Steven Milunovich


'Steven Milunovich' Articles

iPhone 8 Predicted to Start at $850 to $900 for 64GB Model, $950 to $1,000 for 256GB Model

Apple's widely rumored high-end iPhone with an OLED display is expected to cost upwards of $1,000, but UBS analyst Steven Milunovich believes that a base 64GB model could start at $850 to $900 in the United States. That price point would be similar to Samsung's new Galaxy S8+, which starts at $840 to $850. Milunovich said the flagship iPhone could start at under $1,000 as part of Apple's "mainstream luxury" pricing strategy. He also believes the 5.8-inch device will be competing at a screen size disadvantage compared to the 6.2-inch Galaxy S8+, leading him to predict Apple will adopt similar pricing as Samsung. Milunovich thinks that a 256GB model could cost between $950 and $1,000, so the iPhone could very well be the first mainstream smartphone in the United States to have a four-digit price tag. He also predicted that the tentatively named iPhone 7s and iPhone 7s Plus will start at around $649 and $749 respectively. An excerpt from Milunovich's latest research note obtained by MacRumors:Contrary to some perceptions, Apple prices quite competitively. Apple likes to position its entry-level products at the mid-market with "Pro/Plus" products close to competitors at the high end. Therefore, we do not think Apple will stray far from the price point of Samsung's most expensive model at $840-850 and will keep the entry OLED model at $850-900. Apple's 256GB OLED model could be $950-1,000, but the 256GB 7 Plus already is $970.The research note cites UBS Asia hardware analyst Arthur Hsieh, who estimates the factory cost of the tentatively named iPhone 8 could be $70

Apple Exploring AR in Israel as Robert Scoble Insists 'Mixed Reality' Glasses Coming This Year

Augmented reality could be the "next big thing" for Apple, according to the latest research from UBS analyst Steven Milunovich. Milunovich believes that Apple could equip the iPad and iPhone with AR-enabled hardware such as sensors, 3D cameras, and custom chipsets over the next two to three years. He speculates the iPhone 8, for example, could have "moderate 3D mapping using stereoscopic vision" based on a technology called Simultaneous Localization and Mapping. An excerpt from his research note obtained by MacRumors:SLAM solves the chicken and egg problem of mapping a space without prior knowledge. The device starts from one angle and collects points of data. As the device moves, it observes how objects shift and begins to fuse data to create an environment. As the 3D map is forming, the device begins to understand its own positon in the context of the environment it is trying to map. SLAM underlies most of the advanced AR technologies available today and will likely be critical in the future. In 2015, Apple bought software company Metaio, which had one of the most advanced SLAM-based AR engines available at the time. The company has been silent since being acquired, but according to our industry checks it's likely the core team has remained and the IP could play a key role in Apple's strategy.Milunovich, citing "some industry sources," added "there may be over 1,000 engineers in Israel working on projects that could be related to AR," but he expects Apple to slowly roll out augmented reality features until the technology becomes more mainstream and "reaches a

Apple Forecasted to Report Record Earnings Next Week, but Will iPhone 8 Keep Driving Growth?

Barclays estimates that Apple will report a record-breaking $76.6 billion in revenue when it announces its earnings results for the first quarter of fiscal 2017 on January 31. Apple reported revenue of $75.9 billion in the year-ago quarter, and offers guidance of $76 billion to $78 billion for this quarter. UBS estimates Apple will report revenue of $77.8 billion next week, which falls on the higher end of Apple's guidance. UBS analyst Steven Milunovich maintained a "buy" rating for Apple stock with a target price of $127—compared to $120 currently—in a research noted issued to investors today. Meanwhile, Barclays analyst Mark Moskowitz lowered his price target for Apple's stock from $119 to $117 in a research note issued to investors today. Moskowitz does not expect "meaningful upside potential" for Apple in 2017. He believes customers increasingly "mixing down" by opting for the iPhone 6s in favor of the iPhone 7 could weigh on Apple, while he is also concerned about China and India failing to emerge as growth catalysts in the next 12 months. He said the so-called "iPhone 8" will potentially have "no must-have advanced features," making him skeptical of a meaningful growth rebound for Apple in the second half of this year. He added that smartphones have become "more than good enough" to serve the needs of most users over multiple years or until the device breaks.While not likely to have a similar replacement cycle of PCs (i.e., 5-7 years), we think the smartphone market and thereby the iPhone franchise stand to face incremental headwinds this year and next,