Kevin_S

Is Apple More Undervalued Than Other Tech Sector Stocks?

Anon, when you apply for a credit card, the bank bases on your pass history and future (current job) income. Apply history is perfect; Apple future is better than anyone else, with a lot of cash on hand. Apple sells at least 15M-20M 3G iPhones each year from now, and you can see defer revenue will be up to the mountain in 3 years.

Is Apple More Undervalued Than Other Tech Sector Stocks?

Whenever an analyst upgrades or downgrades a stock, he/she at least should spend this kind of effort to analyze the stock. I bet you those analysts that downgraded Apple a while ago did have intention - he/she got paid to help others to cover their short position. An investigation is needed.
And that's why I think Apple shoud do bargain buyback to eliminate this kind of market manipulation. Steve may be thinking about some buyback seriously.

Apple Takes a Bite of Research In Motion

crazylegs, I meant the $35B number is for Q1 of *2010* (next year). Sorry. My prediction is that 4 years from now, Apple will have about $70B cash.

Apple Takes a Bite of Research In Motion

By Q1 2009, the cash ($35B) + the deferred revenue ($15B) is more than half of Apple market cap (assuming Apple sells conservatively 6M 3G iPhones each quarter). So, if Apple can build up both the cash and the deferred revenue at this rate without tapping into their existing cash (for spending), eventually all deferred revenue becomes cash. So we look at $70B cash and still around $15B of defered revenue by 2012, which is about Apple's market cap right now.