Since84
Moderator
To infinity and beyond!
Posts: 3,933
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Post by Since84 on Nov 7, 2018 3:17:57 GMT -8
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Post by appledoc on Nov 7, 2018 4:15:27 GMT -8
Futures digesting the midterm results well. Hopefully this holds. Could have a big year end run.
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Since84
Moderator
To infinity and beyond!
Posts: 3,933
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Post by Since84 on Nov 7, 2018 6:15:22 GMT -8
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Post by Luckychoices on Nov 7, 2018 7:18:50 GMT -8
Seeking Alpha had two positive articles on Apple Inc. this morning. I wish they had not been published until *after* November dividends are paid because I'd like the AAPL share price to remain closer to $200. Apple: Time For A New ChapterSummary
• Apple's stock tanked following soft guidance and substantial changes to its reporting structure.
• For years, the iPhone has been the predominant focus of analysts despite Apple's business substantially transforming from a hardware company to a consumer company.
• Now that iPhone sales have peaked, Apple decided to stop reporting unit sales and ASP for its three main product lines: iPhone, iPad and Mac.
• The company and its iPhone business is more profitable than ever and analysts, whether they like it or not, will have to finally credit how Apple's real business is doing.
Get Ready For Another Bite Of The AppleSummary
• The ballooning ASP prices led iPhone revenue to spike 29% YOY to over $37 billion crushing the almost $30 million in quarterly revenue the prior year.
• Software and services will propel Apple to a $2 trillion market cap.
• American iPhones traded in between July 1 and the end of September were 2.92 years old on average, up from 2.37 years old the same period two years earlier.
I'm in agreement with many of the points the author made but this paragraph, in particular, speaks to me. The biggest news of Apple’s (AAPL) earnings results was what Apple decided they will not do in the future – stop publishing iPhone unit sales.
I applaud CEO of Apple Tim Cook for putting this to rest because it is starting to get out of hand. The outbreak of criticism and grief targeted at Cook has to stop because analysts do not understand.
On one hand, it’s important to be aware of the metrics tech companies are judged on, but if analysts aren’t in tune to what these numbers mean in the bigger scheme of things, then it is irrelevant.
Apple is doing everything it can to turn into a software company. They are not interested in battling it out at the low-end of the totem pole because that path is a scrap down to zero margins.
Migrating up the value chain is something that management has identified, and this strategic shift should be met with rapturous celebrations.
Unit sales growth, gross payment value, and monthly views are all metrics that growth companies hold dear to their heart, and a way to show to investors they are worth investing in regardless of the cash burn and cringeworthy operating margins.
Apple is way past that point if you haven’t noticed, and should be focusing on how to monetize the existing base of customers.
Plain and simple, Apple is not a start-up growth company and taking away this reporting metric will help investors refocus on the real story at hand which is its core of software and services.
With software and services, profitability by way of innovative software offerings will be magnified and highlighted as the roadmap ahead.
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Post by carbonate24 on Nov 7, 2018 9:26:31 GMT -8
I certainly wouldn't mind seeing the stock stay down for a little while longer to get a better price to reinvest the dividend, but I would rather see us get back to pre-earnings levels sooner than later if possible.
I did have a question for the board, specifically those who regularly use apple pay in the U.S. and/or work at a business that accepts apple pay. I've had a 50% success rate at using apple pay at a local business recently. However, when the transaction didn't work, I got a message on the payment terminal that read "CLSS not allowed". The employees didn't know what to do with it, and my brief attempts at googling it turned up nothing. I tried two different payment terminals (verifone 680 and iwl-252 I believe), and they both gave me the same message. The only pattern I could find was that the payments under $100 went through fine, but over that amount, I got the error message. Maybe it was a coincidence, but that was the only pattern I could find.
If anyone has any ideas, please let me know. I'd like to help the merchant get things straight with apple pay, as I don't see them aggressively seeking out a solution on their own. Thanks!
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Since84
Moderator
To infinity and beyond!
Posts: 3,933
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Post by Since84 on Nov 7, 2018 9:54:41 GMT -8
Come on, we all know AAPL will rally about the 14th...
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crispin
Member
KBJ for the win. AAPL long and strong since 2000
Posts: 309
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Post by crispin on Nov 7, 2018 13:06:17 GMT -8
So much for the theory that the markets would tank if a certain party won control of the House...
Nice day!
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Post by macster on Nov 7, 2018 15:06:08 GMT -8
So much for the theory that the markets would tank if a certain party won control of the House... Nice day! What I’ve been hearing and suspecting is that the markets are at ease now that the Dems didn’t sweep. Sweep as in the msm’s narrative ‘blue wave’. ‘The resistance movement ‘
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Post by sponge on Nov 7, 2018 18:14:53 GMT -8
So much for the theory that the markets would tank if a certain party won control of the House... Nice day! I think it started a couple weeks ago in anticipation and the final temporary sell off took place on Monday. Today was a relief rally. Lets check back in two months and see where we are. I say we drop below 2600 next week in the S&P and it will take aapl down with it.
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