Analyst: Sell Apple Before Doomsday

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Lindberg predicted $180.6 billion in revenue and $44.90 per share in net profit for fiscal 2013, below the Wall Street consensus of $193.09 billion and $49.95 per share. For the year after that, the predictions were for $186.35 billion in revenue and $40.17 in EPS, against the consensus $223 billion and $58.62.

CHEAT SHEET Analysis: Excellent Relative Performance Versus Peers is Under Threat

Competitors were stepping up their campaigns to displace Apple “as the architect of the world’s most popular ecosystem of software and services,” according to the analyst. Lindberg insisted that Google’s (NASDAQ:GOOG) Android was outselling iOS by a factor of four-to-five times in terms of monthly smartphone activations, Samsung was shipping nearly twice as many units of smartphones on an annualized basis, and the iPad was quickly giving up market share to tablets powered by Android and Microsoft’s (NASDAQ:MSFT) Windows 8.

Another factor going against the iPhone maker, according to the analyst, was its insistence on keeping its platform closed. “Unlike Apple, which remains tightly proprietary on both the hardware and software/services fronts, Google and Microsoft are making their ecosystems available to third parties (competitors and customers alike),” he wrote. “We take the view that in a market as large, as commoditized and as complex as consumer electronics, open systems will eventually push those that are closed, into obsolescence.”

How Will the Report Affect Apple’s Stock?

Apple was enjoying a green day on Monday before it started losing some of the gains toward the afternoon after this report was released. However, the announcement on Monday that the company was on its way to reaching its target of taking the iPhone 5 to 100 markets before the end of the year was likely to keep the stock afloat.

Don’t Miss: Here’s Why Jim Cramer Picks Apple Over Google.

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