Apple (AAPL) Catches an Downgrade Stray From Needham

Watch the Video

Transcript:

[00:00:04] Doug McIntyre: Got a downgrade of Apple at Needham. Why?

[00:00:07] Lee Jackson: Well, I just saw a cursory look at this, but. the same problems I think that we’ve discussed. China’s looking to be a potential problem. the fact that the president’s not very happy with production going to India and I don’t get Needham research, and if I did, I’d have a better idea of everything that they looked at, but I think that.

[00:00:30] Lee Jackson: And I’ve read other analysts that cover apple and a half for years that they just think that a lot of the pressure points of the company and the things that are either an issue or something that could be a little bit difficult are kind of getting to not a breaking point, but, and they didn’t downgrade it to sell, but they did gonder it, grided it from buy neutral.

[00:00:52] Doug McIntyre: Well, I think that, If people look back on, on, cook period as CEO, it may be that the thing that he’s remembered for is making a wrong turn on AI because look, it’s not. He didn’t cause the problem with the tariffs. Okay. He was manufacturing in China. He was doing a good job.

[00:01:16] Doug McIntyre: Yeah, it was fine to do some of it to India for what are good business reasons.

[00:01:19] Doug McIntyre: Moving it to the United States was never realistic, so he didn’t make a mistake there. Not really, they’re just the losers in AI. If you take a look at all the big tech companies, there’s only one really big loser, and that’s apple.

[00:01:33] Lee Jackson: Yeah. and again, Apple, there’s going to be a breaking point and I’ve read more and more because we know what their main business is.

[00:01:43] Lee Jackson: I mean, and I and it should be noted that the Apple store generated like 1.2. It was astonishing what they generated over the last year in earnings. It was like, I think it was a trillion. I could be wrong, but it was gigantic what it generated in sales and everything.

[00:02:05] Lee Jackson: But again, when your main product is an expensive phone and what else can you do to make it. New it just, the 16, I mean, yeah. It was important to get, if you’re an Apple aficionado, because it, the 14 and 15, well, the 15 does, but the, yeah, the four, I have one as well right here. the 14 didn’t handle the OS the 18.

[00:02:31] Doug McIntyre: Right. It didn’t. Right. you weren’t able to upgrade it.

[00:02:34] Lee Jackson: And I think the 15 does. But you know, they didn’t sell much of the 15 and so, yeah. I mean, what are they gonna do to their prime product that’s gonna make, I mean, and now that I have a 16, that has the, new operating systems and some of the AI capabilities that Siri has.

[00:02:53] Lee Jackson: Do I need a 17, 18, 19, 20? whatever. I for me, probably not.

[00:02:59] Doug McIntyre: Well, that’s a problem, but it’s also a problem if they never show up to the table or they’re really late at showing up to the table with a full blown AI product for the iPhone and the Mac and everything else. They just fall further and further behind.

[00:03:16] Doug McIntyre: I mean, I’ve got four chat apps downloaded on their phone. I know you do. It’s like, well, okay, what is it that I need to get from Apple?

[00:03:29] Lee Jackson: Yeah. and, when you’re Apple and you make the phone, you can put the app right on there. It’s not like you have to go to the app store to get it. and if they could have done that two or three years ago, think of how customers would’ve, would, and what a selling point that would’ve been.

[00:03:44] Lee Jackson: Hey, get the new Apple 16 with, incredible AI service that we’ve been working on for years. But they didn’t.

[00:03:53] Doug McIntyre: Well, I mean, I’m, looking at this now and there’s no reason for me to get the next iPhone, because I can download all the chat stuff to any iPhone. I don’t, I can do it on the four.

[00:04:09] Doug McIntyre: Yeah. No,

[00:04:11] Lee Jackson: you could and, again. And now that they’ve gotten so expensive and, again, you can get some participation from, the big telephone companies of the big wireless companies. ’cause they will help if you’re a customer to keep you, I know, keep you for your, wireless business.

[00:04:29] Lee Jackson: But. Yeah. if he, if they had this two or three years ago, they’d be in a much better position. I think you’re a hundred percent right, because again, any app that have has Apple printed on it will be on your phone. You don’t have to fiddle with downloading anything.

[00:04:43] Doug McIntyre: You don’t have to go find it.

The post Apple (AAPL) Catches an Downgrade Stray From Needham appeared first on 24/7 Wall St..