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Apple Stock News: Hope and Expectations for 2019

Apple Stock News: Hope and Expectations 2019

Apple’s first quarter of the year is the one with biggest sales and higher margins due to a seasonal effect. The recent Q1 earnings report showed decline in profit margins, even though analysts had a “better than feared” reaction and Apple stock price went up. Let’s see what do we expect from Apple in 2019.

Apple Music and American Airlines

Apple music is now available in American Airlines flights since the 1st of February. Apple Music subscribers will have access to more than 50 million songs on any domestic flight equipped with Viasat satellite Wi-Fi with no Wi-Fi purchase required.

(Source: wikipedia.org)

Office 365 available on Mac App Store

Now for Apple users it is easier to download office applications. This apps, also can be easily distributed to employees using Apple Business Manager enabling to work in any Apple device.

AirPods

According to the reliable Apple analyst Ming-Chi Kuo, a new AirPods model is expected in 2019. The most popular accessory of Apple will have new features. With the New AirPods you will be able to activate Siri only with your voice, they will also improve water resistance, noise cancellation and Bluetooth signal. As well, they will include wireless charging and are going to be smaller than the current model.

(Source: flickr.com)

Apple News subscriptions

Apple News will offer more premium options. According to Bloomberg, in 2019 Apple will offer an all-you-can-read magazine subscription plan, taking advantage of its Texture acquisition.

(Source: wikipedia.org)

Mac Pro

Mac Pro has not been updated since 2013, but Apple announced in 2017 for this year would be finished a new version for Mac Pro. The revamped modular version would be the highest-end, high-throughput desktop system to allow the future upgrades and higher-end hardware. A design for their demanding pro customers, they said.

iPhones in 2019

New iPhones are coming in 2019. Apple is expected to provide three new iPhones in similar sizes as the current ones (iPhone XS, XS Max and XR).

Are plans to launch the new iPhones with a 3-D camera. This would be an important upgrade to the current camera, will work up to about 15 feet from the device. Also, it will power the Face ID feature. This camera would enhance augmented reality functions, allowing better placement of virtual objects on the screen and a more accurate depth perception. However, Bloomberg says plans to include a 3D sensor on the 2019 iPhone models have been delayed, and the technology will come on the 2020.

Regarding the other features, is expected to use OLED displays and an upgraded A13 chips, bringing improved performance and efficiency.

(Source: pixabay.com)

iMac

There is hope for a new iMac for 2019. The current iMac is two generations behind the 9th-generation Intel Coffee Lake Refresh. 2019 update is expected with faster processors.

MacBook

The MacBook also didn’t get a 2018 update. It could be updated in 2019 and might be with new processors and there have been rumors that MacBook will be the first to get an Apple-designed ARM processor, but we will see.

iPad Mini

New iPad mini is expected for this year. The 7.9-inch iPad would have an upgraded processor, at least the level of performance of the iPad 2018 (Apple A10 Fusion CPU). iPad mini 5 will have a lower-cost panel, Apple pencil support and Smart Keyboard connectivity.

(Source: flickr.com)

Apple Stock Prediction: Why Apple Will Release A New Mac Mini This Year

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology – Senior Analyst at I Know First.

 Summary:

  • In spite of year-over-year declines in quarterly revenue and net income, Apple’s stock still jumped 5% during after-hours trading after its Jan. 29 ER.
  • iPhone’s quarterly revenue was down -15% Y/Y but Mac’s revenue was up 9% Y/Y. Revenue from iPad was up +17% and Services was up +19% Y/Y.
  • The strong sales growth of the iPad and Services segments convinced me that Apple will really release a new low-cost iPad Mini and iPad 9.7 inch this year.
  • Office productivity, mobile gaming, and watching streaming movies is still better on an iPad than on an iPhone.
  • Adobe will release an iPad/iOS native version of Photoshop CC this year. A $200 iPad Mini 5 with 7.9-inch screen is perfect for professional photo editing.

I was proven correct when I said that Apple (AAPL) will release a new Mac Mini in 2018. Last year’s release of an updated/improved Mac Mini helped the Mac segment deliver a +9% year-over-year (Y/Y) increase in quarterly revenue. Based on the holiday quarter earnings report of Apple, Mac segment earned $7.4 billion in Q1 2019.  Creative professionals like me love the Mac Mini because it is better than a MacBook (overheats during prolonged use) for graphic design/video editing/content creation.

Services Q1’ revenue was up 19% Y/Y ($10.9 billion), and iPad also delivered +17% Y/Y growth ($6.7 billion). This outstanding performance by the three segments of Apple definitely helped boost AAPL’s price by as much as 5.23% during the January 29 after-hours trading, post-ER.

[su_lightbox type=”image” src=”https://iknowfirst.com/wp-content/uploads/2019/01/AAPL_YahooFinanceChart-1.png”][su_tooltip style=”bootstrap” position=”west” rounded=”yes” content=”Click to enlarge”][/su_tooltip][/su_lightbox]

(Source: Yahoo)

China trouble was largely responsible for the big -15% Y/Y drop in quarterly iPhone revenue ($52 billion). Apple only managed to rake in $13.2 billion from iPhone sales in China in Q1 2019. This is almost $5 billion lower than what it made in Q1 2018 China iPhone sales.

The upbeat reaction during the post-ER after hours trading for AAPL convinced me that investors now better appreciate the non-iPhone revenue streams of Apple. The iPhone is tanking but the other segments – Wearables, Mac, iPad, and Services are all growing.

Please study the official chart below released by Apple for its Q1 2019 earnings report.

(Source: Apple)

The growing revenue streams from the iPad and Services segments convinced me that Apple will really release a new affordable (maybe $200) iPad Mini this year. The release of a $29/$329 9.7-inch iPad last year was responsible for the boost in quarterly iPad revenue.

