Tim Cooks channels his inner Steve Jobs
With a product lineup of AR/VR headsets to self-driving cars, Tim Cook is doing his best Jobs impression.
How’s 2021 going for Apple?
TLDR: Too much demand and too little supply.
Apple (NASDAQ:AAPL), like many retailers, struggled with supply shortages — cutting iPhone production by an estimated 10M units and costing $6B.
- This led to Apple’s first failure to beat earnings estimates since 2016.
- After staying flat for the first half of 2021, Apple’s stock finally caught up to the market — rising 20% in the past 5 months.
As the largest company in the world with a $2.7T market cap — iPhones, Watches and MacBooks can only take it so far… Cook will need a bigger vision…
The Apple Watch is nice but can it drive itself?
Joining everyone else’s virtual jump into VR/AR is Apple with its own AR/VR headset — competing against Meta’s Oculus.
- Expected release by the end of 2022 — according to Ming-Chi Kuo of TFI Asset Management (a.k.a. the most accurate Apple analyst in the world).
- In an optimistic and futuristic scenario, Kuo expects the device to replace the iPhone — with over a billion sold in the next decade.
But so far, Apple hasn’t confirmed any details, with production several delays. Apple is also rumored to be working on a self-driving car — with a 2025 launch target which won’t be coming with any steering wheels or gas pedals.
Investors: Bullish mood
Its car plans are getting investors excited. Here’s what analyst Katy Huberty of Morgan Stanley (via CNBC) says:
- Selling cars is the “clearest path” for Apple to double sales and market cap.
- Apple often isn’t the first to market, but its manufacturing and operational strengths help it move ahead of competitors.
Chief market strategist of Miller Tabak sees a bullish scenario for Apple (via CNBC) — where other high-flying tech stocks pull back and funds flow into Apple — which could send Apple on a year-end rally.