This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Apple: What Can It Do Next?

NEW YORK (TheStreet) -- It wouldn't be a day ending in "y" if an analyst didn't have an opinion on how Apple (AAPL) could right some wrongs, now would it?

UBS analyst Steve Milunovich said he believes that Apple needs to go on the offensive shortly, as its margins and competitive advantage have been attacked by competitors, such as Samsung, Google (GOOG) and others. Milunovich suggests that Apple needs to up the innovation output, or move into services, something CEO Tim Cook touched on during the most recent earnings call.

"Our teams are hard at work on some amazing new hardware, software, and services that we can't wait to introduce this fall and throughout 2014," Cook said.

When Steve Jobs died in October 2011, there was a concern that innovation was over at Apple. Cook was seen as an operations genius, but not the visionary that Jobs was. Even though Jobs is no longer there, the majority of Apple's executives are still in place. Names like Jony Ive, Phil Schiller, and Bob Mansfield still populate Apple's Web site. Critics might be underestimating Jobs' ability to create an Apple that lives on without him, with ideas such as Apple University.

Many are opining for Apple to offer a low-end iPhone, as Google's Android continues to dominate global market share in the smartphone industry. Milunovich believes Apple would be wise to offer a lower-cost option, to regain some momentum and capture some of the emerging market market share, including China, where Android is the No. 1 operating system.

"Apple's carefulness in introducing new products, while frustrating to investors, makes sense in the context of protecting the brand and creating long-term differentiation," Milunovich wrote in his report.

It's worth noting that according to comScore, Apple picked up market share in the U.S. from December 2012 to March 2013, so perhaps coming out with a low-cost iPhone isn't the be-all end-all it's cracked up to be.

Apple shares were higher in premarket trading on Monday, up 0.48% to $452.13.

--Written by Chris Ciaccia in New York

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs