Apple's Watch Strategy Embraces The 80-20 Rule
Neil Cybart • 297 Comments
Neil Cybart • 297 Comments
Apple: Becoming A Semiconductor Powerhouse
Mark Hibben • 119 Comments
Mark Hibben • 119 Comments
Thu, Apr. 28, 2:08 PM
- Apple's (NASDAQ:AAPL) turning lower, now down 1.6%, on the revelation from Carl Icahn to CNBC that he no longer holds a position in the company.
- Icahn had a little less than a percent of the shares. But it's a "great company" and Tim Cook has done a great job, he said.
- The investor pointed to China as the key reason he sold shares.
- Apple has declined 7.9% since Tuesday, when it misses estimates amid a near-13% fall Y/Y in revenues (-18% in iPhone revenue).
- Now read Apple's Dividend And Buyback: No Joke »
Wed, Apr. 27, 9:11 AM
Tue, Apr. 26, 5:40 PM
Tue, Apr. 26, 4:34 PM
- Apple (NASDAQ:AAPL): FQ2 EPS of $1.90 misses by $0.10.
- Revenue of $50.6B (-12.8% Y/Y) misses by $1.37B.
- 51.2M iPhones (slightly above expectations), 10.3M iPads (above expectations), 4M Macs (below expectations).
- Expects FQ3 revenue of $41B-$43B, below a $47.32B consensus.
- Buyback authorization increased to $175B from $140B. Quarterly dividend hiked by 10% to $0.57/share. Total capital return program upped by $50B; Apple plans to spend a cumulative $250B through the program by the end of March 2018. $163B has been spent through the program as of March 2016.
- Shares -4.8% after hours.
- Press Release
- Update: Apple finished after-hours trading down 7.9%. Earnings report details can be found here.
Wed, Apr. 13, 11:01 AM
- The Information reports Danny Coster, a senior member of Apple's (Jony Ive-led) industrial design team, is leaving to head a new hardware design group at GoPro (GPRO +12.2%).
- GoPro has soared on strong volume - 7.7M shares have already been traded vs. a 3-month daily average of 7.6M. 24.2M shares were shorted as of March 31. That's down from 35.3M as of Jan. 15, but still equal to nearly a third of the float.
- Coster has been with Apple (NASDAQ:AAPL) since the early '90s, and holds over 500 design patents. A 2006 Bloomberg column on Jony Ive stated Coster did most of the design work for the original iMac "with Ive's close collaboration."
Tue, Mar. 22, 10:28 AM
- Tech news site Ars Technica reports Apple (AAPL +1.1%) is in "advanced talks" to buy U.K.-based Imagination Technologies (OTCPK:IGNMF), whose PowerVR GPU cores are used within Apple's A-series processors. Imagination is up 19.6% in London; its market cap stands at $869M.
- Acquiring Imagination would further add to Apple's chip R&D efforts. Right now, those efforts include designing the A-series chips and the custom ARM CPU cores that go into them, the M9 motion co-processor, and fingerprint sensor and LCD timing controller ICs.
- Apple already owns an 8.4% stake in Imagination, and has often trumpeted the graphics capabilities of its hardware - yesterday, the company declared the A9X processor going into the iPad Pro has more GPU power than an Xbox 360. Apple could presumably buy Imagination with offshore cash.
- An Apple/Imagination deal could spell an opportunity for ARM (ARMH -0.3%), whose Mali GPU cores compete with Imagination's PowerVR line, to take share at non-Apple Imagination customers such as Samsung. iPhone/iPad audio codec supplier Cirrus Logic (CRUS -1.1%) is down slightly - Imagination's product line includes voice pre-processing IP, but GPU cores drive the lion's share of the company's business.
- Apple is trading higher a day after revealing the 4" iPhone SE and the 9.7" iPad Pro.
- Update (11:34): Apple says it doesn't plan to make an offer to buy Imagination, while adding it did hold talks with the company.
Wed, Mar. 16, 4:05 PM
- Jabil Circuit (NYSE:JBL): FQ2 EPS of $0.57 misses by $0.03.
- Revenue of $4.4B (+2.1% Y/Y) misses by $100M.
- Expects FQ3 revenue of $4.1B-$4.3B and EPS of $0.12-$0.18, below a consensus of $4.75B and $0.51.
- Expects FY16 (ends Aug. '16) revenue of $18.5B and EPS of $2.12, below consensus of $19.7B and $2.60.
- CEO Mark Mondello: "Our updated outlook for the third quarter reflects reduced demand in mobility." Apple (NASDAQ:AAPL) is a major mobile client.
- Shares -13% after hours.
- Press Release
- Update (4:16PM ET): Jabil has pared its losses a bit: Shares are now down 8.7% after hours to $20.06.
Tue, Mar. 15, 7:30 AM
- Supply chain revisions have bottomed, says Morgan Stanley's Katy Huberty. "Our Asia tech team led by Jasmine Lu believes supply chain inventory digestion has come to an end."