Apple, The Entertainment Company, Needs The Mac Mini

Common sense tells me that mobile gaming and watching streaming movies and TV shows is still better on the iPad Mini’s larger screen display (than on the iPhone XS/iPhone XR). The larger size of the iPad Mini makes it also better in heat management than on an iPhone. The iPhone XR noticeably overheats when used during prolonged mobile gaming and movie watching.

The iPad Mini is vital to the future of Apple as a gaming and entertainment services provider company. Learned investors should now forget Apple as the iPhone company. Apple is now a leading video games and entertainment company.

A $200 7-9-inch iPad Mini 5 with Apple’s older A10x Fusion processor will make it the best mobile gaming device. Even the even older A10 Fusion processor is already a decent gaming System on Chip (SoC). The graphics performance of the A10 Fusion processor is better than the high-end mobile SoC Tegra K1 from Nvidia (NVDA).

(Source: Notebookcheck.net)

Due to the usually-affluent category of iPad/iPhone owners, Apple is the largest beneficiary of the $61.3 billion/year mobile games industry. The Services segment’s quarterly revenue of $10.875 billion is largely due to Apple iTunes’ 30% cut from money spent by iOS gamers. However, Apple’s video streaming service will soon grow to be a decent contributor to the company’s topline.

I reiterate that an iPad Mini is the best iOS gaming device that can help Apple increase its 30% cut revenue stream from the world’s top-grossing free-to-play (freemium with in-app purchases) mobile games. Unlike Google (GOOG) Apple is enjoying a 30% cut from the estimated $70 million monthly gross revenue of Fortnite iOS. Apple do not allow app/game developers to use its iOS platform outside its iTunes platform.

(Source: SuperData Research)

Conclusion

The iPad and the iPad Mini is important to the fast-growing Services segment of Apple. The iPad Mini;s affordability will also help boost the growing iPad segment revenue. Apple is now a video games and music/video entertainment company. Two years from now, the combined annual revenue from the other business segments of Apple may overshadow iPhone sales. An Apple less reliant on iPhone revenue becomes a much better long-term investment.

I rate AAPL as a buy. I Know First’s stock-picking AI algorithm has a bullish one-year market trend forecast for Apple’s stock.

Apple still trades well below the average 12-month PT of $183.98 made by TipRanks-tracked professional analysts. Going long on AAPL might prove very rewarding after a one-year period.

(Source: TipRanks)

Past I Know First Success Forecast

The following forecast refers to a previous successful I Know First algorithm prediction that gave a bullish long term outlook for AAPL which was included in a premium article on how the trillion dollar app economy is boosting Apple. The prediction was bearish in the short term, but saw a positive upside over the 1 year time horizon with a signal of 116.66 and a predictability indicator of .62. The Algorithm correctly predicted Apple’s share trend. 

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Please note-for trading decisions use the most recent forecast. 

Apple Stock Outlook For 2019: SWOT Analysis + I Know First Forecast For AAPL

Apple Stock Outlook For 2019: SWOT Analysis + I Know First Forecast For AAPL

The infamous Apple logo

Apple (NASDAQ:AAPL) has come a long way over the past few years. As it has doubled its stock price since summer 2016 and become the first trillion dollar company earlier this year, it has also seen some dips and is currently below the price it was at a year ago.

 

Apple is now down 33% from it’s all time high of 233.47 and has dropped below the trillion dollar mark once again. Apple’s most recent tumble has left the company at a new 2018 low ~$150 on December 21 causing market cap to drop below $700 billion for the first time in nearly 2 years. So what’s next for the company for the next year? Will the stock price continue to slump as it has for the tail end of 2018? Or will it bounce back for another record breaking year? In this article, we will take a look at Apple’s strengths, weaknesses, opportunities, and threats in order to determine the tech giant’s future potential.

SWOT Analysis

Strengths

Apple has many strengths that have helped it stay on top of the phone and computer market for years. It’s simple and easy to use iOS phone software compatibility with its macOS computer software has allowed consumers to maintain seamless connections between their phones and computers. This has contributed to the large brand loyalty customers feels towards Apple. Many iPhone users have used the flagship phone for years and do not plan on switching anytime soon.

Moreover, Apple has boasted strong financials over the past years with strong quarterly reports. While some investors were not necessarily thrilled with the company’s latest Q4 earnings report, there were still many impressive metrics such as a 20% YoY increase in revenue to $62.9 billion. This translated to an extraordinary 41% YoY increase in earnings per share of $2.91. These high percentages resonate more with those of a startup than the multibillion dollar company Apple has become.

Source: Yahoo Finance

These high revenues have given the company high cash flow it can invest as it chooses. The company has put a large focus on research and development of its current products as well as new ventures. For example, the company releases new iterations of its phones, computers, and watches yearly. On top of that, the company has been working on new applications of its technology such as self-driving cars. In the past, Apple has created innovative products that have helped attract and maintain customers.

Apple Annual Free Cash Flow (Source: MacroTrends)

Despite being a multibillion dollar company, Apple still have a relatively fair valuation. The company’s Price/Earnings Ratio is cheaper than the industry average which sits around 20. This is also very valid considering it also has a very reasonable forward P/E of 11.85. Additionally, Apple’s earnings growth doesn’t seem to be stopping. Over the past 5 years, EPS growth has been around 15%. Over the next 2 years, EPS is expected to grow by a slightly lower, but still significant 11.10%.

Weaknesses

While Apple did have a strong start to the year, it struggled in the final quarter of the year. Despite announcing three new iPhone models in September, the company did not meet expectations for unit sales. While this would have been disheartening, but not necessarily worrisome on its own, Apple also announced it would no longer release metrics for hardware unit sales. To many investors, this implied a slowdown of sales and potentially a dip into negatives.

