They’ve kind of tapped out the phone market imo. Unless a new product came along, growth was going to slow. So Apple went from 1 trillion market cap to 675 billion. Is it really a surprise, though? Was the market honestly that shocked? Normal people of normal means (ex-Bay Area) weren’t going to blindly dump one thousand dollars on a new phone. I mean, I guess good for them for pushing the limit— they didn’t leave any potential revenue on the table for shareholders (as any good corporate steward would do: it is, after all, their obligation to return value to shareholders). Ultimately, though, things generally can’t just keep growing forever indefinitely.
The iphone has seen no major improvements since the iphone 4 (with facetime). Everything after that was bells and whistles and nobody seemed to care or notice. Apple doesnt work without Steve.
If they want to pay me to scream at people I’m game. As innovative as he was, I’ve read that he was overly emotional and mean to people.
They had enough in the pipeline for a few years but everything theyve built since Steve has been incremental improvements
You straight up monday morning quarterbacking bro. Warren Buffet didnt see this coming either.
My lower middle class roots gave me a gut feeling they lost their upper hand. People like apple, and they are willing to pay a premium, but there’s a limit to how much premium you can charge. Especially as others have mentioned, they charge more but deliver less. Diminishing improvements with each new generation.
Slowdown in iphone demand and replacement cycle was priced in. The collapse in demand in China was the surprise and this hit harder amd faster than had been anticipated.
The resurgence of Apple will probably take the entirety of 2019, but the fact is that aside from the iPhone shipping going down, they have solid Financials. 1st Example: App Store + iTunes based spending -- it's been growing steadily in the last 5 years and this revenue stream should continue to grow as all they gotta do is take like 0.05% more cut off the stuff they sell vu these streams and revenue goes up! 2nd Example: They are sitting on a shockingly big pile of cash, so it implies they actually have the $$ muscle to buy some big players if they truly want to and change the game
Example one is horrible as recent news of netflix's iOS app goes around the iTune payment system so apple do not get the 30% cut. It is likely more companies will looking to do this in 2019. Example 2 is illogical. They been sitting on that cash forever. If they wanted to change the game, they could've done it 5+ years ago. I cannot recall any huge ground breaking moves in the recent years from apple. For Apple, reduce in # of phone they sell = reducing many channels of revenue since iPhone is gateway to iTune, Apple pay, Apple music, etc. The investors are not concerned about loss in profit from hardware, but the loss in all those future revenue. This is why the market took a dump on them.
People say this every year, but Apple still has room for growth. The main hits this quarter are from the Chinese market. Chinese GDP growth numbers are likely half of what the Chinese government is stating whereas the US economy is still robust (look at the latest job and wage growth numbers). I think Apple is undervalued right now.
They have a 200b dollar moat. They can easily expand into new areas. I think the stock is a steal.
They can but do they have the business intellect to succeed outside of smartphones and app stores?
Not anymore do they have a 200b moat. They bought back a shit ton of shares when price was high, now they sit on 130b cash(from 230b at one point if I'm not mistaken) and Tim cook mentioned they expect to be cash neutral at some point.
I blame little Tim
Apple is crap. Android will win just like Windows won Mac before.
Well how long until the market sees a substantially new project? The best we’ve seen is watches, which is what, a single billion dollar market? The newer ideas haven’t been as profitable as the established business. I don’t see 5 billion apple watches floating around. What else will they sell people, beyond phones that people buy less frequently? Where’s the growth? I don’t see it. I do agree they are a highly secretive organization.
Why do you trust those executive teams so much? You really think they are the ones who deserve the credits?
Everyone will have to update their phones when 5G comes out so expect another frenzy when that happens. The stock is an absolute steal right now with a P/E ratio of 12. Compare that to Google (40) Microsoft (42) Amazon (88) Netflix (106)
P/E relative to other tech companies is a good observation, but quite frankly I don’t see the growth to justify a much higher P/E ratio for Apple. To me it says, the market doesn’t see more than 12 years of earnings at the current price. At least with something like the pie high Netflix PE, investors are signaling that the real earnings are yet to come. And with time, Netflix’s PE ratio will decline as E increases. In other words, the money’s already been made at Apple.
Your numbers are way off Yahoo. Google P/E is 23 for example.
I think AAPL will go back up in 2019 and still be the first trillion dollar company to hit among FAANGM
Unlikely
They've already hit $1T