Today, 12:00 PM
Today, 11:33 AM
- Apple's (AAPL +7%) cash on hand was reduced to $231.5B in Q3 vs. $233B in Q2, the first time in seven quarters this figure has decreased.
- Research and development expenses rose for the nine-months-ended June 25 period to $7.475B vs. $5.847B Y/Y. The three-month-ended time frame saw an increase to $2.56B vs. $2.034B Y/Y.
- Strategic investments in the nine-month-ended period are $1.376B vs. $0 Y/Y.
- The majority of investment activity stems from the company's $1B investment in Didi Chuxing, a Chinese transportation service and Uber competitor.
- Tim Cook on yesterday's conference call: "In terms of the investment in Didi, it was an unusual investment in that, as you know, we don't have a long history of doing a lot of these. . . . From a Didi point of view, we see that as one, a great investment. Two, we think that there's some strategic things that the companies can do together over time. And three, we think that we'll learn a lot about the business and the Chinese market beyond what we currently know. Didi has an incredible team there. That's sort of the rational for why we did that."
- Although Apple appears to be utilizing a larger than usual (though still relatively small) portion of its vast cash pile, investors and consumers alike are waiting on the company's next innovative move, whether that be through existing product lineups, a Project Titan car initiative or any other surprise moves the company has on deck.
Today, 10:25 AM
- Apple (AAPL +7.4%) posted better-than-expected results yesterday and analysts are having their say.
- BTIG Research analyst Walter Piecyk restates a Buy rating, raising his price target to $124 up from $115 citing a potential return to growth due to upcoming new products.
- Citigroup analyst Jim Suva restates a Buy rating, raising his price target to $120 up from $115 citing allayed fears regarding results and outlook.
- Needham & Company analyst Laura Martin restates a Strong Buy rating and $150 price target citing the worst is now behind the company.
- Raymond James analyst Travis McCourt upgrades to an Outperform rating from Market perform and $129 price target.
- William Blair analyst Anil Doradla restates an Outperform rating.
- Wells Fargo analyst Maynard Um restates an Outperform rating.
- Deutsche Bank analyst Sheri Scribner restates a Hold rating, maintaining her price target of $105. She cites unchanged views regarding slowing smartphone growth and an extended iPhone refresh cycle.
- UBS analyst Steve Milunovich restates a Buy rating and maintains his $115 price target.
- R.W. Baird analyst William Power restates an Outperform rating and $115 price target.
- RBC Capital Markets analyst Amit Daryanani restates an Outperform rating and $115 price target.
- Pacific Crest analyst Andy Hargreaves restates an Overweight rating and $121 price target.
- Piper Jaffray analyst Gene Munster restates an Overweight rating, lowering his price target to $151 down from $153.
- Cowen & Company analyst Timothy Arcuri restates an Outperform rating and $125 price target.
- Canaccord Genuity analyst Mike Walkley restates a Buy rating and $120 price target.
- Bernstein analyst Toni Sacconaghi before yesterday's release restated an Outperform rating, lowering his price target to $125 down from $135.
- Another pre-earnings call by Colin Gillis at BGC Partners pegged Apple at $85 with a Sell rating, a now stark outlier among this group.
Today, 9:23 AM
Yesterday, 5:36 PM
Yesterday, 5:15 PM
- Apple (AAPL) exceeded this quarter's expectations while posting sales down 14.5% Y/Y.
- 40.399M iPhone units shipped (vs. 40.02M expected and 51.2M Q/Q).
- 9.95M iPad units shipped (vs. 9.1M expected and 10.9M Q/Q).
- 4.252M Mac units shipped.
- Gross margin 38% vs. 39.7% Y/Y.
- International sales contributed to 63% of Q3 revenue.
- Services business +19% Y/Y.
- App Store revenue highest ever.
- $13B returned via share repurchases and dividends ($177B of $250B already committed to program).
- Q4 guidance of $45.5B-$47.5B revenue, 37.5%-38% gross margin and $6.05B-$6.15B of operating expenses.
- $0.57 per share dividend declared.
- From Apple CEO Tim Cook: "We are pleased to report third quarter results that reflect stronger customer demand and business performance than we anticipated at the start of the quarter. We had a very successful launch of iPhone SE and we’re thrilled by customers’ and developers’ response to software and services we previewed at WWDC in June."
- Apple is down 21.26% from this period last year as of market close.
- Earnings call
- Press release
Yesterday, 4:33 PM
Yesterday, 4:31 PM
Yesterday, 3:57 PM
- In a surprise move, Apple (AAPL -0.6%) is the buyer of the Carpool Karaoke series being spun out of The Late Late Show with James Corden (NYSE:CBS).
- Apple will distribute the show via the Apple Music platform, where it sees a natural fit in the series (which will feature Corden driving celebrity guests around while they sing hits), and where it's been starting to turn to original video as a bonus for its paying subscribers. It's licensed 16 episodes.
