Vincent Ho

Foreign companies, tech, research analyst
Vincent Ho
Foreign companies, tech, research analyst
Contributor since: 2013
Thanks for the article. We're all learning.
I agree, these companies have missed earnings before so valuations depend on what the future outlook is. QIHU is doing ok in terms of P/R, but many investors do not like the P/E QIHU has since the market has priced in some growth. As a hold forever play Buffett doesn't seem to like technology but it depends on future earnings, reliable management, and deploying capital to generate higher returns which determines the price regardless of other factors.
Your analysis is ok but I don't get how perceptions can change the value of assets.
dynazor: Ease off on the name calling.
The Apple story is a great story. I wholeheartedly believe it is just getting started. How many millions did it take to come up with the iPad? How many billions has it generated in two years? As long as they focus on signing up the right people on the team it's going to be a fun ride for everyone.
Samsung is going to rule the world.
I'm a fan. I'm a real big fan. You're doing God's work here.
Sent from iPad
There's something about the iPad that isn't fully understood yet. It's something from the Jetsons, but a lot of people write it off as if it's always been around.
Sales on the Apple TV is picking up speed. I suspect there will be something else for the TV as well.
Your tablet probably has a lot of viruses.
Phablets do pose a threat, but IDC has great data that only 20% sales will be from smartphones larger than 5". Android devices do pose a threat but the tablet market is growing at an enormous pace. One example is the entire school district near LA has provided their students with an iPad, thanks to Apple's partnership with schools. From taking notes to learning another language, why doesn't every school do the same?
The bigger iPad has a 44% margin. A $320 iPad mini has 40% margin. Android devices are a different story.
It's too expensive.
Another astute observation, and I agree, but there have been mandated minimum wage increases throughout the country. Things haven't changed in many parts but things have changed drastically in others for the better.
Ben you make a good point and there have been moves to redistribute wealth better like eliminating taxes for farmers. In fact its an emphasis on the current plan China is on.
I'm arguing Apple's pricing strategy has been successful so far. I think people downplay the finger reader as the uses of such technology is not understood.
Good point. A prospering used smartphone market could be a good sign for Apple assuming other people have replaced them with a newer version of an iPhone.
Those are good points. Brand matters but people may be more conscious of it depending on location.
Numbers are in the the earnings every quarter.
Apple can buyback more stock if the share price is cheaper. As for why the stock goes down larger investors are going to have more sway. There is also earnings next month. My guess is that it is a toss up. There is strong support at $390-400 if that is of any help.
There is a lot of paperwork and hurdles to get through to open up a store for a multinational like Apple. That is part of it but the other part is Apple being picky probably.
There are only 8 stores in mainland China and 3 in Hong Kong. The 8 stores in mainland China is spread throughout 4 cities. We are talking about a really small number of stores here.
From observation Apple is doing well in Hong Kong. Maybe 20-30% of people have or carry around an iPhone.
The future is definitely uncertain like always but I find Apple to be in a good position to compete in China. I agree it's way too early to call an end in light of drastic changes in emerging markets. Apple has brand, cash, and quality working in its favor. Another advantage I didn't go into is innovation and being able to get first movers advantage in its products.
The title is a bit misleading, sorry.
Like many, I hope Apple releases a new product within these next few years. Shareholders will rejoice at that kind of news. Sales usually ramp up for Christmas so the next few quarters are going to be interesting.
In the interest of reenacting this debate for SA: an OK summary of the points against keeping the iphone priced in the current range but for now your argument lost the debate within Apple for good reason.
Maybe James can't see the other side why that is or he is intentionally trying to sell his view but either way this view LOST.
People buy higher priced consumer products when lower priced products exist for three reasons:
1. Brand
2. Quality, experience (yes), and style
3. Price
Yes, duh, people at Apple understand you have to grow the consumer base to allow people to participate in the ecosystem. In order to understand Apple's decision you have to understand that it's strategy is not to get everyone on the planet to have an Apple product for the cheapest price, it is to maximize the amount of profit from everyone while getting them an Apple product over time. The trend shows, with it's 700 millionth iPhone sold to date, that is happening (pause for a while and think about that number and think about that number in relation to the world's population). Samsung can win the battle now in the emerging markets slightly, but the war isn't over until Apple ceases to exist.
3 Reasons Why Apple Will Continue to Grow:
1. It has a $130 BILLION war chest. Think about this in terms of R&D, which it doesn't need as it's current R&D is low. It can go into any damn profitable business it wants to if the end goal is to increase EPS.
2. It's an innovator, not a copier, meaning no one, not even James can predict what the next revolutionary product is but trust what Apple insiders have said publicly, there are plenty.
3. It's Apple, enough said. It transformed from a computer tech company, to a media services provider/music device company, to now a mobile device/tablet company. It can and will transform again to grow profits but the end goal is not money or to increase the stock price but to make the best products that people want. The stock price just happens to go up as a reward for making the best products.
Will Apple stock go up a year or two, or three, or five years from now? It's a top 5 stock for Hedge Funds. Apple is buying back $100 billion of its stock until the end of 2015. Oh, and future products are not priced in. P/E is also at a lowly 12, 9 subtracting its cash. Can it go back down to 400, or 380 again? Sure, if earnings misses by 20% and the world economy deteriorates like in 2008.