Apple Quietly Rolls Out New MacBook Pros

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

– Douglas Engelbart

(Source: Apple)

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

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

(Source: Apple)

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

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

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

The 2018 MacBook Pros are available for purchase right now.

AAPL hiked following the announcement of the new MacBook Pros

(Source: YCharts)

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

AAPL gained 22.5% since this forecast

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

To subscribe today click here.

Apple – Creating a healthier planet through innovation

“We’re committed to leaving the world better than we found it. After years of hard work, we’re proud to have reached this significant milestone,”

-said Tim Cook, Apple’s CEO.

Highlights

  • Nine More Apple suppliers commit to 100 percent clean energy production
  • Apple’s renewable energy projects
  • Appel’s New Robot, Daisy, Disassembles iPhone to Reclaim Precious Materials
  • 2018 Q1 results and Q2 outlook

[Image Source: Pixabay]

As part of its commitment to combat climate change and create a healthier environment, Apple announced on April 9, 2018 its global facilities are powered with 100 percent clean energy. This achievement includes retail stores, offices, data centers and co-located facilities in 43 countries – including the United States, the United Kingdom, China and India. The company also announced nine additional manufacturing partners have committed to power all of their Apple production with 100 percent clean energy, bringing the total number of supplier commitments to 23. In addition, over 85 suppliers have registered for Apple’s Clean Energy Portal, an online platform that Apple developed to help suppliers identify commercially viable renewable energy solutions in regions around the world.

Apple and its partners are building new renewable energy projects around the world, improving the energy options for local communities, states and even entire countries. Apple creates or develops, with utilities, new regional renewable energy projects that would not otherwise exist. These projects represent a diverse range of energy sources, including solar arrays and wind farms as well as emerging technologies like biogas fuel cells, micro-hydro generation systems and energy storage technologies.

A few of Apple’s renewable energy projects:

  • Apple Park, Apple’s new headquarters in Cupertino, is now the largest LEED ( Leadership in Energy and Environmental Design) Platinum-certified office building in North America. It is powered by 100 percent renewable energy from multiple sources, including a 17-megawatt onsite rooftop solar installation and four megawatts of biogas fuel cells, and controlled by a microgrid with battery storage. It also gives clean energy back to the public grid during periods of low occupancy.
  • In Prineville, Oregon, the company signed a 200-megawatt power purchase agreement for an Oregon wind farm, the Montague Wind Power Project, set to come online by the end of 2019.
  • In Japan, Apple is partnering with local solar company Daini Denryoku to install over 300 rooftop solar systems that will generate 18,000 megawatt-hours of clean energy every year, enough to power more than 3,000 Japanese homes.
  • Apple is currently constructing two new data centres in Denmark that will run on 100 percent renewable energy from day one.

Appel’s New Robot “Daisy

As part of its ongoing recycling effort, Apple announced on April 19, 2018 that it debuted Daisy, their newest robot that can more efficiently disassemble iPhone to recover valuable materials. Created through years of R&D, Daisy incorporates revolutionary technology based on Apple’s learnings from its first disassembly robot, Liam, launched in 2016. Daisy is made from some of Liam’s parts and is capable of disassembling nine versions of iPhone and sorting their high-quality components for recycling. Daisy can take apart up to 200 iPhone devices per hour, removing and sorting components, so that Apple can recover materials that traditional recyclers can’t and at a higher quality.

Apple “GiveBack”

Apple’s recycling program where people can trade in their device for a store credit. If the device is not eligible for credit Apple will recycle it for free. No matter the model or condition, Apple will turn it into something good for the customer and good for the planet.

Both Apple “GiveBack” and Daisy support Apple’s commitment to create a healthier planet through innovation and help the company move a step closer to its goal of making its products using only recycled or renewable materials.

[Image Source: Pixabay]

Apple announced on February 1, 2018 financial results for its fiscal 2018 first quarter. The Company posted quarterly revenue of $88.3 billion, a 13% increase from the year-ago quarter and an all-time record, and quarterly earnings per diluted share of $3.89, up 16%, also an all-time record.

International sales accounted for 65% of the quarter’s revenue.

