Apple Stock News: Which New iPhone Has Higher Margins?

Apple Stock News: Which New iPhone Has Higher Margins?

October 4, 2017

Apple Stock News

For the latest Apple Stock News, AAPL closed at $154.48 per share on October 3rd, 2017. Its share price increased 0.44% from its previous close on October 2nd, 2017, when it closed at $153.81 per share.

Image Source: Apple

An interesting question is starting to be asked.  Which new iPhone is more profitable-the iPhone 8 or the iPhone X?  The iPhone 8 and 8 Plus are similar to the iPhone 7 in terms of manufacturing cost.  Even so, Apple bumped up the price of these phones compared to the iPhone 7 due to the higher storage capacity of 64 GB.  There is also the option to upgrade to 256 GB storage for $150 which applies to all 2017 models.  These facts indicate a healthy margin for the iPhone 8.  But everyone knows the X starts at $1,000 so shouldn’t it have a higher margin?

$$ for Samsung

Maybe or maybe not.  The X model is believed to cost significantly more to manufacture due to the radical redesign.  An example being the new OLED screens supplied by Samsung as well as the more advanced cameras.  Samsung is estimated to earn at least $110 from each iPhone X model sold which could amount to $4B over the first 20 months after the X model ships according to Counterpoint Technology Market Research.  These new screens cost significantly more than the screens in previous models.  The price of $1,000 might not be enough to make up for the additional new costs and could lead to a lower margin compared to the 8 models.

However, this assumption could get muddled because more than half of the iPhone X consumers are gravitating towards the 256 GB model which costs $150 more than the base model.  That would add to its profitability.  For the iPhone 8, less than half of the customers are expected to buy the 256 GB model.

The iPhone 8  demand is seen as being subpar because consumers are waiting for the release of the iPhone X.  Obviously, Apple and its investors would want to sell more of its most profitable model.  Right now, that model is a mystery.  That being said, with higher prices all around, the iPhone average selling price (ASP) should see a noticeable jump.

In Other News

According to a survey reported to the Financial Times, less than 25% of Chinese consumers who plan to buy a new smartphone would buy an iPhone.  More than 30% would rather buy a Huawei smartphone.  The reasoning is that most of the market growth is going to the mid-market space, not the premium space where Apple operates.

The Trump administration’s proposed tax framework could have a significant effect on Apple.  The framework mentions “rules to protect the U.S. tax base by taxing at a reduced rate and on a global basis the foreign profits of multinational corporations.”  The rate and formula weren’t listed, but this one sentence can have multi-billion dollar implications for multinationals like Apple.  One positive takeaway from the framework is that it would allow Apple to repatriate many years’ worth of foreign earnings at a reduced tax rate which is expected to be in the 10-15% range.

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

Apple Stock News: Apple’s New IPhone 8 and 8 Plus Can Fast-Charge

Apple Stock News

For the latest Apple Stock News, AAPL closed at $154.12 per share on September 29th, 2017. It generated a profit of 0.54% from its previous close on September 28th, 2017, when it closed at $153.28 per share.

The new iPhone 8 and iPhone 8 Plus are coming out with a new feature. Apple launched fast-charging which allows you to quickly recharge your iPhone in a convenient way. Fast-charging enables you to recharge your iPhone battery up to 50% in 30 minutes.

As commonly known for Apple, you will need to buy a few separate accessories to have access to this feature. Apple’s iPhones don’t include any of the required accessories when purchasing the phones themselves. The good news is that fast charging can be done with a third-party USB-C power adapter that supports USB Power Delivery or with Apple’s 29W, 61W or 87W USB-C Power Adapter. Despite this, you still need to buy Apple’s USB-C to Lighting cable. Fast-charging capabilities will cost around $70.

Thus, even though this new feature might be a bit expensive, fast-charging is definitely an investment worth making. Fast-charging can make a huge difference and it is great to see that Apple finally introduced it to the iPhone.

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

Apple Stock News: Weak iPhone 8 Demand While iPhone X Steals the Spotlight

Apple Stock News: Weak iPhone 8 Demand While iPhone X Steals the Spotlight

September 26, 2017

Apple Stock News

For the latest Apple Stock News, AAPL closed at $151.89 per share on September 22nd, 2017. Its share price decreased 0.98% from its previous close on September 21, 2017, when it closed at $153.39 per share.

