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Apple Stock News: Apple Making Moves to Boost Services Business

Apple Stock News

Apple Stock News: Apple is currently laying the groundwork for a sizeable boost in the Services business.  This is on top of the stellar success the Services business already had in the most recent quarter when it grew over 24% to $8.5B in revenue.  The Services segment is composed of the App store, Apple Music, iCloud, and Apple Pay.

According to CFRA Research analyst, Angelo Zino, expect a lot to happen to Apple Services in the next few years.  The quickest way to increase market value and reach $1T or even $2T in market value is to get a higher stock multiple on top of earnings growth.  This is where Services comes into play.  With Services growing at a 20% clip, if Apple can keep it up, it will help Apple increase its multiple.  Service firms typically have higher multiples than hardware firms.  Currently, Services is only 13% of total revenues, but it could soon grow to 20% of total revenues and 33% of total profits.  Not to mention if virtual-reality games and other augmented reality services become popular, Services growth could surge to 30%.

CEO Tim Cook has mentioned in the past how Apple is preparing for an augmented-reality (AR) and virtual-reality future.  With that said, Apple is rumored to be working on a rear-facing 3D sensor system for the iPhone in 2019.  This would help Apple turn the iPhone into the leading AR device.  Also on the rumor mill is that Apple will launch a subscription video-on-demand service in 2018 to take on Netflix and others in the highly competitive and quickly growing space.  Both of these developments would help Apple to achieve its goal of doubling Services revenue by 2020.

Other News

In other news, according to Canalys, Apple is now the leader in the wearables space due to the success of the Apple Watch Series 3.  It was revealed on the last conference call that Watch unit sales were up 50% and the entire wearable business was up 75% YoY.  This is just another example of Apple’s effort to build up the non-iPhone segments of the company.

It was also reported that Warren Buffet’s Berkshire Hathaway added 3.9M shares of Apple in the third quarter.  As many investors follow Buffet’s lead, it could lead to increased demand for Apple stock in the near term.

Although Apple’s stock price has pulled back in the past week and there could be more uncertainty in the near term, the long term story remains bullish.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: 3D Sensing To Be Standard In All IPhones Next Year

Apple Stock News

One week after the launching of the iPhone X, people are already speculating about next year’s iPhones. According to KGI Securities analyst, Ming-Chi Kuo, who has had fairly reliable predictions on Apple over the last few years, Apple will release three new models in 2018.

                                                       (Source: KGI Securities)

His expectations are that Apple will release two high-end phones. One is the second-generation of the iPhone X with the same size as the original of 5.8-inches. The other phone, “iPhone X Plus”, will have a significantly larger 6.5-inch display. These models will both come out with OLED displays.

It is also expected that Apple will launch a middle and low-end iPhone model. The 6.1-inch model with a lower resolution LCD display would probably cost around $650-750.

All three iPhones will probably feature a full-screen design, instead of a fingerprint sensor, and TrueDepth Camera (3-D sensing) as the original iPhone X. Kuo also expects no delays in 2018 launches, since Apple’s supply chain will already be well experienced with the iPhone X production by next year.

For the latest Apple Stock News, AAPL closed at $173.97 per share on November 13th, 2017. It generated losses of 0.4% from its previous close on November 10th, 2017, when it closed at $174.67 per share.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock news: Positive Reviews for iPhone X leads to Positive Outlook for Apple Stock

Apple Stock News

 

A little more than a week after the iPhone X launch, reviews have begun to surface for the new smartphone, and they have been good so far. With many complementing it´s advances and stating the new iPhone is a huge leap forward in terms of the technology and components used.

Nevertheless, iPhone seems to have a problem functioning in extreme temperatures (from approximately 2ºC to approximately 35ºC), a fact which may represent a problem with winter fast approaching. Apple acknowledged this problem, stating it will soon release an update for the software, allowing the iPhone to work even at the extreme temperatures.

Despite the few problems it has been presenting, and a small depreciation in its stock prices on Friday, Apple prices are expected to grow significantly in the short and long term. The market is very optimistic about the demand for the new iPhone X and the impact it should have on Apple’s revenue. That coupled with the fact that Apple surprised the estimates for its Q4, should signify a good future for Apple stock.

For the latest Apple Stock News, AAPL closed at $174.67 per share on November 10th, 2017. It generated a loss  of 0.33% from its previous close on November 9rd, 2017, when it closed at $175.25 per share.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: Apple All Time High On Path To Reach $1 Trillion Market Capitalization

Apple Stock News

On November 7th, 2017, Apple shares hit an all-time intraday high and closed with a market capitalization above $900 billion for the first time. This is the first time a publicly traded US company reached this milestone.

Since Steve Jobs died in 2011, Apple’s market value has grown over 60%. As you can see in the chart bellow, Apple’s market capitalization under Tim Cook’s helm almost tripled in 5 years.

Behind this high rise is Apple’s recently released better than expected results on its quarterly earnings. The tech giant showed strong earnings with revenue reaching $52.6 billion, an increase of 12% from the same quarter of  the previous year. Moreover, the company also said during earnings call that it is expecting to have a very profitable holiday season, with a revenue forecast set in between $84 billion to $87 billion for the upcoming quarter.

