UBS positive on Apple response to iPhone 4 reception issue
updated 10:00 pm EDT, Mon July 19, 2010
Analyst believes Jobs has answered critics, media
UBS has come out positive on AAPL stock following CEO Steve Jobs' response to the iPhone 4 reception issue. With Apple offering free cases and an option for a full refund, UBS analyst Maynard Um believes Apple has made a good effort to resolve the issue without a massive hit to its bottom line. The cost of the free bumpers should result in a loss of roughly $.03 in the next quarter. Um calls that a minimal impact, especially considering that some forecasters believed a recall would have cost the company $1.5 Billion.
Um reiterated numbers Jobs used in defense of the iPhone, including an opinion that the reception issue was blown out of proportion, with one half of one percent of iPhone 4 buyers seeking help with the issue. The CEO also claimed that only one more call per one hundred calls is being dropped by the iPhone 4 compared to the iPhone 3GS. The analyst believes this is answer enough to the issue and that the bumper case offer was not necessary but was a good faith offering for the company's customers.
UBS is maintaining its Buy rating on the stock, calling for a price target of $320.
Fresh-Faced Recruit
Joined: Aug 2007
There may be minimal impact on Apple's
bottom line, but the stock is getting hammered to h*** and I sure can't pinpoint any reason for it. Bad press? Most loyal Apple users and potential iPhone 4 buyers haven't been swayed by the online FUD, so why should investors. Apple shares are being totally manipulated by hedge funds.