Apple: The First Publicly Traded Trillion Dollar Company

“To put a trillion dollars in context, if you spend a million dollars every day since Jesus was born, you still wouldn’t have a spent a trillion”

-Mitch McConnell

(Source: Wikimedia)

On August 2nd, Apple became the first publicly traded company to hit $1 trillion in market cap. This came after Q3 earnings crushed expectations. Previously, the company only needed a share price of $203.45 to hit the historic milestone. However, after the company announced $100 billion worth of share buybacks, the price needed to hit was $207.05, which was met.

So why was Q3 so great? Well, there were many factors which contributed to Apple becoming a trillion dollar company. For starters, expected EPS was $2.18 and Apple achieved $2.34. The company was also expected to have revenue of $52.34 billion, which they truly had $53.3 billion. Finally, although iPhone sales didn’t grow as expected, many of their products did, including wearables, which grew more than 60%.

Apple stated that fourth quarter revenue will be between $60 billion to $62 billion. This is beating previous expectations of $59.47 billion. However, with more than $9.55 billion in revenue coming from China, upcoming tariffs could take a toll on stock price.

As noted, AAPL has been up this past week.

 

Apple Receives Patent For AirPower

“Changes call for innovation, and innovation leads to progress”

-Li Keqiang


(Source: MacWorld)

One of the biggest gripes with owning any wireless device is having to charge it. Owning a couple of Apple devices could really be gruesome; having to carry around a separate charger for your Apple Watch, AirPods, and iPhone while only being able to charge one at a time is aggravating. However, the days of that are over with the upcoming AirPower.

Announced at WWDC, AirPower is a wireless charging pad that can charge several of your devices at once. However, iPhones before the iPhone 8 and iPhone X do not have the wireless charging capability. All you have to do is simply place your devices on the pad and they will charge simultaneously.

(Source: MacWorld)

This week, Apple has received a grant for the design patent for AirPower in Hong Kong, China. Since the pad was previously delayed, hopefully this means that the charging station will be released soon. This will be a huge seller for Apple and will allow them to continue to expand their wireless charging devices.

(Source: Yahoo Finance)

I Know First Currently has a bullish one year forecast for AAPL. With a predictability of 0.81 and a signal of 150.20, the company projects a hike in price. 

This bullish forecast for AAPL was sent to the current I Know First subscribers on June 25, 2018.

To subscribe today click here.

2018 iPhone Aims To Disrupt Mobile Carriers

“Many people repeat the past. I’m not interested. I prefer evolution.”

-Issey Miyake

(Source: Flickr)

Throughout the history of the iPhone, there has been one thing that’s been by its sides this whole time: a SIM card. However, this may be disrupted soon as the grand debut of the eSim is coming. The eSim is a chip that is soldered to the phones circuit board, as opposed to a chip that’s inserted into the phone.

Apple wants this for a couple reason. For one, they have been trying to get rid of all ports on the iPhone to make it completely waterproof (remember the headphone jack?). However, the main reason is that it would allow users to switch carriers over the air at any time. Users would no longer have to get a new SIM card by mail or in person, increasing efficiency. Let’s say you are receiving poor service in a location. You have the ability to switch carriers on the whim without going to get a new SIM card.

(Source: DazeInfo)

Although this is a huge benefit for the users of the phone, it demonstrates a huge disadvantage for all mobile carriers. Being that users can switch carriers at any time, companies such as AT&T should be scared they’re going to lose business. This move would strengthen Apple’s customer relationships as they are more attached to the phone and less so the carrier.

Apple has already started implementing the use of this technology in their Apple Watch 3. The company uses eSIMs from STMicroelectronics for that model and are expected to continue to use them for the upcoming iPhone.

On April 3rd I Know First algorithm issued a bullish forecast on AAPL

AAPL gained 22.5% since this forecast

This bullish forecast for AAPL was sent to the current I Know First subscribers on April 3, 2018.

To subscribe today click here.

Apple Quietly Rolls Out New MacBook Pros

“The digital revolution is far more significant than the invention of writing or even of printing”

– Douglas Engelbart

(Source: Apple)

With a new Apple device usually comes a big conference broadcasted to the world. However, that was not the case with Apple’s MacBook Pro, which got a revamp on July 12. The new laptops are, as Apple puts it, “the most advanced Mac notebook ever.”

