Jefferies analyst Peter Misek is one of our favorite Apple analysts in the entire world. Mostly because his Apple predictions are usually horribly wrong.
After the disastrous Apple TV SDK Event rumor he created earlier in the month, Misek is back with a new note to Apple investors, and it’s not a happy one. According to Misek, Apple is about to face a very rough two-year period, and he might actually be right.
In his note, Misek cites capital expenditures as one area of concern for Apple. The company’s capital expenditures are are likely to double in the next two years which would add about $10 billion per year in costs.
The second worrisome area is Apple’s cash balance. Even though Apple has a boat load of cash, it could be reduced by $10 billion, and $40 billion of the cash could be deferred over the next two years as Apple sells pre-pay iPhones in India. That’s all complete speculation on Misek’s part though, but we do agree it might be hard to sell subsidized iPhones in India, so Apple might have to part with some of its cash pile to make it work.
Misek also says the the rise of ‘whitebox smartphone sales’ will be troublesome for Apple. Companies like Glonee and Konka are offering handsets that are similar to the Samsung Galaxy S3, but a lot cheaper. Those phones will force Apple to invest in next-gen screen technology, but if Apple isn’t already investing in next-gen screen technology (which we’re sure they are) then they’re screw for the next few years already.
What do you guys think of Misek’s latest report? Is he just adding on to the Apple-hatefest? Or do his worries about capital expenditures and cash balance have some serious weight? Let us hear your thoughts in the comments.