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

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

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

(Source: Statista)

Why Apple Needs Amazon

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

(Source: Statista)

 

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

(Source: Seeking Alpha)

How Amazon Will Help

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

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

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

(Source: Statista)

Conclusion

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

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

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

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

(Source: Investing.com)

Past I Know First Success with Apple Stock Prediction

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

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

 To subscribe today click here.apple stock predictions

How to read the I Know First Heatmap

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

Summary:

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

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

Apple Unveils Highly Anticipated New Line Up at October Event

Apple Unveils Highly Anticipated New Line Up at October Event

(Flickr)

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

The Lineup: iPad Pro

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

Retina MacBook Air

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

Mac Mini

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

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

Q4

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

 

Apple Inc. Is Still The Big Bad Bull

“There Is More In The Making”

(Flickr)

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

The Electric Canvas

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

Calculations

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

(Flickr)

Equations

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

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

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

(By Rhaym tech Via Wikimedia Commons)

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

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

Don’t Just “Watch” This Stock

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

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

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

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

The Newest Apple iPhone XS Revealed In September Summit

Apple’s September Summit Take-Aways

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

  (By Mike Deerkoski – Flickr)

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

Upcoming For Apple

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

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

No Competition

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

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

(Pixabay)

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

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

Source: Yahoo Finance

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 Snags Media Giant Oprah Winfrey For Their Streaming Service

“The biggest adventure you can ever take is to live the life of your dreams.”- Oprah Winfrey

(Source: Flickr)

On June 15th, Apple formed a multi-year production partnership with Oprah Winfrey, the media tycoon. The two are joining forces to collaborate on content for Apple’s upcoming subscription based streaming service. It is currently unknown what Oprah will be producing, but Apple stated that, “Together, Winfrey and Apple will create original programs that embrace her incomparable ability to connect with audiences around the world.”

This partnership is a huge win for Apple because Oprah brings to the table her dedicated fan base. This phenomenon goes by the name of the “Oprah Effect”. The Oprah Effect is when any product associated or endorsed by Oprah Winfrey see a huge boost in sales. For instance, after Oprah Winfrey bought 10% of Weight Watcher stock, more than 600,000 members joined the program. Apple looks to carry over this trend to their new service with hopes that Oprah’s huge audience will start watching the new streaming service.

Oprah’s partnership is a drop in the bucket compared to Apple’s approximately one billion dollar investment into its streaming service. With decreasing iPhone sales, Apple hopes that this streaming service will be a home run for them. However, it is going to be competing against companies putting in more than triple the amount of investment into their streaming services, such as Netflix who just acquired former President Obama.

Following the announcement, Apple’s stock gained.

(Source: YCharts)

As Always Apple Tops Expectations and Stays Different – WWDC 2018

“You want to be the pebble in the pond that creates the ripple for change”

– Timothy d. Cook, Chief Executive Officer of Apple Inc.

[Image Source: T3.com]

As a follow up to last week’s article, Apple’s Worldwide Developers Conference (WWDC) kicked off on June 4, 2018 and many of the highlights that were to expect took place in the event.

The yearly event was entirely software-based this year, despite early expectations to see more hardware-related announcements. The event included all of the latest updates to Apple’s platforms- iOS, macOS, watchOS, and tvOS, along with some improvements to Siri and bigger plans focused on strengthening privacy and security and reducing technology addiction. These enhancements to Apple’s platforms were designed to optimize the overall Apple user experience.

So… What’s NEW?

[Image Source: cultofmac.com]

Craig Federighi, Apple’s senior vice president of Software Engineering, explained over and over how iOS 12 is all about making things faster and more reliable for new and older devices like the iPhone 6 Plus, which would see apps open up to 40% faster and the camera would launch up to 70% quicker. This is the ‘No iPhone Left Behind’ update with every device capable of running iOS 11 being ready to run iOS 12 when it arrives. In addition, the iOS 12 will also include a new feature called Group FaceTime. The video chat service that right now only connects pairs of people will enable up to 32 to chat online together. The change is significant and useful for friends jumping online together, family member chatting and business meetings with distant coworkers.

This inclusivity did not include Apple Watch users who have the first-generation watches launched in April, 2015 and were still available for porches 20 months ago. The WatchOS 5 capabilities go from competitive Activity Rings to enhanced web page interaction.It is part of Apple’s goal towards a solid, reliable experience with minimal bugs and no battery-throttling or hidden activities scandals bubbling up. Apple was reasonably upfront that it couldn’t deliver the experience it wanted with the first Watch’s hardware.

