Apple (AAPL) 04 (Mar 01 - Aug 18)

Re: Apple (AAPL) 04 (Mar 01 - Dec 18)

Postby winston » Fri Jul 27, 2018 12:24 pm

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Subscription Service Stocks With Big Growth: Apple (AAPL)

The biggest company in the world, Apple (NASDAQ:AAPL), is known for making tried-and-true consumer technology hardware products like the iPhone, iPad and Mac. But, those markets are pretty much all dried up now.

Apple, however, isn’t done growing. Those markets are dried up because everyone already has an Apple hardware product. Now, Apple is attempting to monetize that massive ecosystem of Apple hardware users through various subscription services like App Store, iCloud and Apple Music.

These subscription services amount to what Apple calls its “Services” business. This business accounts for 15% of revenues, and is growing at a 30%-plus clip.

It also has higher margins and greater predictability than the notoriously lumpy and low-margin hardware business.

Consequently, as Apple’s Services component ramps over the next several years, Apple’s profits will get a big boost, and that should drive AAPL stock higher.

Source: Investor Place
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Re: Apple (AAPL) 04 (Mar 01 - Dec 18)

Postby winston » Thu Aug 02, 2018 9:40 am

Scolding from Chinese state media dampens Apple's earnings cheer

by Cate Cadell

On Tuesday evening in China, hours before Apple’s earnings, China’s official state broadcaster railed against the firm in a 30-minute special report, accusing it of allowing illegal content, including gambling apps, onto its platform.

The program was one of at least five reports by state media that targeted the company in the past week.

“Major communication operators in China have little ability to prevent such spam messages, since (Apple) says it has no right to monitor user messages out of privacy concerns”.

Last year it removed over a thousand apps from its app store on request from regulators, who called on all app store providers to purge unsanctioned news, messaging and other apps that would allow users to access foreign websites.

It also began migrating Chinese iCloud accounts to local servers under new laws that require it to hand over the reins to a partner firm that is overseen by a government work group.


Source: Reuters

https://www.reuters.com/article/us-appl ... r%20Update
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Re: Apple (AAPL) 04 (Mar 01 - Dec 18)

Postby winston » Sat Aug 04, 2018 8:02 am

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Warren Buffett started building a big stake in Apple at the lows in 2016.

Apple is still cheap. Remember, even if they don't develop the next world-changing device, they have a services business (Apple pay, Apple Music, iCloud Drive, AppleCare and the iTunes App store) that is producing almost as much revenue as Facebook.

From a valuation standpoint, if we strip out the $244 billion Apple has sitting in cash, Apple's business is being valued at about $750 billion. That's 13 times trailing 12 months EPS (much cheaper than the current market).

And if we apply that "ex-cash valuation" to forward earnings, it has a forward P/E of closer to 11.

Source: Forbes
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