- They're modeling 40M builds for both the March and June quarters.
- Morgan's iPhone tracker sees sales of 56.5M units this quarter vs. Street estimates at about 50M.
- Notable Calls: "We've had some 'green shoots' in the past ten days, but Katy putting her foot down is what matters."
- AAPL +1.45% premarket
Mon, Mar. 7, 2:09 PM
- Stifel's Patrick Newton, hiking his Coherent (COHR +3.2%) target by $18 to $100: "Our research indicates the Apple (NASDAQ:AAPL) supply chain is ramping for OLED production across its portfolio, likely in the 2018 timeframe, requiring a significant investment in OLED hardware, including Coherent’s Excimer Laser Assembly (ELA) Linebeam products." His FY16 (ends Sep. '16) and FY17 EPS estimates have been respectively hiked by $0.15 and $0.20 to $4.40 and $5.25; consensus is at $4.44 and $5.07.
- Newton: "We note technologies that use Coherent’s solution, specifically low temperature polysilicon (LTPS), has significantly higher share in OLED production relative to LCD. Our research indicates benefits from the OLED shift extend beyond hardware with the higher utilization of laser discharge units (LDUs) increasing the company’s service revenue relative to LCD, all else equal." He also observes Coherent's OLED-related laser sales carry higher margins than its LCD-related sales.
- The note comes five weeks after Coherent reported (along with FQ1 results) strong OLED-related orders for its Linebeam laser systems, and forecast the orders would continue through 2017. It also follows multiple reports indicating Apple plans to use OLEDs in future iPhones - the Nikkei reported of a 2018 ETA.
- Universal Display (OLED +5.1%) is going in the same direction as Coherent, much as it did after Coherent's FQ1 report. Shares have more than recovered the losses seen after Universal posted a Q4 miss and issued light 2016 guidance on Feb. 25.
Wed, Feb. 24, 3:56 PM
- With Viacom (VIA +1%, VIAB +0.3%) looking to sell a strategic stake in Paramount Pictures, who could be interested in buying?
- Foreign investors are likely, amid a wave of investment in Hollywood from overseas. China's Perfect World is putting $250M into a development slate at Universal, while in-country counterpart Bona Film Group said in November it was putting $235M into a slate at Fox.
- Analysts suggest the studio is worth about $5.5B today, notes The Hollywood Reporter, so a minority stake could still come to $2B. Viacom paid $9.8B for the studio a dozen years back.
- Major conglomerates like Alibaba (BABA +0.6%), Dalian Wanda and Fosun (OTCPK:FOSUF) have an appetite for Hollywood deals -- and Wanda already owns cinema chain AMC and producer Legendary Entertainment, while exploring a stake in Lions Gate. A key interest with those firms is ability to get Paramount products into China, where Transformers is a major phenomenon. Tencent (OTCPK:TCEHY +0.2%) has similar international media appetites.
- Fosun is trying to buy Bona and take it private, which would give it Bona's entry into Fox's slate.
- Back home, Lions Gate (LGF +8.8%) is now a frequent source of tie-up rumors -- and is on the move today amid Amazon.com (AMZN +0.1%) content-deal chatter. Both Lions Gate and Amazon could use a piece of Paramount for different reasons.
- Meanwhile, Apple (AAPL +1.5%) has been floated as a possible bidder for Time Warner, as it may be shopping for content to feed TV dreams -- but a stake in Paramount would come far cheaper than trying to swallow Time Warner whole for $50B-$80B.
- Previously: Viacom, up 5%, confirms Paramount investment feelers (Feb. 23 2016)
Wed, Feb. 3, 4:49 PM
- A Texas jury has reportedly awarded VirnetX (NYSEMKT:VHC) $544.7M in an infringement suit against Apple (NASDAQ:AAPL). Apple is reportedly ruled to have willfully infringed all asserted claims.
- VirnetX, crushed in 2014 after an appeals court ruled against the company in a case against Apple, has soared to $8.29 after hours. Shares rose 29.8% in regular trading ahead of the news.
- Last month: VirnetX soars after new Apple suit ruling
- Update (5:17PM ET): Markman Advisors has adjusted its reported damages figure to $625M+. Bloomberg reports a figure of $625.6M.
Mon, Feb. 1, 11:04 AM| Mon, Feb. 1, 11:04 AM | 66 Comments
Fri, Jan. 29, 8:22 AM
- Energous (NASDAQ:WATT) has risen to $4.98 premarket following an overnight Bloomberg report stating Apple (NASDAQ:AAPL) is "working with partners in the U.S. and Asia" to develop over-the-air wireless charging technology that could be deployed on its hardware as soon as next year.
- Energous' name isn't mentioned in the report. However, Bloomberg's description of the technology Apple is working on bears some resemblance to Energous' WattUp; it should be noted others have also been working on OTA wireless charging.
