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P H
Jun 06,2017 14:17:13

“If you think Apple’s stock has run too far, too fast –– think again,” says our Louis Basenese.

Apple’s Worldwide Developers Conference is underway today in San Francisco. And $AAPL shares are down about 1% after a rare downgrade by a Wall Street analyst. Pacific Crest issued a price target of $145; as we write, shares are at $154.

Louis isn’t interested in what the analysts say; he was dissing them to his True Alpha readers last week even when they were raising their targets.

Much more relevant, Louis tells us, is that once the iPhone 8 is launched later this year, “upward of 90 million phones are expected to be sold during the first quarter of availability, compared with the previous high for quarterly iPhone shipments of 78.3 million.”
“IPhone users are the most loyal in the world,” Louis goes on. “92% of current iPhone owners who intend to upgrade their phones in the next year plan to stick with an iPhone.

“If we assume an average two-year upgrade cycle, there are roughly 300 million iPhone users due for an upgrade over the next 12 months. And if 92% of them upgrade, it will translate into over 275 million iPhone sales in the coming year.

“To put that into perspective, the current high-water mark for annual iPhone shipments stands at 231.2 million in 2015.”

Even though AAPL is up 33% this year, “the stock is still far from being expensive,” says Louis. “To the contrary, shares are trading at about a 17% discount to the S&P 500 index, based on price-earnings ratios.

“That was compelling enough to convince Warren Buffett to double his position in the world’s largest tech company in the most recent quarter.”
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P H
Dec 21,2016 11:33:40

Apple Inc (US:AAPL): Looking forward to the iPhone 8 super cycle

- Reiterate Outperform – Looking forward to the iPhone 8 cycle. Fundamentally we believe our thesis remains intact with the iPhone 7 driving the business back to growth followed by an expected iPhone 8 super cycle. Recent investor concerns have been centered around Gross Margins and OLED capacity for the iPhone 8. However, we’ve run analyses on 3 potential scenarios, and have concluded that the EPS outlook remains strong no matter which route Apple takes. We reiterate our O/P rating and $150 TP. Please see our detailed slide deck The Wireless View 2017.

- Investor concerns around Gross Margin. Given the increasing amount of content that is put into each successive iPhone, concerns have emerged over the margin profile of the iPhone business. Furthermore, as the iPhone 8 is expected to be completely redesigned and to bring a host of new features and improvements, investors are concerned that the GM in this business is potentially set to see a decline. However, we believe Apple has the ability to circumvent this by increasing the ASP and/or improving the mix. Specifically, we believe Apple will need to raise the ASP of the OLED iPhone 8 line by ~USD50 and keep the mix new phones to ~35% (close to current levels) to keep iPhone GMs stable (assuming a USD25 BOM increase from OLED). Additionally, we believe, the services growth can also help offset this.

- Investor concerns around OLED capacity. There has been much debate around the iPhone 8 cycle and whether there is enough OLED capacity to support the expected super cycle next year. We are optimistic that, given significant investment in increasing OLED production capacity, there should be adequate supply for up to 270mn iPhone units. The main concern is whether the production capacity will be up to speed in time for the product launch. Given this concern, we believe that Apple will likely pursue one of three product scenarios next year: (1) 2 iPhones, both OLED; (2) 3 iPhones, 1 OLED version; or (3) 3 iPhones, all OLED.

- Near-term checks supportive. Supply chain checks from our Asia team are supportive of iPhone strength, particularly around the mix. December quarter builds are expected to be 87mn, the highest quarterly build number we’ve seen historically. Additionally, the mix of the iPhone 7 Plus continues to be strong, with the 7 Plus expected to make up ~45% of the iPhone 7/7 Plus mix, materially higher than the ~35% we currently estimate.

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P H
Dec 21,2016 11:33:40

Apple Inc (US:AAPL): Looking forward to the iPhone 8 super cycle

- Reiterate Outperform – Looking forward to the iPhone 8 cycle. Fundamentally we believe our thesis remains intact with the iPhone 7 driving the business back to growth followed by an expected iPhone 8 super cycle. Recent investor concerns have been centered around Gross Margins and OLED capacity for the iPhone 8. However, we’ve run analyses on 3 potential scenarios, and have concluded that the EPS outlook remains strong no matter which route Apple takes. We reiterate our O/P rating and $150 TP. Please see our detailed slide deck The Wireless View 2017.

