Apple stock prices forecast 2016, profit forecast, profit margins ; Apple Inc.(NASDAQ:AAPL)’s investors will soon have to adjust to the reality of the company transforming into a high-value but low growth consume brand from being a hyper-growth story, according to an analyst who has published a 100-page overview of the company.
Sanford Bernstein’s analyst Toni Sacconaghi released his report about two weeks back and on Thursday released a summary of the highlights of the report.
Sacconaghi has cut his target for Apple’s stock to $750 from$800 observing that the sales of Apple will slow down over the next three years. For fiscal 2013, he has also reduced his profit forecast to $49.41 a share from $50.57 a share.
Apple is still in a high growth phase at the moment, but analysts are generally agreed that it is on the verge of middle age and is likely to slow down soon.
Last year it became the most valuable company and currently it market cap is at around $510 million. Its share price reached a peak at the time of the launch of its iPhone 5 but since then has slid by more than fifth from the record $705.07 it had hit in September.
Shrinking profit margins are a major worry for investors as well as the company’s ability to keep innovating and surprising its customers every time.
The iPhone 5 did sell in record numbers but critics agreed that there was nothing much to the phone in terms of novelty, while applications like the maps which were faulty detracted from the phone’s popularity.
The iPhone accounts for nearly half the revenues that the company generates and nearly all of its profit.
So what is really going on in Apple? What are the reasons for this Wall Street darling losing favor to such a degree? Where is this stock ultimately heading in regards to a price target? These are some of the things that I am seeing with the fundamentals of the Apple business model.
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