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  • Apple's Magical Mystery Year [View article]
    rrose39:

    Although some might erroneously consider Samsung a proxy for the Android handset market, there's intense competition throughout the Android handset spectrum for the South Korean conglomerate.

    Xiaomi, Huawei and others are poised to take Android revenue share and market share from Samsung over the next several months.
    Oct 26, 2014. 02:08 PM | 6 Likes Like |Link to Comment
  • Apple's Magical Mystery Year [View article]
    Camden:

    Thank you for comment.

    I expect the Wall Street analysts to gradually update their revenue forecasts as more catalysts for revenue growth are revealed including the big data apps coming to market through the IBM agreement and the release date for the Apple Watch line.

    Earnings per share is a moving target due to the ongoing share repurchase program. As revenue grows at double-digit rates this fiscal year (this will be the first year of double-digit revenue growth since FY2012), Apple’s R&D expenditures will consume a smaller portion of revenue than last year and the company will quickly ride down the cost curve on iPhone 6 production.

    Due to the ongoing share repurchase program and the fact that the reported number of fully diluted shares at the end of each quarter represents an average of the fully diluted share count in the corresponding period, both the pace of repurchases and the reported fully diluted share count at the end of each quarter are variables than can not be accurately forecast at this time.

    Rather, I’m focusing on net income which isn’t impacted by the timing of share repurchases. On let’s say 20% revenue growth, the pace at which Apple will ride down the iPhone 6 production cost curve, a lessening of the foreign exchange head winds as we move through the year and a favorable ASP mix on iPhone unit sales suggests net income could rise up to 25%.
    Oct 26, 2014. 02:02 PM | 7 Likes Like |Link to Comment
  • Apple's Magical Mystery Year [View article]
    Zipper0:

    Samsung's shares set new multi-year lows last week and are now trading at early 2012 price levels.

    There's intense competition for Samsung on China's mainland from Android-based handset makers and even Google's new handsets will take share in the high-end market from Samsung.

    This will be the biggest iPhone upgrade cycle in the history of the product line with strong unit sales growth in all five of Apple's geographic revenue regions.

    Please remember there's a robust market for pre-owned iPhone handsets. Although those handsets when resold won't be a factor in reported new handset sales, the resold handsets will increase the number of consumers engaged in Apple's global eco-system.
    Oct 26, 2014. 01:25 PM | 9 Likes Like |Link to Comment
  • Apple's Magical Mystery Year [View article]
    owens7301:

    There's much discussion in the Braeburn Group community as to whether or not Apple will announce an expansion of the current repurchase program in April. Absent other big uses of cash such as a major acquisition, the interest rate environment is favorable for more share repurchases and remains among the best ways to return capital to shareholders.
    Oct 26, 2014. 01:14 PM | 5 Likes Like |Link to Comment
  • Apple's Magical Mystery Year [View article]
    AndyMoney:

    Of course I did expect some Beatles-related comments.

    I consider the current price a bargain for long-term shareholders. The $90 billion in share repurchases have yet to be exhausted and there are several catalysts yet to fully unfold this fiscal year.
    Oct 26, 2014. 01:11 PM | 10 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    ZipperO:

    Some elasticity of demand will occur for any enterprise selling products to consumers on a global scale. As costs of production are reduced, Apple will pass along savings to consumers while maintaining attractive gross margin. This allows for some pick-up in additional revenue activity and allows for some expansion of the number of eco-system participants.

    Gross margin rose YOY in FY2014 and I expect gross margin to at least remain firm in FY2015 while the company adds tens of billions of dollars in new revenue to an already massive revenue base.
    I don't think there's another enterprise on the planet that's able to maintain pricing control, high gross margin and add tens of billions in additional revenue in one fiscal year.
    Oct 1, 2014. 01:09 AM | Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    bertri:

    Thank you for your comment. I expect it to be an exciting six months for Apple as the fall product refresh cycle continues and the Apple Watch makes its debut early next year.
    Sep 29, 2014. 11:07 PM | 1 Like Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    The EU tax investigation will most likely not result in any fines of levies against Apple and the question of whether or not the company is receiving any inappropriate tax treatments is an issue in dispute.

    While the issue is grabbing headlines, the outcome of any changes are apt to be minor if any changes are made at all.
    Sep 29, 2014. 09:54 AM | 1 Like Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    NicZ:

    I purchased a Mac Plus in 1988 for $3,000. Imagine the cost in inflation-adjusted numbers. Apple reduces prices as costs diminish. That's smart business, not a sign of a problem.
    Sep 29, 2014. 09:40 AM | 2 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    NicZ:

    Claimed usage data is not an accurate means to determine model mix. Insights on mix will be revealed during Apple's September quarter conference call with analysts next month.

    Following your logic, it suggests very high unmet demand for the iPhone 6 Plus. That's a nice problem to have and one that is quickly remedied.
    Sep 29, 2014. 09:36 AM | 1 Like Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    NicZ:

    I'm attempting to discern the point of the above post. Apple isn't releasing less expensive iPhones and iPhone margins will remain very high through the new model year.

    Through the June quarter, Apple sold over 55 million iPads generating revenue of nearly $25 billion. That's hardly a problem. The average selling price was about $455.
    Sep 29, 2014. 09:32 AM | 2 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    Apple also imputes and declares a US tax liability on all foreign-sourced earnings. Apple's reported tax liability last quarter was 26.10%. The declared US taxes on foreign-sourced earnings remain unpaid until the funds are repatriated. Foreign taxes paid on foreign-sourced earnings are a credit against the US tax liability.

    The US has among the highest corporate tax levies in the world. Even if there is a change in the EU tax levies, it many not have a big impact on Apple's reported tax expense. It would reduce the US tax liability although it might increase the dollars in taxes paid each quarter prior to repatriation to the US.
    Sep 29, 2014. 09:18 AM | Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    Please quantify "sales have collapsed." iPad revenue is down just over 3% through the June quarter. That's not a collapse.
    Sep 29, 2014. 09:12 AM | 1 Like Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    Zipper0:

    Google is a provider of services and releasing a no-cost operating system was a means of expanding the market for the company's services. As of now, it doesn't appear to be working out quite as planned.
    Sep 28, 2014. 11:08 PM | 4 Likes Like |Link to Comment
  • Apple Looks East, Looks West For Growth [View article]
    jpintoctr:

    Thank you for your comment and your insights. Apple is an aspirational brand.
    Sep 28, 2014. 11:06 PM | 3 Likes Like |Link to Comment
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