One of the most unique features of the iPhone XR is the new color ways available. Although some of these colors were also available for Apple’s last budget phone, the iPhone 5C (Source: Apple)

So why exactly have iPhone sales been down? With improvements in the technology within smartphones, they now last longer and consumers do not necessarily need one every year or two. Additionally, the latest iteration of iPhones were extremely similar to the previous generation, leading few people with newer phones to upgrade. In the past, the new features of the most recent iPhone might still incentivize those with functioning phones to take the plunge for the news phone, now only those who are in need of new phone will invest. Additionally, the high price of the iPhone XS and iPhone XS Max may be a pinnacle for Apple’s pricing power. Even the company’s cheaper option, the iPhone XR, sells for a premium of $749. The higher prices for fewer new features has led consumers to use their phones for longer and hold off on upgrading, decreasing hardware sales.

On January 2, Apple released a press release outlining a revised lower guidance for the upcoming quarter. This sent the Apple stock tumbling as investors began worrying about these lower earnings. Apple cited four primary reasons for the decreased expectations: launch timing, foreign exchange conversions, supply constraints, and difficulty in emerging markets. The most significant weakness to Apple is the lack of revenue from iPhones which the company attributes to the timing of its launch. Because of the delay in the iPhone X, many of the orders were fulfilled in Q1 2018 whereas the majority of iPhone sales were fulfilled in Q4 2018 for the iPhone XS, iPhone XS Max, and iPhone XR. This in combination with supply constraints urged Apple to warn its investors of lower potential revenue for the first quarter of 2019.

Opportunities

While iPhones still represent Apple’s core business, Apple has been diversifying its revenue by focusing on its services. While buying an iPhone or other Apple hardware product happens at most once a year, services can be purchased at anytime with higher frequency. Apple’s Services division is composed of many different services ranging from AppleCare, Apple Pay, Apple Music, and more. In its most recent quarter, Services revenue increased 17% YoY to nearly $10 billion. If Apple continues to focus on the Services market, it can reap large profits.

Apple also recently teamed up with Amazon to form a lucrative new partnership. Amazon will now be a direct reseller of Apple iPhones and iPads. This should help to boost hardware sales and sets the stage for future partnerships with Amazon which should prove profitable for Apple. This partnership also allows Apple the chance to capitalize on another opportunity: holiday sales. The holiday season has high potential to increase hardware sales.

Another potential, but less likely partnership may be with Tesla. Many analysts have noted that the companies similar emphasis on seamless software and sleek hardware could lead to either an acquisition or partnership. While there has been no indication from either company that this is in the works, it would be logical considering Apple’s work on self driving cars and Tesla’s need for free cash flow.

Apple has struggled in the past with developing markets such as in India. The expensive iPhone has not had the massive success it has in other countries because of many lower price alternatives from competitors. Additionally, high tariffs have made the phones come at an even higher premium. Apple began combatting this by starting to assemble iPhones such as the SE and 6S in 2017 through Wistron’s local unit in Bengaluru. Apple has now struck a deal with Foxconn to being manufacturing its newer iPhones such as the iPhone X in the beginning of 2019. Until now the company has only sold is lower end models, so the introduction of new premium phones will hopefully grow Apple’s prominence in the country.  This partnership has massive potential to help Apple gain market share in the huge Indian phone market.

Threats

Source: Pixabay

In December, the US market officially entered bear territory, just like Apple itself. Many stocks are struggling in December, one of the usually most profitable months for companies. As one of the biggest stocks in the US stock market, Apple can be affected by general market sentiment and trends like this December dip. With many analysts wary of an oncoming recession, Apple could suffer from no fault of its own.

Another potential threat Apple faces is an escalating US-China trade war. Just like the entire technology sector, Apple is susceptible to impacts from tariffs. Additionally, Apple faces pressure to move production to US which would lead to higher costs for Apple. Meanwhile, China has proposed various policies from closing its markets which would affect many Apple suppliers. On top of this, Apple is currently appealing an iPhone sales ban in China and Germany on older iPhone models over patent infringements of Qualcomm. A Chinese court has banned imports and sales of iPhones comprising approximately 10-15% of  Apple’s China sales. However, Apple will continue selling its iPhone 7 and 8 models on the website while the decision is appealed.

The trade war is not the only difficulty Apple is facing in regards to international expansion. Another major player in Apple’s lower revenue guidance was difficulty in emerging markets and significantly lower iPhone sales in China. As a whole, China’s economy has been slowing down since the middle of 2018. This economic slowdown was only exacerbated by trade tensions leading to a large contraction in the smartphone market that affected Apple and created a revenue shortfall. Apple also overestimated the number of upgrades in these emerging markets which is a result of a strong US dollar, fewer subsidies, and phones now function at a high capacity for much longer than they used to. Apple is already taking action to minimize the impact of these threats in the future.

Analyst Recommendations

Currently, the majority of analysts have a bullish outlook for AAPL. Of the 42 analysts polled by Yahoo Finance, 31 rate Apple stock as a Buy with 11 of these as Strong Buy. Only 11 of the analysts give Apple a neutral rating.

Conclusion

Despite lowered earnings expectations, which has been a very bearish signal for many investors, Apple still has potential in the new year. While Apple cannot control the macroeconomic environment that has led to this decreased guidance, the company is already combating these with new programs. For example, Apple is now incentivizing customers to upgrade their iPhone by offering larger trade in values for older models. Additionally, which iPhone sales have suffered, the largest number of iPhones are being used daily which provides a large market for Apple’s services and also exemplifies the loyalty of Apple users. The price drop that resulted from Apple’s press release now provides an even more valuable opportunity to buy into the multibillion dollar company.

While Apple does have some weaknesses to work on and threats to combat, the company has many strengths and opportunities it is building on while should outweigh the downside. That being said, as the economy sinks into bearish territory and trade war tensions continue building, the market as a whole including Apple, will probably not see any major gains. Over the long run though, Apple should bounce back. As it diversifies its revenue by taking advantage of Apple Services, the offset of decreased hardware sales will affect earnings less. Additionally, with a track record of new innovation, Apple’s next line of phones should be more unique. Moreover, no one knows what other products are in development. Based on this, Apple should be back in winning territory by the end of 2019.

