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  • Apple: It's A Matter Of What, Where And Why [View article]
    Ted Bear:

    Unlike Microsoft, Apple has continued to reinvent itself over the years. But not everything is new and the company’s product lines have proven to be long-lasting.

    The Macintosh, Apple’s oldest and most enduring product line introduced in 1984, delivered about $21.50 billion in revenue last fiscal year. That’s a higher revenue total than was achieved by 367 enterprises on the 2013 Fortune 500 list.

    Apple’s iTunes franchise will deliver in total billings - inclusive of the revenue pass through to developers and content providers Apple doesn’t recognize as revenue - $20 billion this fiscal year and within four years the company will have more than 1 billion people as iTunes content customers.

    Even with the company’s documented success there are large regions of the globe that remain under served by the company. These regions include Brazil and much of South and Central America, India, Russia and most of the African continent. The world’s largest cellular services provider will begin selling iPhones to customers next month and Japan’s largest carrier, DoCoMo, began selling iPhones with the release of the iPhone 5s and 5c.

    If you don’t think Tim Cook is competent and skilled to lead Apple into its next era of growth, by all means short the stock. It’s your money.

    But one quick question: If you expect the shares to fall from Friday’s closing price of $560, why in the world would you repurchase the shares between $310 and $380?
    Would there not be better prospects for your investment dollars than a company you view as similar in growth potential to Microsoft?
    Dec 29 09:05 PM | 7 Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    tftf:

    A return to strong and sustainable rates of net income growth will propel Apple's share price higher. As net income growth returns and is amplified by the ongoing reduction in the fully diluted share count, all investment metrics and measures will improve in concert.
    Dec 29 08:09 PM | 3 Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    consultnick:

    Thank you for your comment. My long standing axiom about Apple is:

    Apple doesn't sell products. Apple creates customer relationships and these customer relationships sell Apple products.

    It explains why Apple moves deliberately and methodically to address demand in currently under served markets and why the company is investing billions of dollars in content delivery infrastructure.

    The expanding data center locations in North Carolina, Nevada and Oregon, for example, demonstrate Apple's anticipation of huge increases in content demand to satisfy the growing global base of device owners and content customers.
    Dec 29 07:07 PM | 3 Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    Ron:

    With the increase in deferred revenue on each iOS-based device and Macintosh sold, reported revenue growth rates in the range of 10% to 15% this fiscal year would be a satisfactory outcome. I expect net income to rise year-over-year based on slightly higher gross margin and rising unit sales. The positive impact of higher net income will be amplified by the ongoing share repurchase program.

    I do expect the market to consider the rising deferred revenue balances in the company’s valuation and for the company’s net income performance to warrant at least a modest increase in the quarterly dividend this fiscal year.
    Dec 29 05:37 PM | 1 Like Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    Fred72:

    Apple’s management is striving to provide what’s considered more “realistic” guidance. As I stated in the article, Apple is best viewed by fiscal year and not by fiscal quarter. The outsized revenue and net income growth rates in the first half of FY2012 set-up very challenging comparisons for the first two quarters of FY2013.

    The article is intended to highlight through an historical perspective the factors that will lead to low double-digit revenue growth this fiscal year and return the company to positive net income growth. Revenue growth will be shrouded in part by the increase in deferred revenue on each iOS-based device and Macintosh sold.

    Apple has become a customer relationship continuum. Quarterly results are merely a static snapshot of a fast-moving enterprise object.
    Dec 29 05:25 PM | 1 Like Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    tftf:

    I do expect the market to factor the rising deferred revenue balances into Apple’s valuation and for the multiple to rise to the vicinity of 15x trailing 12-month earnings.
    Dec 29 05:10 PM | 1 Like Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    air tango:

    Thank you for your comment. Long-term, the countries in South America are a very big market for Apple products and services.
    Dec 29 02:06 PM | Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    Kato4321:

    Content sells devices and Apple is a leader in the K-12 and higher education markets. I expect the iPad to continue to displace PCs in the K-12 environment and Apple’s MacBook Pro portable PCs are very popular among college students (along with iPhones and iPads).

    iBeacon is already finding its way into retail stores as a means to engage customers and custom apps are creating new opportunities for the iPad and iPhone in the enterprise market.
    Dec 29 01:20 PM | 3 Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    leopardtrader:

    Apple’s geographic revenue segments are seldom revised. The most recent change was establishing a Greater China revenue segment and a revised “Rest of Asia Pacific” segment.

    Due to the economic challenges confronting several EU member states, the rates of revenue growth for Apple in the Europe region have been subdued. I expect a return to faster rates of growth in the region this fiscal year. There are definitely real opportunities for Apple in Africa and the Middle East. Apple is building out its content delivery infrastructure at a fast pace and this provides the company with the opportunity to better explore currently under served markets including Brazil, India and areas on the African continent and in the Middle East.
    Dec 29 01:07 PM | 4 Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    rcpatrick5443:

    Thank you for your comment. I’m looking forward to the release of Apple’s December quarter results and publication of March quarter guidance.
    Dec 29 12:55 PM | 3 Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    fneww1212:

    I expect the multiple awarded Apple by the market to be positively influenced by the rising deferred revenue balances. I also expect the multiple to move to the vicinity of 15 times trailing 12-month earnings following impressive December quarter results and strong March quarter guidance.
    Dec 29 12:34 PM | 4 Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    ninderad:

    Last night I viewed a report suggesting iPhone pre-orders from China Mobile customers have now surpassed two million units. This model year Apple has resolved supply constraints on the flagship handset faster than at anytime in the product line’s history. Both the iPhone 5 and iPhone 4S had peak demand periods lasting about 4.5 months. The China Mobile agreement will most likely extend the peak selling season for the iPhone 5s to five months or longer.
    Dec 29 12:20 PM | 2 Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    apple_investor:

    There is much discussion among the Braeburn Group analysts about March quarter guidance with varying views on what Apple will announce. The China Mobile agreement will obviously have a material influence on March quarter results and results for the current fiscal year. One of the big questions concerning the agreement is the size of initial orders as the iPhone become available on the world’s largest carrier next month.

    Deferred revenue is a factor. Apple has been deferring revenue on each iOS device and Macintosh sold since June 6, 2011. The recent increase in deferred revenue per unit sold will have a gradually diminishing impact on results with each passing quarter.
    Dec 29 12:12 PM | Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    popster76:

    Thank you for your comment and interest in my work. My next article is scheduled for publication following the release of Apple’s December quarter results and publication of March quarter guidance.
    Dec 29 12:05 PM | Likes Like |Link to Comment
  • Apple: It's A Matter Of What, Where And Why [View article]
    Small Fry:

    Foreign exchange does have an impact on Apple’s results even with strategies in place to mitigate the influence of changing exchange rates. I suspect the positive impact on unit sales from a faster-growing economy will offset the impact of the changes in exchange rates. Long-term, the increase in the addressable market for iPhones (and iPads with cellular functionality) through the addition of DoCoMo as an authorized iPhone carrier will far outweigh the near-term influence of the declining yen.
    Dec 29 12:03 PM | 1 Like Like |Link to Comment
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