Apple Stock News: Apple’s Revenue Hits An All Time High

Summary:

  • Apple’s Services Revenue Reaches New All-Time High of $11.5 Billion
  • The U.S. Supreme Court ruled that consumers can press ahead with a lawsuit that accuses Apple (AAPL) of using its market dominance to artificially inflate prices at its App Store.
  • Apple’s market share in the global smartphone market is shrinking.

Sticky Situation For Apple

The U.S. Supreme Court ruled that consumers can press ahead with a lawsuit that accuses Apple (AAPL) of using its market dominance to artificially inflate prices at its App Store. The US Supreme Court voted 5-to-4 to allow an antitrust lawsuit against the tech giant to move forward. This decision piles on the pressure the company faces to cut the 30% commission it charges on app sales. Lawyers pressing the case plan to seek hundreds of millions of dollars on behalf of overpaying consumers. Apple fell 5.8% to close at $185.72 on the stock market on that day.

[Yahoo finance]

When a user buys an app on Apple’s app store, Apple collects the money, keeps the 30% commission and gives the rest to the developer. Apple told the high court it passed $26.5 billion on to developers in 2017. The company is part of an app economy that will grow from $82 billion last year to $157 billion in 2022, according to App Annie projections.

In the Apple lawsuit, the company argued the case’s focus was the 30% commission. That’s something the company said is paid by the developers, not the app purchasers. The consumers said they pay for the commissions through higher app prices. But Apple contends those are the type of “pass-through” damages barred under the Supreme Court’s 1977 Illinois Brick v. Illinois ruling. The high court did not touch on the merits of the case, which contends the company has monopoly power over iPhone users because the only place they can buy those apps legally is run by the company.

Shrinking Problem

Apple’s market share in the global smartphone market is shrinking, and the company’s margins are being compressed due to declining iPhone sales and increased competition. This leads me to believe that Apple will likely have to lower iPhone prices to better compete with its cheaper competitors.

In addition, the recent earnings report was not great in my view, and the company may disappoint investors in future quarters. The technical image also looks weak, and we could see another 15-20% correction from here. Between Q4’18 and Q1’19, Samsung has taken a 5% leap in the smartphone market share, while Apple declined by 7%. Huawei has since overtaken Apple in second place.

[Statista]

Trade War

[Financial Times]

In the ongoing trade war between US and China, tariffs of 25% on $200 billion of chinese goods were made on the 13th May. The tariffs could add about $160 to the cost of a $999 Chinese-made iPhone XS. The increased cost of the american branded chinese made product could have detrimental effects on the sales of its products, with strong competition coming from Samsung and Huawei. However, one thing to note about the tariffs is, the cost of the tariffs to consumers. The new 25% tariff is levied on components, not the finished product. Apple’s AirPods and Apple Watches are spared additional tariffs. Any calculations made pertaining to the costs will not be straightforward.

Although Apple has a lot of American suppliers and spent $60 billion on American suppliers in 2018, it assembles its iPhones primarily in China. As a result, Apple uses a Chinese supply chain for all its products, from iPhones to iPads and Mac computers, hence being a primary victim of the trade war. It’s korean competitor, Samsung which has plants in Vietnam, China, India, Brazil, Indonesia and Korea, is far more diversified in its supply chain. To address this issue, Apple has reportedly stepped up efforts to shift production from China.

Shipments of iPhones to North America, Apple’s largest market, fell 19% to 14.6 million units in the first three months of the year. Also, Tariffs could also affect iPhone sales in China, where On Monday, China announced plans to apply 25% duties on 2,493 US products, starting on 1 June. Apple reported $51 billion in revenue in 2018 from “Greater China,” which includes Hong Kong and Taiwan. That’s Apple’s third-biggest region, after the Americas and Europe. Apple’s total revenue for 2018 was $265.6 billion. This could mean a lower revenue in the future quarters.