I Know First 2019 Bullish Forecast For Apple

The I Know First machine learning algorithm currently has a positive outlook for AAPL. While the stock is bullish over all time horizons, it is most bullish for the 1 year period with a signal of 310.36 and predictability indicator of .85.

Past I Know First Success With Apple Stock Forecasts

A bit over a year ago, the I Know First algorithm gave a bullish long term outlook for AAPL which was included in a premium article on how the trillion dollar app economy is boosting Apple. The prediction was bearish in the short term, but saw a positive upside over the 1 year time horizon with a signal of 116.66 and a predictability indicator of .62. In accordance with the algorithm, Apple has grown nearly 45% since then.

Apple Stock News: Apple and Amazon Join Forces in Lucrative New Partnership

Apple and Amazon’s New Partnership and What this Collaboration Means for the Stock

Based on Apple’s latest earnings report, iPhone unit sales are flat. The iPhone is reportedly not selling as well as expected, though the nearing holiday season will surely bring an expected spike. Global sales of tablets are also shrinking. It is therefore a great relief to learn that Apple successfully persuaded Amazon (AMZN) to sell iPhones and iPads in America and other countries. Amazon is the third-ranked vendor of tablets with its Fire Android products. It therefore came as somewhat of a surprise that Amazon agreed to be a direct reseller of iPads.

(Source: Statista)

Why Apple Needs Amazon

I previously harped about it many times – AAPL’s price movement is largely dictated by how many units of iPhones it sold.  AAPL dipped post-earnings last November 2nd because investors are scared that iPhone sales have peaked. The management’s decision to no longer report unit sales of iPhones going forward is worrisome for some investors. It was perceived as tacit admission that iPhone unit sales have really peaked.  The mood now is that Apple can no longer rely on the iPhone for growth.

(Source: Statista)

 

The dip in Apple’s valuation to below $1 trillion confirmed that investors care more for iPhone unit sales than any other metrics. It did not matter that Apple finished its fiscal year 2018 with record revenue and profit.  In spite of the flat lining unit sales of the iPhone, Apple’s $265.59 billion in FY 2018 revenue was still a 15.86% year over year increase. The annual net income of $59.53 billion saw an increase of 23.12% Y/Y. The pessimism over AAPL has gave it a lower EV/EBITDA valuation than MSFT and GOOG. This undervaluation is in spite of AAPL’s superior balance sheet and revenue/net income performance. Apple is clearly the better value play than its peers.

(Source: Seeking Alpha)

How Amazon Will Help

Going forward, Apple’s stock could rise again because of Amazon helping it sell more units of the iPhone and the iPad. Apple may no longer divulge specific quarterly unit sales for its products, but growth could still be surmised through improved revenue over the next succeeding years. Apple already has more than 500 retail stores around the world. However, Amazon touts more than 100 million Prime subscribers. They are all potential customers of Apple’s pricey products. There is also the strong possibility of Amazon offering subsidised price tags for the Apple Watch, iPhone, and iPad to select Prime subscribers.  Going forward, this potential Amazon subsidy could increase Apple’s hardware sales.

This partnership is also perfect timing for this upcoming Christmas shopping season. People around the world will be receiving their 13th-month pay and Christmas bonuses. Millions of Amazon shoppers will be capable of buying the most ‘affordable’ $750 iPhone XR.

A survey last July 2017 revealed that 59% of American respondents with income of $75K to $99K are Amazon Prime subscribers. Amazon’s Prime subscriber base definitely has wealthy individuals who can easily afford the most expensive Apple product. Statista’s chart below clearly illustrates that many Amazon Prime members are perfect targets for the new pricey iPhones and iPad Pros.

(Source: Statista)

Conclusion

It is a long-term tailwind for Apple that Amazon has agreed to become an authorised reseller of Apple watches, phones, and tablets. Amazon will also delist non-official resellers of Apple products on its marketplace by January 4, 2019. By eliminating unauthorised resellers on Amazon’s websites, Apple is assured of price uniformity for all of its products sold.  Eliminating price-cutting third-party sellers can improve Apple’s topline and bottom-line. It is an open secret that many unscrupulous individuals and organisations resell deeply-discounted stolen iPhones/iPads on online stores like Amazon.

Amazon is now also a massive sales channel for refurbished iPhones and iPads that Apple needs to unload. These refurbished products are from Apple’s own trade-in program. Apple practices device trade-ins so it could sell newer, more expensive models. The exchanged phones, tablets, and computers that Apple has stockpiled can be quickly monetised through Amazon.

I rate AAPL as a buy. This stock also has a bullish one-year forecast from I Know First. The high 0.81 predictability score means I Know First has a long track record of correctly predicting the 12-month price trend of Apple’s stock.

The vibe from monthly technical indicators and moving averages trends are in favor of going long on AAPL right now.

(Source: Investing.com)

Past I Know First Success with Apple Stock Prediction

I Know First has been consistent and accurate with AAPL stock predictions in the past.

This bullish 1 Month/3 Month/1 Year Forecast that was sent to our subscribers on August 22, 2017.

 To subscribe today click here.apple stock predictions

How to read the I Know First Heatmap

The article discussed possible acceleration of Apple’s research on Augmented Reality and self-driving car technologies as those are considered to be future diversification areas for Apple. Some key financial aspects were analyzed, including posting of a new record high of $162.51 at the end of August 2017. Finally, we expected that Apple coming up with a real major upgrade to the iPhone 7 could propel the stock to a new 52-week high. Since the forecast’s release, where the bullish signal of 131.7 was identified by the algorithm with predictability rate of 0.61, Apple Inc. stock price surged that high that on August 2, 2018 the company’s market capitalization became more than $1T and ended up on August 22, 2018 with stock price increase by 38.86%.

Summary:

    • This holiday quarter should see a notable increase in Apple’s hardware sales. Apple’s flat lining iPhone unit sales desperately needs a boost.
    • Amazon recently agreed to sell Apple Watches, iPhones, and iPad tablets in its U.S. and international online stores.
    • AMZN agreed to become an official Apple reseller. Amazon will delist unauthorized resellers of Apple products using its platform by January 4, 2019.
    • Amazon touts more than 100 million Prime subscribers. They are all desirable potential customers for Apple products. Buying online is faster than queuing up at an Apple retail store.
    • I still rate AAPL as a buy.