There has been some concern for initial sales of the iPhone 8 and 8 Plus since the release.  Most reports tell of subpar demand due to the lack of new and exciting features.  Customers of the iPhone 8 just seem to be upgrading their devices since their current handset is too far behind technologically.  There is no strong enthusiasm for the product.

However, this enthusiasm might just be reserved for the iPhone X which is the most superior handset that Apple offers.  In contrast to the iPhone 8, it has an OLED screen, facial recognition for secure log-in, and a fresh design.  Many consumers will likely wait to buy the X rather than purchase the iPhone 8 or 8 Plus which is more of the same.  The iPhone X goes on sale November 3rd while the iPhone 8 devices were just released on September 22nd.

The day before the special launch of the iPhone 8 handsets on September 12th, the market value of AAPL was $835B.  By market’s close on September 22nd, the market value was $782B.  A loss of over $50B in market capitalization.  According to many analysts, this pullback could be a smart buying opportunity.  Since it’s likely that consumers are waiting to purchase the iPhone X at the expense of the iPhone 8, it could benefit AAPL in the long run because the iPhone X is more expensive and carries a higher profit margin.  That being said, there are whispers that Apple won’t be able to satisfy demand for the iPhone X until 2018.

In Other News

In other news, the new Apple Watch Series 3, which launched the same day as the iPhone 8 devices, has been a surprise hit.  It differs from previous models in that it comes with cellular connectivity.  It doesn’t need to be near an iPhone to be fully functional.  As opposed to the iPhone 8, many stores actually sold out of their Apple Watch products.  Anecdotal accounts even show that half of consumers in line are waiting for this product.

Additionally, Apple announced that starting September 25th, the default web search in Siri and Spotlight will switch from Bing to Google. It has been estimated that Google will pay Apple approximately $3B to be the default search engine on the iPhones and iPads.

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


Apple Stock News: Apple Special Event Launch New Products

Apple Stock News

For the latest Apple Stock News, AAPL closed at $159.88 per share on September 15th, 2017. It generated a profit of 1.01% from its previous close on September 14th, 2017, when it closed at $158.28 per share.

On September 12th, 2017, customers were really anxious to discover what Apple Special Event was going to unveil for the celebration of iPhone’s 10th anniversary.

Apple Special Event launched four new products. Firstly, Apple introduced the new generation of iPhone. The iPhone 8 and iPhone 8 Plus have an all-new glass design, water resistance, an updated camera, wireless charging and the iOS 11 version.

Furthermore, Apple announced its most premium iPhone X with an all screen display, all-new design and wireless charging as in the iPhones 8 and 8 Plus. Another new feature in iPhone X is the TrueDepth Camera. It consist in a sophisticated technology based on specific machine learning algorithms. This artificial intelligence engine include sensors which enable Face ID recognition, Animojis and augmented reality apps.

In addition, Apple has also launched the Apple TV 4K which allows you to watch movies and shows in 4K HDR quality and the Apple Watch Series 3 with cellular connectivity.

Hence, Apple again proved to revolutionize the industry.

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

Apple Stock News: Apple began developing A11 in parallel with A8 chip

Apple Stock News

For the latest Apple Stock News, AAPL closed at $159.88 per share on September 15th, 2017. It generated a profit of 1.01% from its previous close on September 14th, 2017, when it closed at $158.28 per share.

Apple vice-presidents Phill Shiller and Johny Srouji gave a short interview to Mashable; they talked about the process of developing the A11 Bionic chip.

As it turned out, the development of a new generation processor began back in the days of the iPhone 6 and 6 Plus, which has been shipped with the A8 chip.

According to Srouji, several years ago the company did not even think about computer training and artificial intelligence. Then they just bet on the development of technology for three years.

Plans for the future technology development have always changed, while new people and new ideas arrived.  Srouji noted that the A11 Bionic chip is the most efficient in complex tasks requiring multiple cores.



The chip also has a built-in Apple neural engine, used in Face ID and Animoji, as well as other machine learning algorithms. According to Shiller, it can handle up to 600 billion operations per second.

The engine is used not only to recognise faces but also objects of augmented reality. And all this with the help of neural networks, machine learning or in-depth learning (part of machine learning).

