Boeing Wants to Be Like Apple

Boeing (BA) is meeting with investors today–and investors appear to like what they hear.

AP

Shares of Boeing have gained 0.9% to $130.73 after CEO Jim McNerney said the company would look to be more like Apple (AAPL), with new product developments added over time–like Apple does with the iPad–rather than in one big, high-risk “moonshot.” Boeing also said that it would cut costs by another $2.1 billion from its defense business.

RBC Capital Markets’ Robert Stallard doesn’t think the cost-cutting will come solely at the expense of Boeing’s suppliers. He explains:

[The] emphasis put on supplier costs is not really ‘new’ – it’s an ongoing process. We are actually happy to hear multiple examples of where Boeing has been working with suppliers to take out cost as well, so this is not just a price cut. Ultimately, this should help many suppliers to preserve margins, even with further OE price pressure.

While share of Boeing have jumped, Apple has ticked up just 0.1% to $605.20.