Please note-for trading decisions use the most recent forecast. Get today’s forecast and Top stock picks.

Apple Unveils Highly Anticipated New Line Up at October Event

Apple Unveils Highly Anticipated New Line Up at October Event

(Flickr)

After a long period of anticipation, Apple has held its October event in Brooklyn this past week. The event’s announcements of upcoming products included the Retina MacBook Air, a new Mac mini, and a pair of new iPad Pros. Feedback from those who have been slightly unimpressed with Apple as of late, was very positive. Apple also announced Q4 results in which they surpassed revenue for the previous quarter, and the same quarter of the previous year. Finally, Apple reported its Q4 earnings this week. The company generated $62.9 billion in revenue and $14.12 billion in profit from 46.89m iPhones, 9.69m iPads, and 5.3m Macs sold.

The Lineup: iPad Pro

The most anticipated announcement of the big three was the iPad Pro lineup. As expected, the new iPad Pro is available in 11-inch and 12.9-inch, with no Home button and Face ID support. The display stretches further to the edges this time around, via its liquid retina display. Apple has released a new Smart Keyboard Folio and Apple Pencil to accompany the new iPad Pro. To finally join it’s newest products, the new iPad Pros will also use an USB-C connector, allowing customers to use one cable for several devices. First introduced by Apple CEO Tim Cook several years ago, and said to represent his vision of the future of personal computers, the iPad Pro have always had more computing power than their non-Pro counterparts. Fo this reason, it has become a big favorite of professionals in the realm of creativity, particularly in the music and media industries. Apple says the A12X Bionic chip makes them more powerful and faster than any other tablet on the market. Meanwhile the tablet’s storage capacity can be extended to an massive 1 terabyte. The new 11-inch iPad Pro starts at $799, while the 12.9-inch starts at $999.

Retina MacBook Air

The Retina MacBook Air starts was one of the more stand-out products of the show. It is available in three colors for the first time: silver, space gray, and gold. The new MacBook is powered by an 8th Generation Intel Core i5 processor, with 8GB of RAM. It is equipped with Apple’s T2 security chip, USB-C, and a Butterfly keyboard, as well. The new MacBook Air also features Touch ID, which allows customers to access their laptop way more conveniently. This new feature will also allow people to use Apple Pay with just a quick touch of their finger. Grove also added during the presentation that the new 13.3-inch Retina Display “quadruples” the pixel count of the old MacBook Air, with an impressive 2560×1600 native resolution. The MacBook Air also promises “48% more colour” than the previous iteration’s screen. The product that was lagging behind other updated Apple products is finally receiving some appealing changes and could become a very hot seller.

Mac Mini

The Mac Mini is powered by a quad-core processor. An upgrade to a six-core processor is also an option if you need more power, which would make the computer 5x faster than before. The Mac Mini also holds 64GB of memory. Much like the MacBook Air, you get Apple’s T2 security chip. This would mark the first time since 2014 that the product is being upgraded. The Mac Mini will be starting at $799 with a November 7th release date.

All of these products are being made with 100% recycled aluminum. This gives them yet another edge over competitors. This may acquire some extra sales, because let’s be honest, this is Apple. The company knows how to maximize profit, which should be good news for any investor.

Q4

Apple has released its 2018 fourth quarterly earnings which include initial iPhone XS and iPhone XS Max sales as well as the Series 4 Apple Watch. The iPhone XR launched earlier this month and didn’t make the previous quarter. They reports $62.9 billion in revenue and $14.12 billion profit. Apple us forecasting next quarter’s earnings to be between $89 billion and $93 billion. Fiscal year 2018’s Q4 results compare to the previous quarter’s $53.3 billion in revenue, $11.5 billion in profit. This includes 41.3 million iPhones, 11.55 million iPads, and 3.7 million Macs. In the same quarter one year ago, Apple reported $52.6 billion in revenue. Look for the release of all these heavyweight products, especially right around holiday time, to bring in some serious revenue for Apple.

 

Apple Inc. Is Still The Big Bad Bull

“There Is More In The Making”

(Flickr)

The first company to hit a trillion dollar valuation continues to refine their strategies and will continue to generate heavy revenue. On October 30th, Apple will be holding an event in Brooklyn, to reveal it’s newest releases. This comes in light of the September Summit, which left some disappointed. At least in the sense that they didn’t hear of anything more than the iPhone and the iWatch (most likely a calculation to keep attention of the product). The Brooklyn event’s tagline is “there is more in the making”, and is expected to reveal new iPad Pros, Macs, and more. This time around Apple’s expected to reveal two redesigned iPad Pro models, a new MacBook, and other upgrades to the Mac line. There are some speculations that it can be something new all together, a leap in the AR realm. The visuals for the event, which shows the Apple logo graphically animated in many different ways, may be alluding to the new iPad Pro. It is set to be equipped with Adobe Photoshop CC and is culminating much anticipation. For what it’s worth, this will be their first event held in Brooklyn, which may convey a newer direction Apple may be headed.

The Electric Canvas

Adobe held it’s Adobe MAX conference in Los Angeles this week. At the event, the official announcement which includes Photoshop CC on the new iPad was finally made. Expect the official hype train for this to start rolling in to Brooklyn on the 30th of October. The immensely successful app will surely reflect on the new iPad’s revenue (CC makes up for half of Adobe’s revenue). Besides having a premium tablet, the addition of such an app makes at even more of an investment to artists, and the regular user alike. I also believe that the time we are in now, with the popularity of editing pictures and making “memes” just for the sake of entertainment on social media at the highest level it has ever been, the incentive to purchase is higher (The mobile phone greatly limits Photoshop CC of it’s capabilities.) The deal leaves Apple getting commission on each Creative Cloud subscription.

