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What to Expect From Apple's Earnings Report Tomorrow Following iPhone 15 Launch
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I can see some catalysts for future growth, but not enough to warrant a $500 stock price right now or even a year from now, nor a PE of more than 35.
Several people have mentioned the Vision Pro as a big catalyst. The thing is it will initially be a low volume product. And the $3,500 price will be a barrier, limiting its mass adoption unlike the iPhone. One of the things that helped with the mass adoption of the iPhone has been carrier subsidies. We're not going to get that with the Vision Pro. And with 2/3rd of the U.S. still living paycheck to paycheck, I don't see many people running out to buy this.
It will be a niche product until there's a lower priced version and there's a can't-live-without-it use case. Do you see these things happening by 2024 or 2025?
It's also estimated that the Vision Pro will only contribute breakeven to low single-digit percentage EPS accretion. That isn't going to help move the needle much on EPS.
Not sure your question. (1) Now let’s take Vision Pro. Every 18m sold will add $1 to eps and that’s not even counting VP services(Vp App Store etc). The masses are ready for new tech. Laptops and mobile have been the only way for going on 20 years now. It’ll be one VP per family quickly followed up by 3 more(just to keep the kids quiet) (2)Now we have M3 Macs that are AI ready. M3 Macs could easily be the go to for all your AI needs including the enterprise market (3) India a 1.6b market is ready to embrace Apple(status symbol of course). (4) AI iPhone or rather iPhone AI is a def possibility (5) Apple Watch - blood pressure, glucose monitoring, other health initiatives (6) Services with 74% margin growing at double digits. (7)Advertising initiatives (8) drum roll = Apple Car….plus let’s not ever forget the (9)Apple Buybacks which add 4-5% eps growth every year right off the bat.
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For anyone considering investing in shares, this is the number you look at. You convert the PE to a decimal fraction and compare that to a bank or bond interest rate.
PE 28 = 1/28 = 0.035 = 3.5%.
So AAPL is like getting a three and a half percent interest rate return. If your bank is offering that, put it in the bank as it’s safer.
So long as AAPL doesn't plunge (5% or more) I'm happy. Bought at $0.32. Starting to sell a bit to enjoy retirement. Have been traveling the world for five months this year, but finally heading home this week to enjoy watching the Dolphins win at least one playoff game.
Apple still has cash to do a big purchase if ever needed. I really doubt they are gong the way of BlackBerry, but do think they'll take a hit tomorrow. Economy is a bit sluggish right now on a global level for many reasons.
Apple still has cash to do a big purchase if ever needed. I really doubt they are gong the way of BlackBerry, but do think they'll take a hit tomorrow. Economy is a bit sluggish right now on a global level for many reasons.
I think they are - looking at Quest demand, I think it accounts for less than $2B in revenue/year for the first few years.
It could easily be a revenue wash with a more important product decline. Even worse, if it flops, it adds downside risk to Apple's multiple.
Better margins show financial discipline, improved hardware costs, and increase in profitable services revenues. Better margins allow you to keep more to the bottom line which increases EPS, even without buybacks. EVERY company works on improving their cost structure and gross margins. Lots of tech companies did so by laying off thousands of workers to cut costs. Lots of companies cancelled projects, hardware or services to cut costs. And lots of companies cut output to work off inventories to eventually get prices to rise (Samsung).
Margins are one part of making sure your business is sound.
Sure. No one will talk about Apple selling 75-80M iPhones, mostly iPhone 15’s and 15 Pro models, in Apple’s Fiscal year Q1 2024, or that they may make $69-74 Billion in iPhone 15 revenues during this quarter, potentially a near or new record for iPhones. Compare that to what revenue Samsung’s Mobile MX division made in ALL of 2022 - 115.43T KRW or $86.1B. Contrast that to what Apple iPhones made in FY2022 - $205.5B or 2.4X more revenue while having 5-7% less market share.
Glad no one will be talking about the iPhone 15, Apple will just quietly keep selling them to all who want them regardless of what you say.
I don’t think so, because there is a question as to how many they can produce. If they can make them, I think unit sales are north of 10m units. But nobody outside Apple knows manufacturing capacity for the product, so that is why I don’t think analysts are factoring it in. And Quest demand has little to do with with Vision Pro demand — two different consumers — much like iOS vs Android.
There are only two reasons to hold $AAPL stock
1.) To sell off a large chunk for a sizeable profit during a certain period of time.
2.) Have a large chunk and appreciate the dividend... which is what, 24 cents per share in the US?
Are you working for RobinHood? Apple stock is priced to market, a bit above, actually. It currently sells for 30 times its annual earnings. The S&P 500 index is at 24. At $500/share, it would be about 90 times earnings. Not even nVidia is that overpriced. Not even Tesla.
wouldn't the 4th quarter result be published next year in January?
or the fourth quarter of its 2023 fiscal year started in 2022?
I contributed by purchasing an iPod, pencil and cover in July of 2023
then a Mac Mini yesterday, which might to to 2024 first quarter fiscal year?
(no fiscal year accounting explanation needed, i'm being just lil ol'me)
or the fourth quarter of its 2023 fiscal year started in 2022?
I contributed by purchasing an iPod, pencil and cover in July of 2023
then a Mac Mini yesterday, which might to to 2024 first quarter fiscal year?
(no fiscal year accounting explanation needed, i'm being just lil ol'me)
There are three reasons, actually.
3.) To MAKE MONEY by investing in Apple long term and reinvesting all those dividends. Then buy more on the dips. You know, like Warren Buffett, whose Berkshire Hathaway now owns 5.99% of AAPL. As for the dividend, had you bought 25 shares of Apple in 2013, when it was $420/share ($10,500 total), you would now have 800 shares from splits. Had you reinvested those dividends, you would have 812 shares. The dividend is 96¢/share annually. Your annual dividend payout would be about $779.52. Since you paid $10,500 for your shares, the real dividend yield on your shares would be 7.4%. You would have $143,717.79 worth of Apple stock. Not a bad return on $10,500.
How much is Buffett's 5.99% of Apple worth? $163.2 BILLION. Be like Buffett.
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No one can predict Apple's future prospects, given the multitude of economic, production, geopolitical and other concerns. However, the consensus of Wall Street analysts for the last quarter is a low bar for Apple to clear today. And I'd confident that they're going to clear it. In fact, confident enough to keep AAPL in my portfolio, as it has been since Jobs returned in July of 1997. Betting against Apple long term is what they call a "sucker's bet."
Just canceled the order at Otto, because they still couldn’t tell if the phone would arrive tomorrow. Actually they couldn’t tell when exactly I’d receive the phone.
Ppl love to celebrate apples financial success but hate when they increase their prices ..just look at the recent articles on the services increase for apple TV, news, arcade etc.
They have that success by fleecing you out. You should celebrate those prices increases if you also celebrate increasing stock prices, cash reserves, valuation etc.
They have that success by fleecing you out. You should celebrate those prices increases if you also celebrate increasing stock prices, cash reserves, valuation etc.
Yeah, we get it, the “Apple is failing” narrative common in some quarters of the internet blogosphere. But then they’ve been failing since April1, 1976 haven’t they? Wishing and predicting it always leaves egg on faces.