Tag - Sterne Agee
Investment management company Sterne Agee recently hosted a meeting with Apple's Chief Financial Officer Peter Oppenheimer, and Eddy Cue, senior vice president of Internet software and services. Uncharacteristically, the two men answered several questions in regards to the company's advantage over rivals. They also expressed their views on contentious technical issues in today's market, including carrier subsidies, and its rocky relationship with Samsung.
Apple's component costs, which were a worry in April, are now trending in Apple's favor according to Sterne Agee analyst Shaw Wu. The markets appear to be recovering from the chaos in Japan earlier in the year, with pricing on memory, NAND flash memory and displays all improving. Apple has a good track record for taking advantage of component pricing in the past and should continue to do so, with higher gross margins for the quarter, Wu believes.
Apple's iCloud launch could compound RIM's troubles competing with the BlackBerry, Sterne Agee analyst Shaw Wu said in a research note Friday. The cloud music element of the service could make "collateral damage" by giving iPhone owners access to an always-available music service the BlackBerry didn't necessarily have. As some of the service might be free, it would mimic some of the push mail functionality of a BlackBerry but wouldn't carry the revenue burdens with what RIM offers to carriers, reducing networks' incentives to promote the BlackBerry over an iPhone.