that in the first quarter of 2019 financial year ending in December, sales will total $89 billion to $93 billion This estimate was below the forecasts of analysts. In January 2019 Apple lowered the revenue estimate to $84 billion due to weak iPhone sales in China. Because of this, the company’s shares fell 9% to $143 a share, but by the end of January rose again: to publish the statements January 29, 2019, the shares were worth $156 per share.
The company’s sales declined in Europe ($20.4 billion instead of $21 billion a year earlier), Japan ($7.2 billion to $6.9 billion), but most of all in China. During the reporting period, the revenue of Apple in the market of China fell by nearly 27% from $17.9 billion to $13.1 billion In the same period a year earlier, the company has sold in China of goods and services by $18 billion
However, analysts are looking to the service Apple business. Last finkvartal the yield from services for the first time in history reached $10.9 billion, a 19% increase from a year earlier. Other categories of products, Macs, Wearables and home devices, and accessories increased 9% and 33%, respectively, and the yield from iPad sales rose 17%.
“Despite the fact that we had to adjust the original earnings forecast in this quarter, we approach the management of the company Apple, focusing on the long term, and the results of the quarter show that the key potential of our business is deeper and focuses on more opportunities, said Tim cook, Apple’s CEO. — The number of active devices reached a record level of 1.4 billion in the first quarter, in the form in each of our geographic segments. This is a great testimony to the satisfaction and loyalty of our customers, combined with our growing ecosystem leads to record levels of business services”.
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