Tag Archives: apple

Over Quarter Of U.S. iPhone Owners Still Use 4-Inch Handsets

More than two years since Apple ( AAPL ) shifted its focus to larger-screen iPhones (4.7-inch and 5.5-inch models), 26% of U.S. iPhone owners still use handsets with 4-inch screens, according to a December survey by Consumer Intelligence Research Partners. The Chicago-based research firm said 110 million iPhones were in use in the fourth quarter in the U.S., up from 100 million in Q3 and 78 million in the year-earlier period. Of the 110 million iPhones in use last quarter, 74% were iPhone 6 or 6S model handsets, CIRP said. They included 62 million iPhone 6 and 6 Plus units and 19 million iPhone 6S and 6S Plus units. The remainder (29 million) were mostly 4-inch iPhone 5C and 5S models. Apple continues to sell the iPhone 5S, a model that hasn’t changed since its introduction in September 2013. What isn’t known is how many of the current users simply prefer a 4-inch handset over the larger-screen models and how many have just not yet upgraded. Apple is about to find out. Apple is expected to introduce a new 4-inch handset, dubbed the iPhone 5SE, at a product launch event next month. The iPhone 5SE is rumored to include Apple’s latest A9 and M9 processors, an NFC (near field communication) chip for Apple Pay, support for always-on Siri activation, and the iPhone 6’s camera system, 9to5Mac reported . The iPhone 5SE likely will be introduced at a media event on March 15 and be available in retail stores on March 18, 9to5Mac said. Besides the new smartphone, Apple is rumored to be debuting its next-generation iPad Air tablet and new Apple Watch software and wristbands next month. Apple iPhone 7 Not Expected Until The Fall Apple isn’t expected to refresh its flagship smartphone lineup, with the iPhone 7, until this fall. That handset is expected to be thinner because of the removal of the headphone jack and have a larger screen because of the removal of the physical home button. Baird analyst William Power on Tuesday reiterated his outperform rating on Apple stock with a price target of 130, after conducting a survey about iPhone 7 demand. Apple stock rose 2.8% to above 96 on the stock market today , but it’s still down 23% from a seven-month high near 124 touched in November. “Based on our latest online survey, 7% of respondents claim they plan to purchase the iPhone 7, which is actually above the 4% planning to purchase the iPhone 6 in our February 2014 survey,” Power said in a research report. “An additional 14% are maybes, vs. 13% two years ago.” Baird surveyed 1,000 people in a U.S. online poll. “Notably, interest was greatest among recent iPhone purchasers, reflecting the ongoing upgrade opportunity,” Power said. “We view the results as directionally positive, particularly given the recent growth concerns.” About 21% of iPhone 6 and 6S owners plan to purchase an iPhone 7, the survey showed. That compares with 18% of iPhone 5S owners and 10% of iPhone 5 and 5C owners who plan to purchase the iPhone 7, Power said. Investors are concerned about Apple’s growth prospects, especially with iPhone sales poised to fall for the first time on a year-over-year basis this quarter. Also Tuesday, UBS analyst Steven Milunovich maintained his buy rating on Apple stock, with a 12-month price target of 120. And Drexel Hamilton analyst Brian White on Tuesday reiterated his buy rating on Apple stock, with a price target of 200. “With a recent earnings reset, a new iPhone cycle on the horizon with the iPhone 7, the ramp of Apple Watch, the potential for increased levels of cash paid out to shareholders and new geographic opportunities (e.g., India), we believe Apple represents one of the best values in the tech world,” White said in a report. RELATED: Apple iPhone Sales In China Fall Off Cliff In January Morgan Stanley Says Apple Stock Ripe For Picking Apple Poised To Disappoint With March Product-Launch Event .  

