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Photographer: Christopher Dilts / Bloomberg
Today's headlines regarding Apple's profits will inevitably focus on the negatives. The company has announced slightly weaker holiday forecasts and has notably announced that it will no longer divide iPhone sales in its quarterly reports.
Who screams the loudest about the change of report on iPhone? Analysts, of course. As I wrote six months ago, analysts are almost always wrong when it comes to
Apple
Analysts and CNBC officials have criticized Apple in recent years for being too dependent on iPhone sales. Now that they are turning to the higher-margin service sector, the complaints are now about the lack of transparency and the fear that Apple has something to hide.
I understand. Wall Street does not like uncertainty and goes crazy with an unexpected change. But is the company worth 6 to 7% less than yesterday?
There was a lot to like in Apple's 4th quarter report. Earnings were $ 2.91 per share, while revenues reached $ 62.9 billion last quarter, exceeding analysts' expectations of earnings per share of $ 2.79. a turnover of 61.41 billion USD. Average selling prices for iPhones were $ 793, exceeding the analyst's expectations at $ 750.93.
The company said there was no sign of slowing growth in China and that the recent positive news of the US-China trade negotiations should only contribute to this.
Since the death of Steve Jobs in October 2011, Tim Cook has turned Apple into a more user-friendly company for shareholders. Jobs scorned the dividends, while under Cook's leadership, Apple paid its first dividend for many years in 2012 and has been growing steadily. Is Apple becoming a $ 1 trillion company with jobs at the helm? I doubt it.
"Our installation base is growing at double digits and this is probably a much bigger measure for us in terms of ecosystem and customer loyalty," Cook said during the Apple conference call. . "It's a bit like going to the market and pushing the basket to the cashier and saying," How many units do you have in there? It does not matter how many units are present in terms of the overall value of what is in the basket. "
The market will come to its senses because there are good reasons not to report iPhone sales. Apple is repositioning itself clearly and its overall strategy. The company announced that it would divide the services as a metric in its upcoming quarterly reports and rename its section entitled "Other Services", loosely titled "Other Services" and becoming "Wearables, Homes and Accessories".
With $ 237.1 billion in cash, the company is implementing a record $ 100 billion share buyback program announced in May. Given that stocks are trading at more than 6.5% at the time of writing these lines, I am willing to bet that Apple will use a lot of that money today to acquire more shares in sale.
Disclosure: The author and American Dream Investing hold AAPL shares.
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Photographer: Christopher Dilts / Bloomberg
Today's headlines regarding Apple's profits will inevitably focus on the negatives. The company has announced slightly weaker holiday forecasts and has notably announced that it will no longer divide iPhone sales in its quarterly reports.
Who screams the loudest about the change of report on iPhone? Analysts, of course. As I wrote six months ago, analysts are almost always wrong when it comes to
Apple
Analysts and CNBC officials have criticized Apple in recent years for being too dependent on iPhone sales. Now that they are turning to the higher-margin service sector, the complaints are now about the lack of transparency and the fear that Apple has something to hide.
I understand. Wall Street does not like uncertainty and goes crazy with an unexpected change. But is the company worth 6 to 7% less than yesterday?
There was a lot to like in Apple's 4th quarter report. Earnings were $ 2.91 per share, while revenues reached $ 62.9 billion last quarter, exceeding analysts' expectations of earnings per share of $ 2.79. a turnover of 61.41 billion USD. Average selling prices for iPhones were $ 793, exceeding the analyst's expectations at $ 750.93.
The company said there was no sign of slowing growth in China and that the recent positive news of the US-China trade negotiations should only contribute to this.
Since the death of Steve Jobs in October 2011, Tim Cook has turned Apple into a more user-friendly company for shareholders. Jobs scorned the dividends, while under Cook's leadership, Apple paid its first dividend for many years in 2012 and has been growing steadily. Is Apple becoming a $ 1 trillion company with jobs at the helm? I doubt it.
"Our installation base is growing at double digits and this is probably a much bigger measure for us in terms of ecosystem and customer loyalty," Cook said during the Apple conference call. . "It's a bit like going to the market and pushing the basket to the cashier and saying," How many units do you have in there? It does not matter how many units are present in terms of the overall value of what is in the basket. "
The market will come to its senses because there are good reasons not to report iPhone sales. Apple is repositioning itself clearly and its overall strategy. The company announced that it would divide the services as a metric in its upcoming quarterly reports and rename its section entitled "Other Services", loosely titled "Other Services" and becoming "Wearables, Homes and Accessories".
With $ 237.1 billion in cash, the company is implementing a record $ 100 billion share buyback program announced in May. Given that stocks are trading at more than 6.5% at the time of writing these lines, I am willing to bet that Apple will use a lot of that money today to acquire more shares in sale.
Disclosure: The author and American Dream Investing hold AAPL shares.