Calculations

Pre-orders for the iPhone XR set into effect this week. The more affordable version of the new iPhone releases drops right in time for it to get hot and spread right in time for shopping season. These are some of the obvious, but sometimes maybe not so obvious calculations made by Apple that make them the company that they are today. It is the same reason that they held two events about one month away from each other. This gives each product a broader spectrum of attention. Calculations which revolve around increments. Incremental changes that bring PROFIT. In the example of the Apple Watch, they could have released the first with the same, larger face size that they have now, but increasing it each year means that they will SELL more watches. The release of the XR, as I stated in the last article, I believe may be their best selling phone to date. This is due to the fact that they are offering a premium Apple phone that is similar to their $1000 phone for about $749, which is truly a decent value today, at least taking in to consideration Apple’s position in today’s society.

(Flickr)

Equations

Besides the fact that they sell quality product, I believe paying attention to detail when it comes to Apple’s releases can be enlightening as to why they are a $3 trillion company. The incremental upgrades to products, and their releases bring in enormous revenue. It is the same reason why next year, when Apple releases the next big phone, with the upgrades that they possibly already have on the burner (increments), we may be singing the same tune. This year, the company reversed its strategy, launching the most expensive versions first, and higher pricing relative to last year should boost average selling prices. In addition to altering the iPhone strategy, the same is likely to happen with the iPad Pro this year. In 2017, the company launched 10.5- and 12.9-inch versions of its high end tablet in June, this year they seem to be targeting a fall launch schedule, which will more target the holiday shopping season. I Know First is bullish with AAPL stock in the long term.

Apple Stock Forecast: AAPL May Be Headed Towards Another Record Quarter

Apple Stock Forecast: High Demand For XS Max, XR On The Way

(By Rhaym tech Via Wikimedia Commons)

With the release of the new iPhone XS and the more popular XS Max, Apple may be on the verge of it’s highest grossing iPhone release yet. Not to mention being days away from the release of the highly anticipated, and more affordable iPhone XR. In a recent survey by Piper Jaffray, from 700 domestic Apple iPhone owners, 39% would upgrade to the iPhone XS or XS Max if they were to upgrade this year with just about a split between the two models. The remaining 61% would choose the upcoming iPhone XR or existing iPhone 7 or 8.

Given that “older” apple products seem to not really survive that long. Wether that is by Apple’s own controversial, yet somehow forgivable doing, or people’s desire to have the next best thing, people are buying the newest phones. The in-house built A12 Bionic chip powered phone will cost the customer upwards 1000$, not to mention the increased warranties. People are now willing to pay top dollar for something that is highly utilized on a daily basis, and the reflection of the premium quality cellular phones will be seen in their sales. I believe that Apple’s business strategies are far more complex and exceed that which meet’s the eye. The release of the iPhone XR, which is a more affordable alternative to the only slightly more premium model, at still a fairly large price point, will surely become the most popular among the larger scale of consumer.  This could very well be their most profitable model to date.

Don’t Just “Watch” This Stock

The Series 4 Apple Watch has been seeing success across the board as well. It has been receiving notable reviews by consumers. The new Apple Watch Nike+ devices is the next release in the Series 4 family. It includes a larger screen, thinner body, an ECG reader, fall detection, and more. It will also launch worldwide.

Most of the time Apple stock falls after earnings. A lot of people with inflated expectations decide to sell after earnings. Instead, Apple tends to rise during the long periods between earnings reports. In 8 out of the last 10 iPhone releases, AAPL slid immediately after the release and didn’t return to pre-release levels for about 60 days. Currently, they’re hitting all time highs two weeks after the release. Last earnings report, on 07/31/18, sent AAPL into an immediate uptick. The likes of 3% in a single day. Apple is set to release it’s Q4 earnings on November the 1st.

I Know First’s predictive algorithm remains bullish on AAPL stock in the long term.

To learn more about I Know First’s success and accuracy, click here to read our premium article about Warren Buffet’s long investment and how our algorithm successfully predicted and forecasted Apple’s record breaking year, before it happened.

The Newest Apple iPhone XS Revealed In September Summit

Apple’s September Summit Take-Aways

Last week, Apple kicked off their annual September event. Their main unveilings included the new Apple Watch 4 and the iPhone XS/XS Max. The XS saw it’s release on Friday, with the larger XS Max set to release in the coming week. As usual, the iPhone has upgrades to the previous iPhone X, which investors can be happy about because it’s another display of Apple’s way of incrementally and almost minimally upgrading a phone and gathering big sales in the process. Though it’s fair to say they are still delivering a premium product that can be called the best.

  (By Mike Deerkoski – Flickr)

The new Apple in-house built A12 bionic chip is giving competitors a run for their money. As expected, multi-core performance isn’t a vast difference over the A11 Bionic from the 2017 iPhone X, but single core performance see’s a noticeable improvement.

Upcoming For Apple

It should also be noted that the more affordable iPhone XR will be released in October. The Apple Watch 4’s release, which will receive more attention in the next article, will surely shake up sales as well. With these three new products, effects on stock should be noticeable in the coming weeks or month (especially during the holiday season and days like mothers/fathers day).

A few other advancements on Apple’s side that may effect sales are the new higher price of insurance/theft protection going up to $299 for a $100 increase. The removal of the headphone jack from the new iPhone may also lead to a boost in sales of Beats, AirPods and other bluetooth audio devices. Lastly, the battery price will increase after it was lowered for the year of 2018. Some people were left a bit disappointed following the summit, but I think this is Apple knows exactly what they are doing. With more to come this year including the highly anticipated new iPad and improved AirPods, the only way to go is up.

No Competition

In comparison to Android’s current flagships, it’s a clean sweep for the A12 all around. In tests run by Geekbench 4, 3D Mark, Slingshot Extreme and GFX Bench, the new chip powering the XS and XS Max destroys all the competition, with second place coming in to none other than their own iPhone X. The Bionic A12 proves to be the real deal. The A12 is generations ahead of others, but soon enough they will be releasing 7 nanometer chips of their own. QualComm claims to have a 7nm release coming soon.

