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faramarz

faramarz
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  • Quantifying Apple's Strategic Errors [View article]
    @author. Many errors of numbers interpretation.
    All content buyers are not equivalent. Android content buyers dont spend as much as ios content buyers. If you price the idevices lower, you may have more devices sold but not more content & accessories.
    Lower price will damage the brand & the staus symbol. Apple will become +/- like samsung without some of the advantages that samsung has. The competition will be much strong & the price war will kill every one specially those who are not vertically integrated.
    MB or Porshe do not battle on price. They will lose their market if they did so.

    What You seem tovrefuse to understand is that Apple is a brand & is going to be more & more a luxury brand. Your semi intellectual assumtions do not apply to brands but to commodity items. Apple is selling smartphones & tablets. Those items are commodities but Apple's devices are not. It is like saying that cars are commodity items but MB or Porshe are not.
    Feb 13 04:44 PM | 1 Like Like |Link to Comment
  • The Secret Code To The Apple Cash Vault [View article]
    Apple's offshore money is free to be repatriated with repatriation tax payment. There is no other barrier as this money is after tax of the countries where it is earned.
    Feb 12 09:55 AM | Likes Like |Link to Comment
  • The Secret Code To The Apple Cash Vault [View article]
    @RadarTheKat. Apple obviously should declare such move & also the Maximum amount dedicated to such purchase. Apple would not be allowed to trade on the market but could sell those shares in private if needed. But i doubt that Apple would need one day to sell those. This would be like money invested in the bond market with an interest rate equivalent to the dividend.
    Feb 12 09:53 AM | Likes Like |Link to Comment
  • The Secret Code To The Apple Cash Vault [View article]
    @ NTI investor. Apple has to pay the repatriation & capital increase tax on any equity purchased with offshore money & sitting actually on their balance sheet. This would also be the case with their own shares.
    Feb 12 09:44 AM | Likes Like |Link to Comment
  • Apple Continues To Present Tremendous Upside [View article]
    @author. Assuming that the 5C was a failure is not right at all. 5C replaces the 5. Apple, usually, used to keep selling the older model with a 100$ price difference to the new one. So the 5C sales volume should be compared to what would have been the 5's sales after the 5S launch. If apple 5S to 5C sales were 3.5/1 as many analysts suggest and assuming that 5S & 5C accounted for 95% of Q1 sales, we will have following sales volume : 5S = 35.68M = 73.9%, 5C = 10.77M = 21.12% & 4S = 4.55M = 4.98%.
    I dont think that Apple would have sold more than 10M of 5's in the Q114.
    Feb 11 05:56 AM | Likes Like |Link to Comment
  • The Secret Code To The Apple Cash Vault [View article]
    Apple can-shall/should have buy/bought at least 100M shares with the money sitting oversears when the stock eas between 400 & 500. Apple is holding marketable securities & equities on their balance sheet with the money sitting offshore. Some of this could have been replaced by Apple's own stock. There is no laws forbidding this. Instead of having X-Y-Z on the balance sheet they would have Apple's own shares. Apple would obviously pay a repatriation & capital increase taxe whenever they decide to bring those shares back home. But in the mid time, Apple would save the dividende on those share. This alone would be a better use of money than the thresury bonds. WS would consider those shares as being effectively written off & would consider 2 type of EPS: one accounting those shares & one without. Apple could also vest all oversees employees option from thoses shares.
    I have talked of this to several business lawyers in US & they don't see anything against the current US laws on the subject.
    Feb 11 05:25 AM | 7 Likes Like |Link to Comment
  • Apple iPhone ASPs Are Certain To Fall [View article]
    @ Redrut. Prada bags need more than the leather quality & the look to care about. Many components enter the manufacturing of a bag & the manufacturing quality being the most important part of it.
    Feb 7 11:00 AM | Likes Like |Link to Comment
  • Apple iPhone ASPs Are Certain To Fall [View article]
    @ Cagdas Ozgenc.
    You mean 1/50th of the sales price to manufacture. for the rest agree
    Feb 7 10:57 AM | Likes Like |Link to Comment
  • Apple Mostly Just An Overvalued Hardware Stock; New Catalysts Needed [View article]
    @ author. On this site, I have never seen an author to be treated as id..t by so many people. But i shall admit that you deserve it.
    An id..t is not only some one who doesn't have the intellectual capacity to understand things but, is some one who pretends having this capacity while every word in his mouth proves the opposite.
    Apple sells its hardware at a premium just because this hardware enters in global ecosystem where software & services are integrated & the hardware owner is sure that he will be taken care of in future with updates, further integration, etc..
    All other hardware companies rely on third party software & their users may not be able to upgrade even if they paid or it.
    Samsung, etc. are working hard for Google. Samsung is the only one making some money out of its huge sales (in quantity) thanks to its presence in lower end market but still, the major part of its profit is coming from its few high end handsets.
    Feb 5 08:58 AM | Likes Like |Link to Comment
  • Apple Mostly Just An Overvalued Hardware Stock; New Catalysts Needed [View article]
    @ author. Some of the problems you pointed out can be of some truth. But claiming Apple to be just a hardware company, makes a fool of you.
    HP/Samsung, etc. are hardware companies. They have no software of their own & can never be independent. Apple sells hardware with it's own software.
    Feb 5 08:39 AM | 1 Like Like |Link to Comment
  • Why I Sold Apple And Bought Yahoo [View article]
    @ author. You seem to reject the possibility of any type of revenue stagnation for Yahoo business model. Competition is also very strong & their cash caw (advertisers) has also a limit. Yahoo started from a low point (market share). So relative increase might look huge. Yahoo's revenue is correlated to it's market share. Going from 1% to 2% is 100% increase. Apple's net revenue is not correlated to it's market share. Apple has more than 70% of the profit. increasing 70% to 72% is less than 3% relative but still is the double of Yahoo's overall increase.
    Yahoo figures are Non GAAP & cannot be compared to Apple results.
    Still, Yahoo is a very good investment but in a complete different sector. One investment has not necessarily replace the other.
    Your investment point in apple was high but was still acceptable. Your investing time frame was not 100% correct. But, this can be said only after you are aware of the future. Your son's account is not for trading but investing.
    Feb 3 07:15 PM | Likes Like |Link to Comment
  • Why I Sold Apple And Bought Yahoo [View article]
    Deferred revenue has increased because of free software update established as of sept. 2013. As of sept. 2014 the deferred revenue out will be +/- the same compared to deferred revenue in which is the result of the expiration of the one year deferred revenue deadline.
    Feb 3 06:53 PM | Likes Like |Link to Comment
  • What Is Apple's Stock Worth? [View article]
    @MB. IOS is driving the content sales. The total android market share drives less content sales than the +/-15% IOS market share. More than 80% of android devices does not even buy a single item (content). Your assumption is right but your conclusion is biaised.
    Jan 31 05:27 AM | Likes Like |Link to Comment
  • Moore's Law, Not Apple, Is Driving The Mobile Market [View article]
    @ MB. Apple is making money. If they enter the middle or low price segment they have to:
    a) manufacture cheep devices bringing down the cost in order to continue to make money or,
    b) manufacture hi quality medium priced devices & make little to no profit & cannibalize the flagship device. They have to sell a lot of these medium priced devices in order to equalize the profit they are having from a flagship device.

