Analyst: iPhone Platform Has the Momentum

| Apple Stock Watch

Apple's iPhone platform has the momentum, according to Barclay's Capital analyst Ben Reitzes. In a research note obtained by The Mac Observer, Mr. Reitzes said that even with develops such as Google and Verizon working together to accelerate the Android platform, Apple still has the advantage in this market.

"We believe the iPhone developer platform has significant momentum (over 85K apps available with over 2 billion downloaded as of 9/28) with backing from [Venture Capitalists] and rapid adoption beginning in business," Mr. Reitzes wrote. "We believe that Apple remains well positioned," though he stressed the importance of continuing to monitor the company's competitors.

Mr. Reitzes maintained his US$208 price target and reiterated his "Overweight" rating on the stock, versus a "Neutral" rating on the sector.

Shares in Apple moved slightly higher Wednesday, closing at $190.25 per share, a gain of 0.24 (+0.13%), on moderate volume of 16.6 million shares trading hands.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  

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9 Comments Leave Your Own

Bryan Chaffin

It does seem fairly certain that iPhone is the smartphone platform to beat for the near and medium-term future, but I also see Android gaining some steam.

Which is why Mr. Reitzes issued this research note: Android is gaining steam, but not enough to be a serious threat to iPhone. I personally think BlackBerry and Palm need to watch out for Android, though.

And don’t get me wrong, I want to see someone nipping at Apple’s heels to keep the company on its toes (pardon the mixed metaphors). I think Android is that someone for now.

Jeff Gamet

I want to see someone nipping at Apple?s heels to keep the company on its toes (pardon the mixed metaphors). I think Android is that someone for now.

I’d love to see Android give Apple some serious competition because that means all of the competitors will have to kick it up a notch. My concern is that we’ll see the same sort of mess with Android that we’ve seen with Windows: A mishmash of products with mediocre quality that don’t always offer complete compatibility with the operating system. Of course, I’d love to be wrong on this one.

paradillon

No question Apple is positioned well.  The strength does come as noted with the infrastructure that combines with any apple device at this point.  Prospects bode well and momentum will continue as Apple fills out a complete ecosystem of devices/services/content going forward.

Montresor

One unanswered question for me: how does the exclusive partnership with AT&T affect the future potential for growth in the US, and what are the chances of that exclusivity ending? The platform is only part of the story, and it seems clear that a bad carrier can effectively kill growth.

Constable Odo

Apple shouldn’t give a damn about smartphone market share or Android.  Apple needs to stick to it’s business model and lock in users for those two-year contracts.  Keep offering more value at higher prices and deliver the best multimedia content money can buy.  Once people are hooked on the multimedia content, they’re not going anywhere else.

Apple should be able to pull in a steadily growing user base and keep them loyal to the brand.  If Apple can start delivering cloud-based services where users can even stream their own content, so much the better.  Apple has the best content delivery in iTunes and it should take years for other companies to catch up.

jameskatt

All Apple has to do is make the best products it can and sell at the highest margins it can.

When Apple does this, the world comes to Apple.  Case closed.

JulesLt

I think BlackBerry/RIM is safe in the medium term, for much the same reason that they were able to establish themselves even when Palm, Windows Mobile and Nokia smart-phones.

So long as they keep a focus on the business communications market, and producing the best device possible for that market, I think they’ll be fine.

The biggest mistake they could make (and they have with their touch-screen phone) is to get distracted into feeling they have to - or can - create a competing platform.

Personally, I would actually be looking at building on top of one of the other platforms - although historically, writing their own OS has given them an iPhone like advantage over their rivals, a lot of that has been because they’ve been able to keep it nice and focused.

A good example of a firm taking the right steps is Tom Tom - who have rightfully identified that dedicated SatNav devices are being replaced by phones, but that there is still a good market for providing better services on those phones.

brett_x

Blackberry/RIM has made this possible. I got a BB a year ago for my last job. After using my iPod touch for about 2 months, I felt like I stepped back in time when I was forced to use the BB. I felt like throwing it against a wall when I needed to use it for anything but quick reply email. Why can’t it browse the internet out of the box (text browsing aside)?
I feel people have lost hope with Palm. And “do you even know anyone that owns a” Windows Mobile phone? I don’t. Wait.. that goes for Palm as well.
The App store is definitely the lock in.

Bosco (Brad Hutchings)

I don’t know what I think about article authors posting first with how they really feel. I suppose I’ll like it when the next Munster cheerleader piece appears. Seeing the first comment will be like leering at a good car wreck.

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