Why Morgan Stanley's Erik Woodring is overweight Apple (video)

From "Holiday expectations for consumer PC brands with Morgan Stanley Analyst Erik Woodring" which aired Monday on CNBC:

Morgan Stanley Analyst Erik Woodring joins 'TechCheck' to discuss Black Friday expectations for PC manufacturers, Apple's supply constraints challenging earnings and consumer demand worldwide.

My take: Do I care whether Dell or HP wins the Wintel PC wars? Not much. But for what it's worth, Woodring likes Dell better than HP going into Black Friday.

9 Comments

  1. Fred Stein said:
    Oddly he does not mention silicon. Apple’s annual chip upgrades give users one (of many) reasons to upgrade or to switch to Apple. Neither Dell or HPQ have this motivator because Intel’s pace is too slow.

    This applies to all Apple devices. It is also a good reason to ignore all the current supply and short term forecasts.

    3
    November 22, 2022
    • Robert Paul Leitao said:
      Fred: In my view, the non-Apple PC market has returned to its state of inexorable decline following a pandemic-specific pick up in sales due to lock down-related WFH/SFH demand. I believe Tim and Luca cautioned on anticipated Mac demand this quarter on a year-over-year basis due to new product releases (M-series Macs) brought to market last year. There are still some “holes” in the Mac line-up that won’t be filled until sometime in 2023. In my research, Macs offer a compelling price/performance value proposition. However, Apple doesn’t offer low priced Macs. In my view, comparing Apple to Dell and HP doesn’t work from the start.

      1
      November 22, 2022
      • John Butt said:
        Right on. Chalk and cheese products running chalk and cheese operating systems with workhorse software becoming ubiquitous or browser based, avoiding stranding.

        0
        November 22, 2022
      • David Emery said:
        It would be relevant to compare Apple to Lenovo with respect to quality laptops.

        0
        November 22, 2022
  2. Romeo A Esparrago Jr said:
    I expect holidays to always make me overweight.

    5
    November 22, 2022
  3. Bart Yee said:
    PED: “Do I care whether Dell or HP wins the Wintel PC wars? Not much. But for what it’s worth, Woodring likes Dell better than HP going into Black Friday.”

    Since Lenovo PCs outsells everyone else, and you can own Lenovo stock on that basis, let’s check again how the top PC vendors are doing. I’ll even bias it up for non-Apple by using their entire company revenue back just Mac:

    Stock – symbol – Ann Rev – YTD – 1 YR
    Lenovo 0992.HK $72B – (-29%) (-17.6%)
    Dell DELL $101B – (-29%) (-17.8%)
    HP HPQ $65B – (-28.6%) (-17.6%)
    Apple AAPL (-15.4%) (-6.7%)
    Mac Rev $40.2B
    Mac + iPad Rev. $69.3B

    So which company really has better prospects in PCs and equivalents?

    0
    November 22, 2022

Leave a Reply