- Investor concerns around Gross Margin. Given the increasing amount of content that is put into each successive iPhone, concerns have emerged over the margin profile of the iPhone business. Furthermore, as the iPhone 8 is expected to be completely redesigned and to bring a host of new features and improvements, investors are concerned that the GM in this business is potentially set to see a decline. However, we believe Apple has the ability to circumvent this by increasing the ASP and/or improving the mix. Specifically, we believe Apple will need to raise the ASP of the OLED iPhone 8 line by ~USD50 and keep the mix new phones to ~35% (close to current levels) to keep iPhone GMs stable (assuming a USD25 BOM increase from OLED). Additionally, we believe, the services growth can also help offset this.

- Investor concerns around OLED capacity. There has been much debate around the iPhone 8 cycle and whether there is enough OLED capacity to support the expected super cycle next year. We are optimistic that, given significant investment in increasing OLED production capacity, there should be adequate supply for up to 270mn iPhone units. The main concern is whether the production capacity will be up to speed in time for the product launch. Given this concern, we believe that Apple will likely pursue one of three product scenarios next year: (1) 2 iPhones, both OLED; (2) 3 iPhones, 1 OLED version; or (3) 3 iPhones, all OLED.

- Near-term checks supportive. Supply chain checks from our Asia team are supportive of iPhone strength, particularly around the mix. December quarter builds are expected to be 87mn, the highest quarterly build number we’ve seen historically. Additionally, the mix of the iPhone 7 Plus continues to be strong, with the 7 Plus expected to make up ~45% of the iPhone 7/7 Plus mix, materially higher than the ~35% we currently estimate.

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P H
Dec 15,2016 23:45:14

Apple (AAPL) Named Top 2017 Pick at Needham & Company

Needham & Company analyst Laura Martin named Apple (US:AAPL) its Top Pick for 2017 and reiterated a Strong Buy rating and price target of USD150.

Martin sees 4 analytical building blocks: 1) catalysts; 2) fundamentals; 3) technical analysis; and 4) valuation.

Potential catalysts for AAPL during 2017 potentially include a falling corporate tax rate and repatriation of over USD200B from cash balances offshore.

Fundamentally, they think the right way to think about AAPL’s barriers to entry, pricing power, and competitive advantage period is through the lens of its ecosystem dominance of the wealthiest 15% of smartphone owners in the world.

Martin notes that Berkshire Hathaway (US:BRK-B US:BRK-A) has been steadily adding shares of AAPL over the past year, and as of 9/30/16, they owned 15.7mm shares, worth USD1.7B.

She said AAPL looks inexpensive at 12x P/E, which ignores AAPL’s cash (its P/E is closer to 8x adjusted for cash). AAPL has a 2% dividend yield and a 9% FCF yield, and we expect AAPL to generate more than USD50B of FCF in 2017.

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P H
Dec 15,2016 23:45:14

Apple (AAPL) Named Top 2017 Pick at Needham & Company

Needham & Company analyst Laura Martin named Apple (US:AAPL) its Top Pick for 2017 and reiterated a Strong Buy rating and price target of USD150.

Martin sees 4 analytical building blocks: 1) catalysts; 2) fundamentals; 3) technical analysis; and 4) valuation.

Potential catalysts for AAPL during 2017 potentially include a falling corporate tax rate and repatriation of over USD200B from cash balances offshore.

Fundamentally, they think the right way to think about AAPL’s barriers to entry, pricing power, and competitive advantage period is through the lens of its ecosystem dominance of the wealthiest 15% of smartphone owners in the world.

Martin notes that Berkshire Hathaway (US:BRK-B US:BRK-A) has been steadily adding shares of AAPL over the past year, and as of 9/30/16, they owned 15.7mm shares, worth USD1.7B.

She said AAPL looks inexpensive at 12x P/E, which ignores AAPL’s cash (its P/E is closer to 8x adjusted for cash). AAPL has a 2% dividend yield and a 9% FCF yield, and we expect AAPL to generate more than USD50B of FCF in 2017.

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P H
Dec 15,2016 23:44:54

Apple (AAPL) Named Top 2017 Pick at Needham & Company

Needham & Company analyst Laura Martin named Apple (US:AAPL) its Top Pick for 2017 and reiterated a Strong Buy rating and price target of USD150.