- For its part, Energous has said it has a deal with an unnamed tier-1 licensee, and that it aims to "release products to the consumer through our licensing partnerships in late 2016, early 2017." There has been some speculation among bulls the tier-1 licensee is Apple.
- Update (9:46AM ET): Energous is now up 24%.
Wed, Jan. 27, 12:40 PM
- Down just moderately after hours in the wake of its mixed FQ1 results and soft FQ2 guidance - some bad news was priced in following chip supplier warnings and iPhone order cut reports - Apple (AAPL -4.5%) is seeing steeper losses today. Several chip suppliers are also off.
- Not surprisingly, many on the Street are nervous about earnings call remarks regarding macro pressures in general, and Chinese pressures in particular. However, bulls are also taking heart in Apple's efforts to highlight services growth - reported FQ1 services revenue rose 26% Y/Y to $6.1B, and Apple asserts its installed base drove nearly $9B in related purchases (+24% Y/Y). With revenue guided to drop 9%-14% Y/Y in FQ2, future iPhone growth is also the subject of much debate.
- Macquarie's Ben Schachter (Outperform, $117 target): "The company rang the alarm bells loud and clear on macro weakness ... Cook put something of a line in the sand in implying that the March qtr would be the trough for iPhone unit growth ... the new disclosures confirm our thesis that the % of profit contribution from Services is almost 2x its % of revs, i.e., Services should contribute almost 20% of profits in FY’16 despite representing only about 10% of revs."
- Deutsche's Sherri Scribner (Hold, $105 target): "We remain concerned about the lack of growth in iPhone units this year, the slowdown in China sales, and gross margin pressure from FX as we move through the year ... With AAPL becoming a recurring revenue story, we expect the valuation to rerate in line with other mature, services-type companies."
- Susquehanna's Chris Caso (Positive, $140 target): "We think the question about whether iPhone can grow was, however, a more relevant argument when the stock was higher. With the stock at its current level (AAPL’s free cash flow yield is now in excess of 10%), we think the more relevant question now is whether iPhone can continue to generate cash at similar levels over a reasonable investment horizon ... Nonetheless, what’s ultimately needed for AAPL to be viewed as a growth stock once again is for them to once again simply invent something new that will have the impact of the iPod, iPhone or iPad." (ed: could an electric car do the job?)
- Other opinions: 1) Jan Dawson still sees plenty of room to cross-sell new products/services to a base of 1B+ active users. 2) VentureBeat's Chris O'Brien thinks more transparency is needed on Apple Watch/Apple TV sales and services revenue (among other things). 3) 9to5 Mac's Ben Lovejoy argues it's time for Apple might need to rethink iPhone pricing in light of macro/forex pressures and competition.
- On SA, Bill Maurer notes Apple disclosed 60% of iPhone owners haven't upgraded to an iPhone 6/6+ or 6S/6S+, and that a rumored new 4" iPhone could appeal to some of them. Paulo Santos, on the other hand, is skeptical a new 4" iPhone will provide a big lift, and considers FQ1's 25% Y/Y iPad unit drop "more serious than it looks."
- Prior Apple coverage
Wed, Jan. 27, 8:18 AM
- Though expectations were low following warnings from Cirrus Logic, Qorvo, Analog Devices, and others, iPhone/iPad suppliers are down after Apple missed FQ1 (calendar Q4) revenue estimates (while beating on EPS), and offered soft FQ2 guidance - revenue of $50B-$53B vs. a $55.6B consensus and year-ago sales of $58B.
- FQ1 iPhone sales of 74.8M were close to Street expectations, but iPad and Mac shipments (16.1M and 5.3M, respectively) were below. On its earnings call, Apple mentioned forex swings and Chinese macro pressures are weighing on sales.
- Cirrus Logic (NASDAQ:CRUS), which reports this afternoon, is down 2% premarket. Qorvo (QRVO - reports Feb. 4) -2.7%, Skyworks (SWKS - reports tomorrow) -2%, Analog Devices (NASDAQ:ADI) -3%. Apple (NASDAQ:AAPL) itself is down 3.7%. Nasdaq futures are off 0.7%.
Fri, Jan. 22, 6:51 PM
- The veteran in charge of the electric-car project at Apple (AAPL +5.3%) is leaving the company for personal reasons, The Wall Street Journal is reporting.
- Former Ford Motor engineer Steve Zadesky has overseen the project for Apple for the past two years but has told people he's leaving. The move is unrelated to his performance, sources say, and the timing isn't clear.
- The project -- formerly just rumored, but eventually code-named "Titan" and given a 2019 ship date -- has run into problems, sources said. The company has pressed the team (already up to 600 employees by September) toward ambitious deadlines, though some on the team felt the targets weren't attainable.
- After hours: AAPL +0.4%.
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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