- The segment, a small part of Corden's show, became a viral hit when shared online -- an increasingly vital part of holding down a traditional late-night TV show today -- and sparked a bidding war among programming buyers.
- The segments have generated more than 800M views online to date, CBS says.
- CBS still retains the rights to sell a second window of the series to a more traditional TV outlet.
- Apple reports earnings in just over a half hour.
Mon, Jul. 25, 5:35 PM
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Mon, Jul. 25, 5:14 PM
- Colin Gillis of BGC Partners issues an $85 price target (current price $97.34) on Apple (AAPL), down from $110 on iPhone sales worries.
- Notes slower 6s upgrade cycle than the 6 along with a fully mature smartphone market (less than 1% growth), minimal revenue diversification (cites Apple Watch as the only recent product lineup addition), missed acquisition opportunities (cites SoftBank acquiring ARM as something Apple should have pursued) and declining iPad revenues (9 consecutive quarters in a row).
- This news comes amid other analyst-projected low demand expectations for the upcoming iPhone 7 reportedly set to launch on September 16.
- Apple reports its Q3 earnings tomorrow after market close.
Mon, Jul. 25, 12:09 PM
- Bob Mansfield has previously held the role of Senior Vice President of Technologies at Apple (AAPL -0.6%) before stepping down from the position in 2013 to work on "special projects" at the company. He began at the company, working under CEO Steve Jobs.
- He has led hardware engineering efforts on the development of the iMac, iPad and MacBook Air and was involved in the development of the Apple Watch.
- Apple's under-wraps vehicle program is code-named Project Titan.
- The Wall Street Journal reports employees at Apple took notice of senior managers working on the company's car initiative as reporting to Mansfield.
- Apple has not commented on the report.
Sun, Jul. 24, 7:34 AM
- According to prominent mobile phone leaker Evan Blass (a.k.a @evleaks), the world may be just under two months away from the iPhone 7.
- "iPhone 2016 release: week of September 12th," he wrote on Twitter. "Just to clarify, this refers to the retail release, not the launch event. To be even more specific, it should happen on Friday, Sept. 16th."
- Rumors are also swirling about whether Apple (NASDAQ:AAPL) will offer a three model line-up for the first time, including a so-called iPhone 7 Pro.
Fri, Jul. 22, 4:14 PM| Fri, Jul. 22, 4:14 PM | 58 Comments
Thu, Jul. 21, 3:37 PM
- A report by IDC describes a 32% fall in the global smartwatch market and a steep 55% decline in Apple's (AAPL -0.5%) Watch sales from Q2 2015 to Q2 2016.
- According to this report's data global smartwatch shipments in Q2 were 3.5M vs. 5.1M Y/Y with Apple contributing 1.6M (-55% Y/Y) and Samsung (SSNLF) 0.6M (+51% Y/Y) to that number. Lenovo (+75%) and LG Electronics (+26%) each shipped 0.3M and the remaining shipments were contributed by Garmin (+25%) and other undisclosed companies.
- A concern going forward as it relates to this sector, whether this data is accurate or not, is the extended product refresh period Apple has so far adopted for its Watch offering. More than a year after launching (April 2015), a second generation Watch has not been released. With an already extended refresh cycle for the iPhone and though an upgrade is rumored to be released in fall of this year, it remains to be seen what time frame will eventually be adhered to for the Watch.
- Apple has not commented on this report and has not released official figures regarding Watch sales since April 2015.
Wed, Jul. 20, 5:34 PM
- Needham & Company forecasts Apple (AAPL) could see $3B in revenue over the next 12-24 months generated exclusively by Pokémon Go.
- Laura Martin, Needham's Managing Director, cites the mobile phenomenon's surge in U.S. popularity and factors expected international expansion into her projection.
- More notably, the success of Pokémon Go indicates a potential bonus for both Apple and Google (GOOG, GOOGL). The App Store and Google Play are the base of any successful games running on the companies' respective platforms and money made through in-app purchases is subject to 30% cuts on both. However, revenues generated from App Store and Google Play are famously incongruous and so are the dollar amounts spent by users of iPhone vs. Android. It is misguided to assume what occurs on one platform will occur on the other. Until actual numbers and monetary breakdown of the game as it relates to either App Store or Google Play revenues is unveiled, it is only worth noting the potential such a momentum generating piece of software can have on these platforms.
- Apple and Google are squarely in the middle of any existing and subsequent hits housed on their respective app marketplaces. A success like Pokémon Go was a big time effort from those involved in its creation and Apple and Google are in positions to immediately share in its prosperity. Going forward, apps can fail with little effect on these companies' bottom lines, but when a knockout comes around, they only stand to gain.
Apple, Inc. engages in the design, manufacture, and marketing of mobile communication, media devices, personal computers, and portable digital music players. The firm offers products and services under the iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV brands; consumer and professional... More
Industry: Personal Computers
Country: United States
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