This brand new reboot clocks in at 70% faster performance for the 15 inch mode and up to twice the performance for the smaller 13 inch model. The company states that device will be able to compile developers code faster than any machine. With SSD capacity doubling, Apple is hoping to bring in more developers to their platform. And yes, battery life has increased to last all day.

(Source: Apple)

The new computer also adds the T2 Chip, which adds extra security. The chip delivers enhanced system security through a new encryption storage system. The chip also allows users to say “Hey Siri” prompting Siri to pop up on the laptop.

You may recall our previous article where we talked about the problem with Apple’s butterfly keyboard. It seems Apple has fixed many of the problems with it, making typing quieter, softer, and less clicky. More importantly, the new MacBook fixes the previous dust problem that caused the keyboard to break. Now there is a silicone membrane underneath each key to help protect the mechanism from debris.

To sum up perfectly the new MacBook Pros, Philip Schiller, Apple’s senior vice president, stated, “Now with 8th-generation 6-core processors, up to 32GB of system memory, up to 4TB of super fast SSD storage, new True Tone technology in its Retina display and Touch Bar, the Apple T2 chip for enhanced security and a third-generation quieter keyboard packed into its thin and light aluminum design with all-day battery life, it’s the best notebook for pro users.”

The 2018 MacBook Pros are available for purchase right now.

AAPL hiked following the announcement of the new MacBook Pros

(Source: YCharts)

On April 3rd I Know First algorithm issued a bullish forecast on AAPL

AAPL gained 22.5% since this forecast

This bullish forecast for AAPL was sent to the current I Know First subscribers on April 3, 2018.

To subscribe today click here.

Apple Aims To Better iPhone Performance and Price

“If there’s a way to do it better – find it”- Thomas Edison

(Source: Flickr)

As fall approaches, so do the rumors of the brand new iPhone. This year Apple is planning to do something that everyone can rally behind: cut iPhone prices. Ming-Chi Kuo, Apple’s most prominent insider, has stated that new iPhone prices could be fewer than $300 their current price.

There will be three phones revealed this year: a cheaper iPhone X at $600, iPhone X at $800, and iPhone X Plus at $900. The upcoming iPhone X is clocking in 10% faster than past single core performance and an increase of ram from 3gb to 4gb. Although not as big of a performance upgrade as any other iPhone release, Apple is putting most of the improvements in iOS 12 to increase speed and fluidity.

New iPhone Renders (Source: Macworld)

 

The upcoming iPhone is also rumored to be incorporating a USB-C to Lightning Cable with purchase. The company seeks to have compatibility within all Apple devices, since the new MacBooks don’t support the current USB-A charger. The new charger would give up to 18W, allowing fast charging, which charges an iPhone to 50% in under 30 minutes.

USB-C to Lightning (Source: Apple)

Apple’s stock has been volatile the past week.

AAPL (Source: Yahoo Finance)

Apple’s Upcoming Product Updates Build On Predecessors

“We’re very simple people at Apple. We focus on making the world’s best products and enriching people’s lives” -Tim Cook

(Source: Wikimedia)

 

Apple Maps From The Ground Up

When Apple Maps was launched in 2012, it was met with nationwide controversy as the GPS service was imprecise and users were ending up at the wrong destination. Apple plans to change this as they have been rebuilding Apple Maps from the ground up for four years. The iOS map app currently uses third party data for mapping, which is unsatisfactory for Apple’s ability to make the best mapping platform possible. Thus, the new Apple Maps will rely on first person data collected from iPhone user data, providing more accurate and precise directions. The use of iPhone data allows Apple Maps to find the quickest routes possible, since it uses user data to locate traffic and how individuals get to their destination. Also, to provide accuracy, the company has deployed Apple vans across the country to take photos and map out roads.

Rebuilding Apple Maps is the only way the company believes it could create the best mapping software possible. Apple SVP, Eddie Cue, stated, “We have been working on trying to create what we hope is going to be the best map app in the world, taking it to the next step. That is building all of our own map data from the ground up.” The new Apple Maps will first be available to San Francisco on iOS 12, followed by a U.S. roll-out.

Apple Maps Car (Source: Flickr)

AirPods Get Luxurious

Apple’s ludicrously successful wireless headphones, AirPods, are rumored to be getting a high end version in 2019. Reports coming out are stating that the new AirPods will have noise cancellation, water resistance, biometrics, and an increased range. One of the biggest issues surrounding Apple’s Beats and AirPod line is that they aren’t antiperspirant, preventing users from working out with them on. So these higher end headphone will solve the problem and widen Apple’s headphone market to the fitness sector. In recent years, the company has been promoting positive health and one way they are advancing this is through biometric sensors. Biometrics will allow runners to see their heart rate and view their workout progress through the Health app.

