Apple Inc. Is Still The Big Bad Bull

October 21, 2018

“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.

The Apple Doesn’t Fall Far From The Field

August 30, 2018

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 Stock News

Apple: The First Publicly Traded Trillion Dollar Company

August 7, 2018

“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 News Bites Apple Stock News Apple Stock Perfromance

Apple Receives Patent For AirPower

July 29, 2018

“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.

Apple News Bites Apple Stock News Apple Stock Perfromance

“Throttle Gate” Comes to Fruition Following New MacBook Pros

July 23, 2018

“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.

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Apple Quietly Rolls Out New MacBook Pros

July 15, 2018

“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 3^rd 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.

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Apple Surpasses Streaming Giant Spotify

July 8, 2018

“The worlds most famous and popular language is music” – Psy

As of this week, Apple Music has surpassed Spotify’s paid subscriber count in the United States, making it the number one streaming service in the country. According to Digital Music News, Apple music, with a growth rate of 5% and over 20 million U.S. subscribers, is growing faster than Spotify. However, Spotify still holds the reign worldwide with over 70 million subscribers compared to Apples 45 million.

This is a big win for Apple, but it will be hard to get a global win on Spotify. The majority of iPhone users reside in the United States, so it is easier for them to use Apple Music since it is built into iOS. That being said, Spotify has an advantage on Apple due to it’s free streaming feature. Although they have to listen to ads, Spotify has 170 million users with the inclusion of those who stream for free.

(Source: Gear Patrol)

Apple does have an advantage over Spotify in a couple areas. For starters, Apple Music has 10 million more songs than Spotify. Also, being that Apple is such a giant company, it is easier for them to snatch exclusive albums. For example, Dr Dre’s highly anticipated album, Compton, was only available to be streamed on Apple Music upon release. As Apple releases more exclusive content, it will bring more Spotify users over. Also, with Apple’s upcoming video streaming service, there is rumored to be a package that combines both the music and video services, another source of new users.

To better compare the two, rap star Drake released an album on both streaming services. Spotify advertised the album like crazy, placing the rapper into virtually all their playlists. Unfortunately, their efforts did not pay off as Apple Music users streamed his album, Scorpion, 170 million times to Spotify’s 130 million in the first 24 hours of release. So, although Spotify has more subscribers, they seem to be less engaged with the content.

AAPL up past week, beating the DOW by 1%.

AAPL & DOW (Source: Yahoo Finance)

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Apple Aims To Better iPhone Performance and Price

July 4, 2018

“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 News Bites Apple Stock News

Apple’s Upcoming Product Updates Build On Predecessors

July 1, 2018

“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)

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In a Rare Move, Apple Admits to Faulty MacBook Keyboard

June 24, 2018

“Design is not just what it looks like and feels like. Design is how it works.” – Steve Jobs

(Source: Pixabay)

In 2015, Apple ditched their classic keyboard design for a new, sleeker keyboard with a “butterfly” mechanism for their MacBook and MacBook Pro line. Apple claimed this new keyboard was 40% thinner, making it much easier and fluid to type.

Consumers started reporting that the keyboard was faulty and that just a tiny bit of dust caused the keyboard to repeat letters or not respond properly. Being that these devices started at $1,299, users were mad that Apple was not making an effort to address such a fault. Three years and three lawsuits later, Apple has finally stated that they will fix the faulty butterfly keyboard, free of charge.

In other news, analyst Eric Ross of Cascend Securities stated that, iPhone’s supply chain was “healthy and growing again”. This may be due to the restocking of the iPhone X, which is selling better than expected, causing suppliers to revamp selected parts for the device. Morgan Stanley analyst Katy Huberty stated that the upcoming iPhone will be at cheaper cost as Apple looks to drop prices by 2%. So, this increase in supply may be for the new iPhone, releasing this September, which the company expects to sell greater quantities than last year.

Apple’s stock was down .64% on Friday as an escalated fear of a trade war mounted a dip in the market.

(Source: Yahoo Finance)