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  • FY2015: Apple's Big Adventure [View article]

    As we know, all market share is not created equal. Apple doesn't want to make the most devices. Apple wants to make the best devices available on the planet. Customers that are exclusively price focused will be better served by other vendors.

    I can purchase a Huawei "smartphone" running Android 2.3 at my local supermarket for $29.99. It carries the same weight in market share tabulations as an iPhone 6 Plus. But the quality of the devices are really a world apart. Vendors can go broke chasing market share instead of revenue share and satisfactory gross margin.
    Nov 30, 2014. 06:25 PM | 4 Likes Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]

    Thank you for your comment. I expect this cycle of strong growth to extend into FY2016 as the Apple Watch debuts this spring and the stunning market share gains in the high end of the smartphone market continue beyond the December quarter.

    Due to the changes in domestic telco smartphone subsidy programs, strong demand for the iPhone 6 handsets will continue into spring. The importance of Apple's migration to 64-bit SOCs for the iPhone and iPad can not be overstated. Apple is making headway in the enterprise market and gains in that market are often summarily overlooked.
    Nov 30, 2014. 05:27 PM | 1 Like Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]

    Apple imputes a US tax liability on foreign earnings not permanently dedicated to use outside the United States. While the tax issue in the EU is an important matter to be addressed, a greater tax issue for consideration is the possibility of at least a temporary reduction in US taxes on foreign sourced income which would allow Apple to repatriate tens of billions of dollars and which negate the need to borrow against foreign-sourced earnings to fund the ongoing share repurchase program.
    Nov 30, 2014. 05:18 PM | 1 Like Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]

    Thank you for your comment. I'm looking forward to a very strong cycle of growth for Apple extending beyond this fiscal year.
    Nov 30, 2014. 05:12 PM | Likes Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]

    Although a very strong December quarter is already anticipated, as I mentioned in the article, I believe Wall Street analysts remain cautious. It’s challenging to forecast unit sales for the Apple Watch prior to release and there are overall concerns about the pace of growth in FY2016.

    I expect analysts to continue to revise their revenue and earnings estimates for FY2015 as we move closer to December quarter results and the debut of the Apple Watch. Institutions remain in an underweight position on the shares and increasing institutional ownership of a diminishing umber of shares will be a catalyst for the share price over the next few months.
    Nov 30, 2014. 04:50 PM | 1 Like Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]
    scott trader:

    As you point out, TVs are a commodity product. In contrast, the new 5K iMac displays are stunning and add to the value proposition offered to consumers.
    Nov 30, 2014. 01:09 PM | 1 Like Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]

    Don’t forget revenue share and the number of new customers added to Apple’s global eco-system of devices, apps, content and services.
    Nov 30, 2014. 01:00 PM | 6 Likes Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]

    As I mentioned in the article, Katy Huberty is forecasting 30 million Apple Watches will be sold in CY2015. It’s challenging to forecast the unit sales of a yet to be released product. While many of us are eager to see the Apple Watch debut sooner rather than later, WatchKit has only been recently released and management appears to be taking ample time to position the product.
    Nov 30, 2014. 12:57 PM | 1 Like Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]

    Due to the forecast spike in iPhone unit sales combined with Apple’s deferred revenue program, some revenue recognition from this quarter’s iPhone sales will be pushed into future quarters. In FQ1 2014 the iPhone ’s ASP was $637. I do expect an ASP closer to $675 than last year’s number. I will firm my ASP for the quarter based on reports of iPhone 6 Plus availability as we move into the final two weeks of the period.
    Nov 30, 2014. 12:49 PM | 2 Likes Like |Link to Comment
  • FY2015: Apple's Big Adventure [View article]

    Due to the ongoing share repurchase program Apple’s market cap is rising at a slower rate than the rate of share price appreciation.

    The Macintosh line is gaining market share. Apple is among the top 5 global PC makers for the first time in decades and recently reclaimed the number three spot among domestic PC makers. The iPhone is gaining revenue share, market share and overall industry profit share in the high-end segment of the smartphone market.

