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  • Apple's Game Of Inches [View article]
    BBwetrust:

    Apple has over 800 million content customers around the world and is investing billions of dollars in content delivery infrastructure.

    Content sells devices. As you know, Apple defers revenue on each Mac and iOS device sold for the value of the services and operating systems Apple distributes for free. The value of the content and services can be seen not only in the iTunes revenue the company reports, but also in the total for iTunes billings which includes the revenue pass through to developers and content providers that Apple doesn’t recognize as its own revenue.
    Jul 30 01:22 AM | 2 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Arnie:

    Apple does have the financial firepower to acquire desired technologies as well as revenue generating device lines and services. After a $90 billion share repurchase program, there will be other ways to increase shareholder value and certainly large acquisitions are a means to immediately boost revenue and earnings potential for the owners of the company.
    Jul 29 09:56 AM | Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Peter:

    That’s a good question. While there would most likely be an immediate boost to volume on the day Apple joined the DJIA, the bigger issue is the comparatively low percentage of shares of Apple currently owned by institutions.
    Jul 29 09:46 AM | Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    viking vancouver:

    Thank you for your comment. The additional shipping week in FQ1 2012 did add to the quarter’s extraordinarily high revenue and eps growth rates. Also, the addition of Verizon as an authorized carrier and the participation of Verizon customers in an initial handset roll out also boosted the quarter’s performance.

    Moving forward, the share repurchases will amplify the impact of profit growth on earnings per share through the completion of the program next calendar year. I expect stable gross margin, moderate rates of revenue growth from Apple’s three primary device lines and revenue sourced from the Beats acquisition and any new accessories lines and new services segments to be wholly accretive to FY2015 revenue.
    Jul 29 02:25 AM | Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Zipper0:

    I agree larger-screen iPhone handsets will boost the line’s unit sales in FY2015. On a long-term basis, I see much in Apple’s new technologies and continuing platform development to deliver consistent growth. I don’t consider any one particular handset maker to be an obstacle to growth or a challenge in acquiring high-end smartphone market share this fall.
    Jul 29 01:53 AM | 1 Like Like |Link to Comment
  • Apple's Game Of Inches [View article]
    richbar:

    Thank you for your comment. I appreciate your critical commentary and respect your point of view. Apple’s net income rose by 5.14% in the first nine months of the current fiscal year while deferred revenue with no associated cost of sales attached rose $1.394 billion to $11.454 billion.

    Absent profit growth the share repurchase program has diminished value. The four-quarter drop in profitability that commenced in the March quarter of FY2013 (preceded by marginal net income growth of $14 million in FQ1 2013) was due in part to unsustainable gross margin realized in the prior fiscal year and what appears to have been a cost-challenged original iPhone 5 which prompted extraordinary warranty cost set-asides.

    Impacting Apple’s aggregate revenue growth rate of 5.42% in the first nine months of the current fiscal year has been the nearly $2 billion drop in iPod revenue in the same nine-month period. By FQ1 2015, iPod line revenue decline will be essentially immaterial to results.

    Absent the delivery of new accessory lines such as the much-anticipated iWatch line or the introduction of new services revenue segments, I’d expect revenue growth next fiscal year in the mid-to-high single digits on stable year-over-year gross margin.

    As of June 28th, there’s about $39.9 billion in share repurchase authorization to be exhausted. However, I consider share repurchases without the prospect of profit growth to be a compromised approach to increasing shareholder value. While share repurchases will amplify the impact of profit growth on eps, I consider profit (net income) growth to be the primary driver of share price appreciation.
    Jul 29 01:39 AM | 1 Like Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Buyandhold:

    if you adjust the trailing 12-month eps for June quarter results, the multiple falls to about 15.78.

    Do you believe there’s more upside to Apple over the next six months or downside for Apple over the next six months?

    If there’s more upside than downside in your view, why would try and time the stock as a buy and hold investor?
    Jul 27 11:55 PM | 2 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Zipper0:

    Let’s compare notes next year on the overall outcome for Samsung. In the meantime, please remember while Samsung was selling high-end smartphones which improved the company’s profitability, it was also filling demand at the low-end of the market which increased the company’s revenue.

