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  • Apple Looks East, Looks West For Growth [View article]
    Hank980:

    Apple has the advantage of creating its own operating system and provides its own eco-system for customers. Commoditization is a factor for device makers that can not distinguish their products in the marketplace.

    Apple's most enduring product line, the Macintosh line, continues to gain market share and unit sales as the global PC market continues in a cycle of global economic decline.

    Offering consumers something other than the norm is Apple's approach to success.
    Sep 28 05:43 PM | 10 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    petergreyhill:

    In my view the opposite is occurring. Samsung is in a cycle of profit declines and the share price recently fell to a multi-year low. The falloff is due in part to increasing competition from Xiaomi and Huawei. Don't forget Samsung's archival LG also makes smartphones.

    China Mobile was added by Apple as an iPhone carrier only within the past year. Apple will have a strong model year in China as China Mobile continues its 4G/LTE rollout.
    Sep 28 05:39 PM | 10 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    Joseph:

    I view Apple as a solid long-term investment. On a percentage basis, the shares are currently under owned by institutions. In my view, that's a subtle bullish indicator. An announcement on the release date of the Apple Watch line may benefit the share price in the short-term.
    Sep 28 03:33 PM | 9 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    jmshah1:

    The iPhone 6 Plus is proving to be a very popular choice among early buyers. That's good for the line's ASP in the December quarter and for overall gross margin.
    Sep 28 02:47 PM | 8 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    its-on:

    I consider Apple a much more attractive long-term investment than a short-term play. I believe the days of the "slingshot" moves higher are over.

    Record revenue, record net income, the ongoing $90 billion share repurchase program and expected dividend increases make for a solid long-term investment.
    Sep 28 02:39 PM | 12 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    techy46:

    I expect strong unit sales growth for the iPhone in Greater China this model year. However, it's the upgrade activity and the appeal of the larger-screen iPhones in the Americas and Europe that I expect to be the biggest factors in the success of the iPhone 6.
    Sep 28 02:36 PM | 5 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    Soroson:

    Thank you for your comment. I'll stick with analyzing Apple and key enterprises in the company's supply chain. That's enough of a challenge!
    Sep 28 02:34 PM | 7 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    steyoun:

    Thank you for your comment. In my view, net income growth will be the primary driver of share price appreciation. Even without an expansion of the earnings multiple, I expect the volume of new revenue combined with stable margin to move the share price appreciably higher.
    Sep 5 12:47 AM | Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    scott trader:

    I was referring to new product and services opportunities. While I expect strong growth next fiscal year in Greater China as China Mobiles increases its 4G/LTE coverage and participates for the first time in the initial roll out of new flagship iPhone handsets, I see opportunities for growth through the introduction of new product/accessories lines as well as new services.
    Sep 5 12:37 AM | Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    dpw:

    I do see opportunities for Apple to develop at least a modest revenue stream through mobile payment facilitation. It would come at no cost to the device owner and all new revenue is welcome revenue.

    My view is for Apple to develop sustainable revenue streams it may require disrupting existing services industries. For example, through Apple technologies as well as services and accessories developed by 3rd parties, device owners could put together their own health or home monitoring systems. There are other services revenue opportunities through content delivery devices such as Apple TV.

    My question is can Apple successfully partner with 3rd party services providers in such a way as services are contracted through iTunes or does Apple need to develop direct services revenue channels?

    In my view, to develop ongoing services revenue opportunities, Apple needs to disrupt existing services industries to provide similar or better services at lower costs to consumers or through greater convenience for device owners.

    Apple’s iPhone line will deliver strong revenue and earnings growth next fiscal year. I’m looking beyond FY2015 for new sources of revenue to sustain growth.
    Sep 1 04:16 PM | Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    TechEnthusiast:

    I believe we can all lose sight of how much cash Apple generates each year and I suspect there’s a process of cognitive adjustment following the 7-for-1 split. For example, a move from Friday’s closing price of $102.50 to $105 might be met with a yawn by a casual observer. But that $2.50 per share gain is equivalent to a pre-split jump of $17.50 in the share price and would add nearly $15 billion to the company’s market cap.

    Through the June quarter, Apple’s trailing 12-month net income is $38.555 billion. On roughly 11.1% revenue growth to $200 billion, Apple can achieve 12% year-over-year net income growth to around $43.2 billion with amplified eps growth due to the ongoing share repurchase program. It’s possible or even probable Apple will deliver revenue north of $200 billion next fiscal year.

