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

    I enjoyed reading your comment. I view Apple’s growth not so much in terms of the growth in units sales of the company’s current device lines but the expansion of the company’s economic footprint and the increasing number of eco-system participants now over 800 million.

    Please keep in mind there are several major markets that remain under served by Apple including but not limited to: Brazil, Indonesia & India. I view Apple less as a device maker and more as customer relationship continuum.

    The new partnership with IBM will provide for more opportunities in the large enterprise market and there are several industries ripe for disruption including the home entertainment and console gaming industries. Apple is among the world’s leaders in content distribution and management is investing billions of dollars in content delivery infrastructure for reasons that will become more clear in time.
    Jul 27 05:06 PM | 2 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    owen7301:

    Thank you for your comment. I’m not discounting the possibility or even probability of new products and services nor the impact of the company’s expanding economic footprint. However, forecasting the impact of unannounced new products and services is beyond the scope of this article.

    The point is Apple will deliver impressive rates of net income growth amplified by the ongoing share repurchase program to provide strong rates of earnings per share growth even on comparatively low rates of revenue growth. It’s my view long-term shareholders will continue to be rewarded with or without the introduction of new and disruptive products.
    Jul 27 01:24 PM | 9 Likes Like |Link to Comment
  • Apple's Game Of Inches [View article]
    Harm Elderman:

    The term “game of inches” has been commonly applied to sports including horseshoes, baseball and football. It’s a reference to precision in execution and the importance of consistently grinding out even small plays successfully.

    As sports fans we like the long ball, the long pass and the big plays. As Apple shareholders we like the company’s big disruptive steps. But for long-term shareholders, there’s much to be gained from comparatively slower rates of revenue growth and consistently driving net income growth. This isn’t to say Apple isn’t going to take big disruptive steps in the future. But even now the company’s results are impressive and will lead to share price appreciation.
    Jul 27 01:17 PM | 12 Likes Like |Link to Comment
  • Apple's Latent Rates Of Revenue Growth [View article]
    TimmiesRegular:

    Thank you for your comment. At this time I don’t see the successful introduction of the iWatch factored into the share price nor the roughly $44 billion in additional share repurchase commitments to be made as of the end of the March quarter.
    Jun 29 06:49 PM | 2 Likes Like |Link to Comment
  • Apple's Latent Rates Of Revenue Growth [View article]
    Sacto_Joe:

    Thank you for your comment. As evidenced by the announcements at WWDC, Apple has a expansive platform of technologies that will serve as a foundation and platform for greater eco-system development and enhanced customer engagement as new devices and services emerge from the company this fall.
    Jun 29 01:37 PM | 5 Likes Like |Link to Comment
  • Apple's Latent Rates Of Revenue Growth [View article]
    DWBowers:

    Thank you for your comment. More than a purveyor of digital devices, Apple is a customer relationship continuum. Relative to Apple, market share is a meaningless and misapplied series of statistics.
    Jun 29 01:32 PM | 3 Likes Like |Link to Comment
  • Apple's Latent Rates Of Revenue Growth [View article]
    pk de cville:

    Thank you for your comment. The underlying growth rates of Apple’s three major device lines and the rate of growth in the iTunes/Software/Services revenue segment have been obfuscated by the dramatic drop in revenue from the iPod product line. FY2014 is the last year in which the iPod line’s decline will have a material impact on Apple’s aggregate rate of revenue growth.
    Jun 29 11:35 AM | 3 Likes Like |Link to Comment
  • Apple's Latent Rates Of Revenue Growth [View article]
    Book value:

    A quick tour of Apple’s App Store reveals an abundance of software available for the Mac. Adding to the value of an investment in a Macintosh are the cross-device services and functionality offered to owners of iPhones and iPads who choose to the migrate to Apple’s popular line of PCs.
    Jun 29 11:28 AM | 6 Likes Like |Link to Comment
  • Apple's Latent Rates Of Revenue Growth [View article]
    Fear the cow:

