32% quarterly profit growth, 22% quarterly revenue growth. Good night.
In case you're doing the math at home:
~$24M/hour.
~$500,000/minute.
~$6,500/second.
(And an extra $200B in the bank.) Unbelievable.
In case you're doing the math at home:
~$24M/hour.
~$500,000/minute.
~$6,500/second.
(And an extra $200B in the bank.) Unbelievable.
AAPL also has about the same revenue growth as FB/GOOGL, while trading at about 1/10th the PE.
Man, Wall Streets really, really hate this company.
Apple is literally running into the, "How much more money could you possibly make?" problem.
The reason is that Wall St. is threatened by Apple because they cannot control them.
By stacking up the dollars, Apple is positioning itself to be defined by its profitability. The have an innovative edge right now, but with increasingly less differentiation technology-wise, this positioning will be hard to turn against when they need to invest in reinventing themselves. If they don't plan to reinvent themselves, they face becoming another HP down the line.
not their core business.
They literally can't spend that much money, nobody can, Apple has enough cash reserve to fund NASA for the next 12 years for a literal moonshot project. Meanwhile Amazon's positive cash flow is less than one billion dollars per quarter and it's much easier to reinvest that much.
Even if Apple fund the entire Google X, it won't register as much bigger than a blip on their cash reserve.
He added, "This would imply iPhone units down 1% to up 2% year-over-year. We view this as a relief given investors were bracing for the start of the 6S cycle to be down meaningfully (down 5-8% y/y)."
That second paragraph is key, iPhone sales are very uneven given the Apple upgrade and refresh cycle. Even Gene Munster, who you're quoting, is expecting them to sell ~242 million iPhones in CY2016, which is a 5% YoY increase on an absolutely massive base.
From a summary of his research report;
Finally, Munster is also bullish on Apple's anticipated
"iPhone 7," which he believes will begin driving
investor hype in the coming months, despite not being
expected to debut until September of 2016. With a so-
called "iPhone 7" expected to introduce a revamped
design, he believes next year's upgrade will be a
"more revolutionary cycle," driving sales of the
blockbuster handset even higher.
Industry analysts and the media often claim that Apple is doomed, but given their earnings obviously this is far from the case.
And besides - what are they going to do with all that money?
At some point the actual size of the cash pile becomes an irrelevance - unless they're buying countries, secretly trying to set up a private army that could take on all the world's superpowers at the same time, or running a combined FTL/anti-gravity research lab.
The consensus seems to be that they will enter larger markets, like automobiles. Cars cost billions to research and develop and are therefore a difficult and expensive market to enter. If Apple does enter and dominate this market, that would cost them a huge amount of their cash store but would open up additional revenue streams similar or greater than they currently enjoy.
There's no market that Apple might enter that won't cost billions in research and development. How many billions have been invested already in iPhone, iPad and Mac product cycles?
If Apple does enter and dominate this market, that would cost them a huge amount of their cash store but would open up additional revenue streams similar or greater than they currently enjoy.
The development of the Apple car is being paid out of the R & D budget. Further, even with the tons of cash on hand, Apple has been active in bond markets around the world, since interest rates are near all-time lows. According to the conference call, Apple has borrowed around $56 billion, which they could easily fund all kinds of stuff, including the car.
but google searches for "apple poor working conditions" yields over 9mm results while "walmart poor working conditions" yields only 350k.
edit: About $25k a year, with benefits according to the NY Times[1]. That would be about $13 an hour, although the NYT also quotes an employee making $11.25 an hour.
http://www.nytimes.com/2012/06/24/business/apple-store-worke...
IPhone market share peaked long time ago and iPhone isnt growing as fast as the smartphone industry overall. Due to 3M sales from China moving to Q4 we didn't see sales peak but Christmas quarter seems to be a sales peak for YoY growth. Initial activation nunbers from China suggest a YoY decrease in units sold as well as some providers suggest Apple cut orders.
Let's see what Tim Cook can do as he has to use some actions beyond calendar tricks in next 4 quarters. Investors will hate a YoY revenue and iphone sales drop.