AirPods (Source: Flickr)

Apple’s stock has been volatile this past week, dipping slightly late Friday afternoon.

AAPL Price (Source: YCharts)

Apple Stock Forecast Based on Data Mining: Almost 2% in 3 Days!

The Computer Industry Stocks Package is designed for investors and analysts who need predictions of the best-performing stocks for the whole Computer Industry. It encompasses the Apple Stock Forecast Based on Data Mining. It also includes 20 stocks with bullish and bearish signals and indicates the best stocks to buy in the computer industry:

  • Top 10 Computer Industry stocks for the long position
  • Top 10 Computer Industry stocks for the short position

Computer Industry
Package Name: Computer Industry Stocks
Recommended Positions: Long
Forecast Length: 3 Days (02/07/2017 – 02/10/2017)
I Know First Average: 3.91%

Apple Stock Forecast

9 out of 10 stock prices in this forecast for the Computer Industry Stocks Package moved as predicted by the algorithm. INVE was our best stock pick this week a return of 18.56%. TYL and SINA followed with returns of 7.47% and 4.24% for the 3 Days period. The package saw an overall yield of 3.91% versus the S&P 500’s return of 1.03% implying a market premium of 2.88%.

Identiv, Inc. (INVE) develops and manufactures physical access control, identity management, and radio frequency identification systems. The Company’s products are used in corporate employee identification (ID) cards, company email, information technology networks and facility access control, in national ID cards and passports, transport passes, banking and other uses.

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First subscribers.

How to interpret this diagram

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

Apple Stock Outlook Based on Artificial Intelligence: Return up to 30.56% in 14 Days

Apple Stock Outlook

This Computer Industry Stocks forecast is designed for investors and analysts who need stock projections for the whole Computer Industry (See Industry Package). It includes 20 stocks with bullish and bearish signals and indicates the best stocks to buy in the computer industry:

Top 10 Computer Industry stocks for the long position
Top 10 Computer Industry stocks for the short position

Package Name: Computer Industry Stocks
Forecast Length: 14 Days (03/14/16 – 03/28/16)
I Know First Average: 4.16%

stock projections

This forecast performed well, with 8 out of 10 top stocks increasing as predicted by the algorithm. DDD outperformed the rest of the top stocks with its phenomenal 30.56% return. STV and IBM also saw some growth this period with returns of 7.14% and 4.24%. The package returned an average of 4.16% for the 2-week period while the S&P 500 rose just 0.73%.

3D Systems Corporation (DDD) provides 3D printing products and services worldwide. The company’’s 3D printers transform data input generated by 3D design software, CAD software, or other 3D design tools into printed parts using a range of print materials, including plastic, metal, nylon, rubber, wax, and composite materials. DDD is partnering with both Under Armour and New Balance to produce athletic shoes with 3D-printed midsoles.

Algorithmic traders utilize these daily forecasts by the I Know First market prediction system as a tool to enhance portfolio performance, verify their own analysis and act on market opportunities faster. This forecast was sent to current I Know First algorithmic traders.

How to interpret this diagram

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

Apple Stock Predictions: 0.89% Return In 3 Months

Apple Stock Predictions

This stock market forecast includes the best stocks determined by the algorithm with a market capitalization of more than $200 billion.

  • 10 Best Mega Cap stocks for the long position
  • 10 Best Mega Cap stocks for the short position

Package Name: Best Mega Cap Stocks
Recommended Positions: Long
24 07 2013 10 48 51 Best Investments Based on Algorithms: 8.19% Gain in 14 DaysForecast Length: 3 Months (04/05/15 – 07/05/15)
I Know First Average: 6.55%

Get the “Best mega caps Stocks” Package.

Apple Stock Predictions

How to interpret this diagram:

Algorithmic Stock Forecast: The table on the left is the stock forecast produced by I Know First’s algorithm. Each day, subscribers receive forecasts for six different time horizons. The top ten stocks in the 1-month forecast may be different than those in the 1-year forecast. In the included table, only the relevant tickers have been included. A green box represents a positive forecast, while a red represents a negative forecast. The boxes are then arranged according to their respective signal and predictability values (see below for detailed definitions).