    While aggressive growth investors might seek more attractive percentage growth targets, long-term investors may continue to be richly rewarded over time. Achieving in the range of $5 billion in additional net profits in one year in my view would be an outstanding accomplishment. It would provide ample cash resources for management to return more dollars to shareholders while funding necessary capital investments and support even greater investments in R&D.
    Sep 1 03:37 PM | 3 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    scott trader:

    The so-called “Law of Large Numbers” is not really applicable to share prices or revenue growth as it is a mathematical law related to probability of outcomes. It is loosely referenced as a means to suggest there will be diminishing rates of growth as an enterprise grows in size.

    Apple has been able to generate higher rates of growth by disrupting new markets. As a successful disruptor initially claiming only a small percentage of a market, revenue growth rates will be larger than what Apple might achieve in its current major product markets.

    I think there’s a valid argument to be made that on an expected revenue base of let’s say $200 billion next fiscal year, which is suggesting revenue growth of about $20 billion or just over 11% revenue growth, in percentage terms it’s not particularly impressive considering Apple’s revenue growth rates of the recent past.

    But I look at it a bit differently. Increasing revenue from $180 billion this fiscal year to $200 billion next fiscal year adds to revenue the total revenue of more than 350 enterprises in the Fortune 500 list. With the prospects of net income rising faster than the rate of revenue growth, the rising revenue total provides more dollars for dividends, more dollars for increasing the size of the current share repurchase program as well as funding for cap ex and product R&D.

    Rather than looking at the percentages of growth, I’m looking at the sheer volume of growth and how that may continue to reward shareholders over the long-term.
    Sep 1 02:22 PM | 6 Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    dpw:

    I’d like to address both of your comments.

    It’s possible fees from mobile payment services will deliver a new revenue stream. But how much revenue from mobile payment services, considering an expected revenue base of $200 billion next fiscal year, is needed to really move the earnings needle?

    As we know, Apple has in the past reduced its services revenue opportunities, such as by providing free OS X and iOS upgrades, free iCloud services and now the sharing of apps among family members without additional cost, etc. to provide a value added to device owners and protect product pricing.

    In my view, protecting product pricing and sustaining high gross margin in part through the delivery of new services without cost is at least as important as creating more revenue through services.

    For example, how much revenue can be expected from mobile payment fees versus the appeal of upgrading one’s iPhone to gain access to this new service? One could argue the addition of mobile payment services as a convenience to owners of the newest iPhone handsets might generate more revenue from the sales of more devices than it might generate as a service unto itself.

    What do you think?
    Sep 1 02:02 PM | Likes Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    Gary:

    Thank you for your comment. The purpose of the article is to highlight and illustrate while the market expects Apple to deliver the spectacular this fall through new products and services, there are underlying factors that will boost net income and net income per revenue dollar.

    In my view net income growth is the primary catalyst for share price appreciation. Due to the factors highlighted in the article, the rate of net income growth next fiscal year may be faster than the rate of revenue growth. This provides an opportunity for long-term investors to be rewarded through additional share price appreciation no matter the sharp rise in the share price since the release of March quarter results.
    Sep 1 11:24 AM | 1 Like Like |Link to Comment
  • Apple's Success Is In The Sensational And The Subtle [View article]
    nickysg:

    I did not specify a dollar potential for the iWatch. The reference I did make was the revenue generated by the iWatch next fiscal year might rival the revenue growth delivered by the iPhone 6. However, the revenue generated by this yet-to-be-announced accessory line might also come in below that level. The point of the reference is the iPhone product line will continue as the principal revenue and net income driver for the company.

    Due in part to Apple’s already massive market cap of over $600 billion, share price appreciation expectations need to be kept in check. In my view, earnings growth is the primary driver of Apple’s share price appreciation.

    The share repurchase program will push the rate of earnings per share growth higher than the rate of growth in underlying net income. As I mentioned in the article, there are overlooked factors such as a diminishing impact of revenue deferrals on reported revenue and gross margin next fiscal year and a lower percentage of revenue to be consumed by R&D expenses next fiscal year even if R&D expenses continue to rise.
    Aug 31 11:10 PM | 3 Likes Like |Link to Comment
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