From the traders on Wall Street to technology fans around the world, Apple’s newest iPhone has failed to impress, well, just about everybody. Many had expected Apple to introduce the fifth version of its popular smartphone on Tuesday, but instead, it unveiled a souped-up version of last year’s device—the iPhone 4S.
“Clearly it’s not a homerun, but it’s adequate,” BGC Partners analyst Collin Gillis said, adding that going into the holiday season, Apple is expected to sell more than 20 million iPhone 4S devices. “The rotation to smartphones is the most important transition happening right now and Apple is the company that’s best profiting from that.”
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Gillis said he remains bullish on the Cupertino, Calif.-based company and maintains a price target of $450. Meanwhile, Goldman Sachs reiterated its ‘buy’ rating on Apple, even following the iPhone 4S announcement. The firm has a $520 price target on AAPL.
Some may wonder how these price targets are attainable when the iPhone 5 is currently out of the picture. But Gillis said there really was no evidence of the iPhone 5. There was, however, a lot of evidence of the iPhone 4S and that’s what went into calculating his price target.
Apple hasn’t had the catalyst of a product refresh in quite some time, but unlike other companies, it doesn’t want customers to get a new device every year or so. Instead, Gillis said Apple wants to suck consumers into its ecosystem. So a customer who buys a Macbook might later download iTunes and then buy an iPod. Apple customers then become very loyal to the brand, which Gillis said bodes well for the company in the long run.
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CNBC.com with wires.