    Institutions remain underweighted in Apple and the company is at the beginning of its biggest year in history for revenue, net income and earnings per share.
    Nov 30, 2014. 12:35 PM | 18 Likes Like |Link to Comment
  • Apple's Magical Mystery Year [View article]

    I just updated my work iMac to Yosemite. I had to wait on an accounting software update for the new OS. I now have my Messages streaming through all of my devices. This is a big productivity leap. With the preponderance of iPhones among those with whom I actively converse, Messages are a much more efficacious way of communicating bits of information and is leaps and bounds above what email can deliver.
    Oct 30, 2014. 02:40 AM | 1 Like Like |Link to Comment
  • Apple's Magical Mystery Year [View article]

    Yes. Because I can pay someone at the rate of about $15 per hour plus employer taxes to do the same thing. If it's an outside vendor I'm contracting for the PC box, the cost might be a little bit more, but it will be delivered and installed on a network, software installed and data migrated from an old PC. Total services cost about $100 with the same savings on the PC. This doesn't include the saving on volume software licenses. My primary PC technician will also handle most troubleshooting remotely for a nominal charge.

    In a commercial or enterprise environment, I'm more concerned about uniform components and the risk of potential down time. If an employee sits idle because of a failed component on a custom-built box my organization is losing dollars by the minute.

    Increasingly I am installing Apple products. iMacs, iPads and iPhones work seamlessly together and even the savings on custom PC boxes are nothing compared to the productivity gains that can be achieved from a seamless workflow. Employee productivity gains are far more valuable than any upfront savings on the tools used by the staff. Macs or PCs are only one piece of an overall enterprise technology strategy. In this instance I can source from one device maker. If a product fails I can have it swapped out for free or repaired quickly at no charge.
    Oct 29, 2014. 10:49 AM | 1 Like Like |Link to Comment
  • Apple's Magical Mystery Year [View article]

    I work with two iMacs each day (one at home, one in my office) and an iPad and an iPhone throughout the day. I’ve never been more productive. Information moves seamlessly between home and office and everywhere in between. There isn’t a moment of the day I can’t access the information I need from any of these integrated devices that also share Apple-based services

    I’ll be keeping my 5s for another year in favor of purchasing an iPad Air 2. I’m interested in knowing your thoughts on the iPhone 6 Plus soon after it arrives.
    Oct 29, 2014. 01:39 AM | 1 Like Like |Link to Comment
  • Apple's Magical Mystery Year [View article]

    The global PC market is in a state of economic decline. Consumers are moving away from desktop PCs and adopting highly mobile devices. I was in college when the so-called "PC revolution" began and writing code was a requisite of even introductory computer classes. Building your own PC was common among early adopters.

    In those days we’d work on the engines of our own cars and for those with the time and inclination would build their own TVs. We’d actually fix our own TVs. Kits and parts were commonly available at that time similar to the way computer parts are widely available today.

    As a former technology instructor and program director, students in my program would be well-versed in computing components and platforms. But the focus of my program was building the critical thinking skills among my students to compete in a world economy in which accessing, distilling and effectively dispatching information are the marketable skills.

    Understanding technology has helped when ordering custom built servers and custom PCs. Unfortunately I wouldn’t have the time to order the components and assemble the PCs myself. In a world in which time is money, time is better spent ordering custom builds through a web interface and is much more time-effective and cost-effective than taking time to assemble the components myself.

    I”m partial to Apple products in enterprise installations because of the shared functionality across the devices. There isn’t a single major device maker outside of Apple that develops its own custom SOCs (64-bit) for a 64-bit native operating system for smartphones and tablets and seamlessly integrates the flow of content and services with the company’s PCs.

    My interest isn’t the components as much as it is the ability to move information across devices to people of varying degrees of technology literacy. For example, when I hire a person to handle social media, I’m not concerned if the person can build their own smartphone. I’m interested in how quickly the person can take the content I’m sending to their smartphone, assimilate into a uniform and consistent message and dispatch that information across multiple social media platforms in a matter of minutes.

    In a global economy in which one’s competitor might be next door or in an office on a distant continent, the deciding factor in choosing technology solutions isn’t how inexpensively one could acquire the devices but how well one can keep people working efficiently to access and move information from content source to destination.

    Using iMacs, iPhones and tablets allows me to access, acquire and dispatch information seamlessly saving both time and dollars. From morning until night I work with each of these devices and I’ve yet to find a more productive platform for personal productivity.
    Oct 29, 2014. 01:00 AM | 1 Like Like |Link to Comment
  • Apple's Magical Mystery Year [View article]

    Thank you for your kinds words and encouragement. There's much to cover with Apple and I'm already at work on my next article.
    Oct 28, 2014. 11:50 PM | 2 Likes Like |Link to Comment