Martin sees 4 analytical building blocks: 1) catalysts; 2) fundamentals; 3) technical analysis; and 4) valuation.

Potential catalysts for AAPL during 2017 potentially include a falling corporate tax rate and repatriation of over $200B from cash balances offshore.

Fundamentally, they think the right way to think about AAPL’s barriers to entry, pricing power, and competitive advantage period is through the lens of its ecosystem dominance of the wealthiest 15% of smartphone owners in the world.

Martin notes that Berkshire Hathaway (US:BRK-B US:BRK-A) has been steadily adding shares of AAPL over the past year, and as of 9/30/16, they owned 15.7mm shares, worth USD1.7B.

She said AAPL looks inexpensive at 12x P/E, which ignores AAPL’s cash (its P/E is closer to 8x adjusted for cash). AAPL has a 2% dividend yield and a 9% FCF yield, and we expect AAPL to generate more than $50B of FCF in 2017.

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P H
Dec 15,2016 23:44:33

Apple (AAPL) Named Top 2017 Pick at Needham & Company

Needham & Company analyst Laura Martin named Apple (US:AAPL) its Top Pick for 2017 and reiterated a Strong Buy rating and price target of $ 150.

Martin sees 4 analytical building blocks: 1) catalysts; 2) fundamentals; 3) technical analysis; and 4) valuation.

Potential catalysts for AAPL during 2017 potentially include a falling corporate tax rate and repatriation of over $200B from cash balances offshore.

Fundamentally, they think the right way to think about AAPL’s barriers to entry, pricing power, and competitive advantage period is through the lens of its ecosystem dominance of the wealthiest 15% of smartphone owners in the world.

Martin notes that Berkshire Hathaway (US:BRK-B US:BRK-A) has been steadily adding shares of AAPL over the past year, and as of 9/30/16, they owned 15.7mm shares, worth $ 1.7B.

She said AAPL looks inexpensive at 12x P/E, which ignores AAPL’s cash (its P/E is closer to 8x adjusted for cash). AAPL has a 2% dividend yield and a 9% FCF yield, and we expect AAPL to generate more than $50B of FCF in 2017.

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P H
Dec 15,2016 23:43:58

Apple (AAPL) Named Top 2017 Pick at Needham & Company

Needham & Company analyst Laura Martin named Apple (US:AAPL) its Top Pick for 2017 and reiterated a Strong Buy rating and price target of $150.

Martin sees 4 analytical building blocks: 1) catalysts; 2) fundamentals; 3) technical analysis; and 4) valuation.

Potential catalysts for AAPL during 2017 potentially include a falling corporate tax rate and repatriation of over $200B from cash balances offshore.

Fundamentally, they think the right way to think about AAPL’s barriers to entry, pricing power, and competitive advantage period is through the lens of its ecosystem dominance of the wealthiest 15% of smartphone owners in the world.

Martin notes that Berkshire Hathaway (US:BRK-B US:BRK-A) has been steadily adding shares of AAPL over the past year, and as of 9/30/16, they owned 15.7mm shares, worth $1.7B.

She said AAPL looks inexpensive at 12x P/E, which ignores AAPL’s cash (its P/E is closer to 8x adjusted for cash). AAPL has a 2% dividend yield and a 9% FCF yield, and we expect AAPL to generate more than $50B of FCF in 2017.

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P H
Dec 14,2016 08:02:47

ERAA to import iPhone 6S and iPhone 7

CEO of Erajaya Swasembada, ($ERAA) Hasan Aula, stated that the company has issued a certification request to import both iPhone 6S and iPhone 7. The company has opted for Postel B certification request to distribute the products, in which previously, the imports of 4G iPhones were not allowed as the phones were not meeting the TKDN requirements. (Kompas)

US:AAPL

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P H
Dec 06,2016 15:12:56

Retail: Apple to invest IDR1.1tn in Indonesia

The TKDN regulation, which stipulates 30% of 4G phones be made in Indonesia, has not been particularly successful in attracting foreign investment. Nonetheless, Apple has stated that the company is interested in investing to the tune of IDR1.1tn to open a research and development center. 40% of the investment must be achieved in the first year and 100% in 3 years to fully comply with the TKDN regulation before the company could start selling 4G smartphones. Note that Blackberry has worked with Tiphone Mobile Indonesia ($TELE) to manufacture and distribute Blackberry handsets under PT Blackberry Merah Putih. (kontan)