    Since the addition of China Mobile and NTT DoCoMo as authorized iPhone carriers, the perception of Samsung’s success in the high-end market has changed and the company’s profit performance has declined.
    Jul 27 11:10 PM | 1 Like Like |Link to Comment
  • Apple's Game Of Inches [View article]
    John Court:

    Without the introduction of new product or accessories lines in the fall, I would expect Apple to deliver high single-digit revenue growth next fiscal year. With the introduction of new product or accessories lines, such as the much-anticipated iWatch line, I expect revenue growth to move well above 10%.

    The announcements at last month’s WWDC suggest an broadening of the company’s eco-system to include initiatives in home automation. Continuity, as outline by Tim Cook, will boost what I call the Apple product mutual halo effect.

    In addition to home automation there are real opportunities in home entertainment and home gaming through an enhanced Apple TV product.

    I believe the iPhone can continue to deliver meaningful unit sales growth following the release of larger-screen handsets. There’s are large market that remain virtually untapped for the iPhone and iPad lines. The IBM initiative will boost demand for iOS-based products in enterprise.

    In my view, Apple can disrupt multiple markets simultaneously without the need for a blockbuster new product line. As the company broadens its customer base, continues to increase its content delivery infrastructure and, perhaps, moves into mobile payments, all of the initiatives outlined above will materially add to the company’s aggregate revenue goals and revenue growth rates.

    Moving out more than a year I tend to be overtly conservative in discussing growth rates. But high-angle digit revenue growth rates compounded over a two to three year period with commiserate net income growth rates over fewer shares outstanding will deliver an attractive outcome for a company with a FY2014 revenue base of $180 billion.

    Apple could make a major disruptive step with a blockbuster new product line. But I don’t think that’s needed to deliver attractive returns to shareholders over the next few years.
    Jul 27 10:52 PM | 2 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    K1smet:

    I agree. A higher dividend would reduce some of the remaining share price volatility and add to the risks of shorting the stock. As of June 28th, Apple had about $39.9 billion in repurchases remaining under the $90 billion program. Following the completion of the program, I wouldn’t mind an ongoing effort to repurchase sufficient shares on a quarterly basis to offset share creep from stock-based compensation, but I believe the benefits derived from a big repurchase plan will have been substantially achieved. In other words, more large-scale repurchases might have a diminishing benefit for shareholders.

    As you know, the more shares repurchased now the fewer shares upon which to pay dividends. I’m hopeful the massive repurchase plan and the number of shares removed from the market will provide for a higher dividend per remaining share.
    Jul 27 10:01 PM | 4 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Budavar:

    Thank you for your comment. The line just came to me as I was searching for a closing contrast for the article.
    Jul 27 09:52 PM | 1 Like Like |Link to Comment
  • Apple's Game Of Inches [View article]
    bjnflicks:

    Isn't it time for you to starting writing articles in addition to your thoughtful comments on the work of other writers?
    Jul 27 08:24 PM | 9 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Tumbleweed:

    Although Apple achieved a new 52-week closing high on Friday and is approaching a new all-time high, it’s on a diminished market cap than when the current all-time highs were set in September of 2012.
    Jul 27 08:21 PM | 2 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Zipper0:

    Apple’s revenue growth rates began to slow in the latter half of FY2012 following the peak selling season for the iPhone 4S. Although revenue growth in the latter half of the fiscal year was slower than in the first half, for the six-month period the revenue growth rate was an impressive 28%. Also, in the first half of FY2012 iPad unit sales grew by well over 100%.

    Apple’s moderating revenue growth rates coincided with the maturing of the high-end smartphone market and Apple did not add either China Mobile, the world’s largest carrier, or Japan’s largest carrier, DoCoMo until last fall. Please remember it wasn’t until the first half of FY2012 that subscribers to Verizon’s network participated in the roll out of a new iPhone handset for the first time.

    Although increased competition did impact Apple’s growth rates over the past nine fiscal quarters, I don’t see a competitor on the planet that can match the new technologies and product innovations Apple will bring to market beginning this fall.
    Jul 27 08:15 PM | 4 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Arnie:

    I did not see the news report. What I do know from the June 10-K filing is as of June 28th about 5.989 billion shares were outstanding and about $39.9 billion remained in the $90 billion share repurchase program. I do consider any and all shares purchased under the split-adjusted price of $100 to be a long-term bargain for the company’s shareholders.
    Jul 27 07:45 PM | Likes Like |Link to Comment
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