As I mentioned earlier, the $3 trillion company has not reached anything close to a ceiling and is still on the rise. It is worth another mention that Apple has mastered the art of business. They make great product, and at the same time truly know how to implement the right amount of upgrade in bits and pull in big sales throughout the year in the process.

(Pixabay)

I Know First is certainly bullish on AAPL stock, as detailed in this article published on May 1st

APPL stock is with 43% return since this bullish forecast.

Source: Yahoo Finance

Beats, NBA Audio Partnership Has A Nice Sound

Beats To Become Official Audio Partner Of NBA

(WikiMedia Commons)

“This partnership with the NBA is the perfect alignment for Beats. It feels like coming home.” -Luke Wood, President of Beats By Dr. Dre

Tip Off

In my previous article, I wrote about Apple’s position and advancements in the sports realm. Included was, how a deal with the NBA would be the most fitting of any other sport. As well as, besides the deals to distribute iPads to the MLB and NHL sidelines, that Apple’s biggest strength in sports comes from the athletes being seen wearing their headphones. Several days later, it was announced that Beats would become the official headphone, home speaker, and audio partner of the National Basketball Association. This is a partnership of 2 brands that evolved into forces which emanate style and influence culture.

Adam Silver, who took the position of the NBA’s commissioner in 2014, has been helpful to the advancement of the league. He has been known to be very open-minded and innovative as to the potential growth of the NBA as a game, as well as a brand. Adam Silver stated that “Beats revolutionized the music industry and has become one of the most innovative and culturally influential brands in the world. Through our partnership, we have an exciting opportunity to merge sports, pop culture and technology to deliver unparalleled experiences and premium products to our fans.” Now, the NBA will become another source of water for Beats and Apple’s popularity to grow even more.

Fans have been seeing their favorite superstars wearing these products on their own accord. Without a doubt, this partnership will lead to only more success for Apple’s audio brand. This also means marketing on one of the biggest stages and platforms in the world, the National Basketball Association. With their viewership at a 4-year high, it is a big opportunity for Beats to expand the wildly popular brand even more.

The Superstars Align

Lebron James, like many other players athletes, has been a long time supporter of the product. James starred in a television advertisement, shortly after the deal was announced. Most of the time players on the other hand are not being paid to wear the headphones. This Apple product is cemented as the favorite of athletes, all around the world. Notably, this trend is gaining heavy popularity in the European soccer world, which is a global force of its own. The second most popular accessory being worn by the players is none other than Apple’s own AirPods.

Beats signed an extensive roster of some of the leagues very best to their own team. This includes the likes of Lebron James, Draymond Green and last years MVP, James Harden. It also has signed several very young players who show boundless potential, the likes of Ben Simmons, Jason Tatum, and Karl Anthony-Towns. This points to the fact, this relationship will be a lasting one. “I always want to be the best and work with the best. That’s why I joined the Beats fam. They have the best headphones and they made them a style icon when no one else thought of electronics that way.” said MVP and 6-time All-Star, James Harden.

Beats’ comprehensive merchandising and marketing deal has more to it. Besides replacing Harman as the NBA’s official sound partner, they will establish separate deals with each NBA team. This means all types of custom audio equipment with each of the 30 different NBA team logos on them, on a global scale. This will reach even more users, including loyal and passionate fans. As we know when a fan loves his team, he will let you know it. Be that a jersey, hat or now a headphone, and a superior one at that.

Beats History

Beats by Dr. Dre (Beats), the headphones created by the highly acclaimed and successful artist and producer Dr. Dre, along with the famed Co-Founder of Interscope Records, Jimmy Iovine. The purpose of the headphone was to give the user the experience of having studio quality sound on the street or in their home. In 2014, Apple acquired Beats for an astounding $3 Billion. They quickly grew to be very popular, and have became an integrated part of music culture worldwide.

(Wikipedia Commons)

Final Score

This partnership is a good sign to take into consideration that the company that hit a $3 billion valuation has not hit it’s ceiling. With developments such as this deal, the release of the new iPhone Xr (with the new in-house built A12 chip), the upcoming iPad (with the very popular Adobe Photoshop) and more, Apple’s (AAPL) stock is on the rise. The new iPhone chip integrates AI technology into the phone to give it a better understanding of it’s surroundings. The new iPhone also rids itself of the headphone jack. This could mean a boost of sales for none other than Beats, as well as other wireless Apple audio products.

(Wikimedia Commons)

This deal is a perfect match, that promises to elevate both sides. This a merging of two global forces, which stand for expression, style, and the will to improve. Apple now in the matter of a year, has closed deals with the NBA, MLB, and NHL. I Know First’s algorithm forecasts another bullish year for AAPL stock, as it has successfully done in previous years. The Beats/NBA partnership will kick off in October, which is when the 2018-2019 NBA season will begin. Once again, unlike the game being played, this deal leaves with two winners.

  

-This article was written by Ryan Hematian, a Financial Analyst at I Know First.

The Apple Doesn’t Fall Far From The Field

 Apple’s Position in Sports & It’s Forecasted Stock Rise

  •  Where Apple’s real strength is as a brand in sports
  • Apple bringing their iPads into the arenas
  • Adobe’s Photoshop to be available on next iPad and what that means for AAPL stock
  • I Know First predicts another bullish year for Apple stock as it successfully did the previous year

Apple has become a brand that unlike competitors, is more than just the technology you are buying, but a feeling, a vibrancy. Today, If you are out for a run or a walk, chances are you are measuring your heart rate and distance on an apple device. Simultaneously, your favorite song is playing to give you a little extra motivation, from that very same device. This is coming from the company that used to be nothing more than a computer, and can now be utilized for almost any aspect of everyday life. The tree called Apple continues to grow and shows no signs of slowing down in it’s relentless evolution. Their next branch to sprout if it hasn’t already, may very well be a solidified position in the professional sports realm.

