Apple continues to get hit with negative notes from the sellside and from blogs like Digitimes etc. Last couple of weeks we have had a plethora of negative notes starting with KGI Securities, followed by Rosenblatt, UBS, Digitimes, all last week. Yesterday morning we had BlueFin and Pacific Crest lower their estimates, ratings or price targets or some combination of the three.
Squeezed in between is a report that Reuters had out on this past weekend talking about a letter from Apple’s Steve Kenner to the National Highway Traffic Safety Administration (NHTSA) about the company’s R&D into machine learning in regards to transportation. In other word, the company is hot and heavy into autonomous driving software/hardware or both which could include an automobile.
However as J. P. Morgan said in a note, also Monday morning, “we like the fact that Apple is clearly working on auto software though it is likely a few years down the road before the company is able to realize any revenue from these projects. More importantly, we see Apple’s focus on machine learning as critical to the future of the company given the importance of these systems in the future.”
Even if the company is working on auto software or hardware, the payoff will be years down the road and means nothing more than a hill of beans in the short to medium term from a shareholder perspective.
Finally, IDC said in a report yesterday morning that Apple’s share of the wearables technology market dropped to 4.9% in Q3 from 17.5% in the third quarter last year, despite the fact that the overall unit shipments were up 3% in the quarter to 23 million units.