US:AAPL $TELE

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P H
Jun 17,2016 19:55:36
Beijing Regulator Orders Apple to Stop Sales of Two iPhone Models
Intellectual property regulator rules the design is too similar to a Chinese phone

By EVA DOU
Updated June 17, 2016 8:39 a.m. ET

BEIJING—Beijing’s intellectual property regulator has ordered Apple Inc.(US:AAPL) to stop sales of the iPhone 6 and iPhone 6 Plus in the city, ruling that the design is too similar to a Chinese phone, in another setback for the company in a key overseas market.

It wasn’t immediately clear what impact the order would have. Some mobile-phone stores in the city said they had already stopped selling the two models months ago, switching to newer models. Apple will soon end production of both models, according to a person familiar with the production plans.

The two iPhone models infringe on a Chinese patent for exterior design held by Shenzhen Baili for its 100C smartphone, the Beijing Intellectual Property Bureau wrote in a statement on its website dated May 19.

An Apple spokeswoman in China didn’t immediately reply to phone calls and an email Friday. A phone operator at the Beijing Intellectual Property Bureau on Friday evening said no one was available to answer queries.

It is the latest challenge for Apple in China, its largest market outside of the U.S. Falling iPhone sales in China was a major factor in Apple posting its first quarterly decline in revenue in 13 years in April. China also shut down Apple’s iBooks and iTunes Movies services that month, with regulators telling the company it didn’t have the necessary licenses, according to people familiar with the matter.

Apple last month announced a $1 billion investment in Chinese ride-hailing company Didi Chuxing Technology Co., an unusual investment for the company. Analysts said it was likely made in part to curry favor with Beijing, as Apple faces challenges in the country on multiple fronts.

Apple has the option to appeal the ruling to a higher court, according to Chinese law.

Write to Eva Dou at eva.dou@wsj.com
Bear
P H
Jun 17,2016 19:55:36
Beijing Regulator Orders Apple to Stop Sales of Two iPhone Models
Intellectual property regulator rules the design is too similar to a Chinese phone

By EVA DOU
Updated June 17, 2016 8:39 a.m. ET

BEIJING—Beijing’s intellectual property regulator has ordered Apple Inc.(US:AAPL) to stop sales of the iPhone 6 and iPhone 6 Plus in the city, ruling that the design is too similar to a Chinese phone, in another setback for the company in a key overseas market.

It wasn’t immediately clear what impact the order would have. Some mobile-phone stores in the city said they had already stopped selling the two models months ago, switching to newer models. Apple will soon end production of both models, according to a person familiar with the production plans.

The two iPhone models infringe on a Chinese patent for exterior design held by Shenzhen Baili for its 100C smartphone, the Beijing Intellectual Property Bureau wrote in a statement on its website dated May 19.

An Apple spokeswoman in China didn’t immediately reply to phone calls and an email Friday. A phone operator at the Beijing Intellectual Property Bureau on Friday evening said no one was available to answer queries.

It is the latest challenge for Apple in China, its largest market outside of the U.S. Falling iPhone sales in China was a major factor in Apple posting its first quarterly decline in revenue in 13 years in April. China also shut down Apple’s iBooks and iTunes Movies services that month, with regulators telling the company it didn’t have the necessary licenses, according to people familiar with the matter.

Apple last month announced a $1 billion investment in Chinese ride-hailing company Didi Chuxing Technology Co., an unusual investment for the company. Analysts said it was likely made in part to curry favor with Beijing, as Apple faces challenges in the country on multiple fronts.

Apple has the option to appeal the ruling to a higher court, according to Chinese law.

Write to Eva Dou at eva.dou@wsj.com
Bear
P H
May 16,2016 21:22:27
Warren Buffett’s Berkshire Hathaway Takes $1 Billion Position in Apple

The legendary investor, who previously avoided technology stocks, also slightly increases his stake in IBM

Warren Buffett’s Berkshire Hathaway Inc. took a new $1 billion position in Apple Inc. in the first quarter, a move that comes as the technology giant’s shares have been battered amid a slowdown in iPhone sales.