Micron Snubs Tsinghua, Favors Another Chinese Partnership: Analyst

Micron Technologies ( MU ) rebuffed Tsinghua Unigroup’s $23 billion bid, but that doesn’t mean the memory chipmaker has scrapped plans for Chinese partnership, MKM analyst Ian Ing wrote Tuesday in a research report. That partnership could come in the form of a joint venture, Ing wrote in a research report after Micron’s analyst day on Friday. Ing reiterated a buy rating and 19 price target on Micron stock, which was up 7.3% in afternoon trading in the stock market today , near 10.80. “We think Micron would require control of both IP and production decisions in the structure of any JV,” he wrote. “The biggest benefit to Micron is the ability to produce output as a ‘local supplier’ and national champion for China’s domestic market.” Chinese Investment In Micron China plans to invest $55 billion in local chipmaking businesses by 2020 in an effort to curb reliance on foreign semiconductors. But state-sponsored Tsinghua Unigroup’s bid for Micron was doomed from the start, analysts say, as U.S. regulators would have shut it down. A joint venture, however, wouldn’t necessarily spike regulators’ concerns. Credit Suisse analyst John Pitzer said he “would not be surprised by an equity investment in Micron from one of the Chinese private equity companies.” After its failed Micron bid last year, Tsinghua Unigroup invested $3.8 billion in Western Digital ( WDC ), days before Western Digital announced its plan to acquire flash memory chip maker  SanDisk ( SNDK ). “(Micron) has a presence in all major memory markets, which makes it particularly interesting from M&A or an equity investment target for China Inc.,” Pitzer wrote in a report. “While (the Committee on Foreign Investment in the United States) could be an issue for outright sale, the company could still attract equity investment in China.” Pitzer reiterated his outperform rating and 20 price target on Micron stock. Summit Research analyst Srini Sundararajan rates Micron stock a buy, with a 21 price target. Micron Pulling Ahead In Samsung Rivalry “The backdrop of any buy thesis on Micron over the medium term should be that Samsung is not doing well,” Sundararajan wrote in a research report. Apple ( AAPL ) and Chinese LCD manufacturers are scooping share, and Samsung has yet to squeeze much profit out of its nascent 3D Nand flash chips, he wrote. DRAM (dynamic random-access memory) profitability could be Samsung’s “salvation,” but its capital expenditures cut has yet to bear fruit. DRAMs are the most common memory chips in computers. Meanwhile, Micron is slimming costs, Sundararajan wrote. In 20-nanometer DRAM, Micron is targeting a cost reduction CAGR (compound annual growth rate) of 15%-25% through fiscal 2017, Pitzer wrote. Micron also sees 25% cost reduction CAGR in 3D Nand. “Any progress in closing the cost ‘gap’ will drive stock performance,” Pitzer wrote. A rebound could pull Micron stock out of its trough, Mizuho analyst Vijay Rakesh wrote in a report as he upgraded Micron stock to buy from neutral. Sundararajan also expects Micron to let Intel ( INTC ) work out the kinks in the jointly-owned 3D X-Point chip and then “exploit it advantageously” from 2018. “Good times will come should Micron execute,” he wrote. “Micron has dashed hopes and portfolios in 2015, hence it is important to ignore those getting out of Micron stock and take a fresh look.” Even with Tuesday’s gain, Micron stock is roughly 70% off a nearly 16-year high touched in January 2015.

Oculus Rift VR Sales Pit Nvidia, Advanced Micro In GPU Battle

Facebook ( FB )-owned Oculus has pledged to release more than 100 virtual reality games by year’s end, a move that will buoy Tesla Motors ( TSLA ) partner Nvidia ( NVDA ), MKM analyst Ian Ing wrote Tuesday as he reiterated a buy rating on shares. Intraday on the stock market today , Nvidia stock jumped 3.2% ahead of the chipmaker’s scheduled fiscal Q4 earnings report. Late Wednesday, Nvidia is expected to report record-breaking sales, but earnings that fall for the first time in two years. For Nvidia’s fiscal Q4, the consensus of 29 analysts model $1.31 billion in sales, up 5% year over year, and 32 cents earnings per share ex items, down 9% vs. the year-earlier quarter. Three months ago, Nvidia guided to $1.3 billion in sales, plus or minus 2%. Analysts view $4.92 billion in sales and $1.05 EPS minus items for Nvidia’s fiscal 2016 — up 5% and down 6%, respectively, vs. fiscal 2015. Nvidia’s Q4 guidance implies a full-year outlook of $4.91 billion in sales. MKM’s Ing expects Nvidia to outperform its peers “in a challenging earnings season.” Other chipmakers have suffered Apple ( AAPL ) fatigue in December and ahead of the weak March quarter. “Nvidia remains our top pick based on strength in its core gaming business (58% of October quarter sales) plus abundant ‘call options’ where GPUs could become the ideal solution in coming years,” Ing wrote in a research report. Tesla, Audi, Volkswagen ( VLKAY ), Honda ( HMC ) and BMW use Nvidia graphics processing units (GPUs), according to a November Canaccord report. Continuing infotainment and autonomous-driver efforts will boost Nvidia, Ing wrote. With the release of the Oculus Rift VR headset in March, Nvidia and rival Advanced Micro Devices ( AMD ) are poised to “leapfrog each other” to supply gamers’ video cards, Ing wrote. The Rift website specifies the Nvidia GTX 970 or AMD R9 290. Pricing trends have been relatively benign lately, Ing wrote. Average sales prices for the GTX 980 and 970 are flat sequentially, with the GTX 960 down 1% quarter over quarter. All three are year-old cards. ASPs for the GTX Titan X are up 7% quarter over quarter with only three SKUs now available. “This suggests that demand is outstripping supply for these cards, which include scientific and academic applications,” Ing wrote. He expects prices to surge as Nvidia refreshes its Pascal series later this year. Ing reiterated a 39 price target on Nvidia stock. He noted that bears are “overly focused” on Nvidia gaming’s high exposure to China — about 40% of gaming sales in August. “Gaming growth is more driven by share gains against traditional entertainment consumption rather than macro,” he wrote. “We note that original equipment manufacturer sales were less than 10% of sales last quarter.” Nvidia stock surged 70% over four months between August and December. But shares have fallen lately, and Nvidia stock is now 24% off its 2015 high of 33.94 achieved Dec. 30.