The first thing to be aware of, is understanding how powerful of a platform the professional sports world really is. At the core, viewers consist of a passionate, loyal fanbase that tune in almost every night. To get an idea, the average viewership of the finals of the 4 major sports in the US, which are football, basketball, baseball and hockey comes out to an astounding 40 million viewers. Now that the Supreme Court just granted states the permission to once again legalize gambling on sports matches, you can expect that number to rise just like the blood pressure of a die-hard fan or gambler during a close game. What happens now is the average person who normally wouldn’t care to watch a game at 8:00 on a Tuesday night when is favorite show is on, might be watching in hopes of getting a return on his bet.

What’s The Use?

Microsoft has been successful with bringing their tablet to the sideline of every NFL game. Today in the National Football League, you will constantly see players on the sidelines with these tablets in their hands, and the game they are playing is a little bigger than crushing candy. What they do is analyze the game through watching replays. How to improve in the game, on the spot. In the past they would be doing this only after the game was over or at halftime. That being on a big projector which only helped them when it may have been too late. This as opposed to seeing and breaking down the opponents game plan as well as their own shortcomings that can be improved, on the spot.

Apple’s first step into arenas came with the National Hockey League. Yes, it’s Apple on ice. Apple has their iPad and Mac in the hand of every coach to help improve in-game efficiency, similar to how NFL has utilized them. So the NHL was next in bringing these modernized coaching technique’s to the game, with Apple supplying the goods. Contrary to the games being played, this partnership leaves us with 2 winners.

It’s A Hit

Apple’s next move was bringing it’s iPad into every dugout in Major League Baseball. Being that the MLB has a way larger fan base that the previous inked deal, this one proves to be more lucrative. Besides for the players and coaches to increase efficiency, there is something for the fans as well. The At Bat app allows through AR (Augmented Reality) technology, fans to utilize their Apple device in game. They simply hold their device up to the player at bat to see all kinds of interesting stats. Statistics such as how hard their favorite player just hit the ball, or how fast he ran. This would be the first sighting of AR technology being instituted into a major sport. For a sport like baseball, I imagine a child seeing their favorite player with this Apple product in their hand makes a statement.

 

As for the NBA, I believe a deal with apple would have been very fitting. Similar to the NBA, Apple epitomizes style, swagger and influence. This is right in line with what the creator of Apple himself, Steve Jobs, envisioned and strived for the products to be. Although, in the realm of the National Basketball Association, Apple did recently ink a television deal with one of the NBA’s biggest stars in Kevin Durant. This is the company that made similar deals with the likes of Steven Spielberg and Jennifer Anniston. They signed the baller to be part of a new drama series that subsequently is called “Swagger”.

Apple also banked in on the World Cup craze, implementing all types of features on their devices through Siri. Fans got easy access and full information to things such as scores, schedules, rosters and all other types of information.

The Real Deal

Apple’s partnership with the sports world may be stronger than inking any official deals.. Some of the biggest marketers for Apple in sports, are the players themselves. These highly influential superstars are photographed as they walk in and out of stadiums. As they do so, a majority of these superstars are using none other than Apple products. Primarily Beats headphones or AirPods. Apple acquired Beats for 3 Billion in 2014. This applies to every sport. (Not including the NFL in which the players are banned to wear them being that Microsoft has a deal with the NFL.) This was especially the case in the biggest sports event on the planet, this years World Cup.  On the court and field, the athletes warming up for a contest are also usually always using Apple headphones to get in the zone before a game.

 

 

Lets not forget, this is a company that could reportedly buy every single professional sports team if it wanted to. Partnerships with leagues may no doubt be lucrative and necessary, but the place they strive most in the sports world is by the individual athletes themselves. The heroes of so many, wearing their product, on and off the field/court.  Apple has established themselves as THE brand. In an expected fashion, they continuously adapt, and innovate to make life for the user, and of course the company, better.

 

 

How Can I Win?

The company that just hit a one trillion dollar evaluation is only going up. I Know First’s predictive algorithm forecasts another strong year for AAPL stock. The bullish prediction comes in line subsequently with the very thing that Apple is putting in players and coaches hands, the iPad. The iPad business produces $4.74 billion a quarter for Apple. With Adobe working on producing a full version of Photoshop for the iPad/iPad Pro next year, sales will rise. Adobe’s Creative Cloud, is bringing in record highs in for its revenue through subscribers who want access to Photoshop. This will now be available on the upcoming iPad. To give you an idea, this application is producing half of Adobe’s current total revenue. Apple will pocket 30% from each $9.99/month Photoshop subscription.

 

 

The new iPad won’t only become an asset to creative professionals (90% of which use Photoshop) but to professionals everywhere. With updates to its multicore CPU (as it has continued to do), it becomes a tool useful for anybody. It is important to note that besides when a new Apple product comes out, people want it and they get it.

 

I Know First’s Forecast For AAPL Stock

There is information on the bottom of the page to explain this graph further

 

I Know First’s Previous Apple Stock Forecast To Its Subscribers

One of our senior analyst wrote one year ago of this bullish signal of 131.7 and a predictability rating of 0.61. It turned out that in the conclusion of that year, Apple Inc. valuation reached a record $1 Trillion. Needless to say, subscribers were happy with this forecast.

Future and current forecasts and picks can be found here

 

I Know First Algorithm Heatmap Explanation

The sign of the signal tells what direction the asset price is expected to go. (Positive = to go up = Long, negative = to drop = Short position). The signal strength is related to the magnitude of the expected return. Used for ranking purposes for the investment opportunities.

Predictability is the actual fitness function being optimized every day. It can be explained as the correlation based measure of the signal. This is a unique indicator of the I Know First algorithm. This allows users to separate and focus on the most predictable assets according to the algorithm. Ranging between -1 and 1, one should focus on predictability levels significantly above 0 in order to fill confident about/trust the signal.

 

 

-This article was written by Ryan Hematian, a Financial Analyst at I Know First.

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