Why Apple Is Still A Buy Despite Its New Industry Classification [View article]
@Carolina,
Appreciate the correction, I did mis-interpret R&D with CapEx. Nonetheless, the relationship of CapEx to Sales is also an important measure to Apple management's effectiveness in improving operational efficiencies. And this ratio certainly speaks to Apple's desire to continue to plow money back into the manufacturing supply chain.
Why Apple Is Still A Buy Despite Its New Industry Classification [View article]
@author:
Your quote - 'One disturbing trend from Apple is that its research and development (R&D) expenditures are decreasing as a percentage of its revenue.' Couldn't be further from the truth.
Apple's capital expenditures as a % of sales have doubled over the past three years. Had to quit reading your article after that statement. There is enough garbage to sift through on aapl without SA authors blindly throwing out financial data and assumptions that are simply 'incorrect'.
Apple: Market Hero At The Crossroads [View article]
@richbar - I'll reply to you since you never return the favor. Apple's market implied growth rate is currently a little over 1%. So, your growth prospect for the coming year actually increasing the fair value of Apple stock. The only way Apple doesn't earn $50/share in fiscal year 2013 is if they close all their stores! Fiscal Q2 (holiday quarter) could see $16/share and 20% growth yr/yr very easily. Have you visited a Apple store, Verizon, AT&T lately - they speak pretty highly of record sales this holiday quarter?
So that would leave $32/sh for the remaining 3 quarters in their fiscal year - good luck with that. I simply have not seen any reputable source validate a lack in demand or a decrease in market share. With continued demand across 3 different product lines, full product refreshes, and the potential for a new product in the marketplace (it has been 3 years since the iPad introduction) all Apple naysayers and critics are in denial thinking Apple is just quit trying to make more money.
You keep quoting 20% future growth for Apple - agreed, this does come from analysts. But only 9 analysts actually even waste their time providing a 5-yr growth rate forecasts because they all know its like guessing when the first man will vacation to Mars. 50 analysts provide Q1 estimates. 10% growth still leaves a PEG of 1.
A higher percentage of new users enter the ecosystem than leave the ecosystem - fact. Like my household after the second device (iPhone and iPad) next comes PC replacement (which justifies Mac as the only growing PC seller). Within 2 years Apple will have 2 billion active iTunes users with credit cards on file - an easy monitization opportunity. With 85% of web traffic on mobile devices the potential for iAd's to explode if also realistic.
Quite simply, you can keep calling for the demise of Apple with negative growth expectations but in reality there are no facts to support negative growth in the next 12-24 months. But what does exist is the potential to disrupt many more potential markets - Do yourself a favor and ''Don't bet against them' or the stock.
Sharp (SHCAY.PK) has "nearly halted production" of displays for the regular iPad as demand shifts towards the iPad Mini and Apple (AAPL -0.6%) attempts to manage inventory, Reuters reports. Many analysts have already forecast the Mini, which is thinner and much lighter than the 4th-gen regular iPad, will account for a majority of iPad sales in Q1. Higher Mini sales benefit display suppliers AUO and LPL. Due to lower price tags, Apple's average gross profit on Mini sales appears to be lower than its average gross profit on regular iPad sales. [View news story]
@jack baker - very insightful comment as usual. I enjoy reading your perspective and insights. Best of luck with your investments.
Over 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last year, Apple (AAPL) declares. The company adds developer payouts have topped $7B, and that there are over 500M active iTunes accounts (very useful for a mobile payments solution if Apple ever wants to launch one). The App Store still has a big edge on Google Play when it comes to app monetization, though the latter has been growing faster lately. [View news story]
@css... almost forgot, a huge dividend bump - probably will instantly jump it's yield to 3%, wouldn't want to get that either?
Over 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last year, Apple (AAPL) declares. The company adds developer payouts have topped $7B, and that there are over 500M active iTunes accounts (very useful for a mobile payments solution if Apple ever wants to launch one). The App Store still has a big edge on Google Play when it comes to app monetization, though the latter has been growing faster lately. [View news story]
@css..... do you think Apple's future earnings are more suspect than say ...MSFT? just saying because I'm paying less right now for Apple future earnings than MSFT future earnings.
Not everyone has a iPad either (although most will soon).... not everyone is happy with their current television viewing either..... errr China mobile.....what happens when 500m apple existing iTunes accounts continue to grow at 15% for 3 more years (that's 1 billion shopping customers) buying content, apps, shows, etc every year..... Mac growth showing no signs of slowing...... doesn't look like the build quality and lasting excellence of Apple products across any of their lines has a serious competitive threat (and please don't give me the 'android argument' across 20 different manufacturers)...doesn't look like they like building retail stores fast enough either - because I've been in 9 apple stores across the country over the past 6 mos. and there wasn't much walking around room.....