Heads of the company made a separate accent that the decision to integrate the engine into the mathematical processor, not the graphics processor, is due to increased energy efficiency.

Apple Stock News: A $1,000 iPhone X From Apple Will Find Many Eager Buyers

Apple Stock News

For the latest Apple Stock News, AAPL closed at $161.5 per share on September 11th, 2017. It generated a profit of 1.80% from its previous close on September 9th, 2017, when it closed at $158.63 per share.

On this Tuesday, September 12th, 2017, Apple is celebrating the 10th anniversary of the iPhone, launching its new version, in California.

Recently, a new leak revealed details about apple’s upcoming products. Therefore, according to it, the new iPhone will be called iPhone X. It might utilize “FACE ID” technology to unlock the phone, a display that covers the whole front, wireless charging, improved camera and no home button. With its price rumored to be around $1,000, the new iPhone version might be the most expensive yet sold.

The launching might also include additional products. The updated version of last year’s model:  iPhone 8 and iPhone 8 Plus, new Apple Watch, Apple TV with 4K, HomePod speakers and iOS 11 may be unveil on this Tuesday.

According to I Know First Senior Analyst Motek Moyen, in this article, investors should expect that the iPhone X will find tens of millions of buyers and that it will probably outsells the iPhone 8 and iPhone 8 Plus. Since higher prices raises the average selling prices of iPhone, Motek emphasizes that it can increase Apple’s operating margins.

Apple’s Special Event will take place at Steve Jobs Theater at 10 a.m. PDT. Hence, the market is looking forward to discovering the upcoming news from one of the world’s most valuable companies.

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

Apple Stock News: Possibilities of Becoming a $1 Trillion Company

Apple Stock News:

For the latest Apple Stock News, AAPL closed at $158.63 per share on September 8th, 2017. It generated a return of -1.63% from its previous close on September 7th, 2017, when it closed at $161.26 per share.

Expectations for a stock spike have become more and more intense as the date of Apple’s unveiling of their three new iPhones approaches.  In two days we will finally know all of the new features and specifics that the new smartphone will offer. This will give much more clarity to investors that are not sure whether Apple Inc. is a good investment or not.

However, there are very optimistic investors out there, with many believing that if the iPhone is a home-run, then Apple has a shot of becoming a $1 trillion company. With a market capitalization of $830B, Apple actually has a realistic chance to get to reach the milestone by 2018. This chance is only attainable if every segment on Apple has strong performance in the coming quarters. All segments appear to be working in highly important projects, below they are listed.

  • Wearables: Biggest product is Apple Watch which completely dominates the smartwatch industry. Apple is reportedly adding a 4G ability to it, so customers can listen to music or Facetime with it.
  • Home: Apple joined the battle for home products. They will introduce HomePod, a high-quality speaker with Siri as a personal assistant. Amazon’s Echo and Dot have taken the lead.
  • Software: New iOS 11 will be available in all new iPhones, plus another 500 million existing products. Will offer a futuristic look and option for Augmented Reality.

With all of these having strong performances it would be very likely that Apple will get to the sought-after goal.

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


Apple Stock News: New iPnone 8, TV and Watch arrival on 09/12/2017

Apple Stock News: New iPnone 8, TV and Watch arrival on 09/12/2017

For the latest Apple Stock News, AAPL closed at $163.35 per share on August 30th, 2017. It generated a return of 0.44% from its previous close on August 29th, 2017, when it closed at $162.91 per share.

Apple event

Source: photo by Stephen Lam, Getty-Images

Apple has scheduled its event on September 12. On that date, as expected Apple is going to introduce the new iPhone models, Apple Watch with cellular mode and 4K Apple TV box.

And Steve Jobs Theater in Apple Park will host an event for the first time this year. Seems the company finished all construction works in this part of the campus. And carriers are preparing marketing materials now as they were informed about of the September 12th date last week.

Despite the variety of new devices, all eyes will be on iPhone 8, as it represents the first significant design improvements to the phone in three years.

Apple Inc. plans to deliver new way people use future generations of their devices and iPhone in particular, by transforming the concept of a home button and making other changes to a flagship device. It is going to be almost all screen, as at images of the new device viewed by Bloomberg News.

iPhone 8

Source: Bloomberg

The key to the iPhone is its home button, and this concept hadn’t changed much since 2007. This year Apple is ready to launch new iPhones. And the flagship one is going to blow the roof of common tech standards in the smartphone industry. It will be one of the greatest updates in the product’s decade-long history.