“We’re thrilled to report the biggest quarter in Apple’s history…” said Tim Cook, Apple’s CEO.

Apple’s outlook for its fiscal 2018 second quarter:

  • revenue between $60 billion and $62 billion
  • gross margin between 38% and 38.5%
  • operating expenses between $7.6 billion and $7.7 billion
  • other income/(expense) of $300 million
  • tax rate of approximately 15%

Although Apple’s first quarter revenue for 2018 is based on the recent iPhone X release I believe that their revenue growth and stock growth will continue and increase in 2018 on the scent of Apple’s environment commitment. Following Apple’s environment progress report of the past year and the beginning of 2018 one can see that they invested many resources in R&D with the aim to create a healthier planet through innovation.

The report shows how perhaps the Energy Use and Emissions at Apple’s Colocation Facilities may have increased in the past years. Percent Renewable Energy started at 0% in 2011 and got to 99% in 2017. The growth between the years of 2014 to 2017 was 18% (from 81% to 99%) and I assume that by the end of 2018 Apple will reach 100%. By achieving 100% of Renewable Energy Apple will inflame an environment revolution.

In accordance with Apple’s new robot “Daisy” that was announced on April 19, 2018 there were a few more highlights at that time that may affect Apple stock for the following year. Project Marzipan is Apple’s in-development solution to allow macOS computers to run iOS apps and make its Mac computers more attractive and useful. As a result, I believe that more college/high school  administrators will consider buying the macOS computers again if they can run iOS apps. Future sales could improve after Project Marzipan is finally implemented this year. The Mac business accounts for 7.81% of Apple’s quarterly revenue which could rise and help Apple with further weaknesses in iPhone/iPad sales. My bullish stance on AAPL in long term resonates with this bullish I Know First long term  forecast  for AAPL.

Past I Know First forecast success with Apple

I Know First has made accurate prediction on Apple on September 8, 2017

AAPL is with 14% gain since this bullish forecast.

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

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.

Apple Stock Forecast: Bullish Rally Goes On With Expansion To Austria And Leaks Of New Water-Resistant Lightining

Gleb ZInkovskii_photo

 

 

The article was written by Gleb Zinkovskii, a Financial Analyst at I Know First.

 

 

“Older people sit down and ask, ‘What is it?’ but the boy asks, ‘What can I do with it?’.”
-Steve Jobs

Highlights:

  • Apple has ideas for water-resistant Lightning connectors
  • Apple opens its first store in Austria
  • Apple’s Unusual Pursuit of Cobalt

Apple has ideas for water-resistant Lightning connectors

Apple is known for patenting concepts way before their introduction to the products. Recently, US patent bureau received applications from Apple regarding new moist and water resistant Lighting connectors for the iPhone chargers. As far as the latest phones produced by Apple can withstand inadvertent trips into puddles, sinks and toilets, it seems a reasonable step to make the most important iPhone accessory to be a water resistant as well.

Apple_stock_news_14032018_pic1

[Image Source: USPTO. See more details here]

The other Lightning cable design presents a deformable rubber or plastic O-ring to seal a cable connection against moisture.

Besides the new concepts described in the patent application filed on Thursday March 8th it contains the similar approach to protecting USB-C connectors, too. “A liquid-tight seal is formed between the accessory and the electronic device,” the application says, making them “… useful in moist, wet and/or dirty environments.”

As far as the competitors flagship devices from Samsung are already waterproof and have wireless charging abilities, it becomes crucial for Apple’s devices to keep up with this pace and have the ability to withstand hard treatments, especially when you consider that an iPhone X costs more than $1,000. But as countless shattered screens and a thriving smartphone case market show, true ruggedness remains elusive.

Apple’s ideas include a tapered Lightning connector that stuffs into its port and a rubber gasket that squeezes tightly to seal a port when a cable is inserted.

This Apple design shows a USB-C connector — found on Macs and some Android phones — that offers a water seal.

It isn’t clear whether Apple ever plans to ditch its proprietary Lightning connector for the increasingly common USB-C ports sprouting on Android phones and Apple laptops. But USB-C fans can take heart that Apple has an idea for sealing that connector, too.

