Future of Apple: Do you ever sit back and wonder what goes through Gene Munster’s head concerning the future of Apple Inc. (NASDAQ:AAPL)? The Piper Jaffray analyst is staffed with the job of keeping close tabs on the Cupertino-based company, hoping to dig up new information and supply investors with targeted advice.
Earlier today, we posted this article talking more about Munster’s thoughts on the potential for a cheaper Apple Inc. (NASDAQ:AAPL) iPhone hitting the market sometime in 2013.
As we noted, this was not the first time Munster has talked about a lower priced iPhone. In fact, this is something the analyst has been talking about for quite some time. In this piece, he first talked about a cheaper Apple Inc. iPhone at the beginning of the year.
Before we get into the finer details of his thoughts on this new smartphone, it is important to note that he recently cut his price target for Apple from $788 to $688.
According to Business Insider, it is believed that “Munster’s price cut seems to be based on the belief that Apple will release a lower-priced iPhone which will cannibalize higher-priced iPhone sales.”
In other words, Apple Inc. (NASDAQ:AAPL) appears to be faced with a win-lose situation. On one side of things, the company can release a cheaper iPhone which will allow it to compete on the lower end of the market. Of course, you have to consider the fact that this could take away from sales of the higher priced smartphone.
The article goes on to add that Munster believes Apple’s March earnings will be weak and “the guidance for June is going to be worse than expected.”
There are a couple of points from his note to investors, as published by Business Insider, that are worth taking a closer look at:
– He believes that a cheaper iPhone will sell for $300
– In 2014, he believes Apple Inc. can sell approximately 75 million low cost iPhones which will help it grab 11 percent of the low end market share
– June guidance will check in at $34 to $36 billion
– A dividend increase from $10.60 to $14
If you believe everything Munster has to say, there is both good and bad news for Apple Inc. (NASDAQ:AAPL). Of course, nobody truly knows what is going to happen next since the tech giant is remaining quiet on all fronts.
Do you agree that a cheaper iPhone is going to make its way to the market in 2013? Share your thoughts in the comment section below.
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DISCLOSURE: I have no positions in any stock mentioned.
Photo above: Apple Inc. (NASDAQ:AAPL), by B2
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