R.W. Baird Says The Idea Of Apple Being A Real Operator Seems Unlikely, 'We Like The Stock Here On This Weakness'

On Monday Business Insider carried a report which claimed that Apple Inc. AAPL is testing its own wireless service. However, on Tuesday Apple refuted those rumors saying that it has no plans to be a mobile carrier.

Will Power, R.W. Baird analyst, was on CNBC recently to weigh in on this recent development and discuss the slump in the stock in the last few days.

Unlikely Idea

"I think, Apple does have real interest in disintermediating the carriers," Power said. "Whether it's the wireless carriers or the cable operators at some level. I mean, look at iMessage, you look at some of the rumors around some of the iOS9 capabilities, iCloud-based voicemail. But, I think, the idea of them actually being a real operator and being involved in customer service seems unlikely."

A Combination Of Things

Power was also asked what he thinks is the reason behind Apple's stock falling so hard since its earnings last month. He replied, "I think, it's a combination of things. Look, I mean from a technical standpoint...breaking the 200-day moving average is probably the latest catalyst. But, I think, there are some lingering questions on China and I guess the proof will be in the pudding there. I think, we are still optimistic on the opportunity there."

"But as I talk to investors, I think, the biggest concern is the calendar Q4, the December quarter comp. I mean, look the company had an enormous iPhone shipment quarter in that quarter a year ago. I think their questions and concerns as to whether they can really beat that. We think, they can and as a result combined with other factors, we like the stock here on this weakness. So, we would be buyers yes," Power concluded.