I can't wait for news sources to stop comparing iPhone to Android. It's literally iPhone against every other smartphone maker and then claiming the entire smartphone industry is just killing Apple. Whatever, give me a break.
Every Apple critic needs to quit trying to be the hero on predicting apple's downfall and appreciate what is occurring right under their noses.
Do me a favor... and tell me what other companies deserve a greater premium for potential future earnings?
@Luke, guess I don't understand from an investment perspective why NOK and RIMM and MSFT (presumed shareholders) spend so much time and effort making negative comments on Apple articles. I would think adding value to NOK articles would be the wiser use of my time. Very comfortably long AAPL - and I don't need to spend hours on NOK articles bashing their last 5 years of bad business practices.
From evidence I've seen, China Unicom and China Telecom subscribership is increasing significantly at the expense of China Mobile. The leverage is actually in Apple's favor, because they are doing just fine without China Mobile.
Look at the China sales growth figures and then tell us how again how bad apple needs China Mobile. Any deal with them is just a huge bonus for Apple, but clearly not necessary.
Over 2M iPhone 5 units have been sold thus far in China, Apple (AAPL) boasts. China Unicom's (CHU) healthy pre-order activity probably had a lot to do with this figure. Sparse crowds for the Friday launch stoked fears initial sales were light, but weather and pre-ordering requirements seem to have played a role. For reference, Apple announced in September over 5M iPhone 5 units had been sold 3 days after the device went on sale in the U.S., Japan, and 7 other locales. (PR) [View news story]
@ashraf - just because they make $40billion a year (think tax revenue) doesn't mean they need to spend the $121billion (think federal reserve) in the bank on their shareholders (think entitlements). Our country/government has been doing that forever. Great plan. You may have plenty of technical expertise - but I don't see much else.
More on Apple: Shares could be pressured by a downgrade to Neutral from Citi. The firm says checks indicate Apple has cut its March quarter iPhone 5 orders following a 45%-50% increase in monthly output from October to December. UBS recently said checks suggested the iPhone 5's build rate would fall sharply in the March quarter, while Jefferies claimed iPhone component suppliers saw big order cuts last week. Citi, which started Apple at Buy on Nov. 26, also thinks Samsung is doing very well. Update: Morgan Stanley responds by pointing to encouraging U.S. iPhone/iPad survey data. But a gap has opened up between U.S. and foreign iPhone share trends. [View news story]
The citi analyst is now actually 3 (analysts covering aapl), doesn't mean they are any less clueless though.
The first accurate 'supplier check' will probably be the last.
Why Apple Is Still A Buy Despite Its New Industry Classification [View article]
Appreciate the correction, I did mis-interpret R&D with CapEx. Nonetheless, the relationship of CapEx to Sales is also an important measure to Apple management's effectiveness in improving operational efficiencies. And this ratio certainly speaks to Apple's desire to continue to plow money back into the manufacturing supply chain.
Why Apple Is Still A Buy Despite Its New Industry Classification [View article]
Your quote - 'One disturbing trend from Apple is that its research and development (R&D) expenditures are decreasing as a percentage of its revenue.' Couldn't be further from the truth.
Date: Capital Expenditures / Sales:
12/31/2012 5.6
9/30/2012 5.3
6/30/2012 4.4
3/31/2012 3.7
12/31/2011 3.4
9/30/2011 3.9
6/30/2011 3.4
3/31/2011 3.7
12/31/2010 3.7
9/30/2010 3.1
6/30/2010 3.1
3/31/2010 2.9
SOURCE: Intrinsic Research Systems
Apple's capital expenditures as a % of sales have doubled over the past three years. Had to quit reading your article after that statement. There is enough garbage to sift through on aapl without SA authors blindly throwing out financial data and assumptions that are simply 'incorrect'.
Apple's Q1 2013 Earnings: A Gross Margin Game [View article]
Apple: Market Hero At The Crossroads [View article]
So that would leave $32/sh for the remaining 3 quarters in their fiscal year - good luck with that. I simply have not seen any reputable source validate a lack in demand or a decrease in market share. With continued demand across 3 different product lines, full product refreshes, and the potential for a new product in the marketplace (it has been 3 years since the iPad introduction) all Apple naysayers and critics are in denial thinking Apple is just quit trying to make more money.
You keep quoting 20% future growth for Apple - agreed, this does come from analysts. But only 9 analysts actually even waste their time providing a 5-yr growth rate forecasts because they all know its like guessing when the first man will vacation to Mars. 50 analysts provide Q1 estimates. 10% growth still leaves a PEG of 1.