Everything else is thriving

[Idgesg.net]

Even though Apple has faced legal troubles and the potential force of the trade war, investors should not worry. Apple is doing well in services, that its service revenue has increased to $11.5 billion in the Q2 2019 financial report. That can be attributed to paid subscriptions, which nearly topped 400 million for an increase of 30 million over last quarter. The company also posted quarterly revenue of $58 billion , which is a decline of 5 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.46, down 10 percent.

International sales accounted for 61 percent of the quarter’s revenue. iPad sales were also up, fueled by the release of the fifth-gen iPad mini and the new iPad Air. Apple also sold $5.1 billion worth of Apple Watches, AirPods, and other accessories in the Q2’19, a 30 percent increase over the year-ago quarter. We should also not forget that Apple announced that they will no longer reports iPhone, iPad, and Mac unit sales numbers.

AAPL Stock Prediction: 0%-Interest iPhone Installment Plan Is A Tailwind for Apple

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:

  • Apple’s stock is now a buy because it is willing to be more aggressive in marketing its pricey iPhone products.
  • The big decline of iPhone sales in China last year is being addressed through lower price tags and 0% interest installment plans.
  • The interest-free iPhone installment plan is implemented through Ant Financial, a subsidiary of Alibaba.
  • The more iPhones it can sell, the better it is for Apple’s fast-growing Services revenue segment.
  • The predictive algorithm of I Know First has a very bullish 12-month forecast for AAPL. Weekly technical indicators and moving averages hints AAPL is a buy.

Apple (iPhone) has a debilitating headwind in notably weakened iPhone sales in China. Tim Cook blamed China as primary reason why Apple has shortfall in iPhone sales. The holiday quarter earnings report was upsetting because 4Q2018 China iPhone sales went down by -19.9%.  This is depressing because the China market accounts for 18 to 20% of Apple’s revenue. The two charts below explained the severity of Apple’s China problem.

 

Apple’s Q1 2019 (Q4 of 2018) revenue from China iPhone sales plunged to $13.2 billion. This was 36.4% lower than Q1 2018’s $18 billion. The steep dive in China is why Apple’s Q1 posted a -15% Y/Y dip in total iPhone revenue to $52 billion.  It is only judicious therefore for Apple to be more aggressive in marketing iPhones in China.

How Apple Is Addressing The China Difficulty

Tim Cook hinted last month that cheaper iPhones is highly likely this year. It’s a no-brainer for Apple to lower the price tags of its iPhone XS and iPhone XR handsets. Chinese firms like Huawei, Xiaomi, Oppo, and Vivo are offering sub-$500 flagship smartphones. The Xiaomi Mi 9 is less than $500 but it has better camera/video performance and is the fastest smartphone to date.

Xiaomi became no.1  in India. Apple never made it to the top 10 in India for the past five years. This is due to the overpricing of iPhones versus Chinese flagship Android phones. Perhaps after solving the China headwind, Apple will refocus its strategy in India. India now accounts for 10% of global smartphone sales.

While the rest of the world saw a 9.7% decline in smartphone shipments, India posted a 14.5 Y/Y growth last year.

The easiest way for Apple to disrupt the massive sales of Huawei and Xiaomi is for it to lower the price tags of its flagship phones. It is hard to grow sales of $1,000 and $800 iPhones when Xiaomi and Huawei can sell equivalent handsets at less than $500.

The other solution that Apple hopes to reverse the iPhone’s decline in China is zero percent installment plans for new iPhone buyers. This China-exclusive offer is in partnership with Ant Financial – the payments processing firm owned by Alibaba (BABA).

Chinese customers can buy an iPhone XR via installment payments of 271 yuan ($40.71) per month. The monthly installment payment for iPhone XS is 362 yuan ($53.92). The iPhone XR retails for 6,499 yuan ($968) in China. The iPhone XS sells for 8,699 Yuan ($1,295.61).

Other banks in China are also offering the same interest-free iPhone installment plans for Mainland Chinese. This special promo from Apple should help reverse the decline of the iPhone in China. Going forward, Apple can become a top vendor in India if it also offers the same zero-percent installment iPhone plan. Heck, this could be a massive sales booster for global iPhone sales if Apple offers this promotion in all countries.