With a new screen that takes almost the entire front, Apple will test the complete removal of the home button. In favour of new gesture controls, according to the people and the images. iPhone will carry a 5.8-inch OLED display for the first time, what is larger than the current 4.7-inch iPhone 7. New stainless steel and glass design, wireless charging and a possible 3D front sensor to recognise the owner and unlock the gadget just looking at it.

The company will also introduce updates of iPhone 7 devices. The external design of these phones will follow current models with possible slight changes. OLED iPhone is expected to get the $900-$1000 level; the 7s phones will likely be sold at the usual $649 starting price.Apple event 2017

In addition to the new iPhones, the company will announce new Apple Watch hardware which can include LTE cellular models. There should also be an update to the Apple TV, adding 4K HDR.

Apple Stock News: Apple to Add Wireless Charging to the iPhone 8

Apple Stock News:

For the latest Apple Stock News, AAPL closed at $159.86 per share on August 25th, 2017. It generated a return of 0.20% from its previous close on August 24th, 2017, when it closed at $159.98 per share.

apple stock newsDespite Apple’s best efforts, many of the exciting features surrounding the highly anticipated iPhone 8 have already leaked out. Most information regarding the iPhone 8 came from sources within the supply chain. However, recent information came from HomePod firmware Apple accidentally made public a few weeks back.

While it goes without saying that nothing is ever 100% official until Apple announces a new feature on stage. Still, it’s a pretty safe bet that Apple’s iPhone 8 will feature wireless charging functionality. Indeed, the evidence pointing towards the iPhone 8 featuring wireless charging has been steadily mounting for months on end at this point. And with the iPhone 8 unveiling just a few weeks away, the evidence continues to grow.

An online leak provided photos of a wireless charging component said to be part of the iPhone 8. Building on that, The Next Web is reporting that it’s been able to confirm that

the iPhone 8 will include wireless charging. One of The Next Web’s sources is Allen Fung of RAVPower who said the following:

“Our sources tell us the next iPhones have special technology for wireless charging that we have in [our] charger. Our wireless charger will wirelessly charge the next iPhones at full speed, as well as being able to charge other mobile devices wirelessly.”

This is not a confirmation. However, with all the evidence we’ve seen pointing towards the iPhone 8 featuring wireless charging, it’s about as close as we’re ever going to get.

Apple Stock Outlook: Google’s Money Is Helping Finance Apple’s Research On Self-Driving Cars and Augmented Reality

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

Apple Stock Outlook


  • Bernstein analyst A.M. Sacconaghi Jr. estimated that Google paid Apple $3 billion to remain the default search engine on the iPhone/iPad.
  • This is triple the annual $1 billion payment that Google used to pay Apple three years ago to keep its default search engine status on the iPhone/iPad.
  • Google’s willingness to pay triple validated just how important Apple’s mobile ecosystem is to advertising-dependent companies. Apple’s iOS ecosystem is indispensable to Google.
  • The estimated $3 billion payment from Google helps pay for the estimated $3 billion that Apple is spending annually on self-driving cars and Augmented Reality research.
  • In spite posting a new high last week, AAPL still has a bullish one-year algorithmic forecast. This stock could still post a new 52-week within the next 12 months.

An analyst from Bernstein reported earlier this month that Apple (AAPL) could have gotten $3 billion  from Google (GOOG) in FY 2017. This reported $3 billion payment is in exchange for Google retaining its right to be the default search engine on Apple’s smartphones and tablets. The $3 billion estimated annual payment from Google helps finance the estimated $3 billion that Apple is spending on Artificial Intelligence and Augmented Reality research.

It was revealed  in 2014 that Google paid $1 billion per year to Apple but the previous deal expired in early 2015.

Google obviously offered more money to Apple to beat Microsoft’s (MSFT) Bing. Google will continue to monetize mobile search engine queries of iPhone/iPad users for many years to come. Yes, Apple doesn’t have a search engine or a robust mobile advertising services platform, but it still is a beneficiary of the $22.18 billion/year U.S. mobile search advertising industry.

apple stock predictions


Apple’s has obvious long-term economic benefits because Google’s search engine accounts for 95% of the U.S. paid search advertising on smartphones.

