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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.

Apple Stock News: Shortage Of IPhone X For Preorder

Apple Stock News

For the latest Apple Stock News, AAPL closed at $156.25 per share on October 20th, 2017. It generated a profit of 0.17% from its previous close on October 19th, 2017, when it closed at $155.98 per share.

Apple’s new iPhone X preorder starts next week on October 27th, 2017. According to KGI Securities analyst Ming-Chi Kuo, Apple will have only 2 to 3 million units available to purchase.

It seems that those numbers are not enough to meet demand. From previous first-weekend sales, Apple sold 9 million iPhone 5s/5c units , 10 million iPhone 6 and 13 million units of iPhone 6s. Moreover, iPhone 6 and 6 Plus gathered over 4 million preorders in its first 24 hours. Consequently, Apple’s iPhone X short supply might disappoint many buyers.

Kuo believes that the new features present in the iPhone X will lead to a supply constraint. According to him, Apple changed its average circuit board to a flexible printed circuit board for the new camera, which resulted in a problem for Apple to find a supplier for it. The radical redesign that Apple planned for its newest product may be triggering its supply crunch.

Nevertheless, KGI analyst expects that production will increase significantly in November.

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: New Mobile Apps For Industrials

Apple Stock News

For the latest Apple Stock News, AAPL closed at $159.76 per share on October 18th, 2017. It generated a loss of 0.44% from its previous close on October 17th, 2017, when it closed at $160.47 per share.

 

Tech giant Apple and industrial behemoth General Electric are partnering to create mobile apps for the industrial industry.  This could include factories, power plants, and many other segments.

On Wednesday, the duo announced that they are launching a toolkit to allow developers to create apps for the iPhone and iPad that would use GE’s industrial IoT analytics platform, Prefix.  This Prefix platform is now Apple’s preferred tool for connected factories.  It would allow remote workers to connect for inspections and repairs.  It should result in increased cost savings and less unplanned work stoppages.  This partnership will merge Apple’s user experience expertise with GE’s industrial focus.  It also illustrates Apple’s need to keep future sales strong by foraying deeper into the enterprise market. The toolkit will be available to download starting October 26th.

Other Developments

According to KeyBanc analyst John Vinh, the iPhone 7 is outselling the iPhone 8 in the U.S.  This is just more evidence that consumers don’t see the value in the iPhone 8 and that many potential customers are instead waiting for the iPhone X.  One meaningful factor is that the iPhone 8 currently costs $150 more than the iPhone 7.

On a positive note, according to GBH Insights analyst Daniel Ives, 70% of Apple Watch Series 3 buyers (and current iPhone owners) are purchasing their first Apple Watch.  He also learned that 80% of Series 3 buyers are purchasing the cellular version which does not need an iPhone nearby to function.  The cellular version is also $100 more than the basic version, yielding Apple extra profit.  This success in the wearables market bodes well for Apple’s future.

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’s Valuation To New Highs With IPhone X

Apple Stock News

For the latest Apple Stock News, AAPL closed at $160.47 per share on October 17th, 2017. It generated a profit of 0.36% from its previous close on October 16th, 2017, when it closed at $159.88 per share.

As we are getting closer to November 3rd, iPhone X’s launching date, Apple’s manufacturing partners released their first shipments of the handsets. Customers seems to be very anxious to purchase the iPhone X and this, consequently, may drive Apple’s valuation to new heights.

Apple’s profits may boost due to the higher prices assigned to this new iPhone generation. Many analysts raised the Company’s ratings. Daniel Ives from GBH Insights expects that there will be sufficient uptake of the iPhone 8, iPhone 8 Plus and iPhone X for the next 12 to 18 months, which may in turn leave the stock price to range between $160 and $175. Ives believes that the iPhone X product cycle can be the strongest iPhone product cycle to date.

KeyBanc Capital Markets also raised its rating for Apple shares. According to Andy Hargreaves, there will be a “strong high-end demand” for the newest iPhone, which will favor investors sentiment over at least the next few quarters. Furthermore, the KeyBanc analyst predicts a gross profit margin of 39.5% and $11.68 of earnings per share for the fiscal 2018.

Hence, as Hargreaves said, Apple is a franchise with subscription-like qualities and not a regular hardware business, which support the Company’s position in a strong range.

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