Apple (AAPL) TV+ is Free for Subscribers But 9 in 10 Still Aren't Trying It - Bernstein
- Wall Street ends mixed after job openings hint at cooling economy
- MongoDB delivers upbeat guidance after Q3 results beat
- U.S. job openings fall to 8.733 million in October - JOLTS report
- Hedge Funds were big sellers of Big Tech stocks last week - Morgan Stanley
- CVS Health adds 2% as 2024 revenue outlook tops estimates
Bernstein analyst Toni Sacconaghi reiterated a Market Perform rating and $300.00 price target on Apple (NASDAQ: AAPL) after an analysis of the company's FY Q1 indicates that ~10% or less of eligible customers (under 10M) have opted to accept the 12-month free trial of Apple TV+.
The analyst stated "We see 3 plausible explanations for this surprisingly low take rate: (1) Apple hasn't been able to effectively promote TV+ - to which we would encourage the company to more directly leverage its 1.5B device installed base; (2) Apple may be conservatively estimating its “take rate” or deliberately scaling its promotions of TV+ slowly to mitigate the negative accounting impact of its early ramp; and / or (3) Apple TV+ is failing to resonate with customers, perhaps due to its limited content offerings, in contrast to the mega-launch of Disney+ (which comparatively achieved 10M subscribers in 1 day, despite offering a two week free trial vs. Apple's one year free trial)".
Shares of Apple closed at $307.30 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi Out Positive on Apple (AAPL)
- Foxconn resumes iPhone assembly at Indian facility after weather disruptions
- Hindustan Petroleum Corp Ltd. (HPCL:IN) PT Raised to INR450 at Citi
Create E-mail Alert Related CategoriesAnalyst Comments, Hot Comments
Related EntitiesSanford C. Bernstein, Toni Sacconaghi
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!