As Apple’s CEO stated: “We are happy to report a very strong finish to a great fiscal 2017, with record fourth quarter revenue, year-over-year growth for all our product categories, and our best quarter ever for Services”, and furthermore, “we’re looking forward to a great holiday season, and with the launch of iPhone X getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future with this stunning device.”

Apple is the first publicly traded company on the way to reach $1 trillion market capitalization.

For the latest Apple Stock News, AAPL closed at $176.24 per share on November 8th, 2017. It generated a profit of 0.82% from its previous close on November 7th, 2017, when it closed at $174.81 per share.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: Broadcom Bids $103 Billion For Qualcomm – Is It The End Of Qualcomm – Apple War?

Apple Stock News

Recently, Broadcom Ltd bid $103 billion for Qualcomm (around $70 per share). This deal, if sealed, will be the largest transaction the technology sector has ever seen and could help fix Qualcomm’s problems with Apple.

Qualcomm and Apple has long been embroiled in a patent lawsuit. Apple alleges fraudulent royalty charges. The company believes that Qualcomm is unfairly charging too much and leveraging its strong market position in chips illegally. On the other hand, Qualcomm, one of the world’s largest semiconductor companies, claimed copyright infringement.

The latest move in the ongoing war was from Qualcomm, accusing the iPhone maker of leaking its tech knowledge and software secrets to competitor Intel. The chipmaker filed another lawsuit against Apple stating that the company breached their contract.

The buying of Qualcomm would make Broadcom the third-largest chipmaker in the world, losing only to Intel Corporation and Samsung Electronics Co. This could ease the lengthy war between Qualcomm and Apple, since Broadcom and Apple have a pretty cordial relationship.

Moreover, Broadcom wouldn’t buy Qualcomm if it thought it had to fight Apple’s battery of lawsuits.

For the latest Apple Stock News, AAPL closed at $174.25 per share on November 6th, 2017. It generated a profit of 1.01% from its previous close on November 3rd, 2017, when it closed at $172.5 per share.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: Apple Beats Estimates for Fiscal Q4

Apple Stock News

Apple stock rose to a record high this past week due to strong fiscal Q4 results and guidance.  The market capitalization nearly breached $900B as it added $32B to its total stock value.  The positive outlook also quelled any concerns surrounding the iPhone X.  There certainly doesn’t appear to be any lack of enthusiasm for the premium product which went on sale this past Friday.  Long lines of shoppers were flocking to get their hands on the device which is in short supply.

The great quarter from Apple led many analysts to increase their price targets for the stock.  Good news could be found everywhere.  Revenue was $52.58B, an increase of 12% YoY, which handily beat the consensus estimate of $50.69B.  GAAP EPS was $2.07 which also beat the consensus estimate of $1.87.

The exceptional results were driven in large part by growth in many non-iPhone segments.  This goes to show that Apple is not just a smartphone company.  Revenue from non-iPhone segments rose 24% to $23.1B.  iPad revenue grew 14% to $4.8B.  Mac revenue grew 25% to $7.2B.  Other Products (Apple Watch, headphones, tv, etc.) grew 36% to $3.2B.  The Apple Watch unit sales even rose over 50%.  Services revenue (App Store, Apple Music, iCloud, Apple Pay) grew 24% to $8.5B.  The big jump in Services revenue was also aided by a $640M revenue accounting adjustment that is rumored to be a payment from Google relating to a mobile ad partnership.  Apple also looks to have righted the ship in the Greater China market as revenue there broke a trend of declines and rose 12% to $9.8B.  Overall Emerging Market revenue was also up over 20%.

Holiday Quarter Guidance

For the upcoming holiday quarter, Apple gave guidance of $84-$87B, with the midpoint being slightly above the analyst consensus of $85.16B.  CEO Tim Cook stated on the conference call that the 8 and 8+ have been Apple’s best-selling models since they launched.  This countered the general opinion that sales have been lackluster.  He even said that the 8+ has “gotten off to the fastest start of any Plus model.”  Regarding the iPhone X, he implied that demand is extremely strong and the amount they sell in the future will be limited only by supply issues, certainly not by a lack of demand.  Apple will also be able to produce more iPhone X units this quarter than previously estimated.  Current estimates are for 30M units this quarter, a big upgrade from the previous estimate of 20M units, which was itself a past downgrade from 40M units.

The only non-spectacular news from the announcement was that Apple guided a 38-38.5% gross margin for the December quarter compared to the year-ago 38.5% GM (37.9% in September quarter).  Most analysts have been expecting an increase in margins due to the high prices of the new iPhone models.  CFO Maestri’s stated reason for the lower than expected guidance was high initial costs for new products, most likely a reference to the X model, as well as a headwind from higher memory chip prices.

For the latest Apple Stock News, AAPL closed at $172.50 per share on November 3rd, 2017. It generated a gain of 2.61% from its previous close on November 2nd, 2017, when it closed at $168.11 per share.

 Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: The Dispute Between Apple and Qualcomm Escalates; Apple Considers Dropping Qualcomm

Apple Stock News

After the intense start of the week that Apple had with iPhone X pre order numbers surpassing the expected, the market is now concerned that Apple´s dispute with Qualcomm is escalating.
The disagreement between the two firms began in January when Apple filed a lawsuit regarding the payments that should be made to Qualcomm, that responded with another lawsuit that sought to block the manufacture and sale of the iPhone X in China in October.
The firms are involved in a dispute regarding the patent and the valuation of the chips that Qualcomm develops and manufactures and Apple uses.
Apple is now reportedly designing iPads and iPhones that uses different chips from companies like Intel and MediaTek, a move that will possibly lead to them ultimately dropping Qualcomm as a supplier.
This move is risky for both companies, since Qualcomm might lose one of its biggest clients and Apple is facing a significant change of its hardware with unknown consequences for its production.

For the latest Apple Stock News, AAPL closed at $166.72 per share on October 30th, 2017. It generated a Gain of 2.25% from its previous close on October 27th, 2017, when it closed at $163.05 per share.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: iPhone X: Short Supply for High Demand

Apple Stock News

The pre-order for the iPhone X started this weekend on a high note, with the new device selling out minutes after being put on sale. The demand for the new phone was very high (as I Know First had previously predicted), and the limited quantities available, are the main reasons specialists are pointing out as explanations as to how the new device sold out so quickly. 

Shortly after the pre-order sold out, resellers began appearing on Ebay, charging anywhere from $1500 to $60,000 for the simpler version of the iPhone, with a markup from the official price practiced by apple that is $999. Resellers are hoping to receive money for the phones by guaranteeing the delivery will be made by the official launch date.

Meanwhile, Apple continues to struggle to produce the quantity needed to meet the demand.Pre-order sales made by October 28th should be delivered to customers only in December (well after the launch date on November 3). With some experts predicting that before the end of the pre-order period, Apple will sell about 40 million units of the new iPhone, a quantity that the company will only be able to deliver in April or May of the next year.

For the latest Apple Stock News, AAPL closed at $163.05 per share on October 27th, 2017. It generated a profit of 3.58% from its previous close on October 26th, 2017, when it closed at $157.41 per share.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: Apple Denies Rumors Of Downgrading Its Face ID Technology

Apple Stock News

For the latest Apple Stock News, AAPL closed at $156.41 per share on October 25th, 2017. It generated losses of 0.43% from its previous close on October 24th, 2017, when it closed at $157.1 per share.

Bloomberg reported recently that Apple requested its suppliers to reduce the accuracy of the iPhone X’s Face ID system. Expectations are that Apple will not be able to meet its demand for the new iPhone this holiday season. Consequently, rumors are that AAPL is allowing this downgrade of the technology in order to make it easier to manufacture, and thus speed up production.

At the heart of the delay is the dot projector, which is a component that allows the Face ID technology to work. One of the people familiar with the production process stated that Apple underestimated the complexity of making and assembling exceedingly fragile components and didn’t add extra time for the production process.

In response to the Bloomberg article, Apple denied this downgrade in the technology. In a statement, Apple said: “The quality and accuracy of Face ID haven’t changed. It continues to be 1 in a million probability of a random person unlocking your iPhone with Face ID”. Moreover, Apple also stated that it is expecting the Face ID to be the new gold standard for facial authentication.

IPhone X will be available for pre-order this Friday, October 27th.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

Apple Stock News: Production Woes

Apple Stock News

For the latest Apple Stock News, AAPL closed at $157.10 per share on October 24th, 2017. It generated a gain of 0.60% from its previous close on October 23rd, 2017, when it closed at $156.17 per share.

The iPhone X will not be able to meet demand this holiday season.  Production has been “severely delayed” because of several components that manufacturers were having trouble producing.  These components mainly dealt with the facial recognition system known as FaceID which uses advanced algorithms based on artificial intelligence.  The difference between this use of AI and previous uses is that they are powered by the phone’s A11 Bionic chip and not powered by the cloud, a very complex task.

According to expert analyst Ming-Chi Kuo of KGI Securities, “the worst is behind us” in terms of production problems.  Despite this, Apple will still only be able to manufacture 20 million iPhone X units by the end of 2017.  Its previously stated goal was 40 million units.  This is a humongous miss.

To add to Apple’s recent woes, due to super low interest in the iPhone 8 and 8 Plus, production is being halved.  This is after less than one month in the market.

Other News

On the positive side, Apple Pay, where an iPhone is used as a proxy for a card or cash, has just finished entering its 20th market.  These markets encompass 70% of the world’s card transaction volume.  Apple Pay is also used for 90% of all mobile contactless transactions where active, a category that is increasingly growing.  The wallet can now also work with 4,000 card issuers.

Apple COO Jeff Williams recently spoke about the future opportunity in healthcare.  This opportunity will mainly be brought about through advances in hardware and AI.  It is known that Apple has long been eyeing the healthcare space as one ripe for disruption.  They are currently working on several R&D initiatives in the area and are examining a push into primary care to improve the process of care delivery.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.