Now that I'm back in New York, I walked into the Best Buy store on Lexington Avenue and 86th street and scouted the oled pickings..........up until now, generally slim pickings. Today, things are different. At the bottom of the escalator, in plain view, is a 2016 curved screen 55" being sold for $1,795. On the back wall is another curved screen 55" above a flat screen 65" being sold for about $4,500. Honestly, the pictures look great.
When I asked the salesman about them, he went on and on about how fabulous they are. I asked if they are selling and he said "sure are"............what would you expect the salesman to say.
When the price of the stock was $63/share, I asked what wise minds thought would be happening if last night's report was as projected..............no profit, 31 million dollars in sales..............and no change in projection for the year.
There was no answer to my question.
Now that the price of the stock is $56, what do you think will happen over the next week?
He deems the biggest risk to Apple what happens in 2018 with the use of “OLED” display technology:
If it is indeed true that iPhone replacement cycles have contracted this year, the biggest risk to investors is that the iPhone 7 offering is viewed as largely incremental, and replacement cycles get further extended until perhaps FY 18, when Apple is increasingly expected to offer an OLED-screen device. This could lead to flat to declining earnings in FY 17 and likely the stock being dead money for a year, but potentially enjoying very strong YoY earnings growth in FY 18.
Given the recent rise in price, what will happen if UDC does meet expectations for q1 and does not change estimate for year?
q1 sales average = $36.56 million
2016 sales average = $221 million
q1 profit average = 0
2016 profit average = $1.14/share