Apple (AAPL) Expected to Merge Operating Systems
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Price: $313.16 -0.97%
Rating Summary:
45 Buy, 29 Hold, 7 Sell
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Today's Overall Ratings:
Up: 13 | Down: 9 | New: 17
Rating Summary:
45 Buy, 29 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 9 | New: 17
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Apple (NASDAQ: AAPL) may merge the operating system for iPhone and iPads (iOS) with the operating system for Macs (OS X) into a single platform for apps and cloud services starting in 2012-13, according to analyst Peter Misek a Jefferies.
The move to merge the two operating systems would create a seamless user experience across all devices. Misek said he expects a merger of the two systems to start in 2012-13 and be completed in 2016.
Based on a sensitivity analysis, Misek believes such a move create an extra $0.50 in EPS for every 1% increase in unit volumes. "After the hardware platforms are combined on 64-bit, we estimate Apple could have a 25-125bp uplift to margins from BOM and R&D synergies," he states.
Misek also believes Apple has tons of new content deal, yet to be annoucned. "As part of Apple's roll-out of cloud video services (and eventually an iTV), we believe Apple has unannounced deals with all/most of the studios/TV networks that are similar to the subscription streaming deal between Amazon and CBS."
The firm reiterated its Buy rating and $500 price target on Apple.
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $388.91 yesterday.
The move to merge the two operating systems would create a seamless user experience across all devices. Misek said he expects a merger of the two systems to start in 2012-13 and be completed in 2016.
Based on a sensitivity analysis, Misek believes such a move create an extra $0.50 in EPS for every 1% increase in unit volumes. "After the hardware platforms are combined on 64-bit, we estimate Apple could have a 25-125bp uplift to margins from BOM and R&D synergies," he states.
Misek also believes Apple has tons of new content deal, yet to be annoucned. "As part of Apple's roll-out of cloud video services (and eventually an iTV), we believe Apple has unannounced deals with all/most of the studios/TV networks that are similar to the subscription streaming deal between Amazon and CBS."
The firm reiterated its Buy rating and $500 price target on Apple.
For more ratings news on Apple click here and for the rating history of Apple click here.
Shares of Apple closed at $388.91 yesterday.
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