Why Apple Needs To Sell More iPhones

Cheaper iPhones and 0% interest installment plans are necessary toward selling more iPhones. Apple needs more people using iOS devices to further increase the momentum of its fast-growing Services business segment. The more active users of iPhones, Apple TV, iPads there are, the bigger Apple’s income from iTunes app store sales and subscription payments.

The Services segment is now a $37.2 billion/year catalyst for Apple.

Apple Music and the upcoming paid streaming TV/video service are iOS/macOS exclusives. My takeaway is that Apple can sacrifice its high margins on hardware products because it can recoup this via increased in-app purchases and subscription payments.

Conclusion

Apple lowering its margins on iPhone hardware sales is a strong reason to stay long (or buy more) AAPL. Lower price tags and interest-free iPhone installment plans can boost the sales of iPhones in China and in any country.

My buy rating for AAPL is backed by its bullish one-year predictive market trend forecast from I Know First. AAPL’s market trend score is above 100 (178.42) and I Know First’s predictability score for AAPL is 0.76. I Know First has a great history of correctly predicting 12-month market movements of Apple’s stock.

How to interpret this diagram.

Further, I checked the weekly technical indicators and moving averages. They suggest AAPL as a buy right now.

(Source: Investing.com)

Past I Know First Success with Apple Stock Forecast

I Know First has been bullish on AAPL shares in past forecasts. On September 8, 2017, the I Know First algorithm issued a bullish 1 year forecast for AAPL with a signal of 165.93 and a predictability of 0.61, the algorithm successfully forecasted the movement of the AAPL share.  After a year, AAPL shares rose by 37.23% in line with the I Know First algorithm’s forecast. See chart below.

This bullish forecast for AAPL was sent to I Know First subscribers on September 8, 2017.

To subscribe today click here.

 

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

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. 

To subscribe today click here.

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

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.

 

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.

Apple ‘Thinks Differently’ to Lower Property Taxes

Apple ‘Thinks Differently’ to Lower Property Taxes

“Creativity is just connecting things”

-Steve Jobs

(Source: Wikimedia)

You don’t get to be a trillion dollar company by playing completely by the rules. Just as Steve Jobs wanted to “think differently”, it appears as if Apple’s accountants are following suit. Apple has their Apple Park located in Santa Clara County and they believe they have paid their fair share of taxes.

Now, Apple is making the bold claim that a “cluster of properties” they own is worth only $200. Here’s the thing, Santa Clara County’s tax assessor valued the properties at a whopping $1 billion. According to the assessor’s offices, Apple currently has 489 open cases to dispute in a total property value of $8.5 billion. Currently, the company is paying $56 million in taxes, a number they feel unfair.

This isn’t the first time that Apple got creative with taxes. Last year, the company was forced to pay $15.4 billion of taxes back to Ireland after they utilized tax loopholes. In 2014, Apple was just paying a mere 0.005% of sales to taxes, an issue the EU Commission had a problem with.

Apple’s stock has been up this past week as trade tension with China is believed to be coming to an end.

I Know First Algorithm is still bullish for AAPL.

“Throttle Gate” Comes to Fruition Following New MacBook Pros

“We can’t blame the technology when we make mistakes”

-Tim Berners-Lee

(Source: Apple)

On July 17th, YouTuber Dave Lee noticed that the 15 inch MacBook Pro was throttling performance. Dave noticed that the computer could not handle the i9 processor as the MacBook got too hot to handle it. In fact, the 2017 15 inch MacBook pro was rendering faster than the 2018. Although Apple has advertised 2.9GHz, the laptop is truly getting around 2.2GHz. The only way Dave could get better numbers for the brand new model was by putting the laptop in the freezer to cool the processor.

To confirm Dave Lee tests, AppleInsider did their own research. Unfortunately, they confirmed the YouTuber’s results; they found that the CPU was very volatile, even running at 2.02 GHz at one point. The numbers were almost the same as the 2017 MacBook Pro i7 processor was hitting.

