Market Currents
Over 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last...
-
Monday, January 7, 9:28 AM ETOver 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last year, Apple (AAPL) declares. The company adds developer payouts have topped $7B, and that there are over 500M active iTunes accounts (very useful for a mobile payments solution if Apple ever wants to launch one). The App Store still has a big edge on Google Play when it comes to app monetization, though the latter has been growing faster lately.
Other date
TECH ETFs IN FOCUS
Latest Tech Articles
This news story has 58 comments:
There are limits. Once everyone has an iPhone, where does further growth come from?
http://read.bi/XD4Un9
Did say the hedge funds would be dumping, they have already earned Apple's next few years earnings, and there's probably some more downside on the way. Being a fan boy isn't going to do your wallet any favours. Buy low, sell high not buy high sell low.
Where would you like me to begin...
1. New iPhone sales on upgrade cycle
2. Complimentary iPads & Macs from satisfied iPhone customers
3. Apple TVs with Paid Subscription Services
4. Mobile Wallet - Tie your Debit or Credit Cards to your iTunes Account for Global Payments
Future growth from upgrades to their existing product offerings alone is enough to support a significantly higher share price. And what are the chances that they've got more innovation up their sleeve? I get the theory that innovation died with Jobs - that may be the case but I find it hard to swallow.
Being a fan boy isn't a way to make money, but apparently being a spreader of FUD is.
We're *still* coming down from a Shiller P/E of around 40 in Y2k. Single digit P/Es are going to become the new normal. Just saying you might want to take a step back and try to get some perspective on what normal is.
It's essentially a software company that makes money by selling hardware to gain access to that ecosystem/software.
I personally think their products are overhyped and overpriced, but they carry a brand name cachet and with millions of individuals invested in the Itunes music/app ecosystem, I don't see it going away tomorrow
There are no future earnings price into AAPL at 525. In fact, there is no growth at all priced into AAPL at 525, let alone exponential growth. AAPL grows at four times the rate of the S & P and sells at over a 20% discount to the S & P.
As for market saturation, You should be talking about Samsung, not AAPL. AAPL only has 17% of the global smartphone market (with 70% of the profits), so....nowhere near saturation.
Try again.
1.) huge growth in enterprise market and huge future opportunity in enterprise business.
2.) China mobile deal
3.) 135B war chest to buy earnings with through acquisitions or stock buy-back.
4.) New developing countries such as India which has almost the same population as China.
5.) Whatever new products AAPL's multi-billion dollar R & D budget yeilds.
AAPL is undervalued by almost any metric you can look at. Your argument about the new normal might carry more weight if AAPL was OVERvalued compared to its peers, but it's not, despite years of innovation and outperformance.
As a comparison, GOOG is valued at about twice AAPL right now. AAPL is right around the valuation of MSFT. If you think that's realistic, that's your right, but it's nowhere close in my universe.
At the end of the day it's a risk. It just makes me laugh to see people that believe AAPL is going to trade at a low single digit multiple. It may end up being right, but I'm pretty sure it won't - and I've invested accordingly.
Not everyone has a iPad either (although most will soon).... not everyone is happy with their current television viewing either..... errr China mobile.....what happens when 500m apple existing iTunes accounts continue to grow at 15% for 3 more years (that's 1 billion shopping customers) buying content, apps, shows, etc every year..... Mac growth showing no signs of slowing...... doesn't look like the build quality and lasting excellence of Apple products across any of their lines has a serious competitive threat (and please don't give me the 'android argument' across 20 different manufacturers)...doesn't look like they like building retail stores fast enough either - because I've been in 9 apple stores across the country over the past 6 mos. and there wasn't much walking around room.....
I can't wait for news sources to stop comparing iPhone to Android. It's literally iPhone against every other smartphone maker and then claiming the entire smartphone industry is just killing Apple. Whatever, give me a break.
Every Apple critic needs to quit trying to be the hero on predicting apple's downfall and appreciate what is occurring right under their noses.
