A Munster-ous iPhone Prediction

Look out, Samsung. Piper Jaffray analyst Gene Munster says Apple (NASDAQ: AAPL  ) could sell 75 million lower cost iPhones in 2014 after introducing a $300 unsubsidized handset this fall, according to CNET News.com.

For Munster, it's a stretch of a prediction, but not an altogether unreasonable one, says Tim Beyers of Motley Fool Rule Breakers and Motley Fool Supernova in the following interview with The Motley Fool's Erin Miller. Most of Apple's competitors are using Google's (NASDAQ: GOOGL  ) zero-cost Android OS as a pricing weapon. Why shouldn't the iEmpire respond?

Tim also tells Erin to expect Microsoft (NASDAQ: MSFT  ) and Nokia (NYSE: NOK  ) to cut prices on Windows Phone handsets, putting further pressure on Apple to fulfill Munster's prediction. Either way, Tim says Apple stock needs a catalyst -- and soon.

Do you believe a cheap iPhone would boost Apple's prospects? What about the rest of the industry? Please watch this short video to get Tim's full take, and then leave a comment to let us know whether you'd buy, sell, or short Apple stock now, and why.

Want even more Apple information? Allow me to introduce you to The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, who has the skinny on the various reasons to buy or sell Apple right now. Click here to get his latest thinking on the stock,  and what opportunities are left for Apple (and your portfolio) going forward.


Read/Post Comments (10) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 18, 2013, at 9:05 PM, hoadhead wrote:

    I bough my aapl stock at $178, rode it down to $92 and still have it. I have been on this ride before and it always turns out well. The fundamentals vs price have never been better and Apple still has the best products and by very far, the best cloud infrastructure to support them and the new products coming.

  • Report this Comment On April 18, 2013, at 9:10 PM, Natural2 wrote:

    Totally agree. Apple products are so far superior that competitors can only attempt imitation

  • Report this Comment On April 18, 2013, at 9:14 PM, DanManners wrote:

    Great news. We are going to have a dividend rate increase very soon. Dan Niles said on CNBC today that Apple has a 20% downside to 313.

    At 313 the dividend will be paying 3.4 % Great news and thank Mr. Cook for making the dividend payout a bigger percentage. Lets try for 5%. When the stock is at $ 200 like Bethany McLean predicted we will have a dividend of 5%. Thank you again Cook.

    Jobs was great but he picked Sculley and Cook. Two losers.

  • Report this Comment On April 18, 2013, at 9:28 PM, jeffstenger wrote:

    I hear all these predictions of the "low cost" phones are coming, the tv is coming, the music, the watch, the 6, the plane the plane is coming. The problem is all the production facilities are cutting back production, and laying off employees. So who is making these "steal market share" low cost phones etc. It appears they are being built in a bat cave. Apple cares about apple, they do not care about their shareholders. I am a long apple shareholder, standing at a lonely crossroads. So where is apple management. It appears to me they should use their "cash", buy back all the public shares, go private, and say F&&k you to us commoners. They obviously do not care about our financial positions.

  • Report this Comment On April 18, 2013, at 9:49 PM, SyDVooh wrote:

    @Akoutlaws: The supply chain is being altered to get rid of companies that ripped off AAPL's tech and designs. On the other hand Foxcomm who manufactures iPhones has been adding 10,000 workers per week since mid March, to meet demand.

    Tim Cook is doing a great job running AAPL, and that IS his job, not touting the stock. There have been many CEOs who do nothing but tout their company's stock, think Enron and WorldCom.

    As long as management is taking care of the fundamentals, then the stock price will eventually reflect their good work. Of course, if you are uncomfortable with Apple, then sell your shares, and invest somewhere else, in an investment that meets your needs.

  • Report this Comment On April 18, 2013, at 10:04 PM, MrSmith210 wrote:

    Umm. Akoutlaws... Foxconn has been adding 10,000 employees a week for the past 3 weeks. Maybe more. In preparation for the upcoming increase in workflow demand. That's fairly common news and knowledge right now. So. Yeah. Your whole argument is wrong as most hate-filled Apple arguments actually tend to be.

  • Report this Comment On April 18, 2013, at 10:24 PM, jeffstenger wrote:

    @Sydvoo both good points, technology ripoffs are the basis of the Chinese boom, and yes Foxconn has recently added workers. But management should have stepped in and bought back shares to help in the slide rather than only purchase shares from bonus allocations. Innovation, leading the pack, not after the fact realizing that we need the lower income individuals using an iPhone at a lower intro price, years ago, would have withstood the onslaught of the inferior phones taking market share. Heck Apple needs a child's iPhone to get the younger kids in ours, even if it only direct calls parents and siblings. As for mrsmith210, stick yr head back in the sand.

  • Report this Comment On April 18, 2013, at 10:33 PM, jeffstenger wrote:

    As a parent of 5, with 20 + add on friends of my kids always around our house. I see that they ALL are moving away from an iPhone to the galaxy, not only for the price, but they can't play the games on the iPhone. However, price IS a factor. They now have to chose between the high end, iPhone. Or the "make my dollar stretch, " and get this cool other. Apple is missing a whole population of minimum or lower wage workers, needing a phone. Opting for what they can afford.

  • Report this Comment On April 18, 2013, at 10:52 PM, jeffstenger wrote:

    A clarification to my statement on the kids getting other brand phones. We as many other parents bought iPhones for our kids. We also bought iMacs etc. the problem apple has is that jobs arent as readily available, and don't pay like they did years past. Parents like us are not upgrading our 20 something kids phones, thats on them. They will not pay premium price for a phone, period. They have rent utilities food and fun to pay for. They are not third world country's. until our economy improves, apple will need to lower their standards and offer an affordable phone to gain back market share.

  • Report this Comment On April 19, 2013, at 12:01 AM, alvin wrote:

    @Dwilh51183

    You do know there is a North Korea and South Korea...North Korea is the one with the crazy leader. South Korea is our ally and Samsung is a South Korean company.

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