The legendary investor’s firm reported owning 9.81 million shares of Apple as of March 31, worth about $1.07 billion. But the value of that investment has already dropped significantly after the company reported its first quarterly revenue decline since 2003 last month.

Mr. Buffett, who for years avoided technology stocks, previously professed to not understand the sector and had argued that it is difficult to defend its competitive advantages. Mr. Buffett’s record has been built on investments in insurers, financial companies and industrial businesses, including household names like Coca-Cola Co. and American Express Co.

His firm hasn’t avoided technology completely, however, taking a position worth more than $10 billion in International Business Machines Corp. in 2011. Berkshire slightly increased that stake again in the first quarter.

Berkshire is also said to be backing a consortium vying for Yahoo Inc.’s Internet assets that includes Quicken Loans Inc. founder Dan Gilbert, according to Reuters and other media outlets. Such a move would mark another investment in an older tech name.

In Apple, Berkshire likely saw a buying opportunity as the shares are off sharply from last summer’s highs as the company struggles to maintain the sales surge that followed the introduction of its larger-screen smartphones in late 2014. The 2015 successors to those initial big-display models haven’t garnered as much enthusiasm from consumers.

Apple traded above $130 a share last July and ended the first quarter at $108.99 before continuing to fall. The stock got a bounce in morning trading on Berkshire’s investment, rising 1.8% to $92.10.

Berkshire’s positions were disclosed in a 13F filing with the Securities and Exchange Commission, a quarterly requirement for investors managing more than $100 million. The report indicates the number of shares held and the value of each stake at the end of the quarter, so it isn’t clear if Mr. Buffett’s firm has continued buying the stock since the quarter ended.

Berkshire’s investment in Apple—the firm’s only new position taken in the quarter—follows the exit of another well-known investor, Carl Icahn, who said last month he had sold his big stake. He told CNBC at the time that Apple is a great company but no longer a “no-brainer” as an investment choice. Mr. Icahn made his initial investment, reported to be worth about $1.5 billion, in 2013. He subsequently bought more shares and called for the company to boost its stock buybacks.

As for IBM, Berkshire bought 198,853 shares in the first quarter, bringing the total value of its position to $12.3 billion. IBM is one of Berkshire’s big four investments, along with Kraft Heinz Co., Wells Fargo & Co. and Coca-Cola Co. Those three positions were unchanged in the first quarter.

Berkshire, meanwhile, continued to bet on Phillips 66, increasing the size of its investment by 23% to $6.5 billion. The firm eliminated its position in AT&T Inc., which it had pared in the previous quarter as well. Mr. Buffett had been a large investor in DirecTV, which AT&T bought last July.

The firm also exchanged most of its $4.2 billion position in Procter & Gamble Co. in the quarter to buy battery maker Duracell. That deal, which was originally unveiled in late 2014, involved swapping stockholdings for a business that can generate cash and expand Berkshire’s earnings base without paying hefty taxes. The firm’s remaining position in the maker of Gillette razors and Pamper diapers was about $26 million at March 31.

Corrections & Amplifications:
Berkshire exchanged most of its position in Procter & Gamble in the quarter to buy Duracell. An earlier version of this article incorrectly stated the firm sold off the shares. (May 16)

Bull
P H
May 13,2016 13:35:04

Apple backs Didi with $1B in blow to UBER China


• Forget about building a car, Apple (NASDAQ:AAPL) has decided to jump into the ride-sharing wars.


• The tech giant is investing $1B in Didi Chuxing (Private:DIDI), the largest taxi-hailing app in China, joining other investors including Alibaba and Tencent, and dealing a blow to Uber Technologies (Private:UBER).


• "We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market," Tim Cook told Reuters.


• The rare investment also gives Apple a stake in two burgeoning tech waves - the sharing economy and auto technology - as the iPhone business that propelled it to record profitability shows signs of maturing.


US:AAPL 


Bull
P H
May 13,2016 13:35:04

Apple backs Didi with $1B in blow to UBER China


• Forget about building a car, Apple (NASDAQ:AAPL) has decided to jump into the ride-sharing wars.


• The tech giant is investing $1B in Didi Chuxing (Private:DIDI), the largest taxi-hailing app in China, joining other investors including Alibaba and Tencent, and dealing a blow to Uber Technologies (Private:UBER).