Forecast Performance:The table on the right compares the actual stock performance with I Know First’s prediction. The column titled “Forecast” shows which direction the algorithm predicted, and the column “% Change” shows the actual stock performance over the indicated time period. The “Accuracy” column shows a “√” if the algorithm correctly predicted the direction of the stock or an “x” if the forecast was incorrect. The I Know First Average is the equal-weights average percent change of the stocks listed below, and the S&P 500 may be included for reference if relevant.

Signal: This indicator represents the predicted movement direction/trend; not a percentage or specific target price. The signal strength indicates how much the current price deviates from what the system considers an equilibrium or “fair” price.

Predictability: This value is obtained by calculating the correlation between the current prediction and the actual asset movement for each discrete time period. The algorithm then averages the results of all the prediction points, while giving more weight to recent performance. As the machine keeps learning, the values of P generally increase.

The Algorithm: The system is a predictive algorithm that is based on Artificial Intelligence (AI), Machine Learning (ML), and incorporating elements of Artificial Neural Networks and Genetic Algorithms. The system’s predictive analytics are self-updating, and thus live. The algorithm is a powerful resource for any investor conducting black-box trading or algotrading. 

Apple Stock News: What To Expect From Apple After Excellent 2Q

Apple Stock News

Apple Inc. (AAPL) had another incredibly strong quarter following its record breaking first quarter, when the company had profits of $18 billion. Profits this quarter weren’t nearly as high, as the first quarter includes holiday sales causes it to always be the best performing quarter. But profits did increase 33% when compared year-over-year, an astonishing amount, as the company had its best ever March quarter results. Revenue was up 27% and earnings per share were up 40%, which indicate that the company’s margins improved while it repurchased shares. Taken altogether, CEO Tim Cook put it best when he declared that it was hard to find anything not to like in the numbers.

Algorithmic Predictions For 2Q Compared To Results

I Know First has written numerous bullish articles during the second quarter, arguing that the company would continue to perform well and the stock price would climb even higher. The first article was written after the first quarter earnings report. In it, I argued that the stock price had more room to increase, especially because of the success Apple was having in China. Another article, written on February 25th, focused on how demand for the iPhone would remain high even though Apple sold a record 74.5 million units in the first quarter. A third article was a preview for the earnings report, and reiterated that iPhone sales would perform better in the second quarter compared to previous years because most of the sales so far had been converting users of other devices, and that Apple would continue this trend in the coming quarter. The stock price has continuously climbed during the previous quarter as the articles predicted, increasing over 15%.

apple stock predictions

The results from the second quarter coincide well with the previously written articles, and they point to more prosperous times in the future. Strong sales of the iPhone, especially in emerging markets like China, solid performance in other fields such as MacBooks and the App Store, and the massive amounts of cash the company has on its hands set the company up well to continue thriving during the next quarter.

iPhone Sales Continue To Impress

The larger screen iPhones that Apple released last fall continue to be extremely popular, especially in emerging markets and China. The company sold 61.2 million iPhones in the three months that ended on March 28th, which is a 40% increased compared to the year-before period. Remarkably, Apple was able to increase its market share while simultaneously increasing prices, as the average selling price of the iPhone during the last quarter was $659, and $60 increase compared to a year earlier.

The iPhone was especially successful in emerging markets, including a 72% increase in sales in China. The second quarter is the biggest quarter in this market due to the Chinese New Year, a peak shopping period for the country. Cook attributed much of this growth to more people moving into the middle class in China and an increase of physical retail stores and online presence. The gains in revenue in international markets like China is made even more extraordinary by the fact that Apple, like all other American companies during this earnings season, is facing currency headwinds, as sales in other countries are worth less in US dollars.

The iPhone should continue to have more success moving into the future, as roughly only 20% of the iPhone sales have been a result of upgrades. Instead, most of the sales have been a result of consumers switching over from other mobile devices, such as Android, or first time consumers in emerging markets. This means that there is plenty of room for further sales in the next two quarters, which in the past have lagged off quite drastically as iPhones have aged. The newest iPhones have so far resisted this trend, and very well could continue to for the rest of the year.