With Emphasis on privacy was paramount, Apple discussed how it was building on the features from last year which prevented cross-site tracking, to make adverts follow you around less.

The new MacOS software goes further. It will be possible not to be tracked on sites where there are Like or Share buttons from social networks. Intelligent Tracking Prevention, helps block social media ‘Like’ or ‘Share’ buttons and comment widgets from tracking users without permission.

The new tvOS 12 aerial screensaver features on Apple TV 4K, includes aerials shot from space by NASA astronauts aboard the International Space Station.

Siri update includes making suggestions based on the things the user does regularly, like ordering a soy latte from Starbucks every morning or ordering sushi on Sundays.

 

[Image Source: zdnet.com]

Apple also announced a new Shortcuts app as part of iOS 12 that lets the users tie together multiple steps into a single Siri request. Another new feature called Shortcuts works with third-party apps. For example, the phrase “Siri, I lost my keys” can pull up the Tile app, showing you where you left them. Shortcuts also work on the HomePod and Apple Watch if that’s where you talk to Siri.

Apple’s latest software-based updates satisfy expectations and follow with an increase of 3.2% in AAPL stock in past 5 days. Stock price jumped from $189.98 to $193.51 per share since WWDC 2018 event.

[Image Source: Yahoo Finance]

Following the above, APPL stock grows every year with WWDC announcements. With Apple’s new and improved software, AAPL stock is expected to continue growing in the long-term estimation, as long as it remains updated and innovative.

Apple Stock News: Privacy is a fundamental human right


[Image Source: engadget.com]

For the latest Apple news and with response to the new EU law, called General Data Protection Regulation (GDPR), Apple is promoting powerful privacy tools for iPhone, iPad, and Mac Users. Apple didn’t need to make any big changes in order to meet the stringent GDPR requirements thanks to its good privacy hygiene that its existing precautions already passed the new obligations. However, as the new privacy page reveals on the Apple website, Apple took the opportunity to rethink its privacy standards.

For each Apple pay transaction, Apple doesn’t track who the customer is paying and what they are paying for.  FaceTime conversations, iMessages and so on are end-to-end encrypted.  In Addition, every journey made on Apple Maps are also encrypted so that nobody getting hold of information could work out where you go.

Apple has made it easy to find out exactly what data of the customer is on its servers, from purchase history to photos on iCloud to emails and so on. It also has a recognizable page which warns the user when data is being collected. Apple’s response to GDPR is motivating and sets some standard which others must strive to meet.

On May 23, 2018, Apple’s new privacy site went live. It provides many privacy policies and tools, which range from useful to fascinating, all as easy to understand and use as possible. Since that day, AAPL stock went up by 1.22%, with stock price increase from $186.24 to $188.73 per share.

[Image Source: Yahoo Finance]

Following the above and like in many other domains, Apple’s market gain maintains also with their good privacy obligations that were adjusted and improved even before GDPR came into force. With that said, AAPL stock is expected to continue growing in the long-term estimation, as long as it remains updated and innovative in the privacy segments.

Apple’s leading Innovation Breakthrough followed by outstanding Q2 Fiscal Financial Results of 2018

“If you’re going to make connections which are innovative… you have to not have the same bag of experiences as everyone else does.” – Steve Jobs

Highlights:

  • Apple on the way to a breakthrough – carbon-free aluminum smelting
  • Financial Results for fiscal Q2 of 2018
  • Q3 Financial Guidance
  • Industrial comparison 

[Image Source: Fossbytes.com]

Apple on the way to a breakthrough – carbon-free aluminum smelting method

Aluminum is a key material in many of Apple’s most popular products, and for more than 130 years, it’s been produced the same way. Aluminum giants Alcoa Corporation and Rio Tinto Aluminum announced a joint project to commercialize original technology that eliminates direct greenhouse gas emissions from the traditional smelting process. This is a key step in aluminum production that if fully developed and implemented, will strengthen the closely integrated Canada-United States aluminum and manufacturing industries.

As part of Apple’s commitment to reducing the environmental impact of its products through innovation, the company helped accelerate the development of this technology. Apple has partnered with both aluminum companies, and the Governments of Canada and Quebec, to collectively invest a combined $144 million to future R&D.  “Apple is committed to advancing technologies that are good for the planet and help protect it for generations to come,” said Tim Cook, Apple’s CEO.