    The expiration of support for Windows XP and the costs of migration to Windows 7 are providing Apple with an opportunity for greater reach into the enterprise market at this time. Continuity, introduced at WWDC, also raises the value proposition offered by the product line.
    Jun 29 11:21 AM | 7 Likes Like |Link to Comment
  • Apple's Latent Rates Of Revenue Growth [View article]
    Tim:

    Thank you for your comment. The opportunity to disrupt the home gaming market and further extend the reach of Apple’s eco-system into the living room experience is real and a step by Apple I eagerly await.
    Jun 29 11:13 AM | 6 Likes Like |Link to Comment
  • Apple's Global Picture In 1,500 Words [View article]
    Tomal:

    I expect high demand for the next flagship handset around the world. There was no mass migration from Apple due to larger screen sizes. The rate of growth in the high-end smartphone market has slowed. The issue is more of non-Apple smartphone owners choosing to migrate to the next flagship iPhone handset.

    China Mobile will participate for the first time in the initial roll out of a new iPhone handset this fall and the US carriers have tightened their upgrade policies. As you point out, there’s a large pool of iPhone 4 series handset owners in the US that may find the next flagship iPhone handset quite appealing.
    May 28 12:07 AM | Likes Like |Link to Comment
  • Apple's Global Picture In 1,500 Words [View article]
    Andreas:

    Samsung’s biggest competitor in now Lenovo, not Apple. Android handset makers compete with each other more than any individual Android handset maker can compete with Apple. The addition of China Mobile and NTT DoCoMo as authorized iPhone carriers has changed the competitive environment in two of the world’s largest digital device markets.

    To suggest Apple is “too late” with a larger screen iPhone is pure conjecture.
    May 26 10:00 AM | 4 Likes Like |Link to Comment
  • Apple's Global Picture In 1,500 Words [View article]
    Braeburn:

    I like your numbers. I can see the market awarding Apple a multiple in the 16x range. Again, it’s the rate of net income growth amplified by the share repurchase program that will move the share price higher, not a big expansion in the multiple.
    May 26 09:47 AM | 1 Like Like |Link to Comment
  • Apple's Global Picture In 1,500 Words [View article]
    Andreas:

    If your statements are correct, why did Google sell the MMI unit on the cheap to low-cost device maker Lenovo and exit the device market? I seriously doubt the buyer of the $79 Android 3.2.3 handset at my local supermarket cares about Google services. The buyer wants a cheap, no-contract phone.

    If demand for Google services was so high, the “Moto X” initiative would have proven to be a success and would have sustained the company’s handset efforts.

    Android 4.4 (KitKat) released in late October represents only 8.5% of Android handsets in use according to the Android developer site. Android 2.x still represents 18% of handsets in use. Android 3.2 handsets, first released in December 2011, have 13% of installations.

    Whatever the consumer surveys and focus groups are telling you aren’t messages getting through to handset buyers.

    I’m not disputing the fact consumers might find some Google services attractive. But those services are available on iOS and Android. I don’t see a “walled garden” anywhere that prevents a migration barrier from Android to iOS.
    May 26 09:42 AM | 4 Likes Like |Link to Comment
  • Apple's Global Picture In 1,500 Words [View article]
    Budavar:

    Apple recently exited a multi-quarter cycle of negative net income growth. I see solid net income growth at least through the March quarter (Q2 FY2015) and a net income growth string over the next several fiscal quarters.

    The market may push Apple’s multiple in the range of 16x trailing 12-month earnings with a temporary burst above that range in anticipation of very strong quarterly results. However, I expect net income growth to be the primary catalyst for share price appreciation with the rising dividend providing price support. The ongoing share repurchase program will amplify the impact of rising net income on the earnings per share performance.

    I believe long-term shareholders will be satisfied with rising net income, a rising annual dividend with a boost to eps as Apple continues to repurchase shares to increase share value.

    Historically, the market does not award Apple with high multiples. Historical data will be skewed by the deferred revenue schedule Apple adopted with the initial release of the iPhone. At that time virtually all iPhone revenue was deferred and the market value reflected very high deferred revenue balances through a higher multiple at the time.
    May 26 01:38 AM | 1 Like Like |Link to Comment
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