Goldman Sachs: iPad 2 an “Important Upgrade”

| Apple Stock Watch

The iPad Crystal Ball
Analyst Bill Shope of Goldman Sachs expects Apple to update the iPad at the media event announced for Wednesday, March 2nd, and he believes it will represent an “important upgrade” for the platform. In a research note covered by TheStreet.com, Mr. Shope also told investors that the upgraded tablet would also help stave off competing tablets that are expected throughout the first half of the year.

“Overall, we expect the device to provide an early line of defense against the wave of tablet competitors arriving in the coming months, and we expect the launch to represent a positive catalyst for Apple’s stock,” Mr. Shope wrote. “While the details on the upcoming iPad 2’s specifications are scarce, we expect the device to represent an important upgrade.”

Despite the “scarce” details, he said that he expects the device to be “far thinner,” and to have a faster processor and better graphics capabilities. He said it won’t support LTE, but backed up reports that the device would support both GSM and CDMA networks.

The analyst maintained a “Buy” rating on the stock and a US$450 price target. Shares in AAPL closed higher at $353.21, up $5.05 (+1.45%), on moderate volume of 14.4 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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3 Comments

Constable Odo

This company’s share price is constantly battered by negative rumors seemingly no matter how well it does.  There’s almost no tablet competition and March is already here, but there’s always this chatter about how Android tablets are going to deeply cut into iPad sales this year and investors get frightened so easily.  The Android tablet ecosystem is pathetic, so why consumers would prefer that over the iPad’s full ecosystem is beyond my understanding.

vasic

This company?s share price is constantly battered by negative rumors seemingly no matter how well it does.

I don’t think you’re talking about the same stock. AAPL has defied the recession to become the second largest company by market value (i.e. based on the cumulative value of its public shares), growing faster than ANY other large company out there. The share price seems to have tracked company’s revenue and profit growth pretty much exactly.

You are most likely referring to Microsoft, since their profits and revenues have been pretty solid, while their stock has been flatlining over the past ten years (probably because the stock market doesn’t seem to expect the revenues/profit to last for much longer).

jfbiii

why consumers would prefer that over the iPad?s full ecosystem is beyond my understanding

Because they want “choice.” iPad battery life or less; iPad flash-less web experience or a crapload of flash ads; a huge walled garden where you can pay for apps and know exactly what you’re getting or free ad-driven apps that side load malware whenever they feel like it.

And…a device whose software gets new features regularly or one that will never be upgraded.

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