Kaufman bullish on Apple despite iPhone 4 reception issue
updated 12:40 pm EDT, Tue July 13, 2010
Firm recognizes risk, offers bumpers as solution
Research firm Kaufman Bros. is holding onto a Buy rating for Apple stock, despite Consumer Reports saying yesterday it could not endorse the iPhone 4 due to reception issues. Kaufman sees the negative rating by CR as a potential risk, but downplays it due to high demand for the phone, and supply checks showing no slowdown in terms of either build plans or demand. Apple is still struggling to keep up with production because of supply constraints, a sign that may support estimates of 7.5 million iPhones in the June quarter, and 40 million in all of 2010. Kaufman hedges its bets slightly, claiming that there could be risk to the estimates should the iPhone 4 reception issue swell beyond the current controversy.
The firm believes that Apple's bumper case, which normally sells for about $30, could be a short-term fix. By including a bumper free with an iPhone 4 purchase, or at least offering them at a large discount, Apple would essentially solve most complaints. The cases are known to insulate the antenna band from bare skin contact, the primary cause of the sudden signal loss.
In addition to keeping the Buy rating, Kaufman is also holding steady on a $349 price target. Apple stock is presently down almost $8 in Tuesday trading, sitting at $249.82.
Fresh-Faced Recruit
Joined: Sep 2009
hyperbolic much
Consumer reports tested 3 phones. Hardly a sound sampling. And used methods of questionable worth if all the engineering blogs are correct.
Plus even they said "in areas of weak reception" so apparently if you are in an area with good reception this isn't an issue. Add to this that no one can provide solid and irrefutable numbers that the number of affected parties is actually more than 1-2% and that any of them have reception issues with the iphone in an area of perfect reception, ATT or otherwise
In the end it comes out to a high chance of exaggeration over what is actually an ATT issue and not the iphone at all. Even with the whole bars issue (which really just shows how close you are to a tower and not how overloaded it could be).
If you are getting c*** service, sync your data, put your number on another phone and go return it before your 30 days is up and ATT can and will make you pay the ETF. It is that simple. And IF Apple starts getting hordes of returns due to 'reception issues' then folks can talk about this being a huge deal. Until then it is just the expected small number of lemons that all electronics suffer and is only being hyped as a great tragedy because Apple is the Robsten of Tech and sites want hits.