A higher percentage of new users enter the ecosystem than leave the ecosystem - fact. Like my household after the second device (iPhone and iPad) next comes PC replacement (which justifies Mac as the only growing PC seller). Within 2 years Apple will have 2 billion active iTunes users with credit cards on file - an easy monitization opportunity. With 85% of web traffic on mobile devices the potential for iAd's to explode if also realistic.
Quite simply, you can keep calling for the demise of Apple with negative growth expectations but in reality there are no facts to support negative growth in the next 12-24 months. But what does exist is the potential to disrupt many more potential markets - Do yourself a favor and ''Don't bet against them' or the stock.
Sharp (SHCAY.PK) has "nearly halted production" of displays for the regular iPad as demand shifts towards the iPad Mini and Apple (AAPL -0.6%) attempts to manage inventory, Reuters reports. Many analysts have already forecast the Mini, which is thinner and much lighter than the 4th-gen regular iPad, will account for a majority of iPad sales in Q1. Higher Mini sales benefit display suppliers AUO and LPL. Due to lower price tags, Apple's average gross profit on Mini sales appears to be lower than its average gross profit on regular iPad sales. [View news story]
What Gift Cards Reveal About Apple And J.C. Penney [View article]
Over 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last year, Apple (AAPL) declares. The company adds developer payouts have topped $7B, and that there are over 500M active iTunes accounts (very useful for a mobile payments solution if Apple ever wants to launch one). The App Store still has a big edge on Google Play when it comes to app monetization, though the latter has been growing faster lately. [View news story]
Over 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last year, Apple (AAPL) declares. The company adds developer payouts have topped $7B, and that there are over 500M active iTunes accounts (very useful for a mobile payments solution if Apple ever wants to launch one). The App Store still has a big edge on Google Play when it comes to app monetization, though the latter has been growing faster lately. [View news story]
Not everyone has a iPad either (although most will soon).... not everyone is happy with their current television viewing either..... errr China mobile.....what happens when 500m apple existing iTunes accounts continue to grow at 15% for 3 more years (that's 1 billion shopping customers) buying content, apps, shows, etc every year..... Mac growth showing no signs of slowing...... doesn't look like the build quality and lasting excellence of Apple products across any of their lines has a serious competitive threat (and please don't give me the 'android argument' across 20 different manufacturers)...doesn't look like they like building retail stores fast enough either - because I've been in 9 apple stores across the country over the past 6 mos. and there wasn't much walking around room.....
I can't wait for news sources to stop comparing iPhone to Android. It's literally iPhone against every other smartphone maker and then claiming the entire smartphone industry is just killing Apple. Whatever, give me a break.
Every Apple critic needs to quit trying to be the hero on predicting apple's downfall and appreciate what is occurring right under their noses.
Do me a favor... and tell me what other companies deserve a greater premium for potential future earnings?
Apple: Don't Follow The Herd [View article]
Apple: Don't Follow The Herd [View article]
Apple: Don't Follow The Herd [View article]
From evidence I've seen, China Unicom and China Telecom subscribership is increasing significantly at the expense of China Mobile. The leverage is actually in Apple's favor, because they are doing just fine without China Mobile.
Look at the China sales growth figures and then tell us how again how bad apple needs China Mobile. Any deal with them is just a huge bonus for Apple, but clearly not necessary.
Apple: Gross Margin Conundrum Explained [View article]
Apple Needs To Answer These Questions [View article]
Over 2M iPhone 5 units have been sold thus far in China, Apple (AAPL) boasts. China Unicom's (CHU) healthy pre-order activity probably had a lot to do with this figure. Sparse crowds for the Friday launch stoked fears initial sales were light, but weather and pre-ordering requirements seem to have played a role. For reference, Apple announced in September over 5M iPhone 5 units had been sold 3 days after the device went on sale in the U.S., Japan, and 7 other locales. (PR) [View news story]
More on Apple: Shares could be pressured by a downgrade to Neutral from Citi. The firm says checks indicate Apple has cut its March quarter iPhone 5 orders following a 45%-50% increase in monthly output from October to December. UBS recently said checks suggested the iPhone 5's build rate would fall sharply in the March quarter, while Jefferies claimed iPhone component suppliers saw big order cuts last week. Citi, which started Apple at Buy on Nov. 26, also thinks Samsung is doing very well. Update: Morgan Stanley responds by pointing to encouraging U.S. iPhone/iPad survey data. But a gap has opened up between U.S. and foreign iPhone share trends. [View news story]
The first accurate 'supplier check' will probably be the last.