This follows Apple’s announcement last month that all of its facilities are now powered with 100 percent clean energy and 23 of its suppliers have committed to do the same.

 

[Image Source: GlobalMediaIT]

Q2 Financial Results of 2018

On May 1st, 2018, Apple announces its financial Q2 results of 2018. Apple achieved a quarterly revenue of $61.1 billion, 16% increase from Q2 of 2017, quarterly earnings per diluted share of $2.73, up 30%, and generated over $15 billion in operating cash flow. International sales accounted for 65% of the quarter’s revenue. In Q2, iPhone X was sold more than any other iPhone each week and the company’s revenue in all geographic segments grew, with over 20% growth in Greater China and Japan. As for this financial Q2 report, Apple’s board has approved a new $100 billion share repurchase authorization and a 16% increase in their quarterly dividend. Reflecting the approved increase, the board has also declared a cash dividend of $0.73 per share of Apple’s common stock.

Apple is expected to continue to net-share-settle vesting restricted stock units. From the inception of its capital return program in August 2012 through March 2018, Apple has returned $275 billion to shareholders, including $200 billion in share repurchases.

The Company will complete the execution of the previous $210 billion share repurchase authorization during Q3.

Q3 of 2018 Financial Guidance

  • Revenue between $51.5 billion and $53.5 billion
  • Gross Margin between 38% and 38.5%
  • Operating Expenses between $7.7 billion and $7.8 billion
  • Other Income/(Expense) of $400 million
  • Tax Rate of approximately 14.5%

Following the above AAPL stock increased by 12% and my assumption is that it will continue to grow given the high revenues and increasing sales with each quarter of 2018.

[Image source: Yahoo Finance]

Industrial Comparison

Apple Q2 of 2018 Electronics Industry Q1 of 2018
Revenue Quarterly Growth 16% 11.2%
Gross margin 13.75% 58.12%
Operating Income 12.75% 22.59%
Net income 25.33% -45.77%

Presented above is the industrial average growth comparison with Apple’s Q2 growth results of 2018. As shown, one can see that Apple is above the industry average growth in Revenue quarterly growth by about 5% and in Net income Apple is up 71% compared to the industry average.

Today, in my point of view, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide all-in-one experiences with all Apple devices and inspire people with advanced services such as App Store, Apple Music, iCloud etc. Therefore, based on Apple’s advancing technology techniques and growing results I believe AAPL stock will go up in the long term and increase a “buy”, priority over its competitors.

[Image Source: truonghocdautu.com]

My long-term estimation for AAPL is supported by an optimistic one-year forecast from I Know First. The 1-year forecast illustrates a signal of 52.89 and a predictability of 0.7. The 0.7 predictability score for AAPL is saying I Know First’s self-learning Artificial Intelligence has a long history of correctly predicting the one-year market performance of AAPL.

Past I Know First forecast success with Apple

I Know First has made accurate prediction on Apple on August 3, 2017

AAPL is with 21.5% gain since this bullish forecast.

This bullish forecast for AAPL sent to the current I Know First subscribers on August 3, 2017

 

[Image Source: Yahoo Finance]

I Know First Algorithm Heat-map Explanation

This indicator represents the predicted movement direction/trend. The signal strength indicates how much the current price deviates from what the system considers a balance or “fair” price.

The signal strength is the absolute value of the current prediction of the system. The signal can have a positive (increase), or negative (drop) sign. The heat map is arranged according to the signal strength with strongest up signals at the top. The table colors are indicative of the signal. Green indicates to the positive signal and red indicates a negative signal. A deeper color means a stronger signal and a lighter color equals a weaker signal. The sign of the signal tells in which direction the asset price is expected to go (positive = to go up = Long, negative = to drop = Short), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability measures the importance of the signal. The predictability is the historical relationship between the prediction and the actual market movement for that particular market. For each asset this indicator is recalculated daily. Theoretically the predictability ranges from minus one to plus one. The higher this number is the more predictable the particular asset is. In comparison to different time ranges, predictability will be higher for longer time. This means that longer-range signals are more accurate.

Predictability is a unique indicator of the I Know First algorithm which allows users to focus on the most predictable assets according to the algorithm. One should focus on predictability levels significantly above 0 in order to trust the signal, when ranging between -1 and 1.

Pages:1234567...24»