Apple opens its first store in Austria, expanding its worldwide presence to 19 countries

Apple_stock_news_14032018_pic2

[Image Source: via Wikimedia Commons]

It has been less than a month since Apple opened its first official store in Seoul, expanding its presence to 18th country – South Korea. Now, Apple makes move to Austria and shifts its presence to 19th country by opening its store just in the heart of Vienna – between St. Stephen’s Cathedral and the Vienna State Opera. According to the latest data from www.statcounter.com, the current share of Apple vs Samsung is 30.34% and 41.88% respectively.

Apple_stock_news_14032018_pic3

[Image Source: www.statcounter.com]

At the same time, as per Statista data, it is projected that the smartphone penetration in Austria should increase from 62.32% in 2016 to 72.4% in 2022 of the total population. Effectively, one can consider it as a proxy to identify the potential growth of the smartphone market in Austria for the next 4 years.

Apple_stock_news_14032018_pic4

[Image Source: www.statista.com]

This 10% potential market growth is a plum that both Samsung and Apple, as well as their Chinese rival – Huawei, are willing to get the first. Samsung had already opened its stores in Austria way before 2017 and Huawei opened its store in December 2017, Apple’s move to follow their example seems not just logical, but a required measure to keep up with the market competition. “We can’t wait to join the bustling city of Vienna, a European crossroads so rich in history and culture,” said Angela Ahrendts, Apple’s senior vice president of Retail. Eventually, it became a priority for Apple to reach the existing and potential clients as soon as possible using Apple’s original store approach – Apple store is the place for Apple community rather than just commerce. The press release that followed the store opening states that “Visitors can participate in free Today at Apple sessions every day focused on photography, coding and app development, music, art and design, and more in The Forum. The diverse programs include Quick Start and How To sessions, Music Labs and Studio Hours, all led by Apple Creatives, the store’s experts in liberal arts. Interactive Photo Walks and Sketch Walks take participants outside the store to explore nearby sites in the city while learning new skills.” There is no need to add anything more to see that primarily this expansion has more marketing and promo role rather than just an official selling point. At the end of the day following this approach has great chances to improve the Apple’s position in the market by showing the personalized attitude to the user audience and the overall experience they receive from using of Apple’s products.

Apple_stock_news_14032018_pic5

[Image Source: By Tiger7253 – Own work, CC BY-SA 4.0, Wikimedia Commons]

Apple’s Unusual Pursuit of Cobalt

Apple_stock_news_14032018_pic6

Smartphone production comprises about 25% of the worldwide demand for cobalt. The element is one of the most important chemicals that gives significant increase to performance of the Lithium-ion batteries of every single modern smartphone that we got used to in our everyday lives. As far as the requirements for smartphones’ performance increase power consumption perspective wise, the smartphones’ manufacturers increase their demand for batteries. The challenge is that Apple and its rivals are not the only consumers in the cobalt and batteries market and the price fluctuations for cobalt may significantly affect the cost for iPhone and Mac production and decrease the margin received by the company. Recently, it became known that Apple is in direct discussions with cobalt suppliers, i.e. miner companies, to secure the supply of cobalt to Apple’s contractors which provide Apple with batteries for their products. Although it is not something that investors may have expected from Apple, it may be a smart and strategic move for a company that is ultimately responsible for the design and sale of a device and which should be best aware of the potential demand for batteries and respective costs planning. The result will be much more sustainable and stable delivery of Apple’s devices to the customers and, as a result, stable cash flow to be ultimately delivered to its investors. It is not clear what is the stage of those discussions, but taking into account increasing price of iPhones from generation to generation it may become crucial to secure the costs by Apple itself alongside the whole cost chain so as to be sure that it will stay competitive comparing to Samsung, for instance, which actually manufactures their devices rather than outsourcing it to Foxconn. The other side of such move is that Apple enters competition for cobalt supply with electric cars manufacturers like Tesla and traditional automotive groups such as Daimler.