• "We are making the investment for a number of strategic reasons, including a chance to learn more about certain segments of the China market," Tim Cook told Reuters.


• The rare investment also gives Apple a stake in two burgeoning tech waves - the sharing economy and auto technology - as the iPhone business that propelled it to record profitability shows signs of maturing.


US:AAPL 


Bull
P H
Apr 28,2016 22:36:15
Apple BUY: 92.5 - 95

Nearest Target: 110

CL: below 90

Bull
P H
Apr 28,2016 22:29:01
Expensive smartphones, weak sales

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P H
Apr 28,2016 18:08:25
• Selloff overdone; reiterating $135 target

• Apple shares fell sharply on April 27 after the company reported double-digit declines in fiscal 2Q16 revenue, EPS, and unit sales of iPhones and other major products. The fiscal 2Q results were hurt by global currency and commodity price turbulence, but especially by the trough in the iPhone 6 cycle as consumers wait for the new iPhone 7.

• To soften the cyclical pain, Apple has increased its buyback authorization to $175 billion from $140 billion, and announced a 10% increase in its quarterly dividend.

• Given the iPhone cycle realities that now drive results, we believe that Apple's positives are not fully reflected in the share price, and that the stock remains attractive based on comparable valuation and DCF analysis.
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P H
Apr 16,2016 13:06:40
Is it the end of the line for the iPhone? Claims Apple has slashed handset production for another quarter

- Apple surpassed its own record by selling more than 74.5 million units of its flagship product in the final three months of 2015

- Signs that iPhone sales in the first three months of 2016 will — for the first time ever — show an abrupt decline from the same period a year earlier

http://www.dailymail.co.uk/sciencetech/article-3542502/Is-end-line-iPhone-Claims-Apple-slashed-handset-production-quarter.html
Bull
P H
Mar 23,2016 09:17:03
• New tweener phone seeks global mid-tier

• At its March 21 launch event, Apple introduced the iPhone 5SE, which replaces the 5S. The new phone is aimed at mid-tier customers in both emerging and mature economies.

• The 5SE contains some of the features of the iPhone 6 & 6S, but lacks certain high-end features. Apple also introduced a refreshed iPad Pro in the original size - a needed upgrade for a product that has been marginalized by smaller (Mini) and larger (Pro) versions.

• The iPhone 7 will be launched in September. In our view, the new phone will need to address frequent customer complaints by including greater base memory, increased battery life, and wireless charging.

• AAPL remains attractive on priced-based comparables and discounted free cash flow valuation. We are reiterating our BUY rating to a 12-month target price of $135

Bull
P H
Jan 29,2016 00:09:51
$AAPL - Reset as Expected

? Reiterate Outperform. We maintain our Outperform rating, and adjust our
CY EPS estimates to $8.92/$10.20. After much market speculation, Apple
finally confirmed that the iPhone business may enter a period of decline with
its March quarter guidance. (We continue to see evidence of a subdued
iPhone 6s cycle. See our notes Apple: Lower iPhones, adjusting GM, the last
cut, Supply chain weakness continues, Supply chain continues to adjust).
We believe we now have a handle on the degree of GM erosion over this
subdued iPhone cycle. This, we believe, provides a baseline CY EPS
estimate of $8.92, meaning incremental downside risk is capped at ~$89.
With high retention rates, a superior ecosystem, and multi-product compute
advantage and an installed base of 1bn users, we believe Apple provides a
sustainable, annuity type FCF of ~$60bn per annum.

? iPhone declining in March, to slowly recover thereafter. We now project
iPhone units at 45.6mn in March (-25.4% yoy, -39.0% qoq). However, for
the calendar year, we forecast 202.0mn units (-12.8% yoy). While we see a
subdued iPhone cycle for the next few quarters, we believe units will recover
to 228.1mn in CY17 and remain constructive LT given installed base growth,
high retention rates and a normalization in replacement rates. Specifically,
we believe installed base growth, which we estimate at 23% since end of
2014, should drive upgrades and replacement with the iPhone 7.