The problem seems to be that the i9 processor was placed into the same chassis as last year’s model. So, the chassis does not have the ability to properly cool itself, since i9 generates mass amounts of heat. In order to prevent overheating, the laptop throttles the speed to prevent overheating. The former CEO of AMD, Patrick Moorhead, stated, “Processors like the Intel Core i9 are all manufactured with maximum power and heat limitations to maintain a specific frequency. OEMs, like Apple, create thermal solutions for their systems, in this case the MacBook Pro, to remove enough heat so the processor can run at its intended frequency. BIOS settings determine when the cooling kicks on, its intensity, and for how long.”

For now, it seems the best option would be to not purchase the new MacBook Pros till the problem is fixed.

AAPL was unaffected by the MacBook Pro problems.

On June 25th, I Know First algorithm issued a bullish forecast on AAPL

AAPL gained 5.09% since this forecast

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

To subscribe today click here.

Google’s Former Head of AI Looks to Propel Apple’s Machine Learning

“Artificial Intelligence is a tool not a threat”

-Rodney Brooks

                                                                                                                 (Source: Flickr)

A couple months ago, John Giannandrea, the former head of Google’s search and artificial intelligence division, joined Apple. Reporting directly to Tim Cook, Apple stated that they wanted John to run Apple’s “machine learning and A.I. strategy”. The company is confident in his ability to utilize AI while keeping customers privacy intact.

Apple recently updated their leadership page to include John’s position with Apple, which is Chief of Machine Learning and AI strategy. The company is now combining the machine learning and AI team under John’s leadership. Thus, Core ML and Siri teams are working under one umbrella for the first time.

(Source: Apple)

This is a big win for Apple because they are currently lacking in the AI industry, mainly due to their protection of privacy causing limitations on data collection. Compared to competitors, such as Facebook and Google, Apple is leagues behind in development. John could provide great potential for the growth of Siri and other machine learning technology.

This also has the potential to make advancements for HomePod which uses Siri, a speaker similar to Amazon’s Alexa. The HomePod only has 6% of marketshare, so an expanse into a more knowledgeable Siri could bring it into more homes. Also, with the new Apple maps roll out happening soon, the company hopes for AI to make it more powerful and accurate than ever.

AAPL has been down this week, along with the DOW.

AAPL and DOW (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’s iOS 12 Beta Brings Helpful and Fun Features

“Innovation distinguishes between a leader and a follower” – Steve Jobs

(Source: Wikimedia)

On June 26, Apple released the iOS 12 public beta. By joining the Apple Beta Software Program, iOS users can test and help strengthen upcoming software updates before world wide release. Coming this fall, iOS 12 looks to make many improvements, both helpful and fun.

Even Faster

With this new version, iOS performance is significantly enhanced. Without a lag, there will be a 70% faster swipe to camera, 50% faster keyboard display, and twice the speed of launching Apps. Ever want to FaceTime with your whole family? Well now you can. Apple is rolling out Group FaceTime, the ability to video chat with 32 people at once.

Apple’s Fun Side

This new update is adding a lot of fun tools to joke around with and make your Android friends jealous. With state of the art face tracking technology, you can now have an Animoji, in your spitting image, track your facial movements and record personalized messages. Apple has added four new Animoji in this update.

(Source: Apple)

 

Cutting the Addiction

It’s fair to say an alarming portion of the population is, whether they know it or not, addicted to their smartphones. Apple knows this and is here to help. They are introducing Screen Time. This brand new feature monitors the amount of time you’re on your iOS device and displays it, helping you choose wisely usage time. Apple is hoping parents will utilize this information for their children; they added a time check feature that limits the amount of time your children can be on a certain app, such as games.

Another Blow to Facebook

As evident from our other articles, Apple takes privacy extremely seriously. They are taking that “fundamental human right” even further in iOS 12. Now, Apple will begin blocking websites from tracking your data without your permission. This prevents advertisers from targeting ads for you, a huge blow to Facebook who utilizes this data collection methodology.

AAPL was up following the release of the iOS 12 Beta.

AAPL, 6/26 (Source: Yahoo Finance)

Pages:1234567...44»