Why Investors Should Really Care

In the U.S., 75% of Google’s search engine advertising revenue is generated from iOS devices. It is only fair that Apple is now reportedly getting $3 billion per year from Google. Getting a larger share of the mobile search advertising revenue from Google is a small but important tailwind for AAPL. Google’s long-term advertising success has trickle down benefits to Apple.

apple stock predictions


The deal between Google and Apple might also be pro-rated based on Google’s total annual mobile search advertising revenue on the iOS platform. In short, Apple’s annual payment from Google could also grow larger than $3 billion in the coming years. Google gained $11.45 billion in U.S. mobile search advertising last year. Its estimated revenue will grow to $13.74 billion this year. I believe Apple will accordingly get a higher annual payment from Google for the next succeeding years.

Google’s willingness to pay $3 billion+++ per year to keep its default search engine status fortified the importance of the iOS ecosystem to the mobile advertising industry. Apple’s hundreds of millions of iPhone/iPad users belong, more often than not, to the middle-class and upper-class sectors of consumers. Google therefore has very compelling reasons to keep paying Apple big money to retain its default search engine status on mobile Safari.

$3 Billion Is A Lot Of R&D Money

Apple has decided to postpone indefinitely its ambition to build its consumer-grade self-driving cars. However, the company is still intent on researching and developing software and the cloud platform for autonomous driving cars. The $3 billion search engine-related payment from Google is a lot of money to finance development of this venture.

Going forward, Apple needs to spend big money on R&D to accelerate its software-based and Artificial Intelligence-enhanced self-driving car technologies to keep up with Google, Nvidia (NVDA), and Baidu (BIDU). The more money and manpower it can pour on this segment, the faster it could catch up with the leaders. Intel (INTC) paid more than $16 billioin for Mobileye just to boost its footprint in self-driving cars.

The autonomous vehicle business is definitely a new fashionable tech growth industry that Apple must get involved in quickly. The $3 billion/year from Google could also help Apple fund more third-party acquisitions to improve its car-related Artificial Intelligence efforts.

Apple will also probably have to research car-specific processors and sensors to complement its software for self-driving vehicles. Nvidia, Mobileye, and Qualcomm (QCOM) are years ahead when it comes to car-centric processors. I do not think Apple can build its proprietary software/cloud platform for self-driving cars without its own proprietary processors/sensors.


Getting $3 billion/year from Google is not going to move Apple’s stock. However, it could accelerate Apple’s research on Augmented Reality and self-driving car technologies. These two developing are future diversification areas for Apple. Apple cannot forever rely on its iPhone revenue to propel its future growth. It needs to get involved on the new tech fad, self-driving cars and AR. Riding on what’s popular helps motivate investors to remain bullish on AAPL.

AAPL already posted a new record high of $162.51 last week.  However, next month could deliver the iPhone 8 that everybody dreamed about. Apple coming up with a real major upgrade to the iPhone 7 next month could propel the stock to a new 52-week high. It could even hit $170 if Tim Cook announces there would be enough global supply for the iPhone 8 before September ends.

AAPL remains a buy. It has outperformed Google’s YTD return. AAPL’s YTD gain could hit +42% after 2017 ends. I will remain long AAPL as long as Warren Buffett remains long AAPL.

apple stock predictions

(Source: Morningstar)

My bullish outlook for Apple is complemented by the very positive one-year algorithmic forecast from I Know First. Staying long or buying more AAPL shares (and keeping them for one year or more)  could turn out to be rewarding for patient investors.

apple stock predictions

Past I Know First Forecast Success with AAPL

I Know First’s algorithm has made accurate predictions on AAPL in the past, such as its bullish forecast published on January 17, 2017. In the article, it explains that despite the critics and the tough competition Apple had to deal with, the company succeeds to impose its brand as a key player in its field. The bullish signal identified by the algorithm is strengthened by different facts. Since the forecast’s release, the stock has increased by 34.22%.Apple Stock Predictions

I Know First Algorithm Heatmap Explanation

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 position), the signal strength is related to the magnitude of the expected return and is used for ranking purposes of the investment opportunities.

Predictability is the actual fitness function being optimized every day, and can be simplified explained as the correlation based quality 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.

apple stock predictions

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