I Know First Forecast on Apple

We see that Apple goes nose to nose with its competitors both on local and global scales. On local level it results in rapid expansion on a country-by-country basis through opening of official retail stores to 19th country and it is known that the expansion will continue to India, Thailand and even Saudi Arabia. From global perspective we see that Apple continues its good tradition of patenting every single technological development that may or may not be implemented in its products and even starts to strengthen it competitive advantage from the very bottom of the supply chain through new approach of taking control over the input supplies for its own suppliers. All that gives strong sense to me that the management focuses not only on tactical short term marketing and software measures for promoting new features of existing products, but elaborates on more long term strategy of achieving opportunity for stable products production costs and resulting prices that serve best interests of Apple’s clients and investors. I Know First forecast supports my opinion that Apple’s stock is going to become even more bullish over 1 month, 3 months and 1 year time with the signal and corresponding predictability increasing over those periods.

Apple_stock_news_14032018_pic7

Past I Know First Forecast with Apple

[Image source: Yahoo Finance]

On March 23rd, 2017 I Know First published an article by Motek Moyen, Senior Financial Analyst at I Know First, about cheaper new iPads that can shore up Apple’s waning tablet unit sales. We expected bullish behavior on 1 year horizon which almost passed since the forecast publication date and the shares went up by 27.26% shares since then. The bullish endorsement for Apple was backed by the positive algorithmic forecasts from I Know First.

Apple Stock Forecast

Current I Know First subscribers received this bullish forecast for AAPL on March 23rd, 2017

To subscribe today click here.

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.

How_to_read_IKF_heatmap

To subscribe today and receive exclusive AI-based algorithmic predictions, click here.

[1] Includes sales of Apple TV, Apple Watch, Beats products, iPod touch and Apple-branded and third-party accessories [Source: Apple Inc. Q1 2018 Unaudited Summary Data, Official Apple Inc. Press Release on February 1, 2018]

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Apple Stock Forecast: Bullish Long Drive Goes On In 2018 – Apple’s All Time Records In Q1

Gleb ZInkovskii_photo

 

 

 

The article was written by Gleb Zinkovskii, a Financial Analyst at I Know First.

 

“I think the artistry is in having an insight into what one sees around them. Generally putting things together in a way no one else has before and finding a way to express that to other people who don’t have that insight…”

– Steve Jobs, Smithsonian Institution Oral and Video Histories, April 20, 1995

Highlights:

  • iOS 11.3 preview release – New AR experiences with ARKit 1.5, Health Records – collaboration of Apple with hospitals and clinics
  • Apple opens first official store in Seoul, South Korea expanding its worldwide presence to 18 countries
  • Apple introduced new product in an effort to stay competitive with Google Home and Amazon Echo – HomePod
  • Q1 2018 results are released – all-time records from all perspectives

Apple iphone x

[Source: Flickr.com]

iOS 11.3 release preview: another small step forward for company – big user experience jump

Apple presented its flagship iPhone X device on September 12, 2017 which provided the hardware basis for iOS 11 and empowered it to bring incredible new user experiences like Augmented Reality (AR) and complex face recognition solution for unlocking device and animating Emojis in real-time. Since then the features of the iOS were multiply challenged by many industry experts and the public in respect of the value being brought to customers for the price of iPhone X. Although, real-time animated Emojis are actually a powerful and fun tools to sell the device to Apple fans, the true capabilities horizon of the hardware and software is clearly not utilized so far. The preview of the new iOS version brings new perspectives on future user experience and applications with the updated ARKit, enabling developers to create applications that support AR not just in horizontal but vertical planes. Although it may sound vague from first perspective, actually is an enormous jump into the world of interactive surfaces like walls, posters, paintings, ads, etc. As a result, the potential value of such technology arriving at your palm may result in completely different approach for targeted advertisement and entertainment.

