By Sam Boughedda
A Monness, Crespi, Hardt analyst told investors in a note Monday that Apple portfolio has "never been stronger and its platform more ubiquitous." Still, he warned that the economy appears to be in a recession and the geopolitical landscape is "treacherous."
The analyst, who has a Buy rating and a $174 per share price target on the stock, told clients in a note that with rival Samsung (KS:005930) hosting its Galaxy Unpacked event on Wednesday, competitors and Apple investors will be watching closely.
"In 2Q:22, IDC estimates Samsung held the top slot in the smartphone world with 21.8% market share based on shipment volumes, followed by Apple in the #2 position at 15.6%, and Xiaomi (1810.HK/Not Rated) in the #3 slot at 13.8%," said the analyst. "Given the title of the event and video teaser, Samsung clearly has plans to introduce new foldable smartphone innovations. Multiple media outlets expect Samsung to unveil the Galaxy Z Fold4, Galaxy Z Flip4, and other gadgets."
However, Monness Crespi feels that although Samsung has been a pioneer in hardware-related smartphone innovations, they believe Apple’s ability to develop hardware, software, and services that seamlessly work together has created a user experience that remains unmatched in the industry.
However, the analyst stated: "Next month, Apple’s annual iPhone event is expected. With a downtrodden economy, new spending priorities in a post-lockdown world, and stifling inflation, we believe consumers may be more reluctant to purchase Apple’s upcoming iPhone innovations, possibly waiting until this economic inferno has passed."
Apple (NASDAQ:AAPL) shares are up 1.2% in early Monday trading.