Apple Inc. (NASDAQ:AAPL) impressive run is set to continue after posting impressive fourth-quarter earnings. The main concern among many shareholders at the moment is where the company might be headed in terms of stock price. During an interview on CNBC, UBS’, Steve Milunovich, argued that Apple might be relatively cheap in the market while International Business Machines Corp. (NYSE:IBM) continues to languish on a transition period.
Apple Inc. (NASDAQ:AAPL) CEO, Tim Cook has already reiterated that Apple is keenly looking into the future and working on products that people haven’t even speculated thought of.
“Apple Inc. (NASDAQ:AAPL) is a very cheap stock. […] I think people are looking out to fiscal 16. I mean the bigger this cycle is, the tougher they compare with next year. So I think you have to get a conviction that it is becoming more than a hits business,” said Mr. Milunovich.
Milunovich expects wearables to become a big hit for Apple Inc. (NASDAQ:AAPL) in the future sure to guarantee more success after iPhones and iPads. The analyst also remains confident of International Business Machines Corp. (NYSE:IBM) prospects going forward, despite facing immense competition in the space in the wake of constant changes in technology.
“I actually think they have some good assets, I think they do understand what is going on now. It is just very hard to turn the tanker so yeah, I think they are going to come through they are going to survive but again it might take a while,” said Mr. Milunovich.
Good customer relationships and software revenue according to Milunovich should give IBM the much-needed uplift to move forward despite experiencing a rough run in the industry. The only concern at the moment is that the company might be moving a bit slower to the liking of many investors.
International Business Machines Corp. (NYSE:IBM) is offloading most of its hardware business to focus more on software business and service delivery while also pushing for the cloud.
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