    With the actual 5C pricing, the flagship 5S is protected & there is no cannibalization. The ASP during the Q114 demonstrated this perfectly. Apple had +/- the same gross/net revenue $ from a much lower sales volume & absent carriers policy change the sales volume would have been higher.

    Apple's policy is very smart: pricing the 5C in a way that 5S sells more & those who want a colorful device will get one if they afford the price. 5C is there to push the 5S sales up.

    The entry device is the 4S. When the 6 is out i believe that Apple will not discontinue the 4S the 5C becoming free with contract or @449 or 399 without contract.

    This author & MB want to bring apple to the level of Samsung. High quality brands don't enter the cheep business. BMW or Mercedes don't have cheep cars. Rolex do not make cheep watches, etc.. Samsung is ti be compared to Toyota making decent handsets trying to be present in all sectors of the market with a +/- high quality but cheep plastic wrapped galaxy series handset like the Lexus for Toyota.

    Apple shall continue the way they do trying to innovate & let the stock find it's real value. with time
    Jan 29 12:28 PM | 1 Like Like |Link to Comment
  • Apple Earnings: Getting Past The Dip [View article]
    Lets see how the market reacts to FB & Google earnings.
    The Market is punishing apple for not having sold the iphones that analysts expected apple to sell. But do not consider the huge ASP (637$) that apple got for each iphone sold. Analysts expected 600$. Same goes with the ipad or macs sold.
    Jan 28 06:25 PM | 2 Likes Like |Link to Comment
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