Right now Apple is primarily a smart phone story. With last quarters iPhone sales growth down to a 6% increase yoy and decreasing margins more than offsetting that growth where exactly is the revenue going to come from?
The slowing growth and uncertainty of the ability to sustain sales yoy is what has funds leaving the stock. EPS this year will be around $39-40 a share, down 10% yoy, and doesnt project to be that much better in 2014. Sure buybacks will help the EPS number slightly each year, but that's not the kind of thing that will get investors excited.
Apple needs a new product line to drive revenue or inevitably the only way it will have to go is down.
My , oh my ! You hit the nail on the head. They need to have a new product ! Profound, indeed.
Did you discover this at a Mensa meeting. You had to have had some help.
Thanks, and stay in touch, ok ?
Tim cook has stated multiple times that they will be entering new areas they have not previously been in. iPhone sales will continue to increase and owners will continue to upgrade or need to replace their old iPhones. No stock goes straight up. This is just an over done correction. The share price went to high too fast and has now retraced to far. Apple is number one in profitability , in one of the fastest growing markets in the world. They are very undervalued compared to the likes of Microsoft, amazon, google. Every one loved it just a short few months ago at $700. People predicting an easy path to $1000. But now everyone hates it at $400 levels. Seems to me like a buy when nothing has changed. I was not one to get sucked into the hype when it was so high .i have been very patient to wait for this oppritunity. Buy low sell high !!! Don't get sucked in to the doom and gloom saying apple is going to $200 levels.
Sentiment: Strong Buy
There's been plenty of press regarding apple and china. It takes forever to build 100 million new phones. apple will need that for the first release of the new IPhone 6 version for china. Do you think all those billions going to apples bottom line will help from a growth standpoint?
Apple's growth will come from a lower cost I-Phone and the 700 Million users in China. This is their ace in the hole and if you look at recent press, they've increased production at all their manufacturing operations overseas to accommodate the anticipated increase in demand for the new I-Phone. Don't think that Apple isn't going to aggressively promote and market the very ecosystem that made them so successful in the United States. Along with all the other products and services that currently generate Billions in profits.
The fact that there's a handful of analyst who paint a pretty gloomy picture going forward for Apple isn't a surprise. I just think they're over looking a huge untapped for the most part, market that Apple will soon tap into. By that, I mean bring 200 to 300 Million new customers into the Apple would of products and services. I believe China is just the beginning for Apple products and services.
Sentiment: Strong Buy
Did you all forget that Google and Samsung??/ They are selling phones all over China, Korea, Phil etc.!! The iStudio stores in Asia are empty!! People there use Korean made phones in Asia, fools
Sentiment: Strong Sell
"anticipated increase" mean it is a prediction. It may or may not happen. Investors want real number and totally new products NOW. Yes, they want to see it NOW !! But Apple is not going to tell you anything....