Mac Sales And Other Products Also Positive

iPhones did not have the only strong performance in China during the previous quarter, as Mac sales were also outstanding. They were up 31% in this market, while the overall PC market in the country declined 5%. Once again, this includes currency headwinds, making these results rather amazing. Overall, revenue from China rose 71% to $16.82 billion, overtaking Europe as the second largest market for Apple. Cook has previously stated that it will eventually become the largest. The strong performance of Mac sales in China helped Apple increase sales of its notebook by 10% overall, compared to a 7% decline in the overall PC market worldwide.

The App Store also had its best quarter ever, as a record number of customers made purchases. This led to a new record for revenue and growth of 29% year-over-year. Apple Pay also continues to be successful, as the company announced a couple of big partnerships that will help the service become more widely adopted. Best Buy, a large electronics consumer store, announced that it would be introducing Apple Pay in its stores later this year. This comes after Apple announced that the number of locations accepting Apple Pay had tripled last month. A leading healthcare payment network also announced acceptance of the mobile wallet, showing that merchants aren’t the only ones accepting the service.

Apple Stock News

 

Source: Statista

The only worrying trend the company is facing besides currency headwinds, which is out of its control, is falling sales of the iPad. Sales of the tablet fell year-over-year for the second straight quarter. This is partially because the larger screen iPhones and lighter Macs have cannibalized sales of the product, something that was acknowledged by Cook in the earnings recap. The product also does not need to be upgraded as often as the iPhone, as it does not take as much of a beating daily as smartphones do. The future for this product is still bright, however, as Apple has partnered with IBM to create enterprise solutions using the tablet with the goal of getting more businesses to buy iPads for their employees. Cook was upbeat about the product, claiming it is a good business over the long term.

Apple Has An Abundance Of Cash

Apple ended the quarter with $193.5 billion in cash and cash equivalents, up from $178 billion at the end of December. That amount is greater than the market capitalization of all but 15 companies in the S&P 500. The staggering amount of cash has enabled the company to make 27 acquisitions in the last six quarters. It also has increased its spending on R&D, as the company continues to look for new products and technologies to further drive revenue growth.

One such possible market could be the Apple TV, which the company is rumored to be updating currently before releasing a cable streaming service that will include roughly 40 channels. Apple announced its partnership with HBO Now during the last quarter, which has been extremely well received by costumers so far. This could lay the groundwork for Apple to revolutionize the television market and the home in general, as it plans to have a whole ecosystem that can be controlled through Apple. Siri will be included in the next Apple TV, allowing customers to use voice commands to change the channel, turn off the lights, and a whole range of activities controlling the home.

The cash will also be used to upgrade the capital-return program, returning additional money to investors. Since it began in 2012, the program has returned $112 billion to shareholders through share repurchases and dividend increases. During that same time, it has managed to increase its cash holdings by $76 billion. While former CEO Steve Jobs was reluctant to return value to shareholders, instead focusing on innovation, Cook has no such reservations, as he increased the capital-return program by $88 billion, bringing it to $200 billion in total. Most of this will be in the form of share buybacks, but Apple is also increasing its dividend by 11%.

Algorithmic Analysis

I Know First supplies financial services, mainly through stock forecasts via their predictive algorithm. The algorithm incorporates a 15-year database, and utilizes it to predict the flow of money across 2000 markets. The algorithm has more data to forecast within the long term and, naturally, outputs a more accurate predication in that time frame. Having said that, intraday traders, along with short-term players, will also benefit by taking the algorithmic perspective into consideration.

The self-learning algorithm uses artificial intelligence, predictive models based on artificial neural networks, and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

Apple Stock News

The above forecast includes a one-year prediction from April 18th, 2014. Apple had a signal strength of 9.11 and a predictability indicator of 0.08. In accordance with the algorithm’s prediction, the stock price increased 67.98% in the predicted time horizon. Having demonstrated an example of when I Know First’s algorithm was able to correctly predict the behavior of Apple’s stock price in the past, looking at the current forecast can add meaning to the fundamental analysis above.

Apple Stock News

The algorithmic analysis for both the one-month and three-month forecasts for Apple is weak, as can be seen in the figure above. The three-month forecast is especially weak, with a signal strength of 2.57. This indicates that the algorithm believes that the stock price is in equilibrium for now. This makes sense considering how much the stock price has increased over the past few months. However, there is a good chance that the stock price could continue to climb considering the increased capital-return program and the fact that the current iPhone model has done a better job of converting users of other mobile devices, meaning it should continue to perform better than previous models. While the current stock price might be fair, look for developments over the next quarter to send the stock price even higher.

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