Do me a favor... and tell me what other companies deserve a greater premium for potential future earnings?
AAPL has no answer to the Samsung Galaxy Note 2, BMW comparison or not
100 mill new accounts in the holiday quarter. Each brand new idevice requires a new account to say nothing of veteran users who tie new IStuff to old accounts. Very good news IMHO.
By the way, referring to a 'historical' correlation for a stock in an explosive growth phase (or possibly just coming off of it) is somewhat misleading. What's 'historical' for a company whose product lineup of portable devices didn't exist 5 years ago?
Apple will make over 50B in cash just this year. Here the analyst will say. Only 50B. It should be more like 100B. We should give Apple only 5 PE. It is ok if Google has 25 PE or Amazon has gazillion PE. Google and Amazon are growing. Apple might growing 35% per year now but it will stop growing soon.
In summary Analyst are selling gold and buying junk. I do not understand this.
It's really, *really* simple but so many don't understand what it means.
App store has grown 200% this year according to Apple. That's from ~$2B to ~$6B. Google play has grown quickly as well, but total revenues are still menial compared to what Apple is raking in!!!
Where's my Nobel Prize?
The Nov. 30 article correctly points out both Apple and App Annie's figures are accurate, they simply reflect different timeframes. Apple's numbers involve full-year 2011 and YTD 2012 figures, App Annie's the change of from January to October 2012.
IMHO, you should have left that "commentary" out or should have also offered perspective by stating that while Google Play is growing faster (slightly), App store revenues are 5x larger ( http://tnw.co/U0PTHU )
I've been growing my consulting business 100% per month for the past 3 months, beating "growth" rates of all big 3 consultancies, but I started from $0 in monthly revenues...
Wrong. The VentureBeat article points out why Apple and App Annie have different numbers. It makes no accusations of manipulation. Here's one paragraph:
"I don’t know if you’re ready to sing Kumbaya yet, but I’m satisfied that the numbers add up, as well as they can, and that while Apple is correct in saying that app store revenues are still showing tremendous growth, App Annie is correct in saying that the iOS app store’s growth rate is significantly slowing, particularly when measured against Google Play."
And I see you haven't owned up to falsely accusing me of linking to an "incorrect" article, when in fact the article I provided was newer and fully took into account the story you linked to.
"you have manipulated the story to make the case that you want to make"
Again false. The post mostly provides positive info on Apple. There just happens to be one line that (correctly) notes Google Play is growing faster off a smaller base. Making accusations of "manipulation" based on that suggests to me you're set on criticizing anything that isn't 100% positive on Apple.
I see that I'm not going to win the debate, but I think I have made my point quite clearly.
It should be clear from the things I've written that I have a lot of respect for Apple. And for that matter, I'm typing this from a desk that has a well-used iPad 2 on it. But I don't expect to ever fully please anyone that falls in love with one gadget maker or another, and takes umbrage at any criticism.
- Free accounts
- sharing of photos
- messaging
- gaming
- ad-based revenues
- 1B users
What is Apple iCloud:
- Free accounts (with email)
- sharing of photos (Photo Stream)
- messaging (iMessage)
- Gaming (iDevices/iOS based)
- ad-based revenues (iAd)
- and so much more (music revenues/sharing, app revenues, in-game purchases, calendar sync, family calendars, etc.)
Apple, please wake up and start marketing this amazing social networking platform that you have created!!!!!!!! $50B valuation increase just by marketing it correctly. Look at FB, $60B market cap and NO PROFITS!!!!
But, Apple is always impaired by its own "walled garden" approach to everything. Facebook is universal and can be and is accessed by folks of every conceivable platform. Apple's approach will, no doubt, make it seamless and easy for all other iOS users, but will any internal system be usable and as convenient for outsiders? And, keep in mind that for every iPhone sold, Android alone sells over four.
http://goo.gl/1UUcW