BMO Capital Markets Grows Cautious on Apple

The transcript discusses Tim Long's downgrade of Apple shares to market perform, citing concerns about Apple's near-term numbers and potential long-term shifts. The discussion highlights challenges in maintaining high average selling prices for iPhones and the need for new growth drivers. Despite Apple's success in integrating new technologies, the market has stabilized, making it difficult to justify higher prices.

What was the recent action taken by Tim Long regarding Apple's shares?

• He sold all his shares.

• He maintained a buy rating.

• He downgraded them to market perform.

• He upgraded them to outperform.

What is a key concern for Apple's long-term strategy according to Tim Long?

• Rising production costs.

• Increasing competition from Alphabet.

• Declining interest in Amazon products.

• A potential secular shift in pricing strategy.

What challenge does Apple face with its current pricing strategy?

• Difficulty in justifying higher prices.

• Lack of new technology in devices.

• Decreasing market share in Europe.

• Increased competition from Samsung.

What has been the trend in the industry over the last few years according to Tim Long?

• Stabilization in the market.

• Increase in production costs.

• Rapid growth in average selling prices.

• Decline in smartphone usage.

What has Apple been successful at over the past decade?

• Reducing the cost of their devices.

• Moving prices higher by adding new technologies.

• Expanding into new markets.

• Decreasing their environmental impact.