? Focus shifting to GM's, declining overall, but well managed. We note
several items affecting GM over the next 12 months. The items we see
negatively impacting GM are: 1) The iPhone 6s cycle is lower GM than the
iPhone 6 cycle; 2) lower mix of 5.5 inch 6s Plus vs. 6s; 3) negative leverage;
and 4) currency. We note that this is being somewhat offset by a shift
towards higher memory, improving Watch margins and the iPad Pro. We
now project GM at 39.2%/38.7% and OM at 28.6%/28.2% for CY16/CY17.

? Valuation. We continue to believe that Apple looks inexpensive on a P/E excash
of 9x in the context of material capital return, sustainable revenues, and
a powerful ecosystem. We apply a ~12x multiple and see upside to $140.
Bull
P H
Jan 28,2016 23:34:53
Apple Inc ($AAPL), Currency, global economies impact outlook; reiterate BUY

• Currency, global economies impact outlook; reiterate BUY
• Apple posted 2% revenue growth for fiscal 1Q16; on a constant currency basis, revenue rose 8%.
• Currency and China turbulence prompted soft top-line guidance for 2Q16, which at the midpoint is
forecast to decline 11% annually. We note the current quarter comes in the final innings of an 'S'
iPhone year, which is historically consistent with tapering demand.
• Despite these negatives, $AAPL has many positives in the outlook, including a huge installed base of 1
billion iPhones generating fast-growing services and software revenue.
• In September 2016, iPhone 7 will most likely launch, providing a more favorable cycle in time for
currency normalization.
Bull
P H
Sep 28,2015 22:16:08
Apple ($AAPL) smashes sales records with its iPhone 6s: Tech firm sold more than 13 million handsets in the opening weekend

- The next-generation models went on sale on Friday in 12 launch countries
- This included the UK, US, Australia, France, Germany, Japan and China
- It beats the 10 million devices sold during the iPhone 6's opening weekend
- A further 40 countries will get the phones from 9 October and they will be on sale in 130 countries by the end of the year

In just one weekend Apple sold a staggering 13 million iPhone 6s and iPhone 6s Plus handsets.

The next-generation models went on sale on Friday in 12 launch countries, including the UK, US, Australia and China.

This record beats the 10 million devices sold during the opening weekend of the iPhone 6 going on sale in 2014.

'Sales for iPhone 6s and iPhone 6s Plus have been phenomenal, blowing past any previous first weekend sales results in Apple's history,' said Tim Cook, Apple's chief executive.
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P H
Sep 28,2015 12:12:13
We are taking profit on Google ($GOOGL US) following the stock’s 13.4% rise since its addition in March 2015. Proceeds are used to fund a new position in Apple ($AAPL US) following the iPhone maker’s 13% pullback from mid-July. Separately, we are switching out of Las Vegas Sands ($LVS US) into Walt Disney Co ($DIS US), as we see higher consumer spending in the US. Proceeds from the closed position in Potash Corp ($POT US) were used to fund new position in Nucor Corp ($NUE US), as we see Nucor’s implementation of a new production line enhancing its competitive advantages. With the recent correction in European automakers, we take the opportunity to switch into BMW ($BMW GY) from General Motors ($GM US). We believe recent concerns over China’s slow-down and the fallout from Volkswagen’s emissions scandal have been overdone and take the opportunity to open a position in the Narrow-Moat rated automaker.

Source: Bank of Singapore
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P H
Sep 23,2015 10:30:29

• The pressure-sensitive screen looks like a game-changer, says Walt Mossberg, opening up a whole new vista of things Apple (AAPL -2%) and its developers can get you to do. "I can even imagine this working on the screen of a car." His one beef is the 16 gigs of memory on the phone's entry-level model. While Apple says users aren't bumping up against that limit, Mossberg notes the new photos (the "Live Photos" feature) take up twice as much space as the previous pictures.

• A fan of Live Photos, the NYT's Brian Chen is less enthusiastic about 3D Touch. He reckons the two new features aren't substantive enough to make it worth it for iPhone 6 users to upgrade.

• The Verge's Nilay Patel says by the time developers can really make use of 3D Touch, it'll be time to buy an iPhone 7.

• Wowed by both Live Photos and 3D Touch, Buzzfeed's John Paczkowski is ready to go out and upgrade his iPhone 6 Plus even though he'll have to buy his way out of his contract. " I think 3D Touch is likely the biggest innovation to the iPhone user-interface since the iPhone user-interface."

Bull
Quotes delayed, except where indicated otherwise.
AAPL
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Apple Inc.
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