Milunovich maintained a buy rating but reduced UBS’ price target from $150 to $130, joining a number of analysts who have recently taken a dimmer view on the stock.
Investors need to see iPhone sales growth, Milunovich said, but the company is also being buoyed by the perception that the competition is thin.
“There is a long-term disruption threat — there always is in tech — but I just don’t see in the next couple years who’s going to really hurt Apple,” he said.
Smartphone competitor Samsung has suffered through a string of weak quarters, and Milunovich noted that Nokia and BlackBerry failed where Apple has succeeded, namely in creating a “sticky” operating system that encourages consumers to buy other products in the company’s ecosystem.
DISCLOSURE: The analyst owns shares of Apple, and UBS and/or its affiliates have received compensation from Apple in the last 12 months.