Another highly anticipated by the public feature which was mentioned in the preview and had its own separate press release is Apple Health Records. “Our goal is to help consumers live a better day. We’ve worked closely with the health community to create an experience everyone has wanted for years — to view medical records easily and securely right on your iPhone,” said Jeff Williams, Apple’s COO. “By empowering customers to see their overall health, we hope to help consumers better understand their health and help them lead healthier lives.” Some experts compare this functionality to Apple Pay or Siri with respect to the impact scale on our lifestyle and the way we do our routine and for sure Apple is the company which is capable of taking the lead in such initiative. Another story is for investors to estimate the impact of such technologies’ introduction onto Apple’s value and for sure it will buzz the investor community for some time. Also, investors should consider that the same way Apple Pay stimulated new evolutionary step in online cashless payments, the same way Apple Health Records may become an environment for both offline and online medical care services which has extremely wide market reach and where they will be able to unify around patient’s needs and deliver care in extremely time-efficient and affordable manner. As for the Apple’s investors it is not clear how it will drive the company’s value in short term, but it is to be said that so far technologies which Apple introduces take some time for public to absorb and realize their true potential but when it happens the value sometimes exceeds even most optimistic analyst’s expectations.

Based on the above and the fact that not all of the Apple devices support AR and functionality yet even if they have iOS 11 installed, the hype around the mentioned technologies is capable to significantly drive the demand for the latest devices (iPhone X and iPhone 8). The latest sales results for Q1 2018 (published on February 1, 2018) support this statement as the number of iPhone X units sold rose by 66% and corresponding 113% increase in revenue comparing to Q4 2017 contributing to the overall rise in company’s sales. Additionally, one should reasonably expect intensified demand for the actual services to be provided based on those technologies which will drive additional revenues both directly to Apple and indirectly through third-party developers.

Apple opens first official store in Seoul, South Korea expanding its worldwide presence to 18 countries

Everybody knows what an Apple store is. Everybody knows that Asian market is constantly seeking for new trends, technologies and products. Apple is not an exception and that’s why the first official apple store opened in Gangnam area in Seoul. Although the penetration to the South Korean market is a hard thing to do for a foreign company as the dominance there lies with Samsung and LG, the expansion to this market sends a clear message. “We’re thrilled to open a new home for our customers in the vibrant city of Seoul and we look forward to continuing to grow in Korea,” said Angela Ahrendts, Apple’s senior vice president of Retail. “Our stores are gathering places for the community where everyone is welcome to connect, learn and create.” As ambitious as it sounds, it literally shows strong intention of the company not just to sell its products, but also expand its Apple culture influence to this market being close by it Korean current and future fans. The concept of an official Apple store is also important from marketing and sales perspective, because the new products and services are always start to sell first at official stores rather than at distributors. Therefore, it will give Apple the required means to effectively compete with Samsung and LG and take its piece of cake from this table. This statement is completely in line with the sales statistics being recently published by Apple – the sales growth in Asia Pacific region (excluding Greater China and Japan) in Q1 2018 was 144% and 17% comparing it to Q4 and Q1 in 2017 respectively.

Apple_smartphone_market_share_south_korea

Share of smartphone models sold in South Korea during the month of July 2017, by model [Source: Statista]

Apple introduced new product in an effort to stay competitive with Google Home and Amazon Echo – HomePod

It has been more than 2 and 1 years, respectively, since the release date of Amazon Echo and Google Home. The success of both devices is sometimes questionable and depends on the geography where the associated services are available for both devices. The idea of a smart home and devices which actually assist you in managing your household became not just a buzz but a practical set of tasks to be done by them. However, if you have certain restrictions for services to be utilized by those robots you cannot guarantee the success for such environments among the general public worldwide. Apple did not get into this competition for a while and seems to learn the mistakes done by Amazon and google. As a result, the new product – HomePod – orders on which were opened on February 9, is positioned as “Breakthrough Wireless Speaker that Brings Audio Technologies Into Any Home for an Incredible Listening Experience”. If we chop this motto into pieces it may seem that the competition is not going to be with Amazon or Google, but with audio giants like Bose or JBL. However, in the context of the sales statistics for the home assistant devices and home and portable audio speakers it is clear that the last ones were true success stories and insanely profitable market worldwide. From investor perspective it also seems as a good idea for Apple to compete with this new product in audio industry which is close to the cornerstone products and services like Apple Music, iPod and iPhone. Apple definitely shows a nice strategic approach to this new product, although it does not forget about the Siri – that assistant which became part of the Apple fans’ lives and sometimes a subject for jokes. Official press release says: “With support for HomeKit, HomePod can control hundreds of home accessories or set scenes like, “Hey Siri, I’m home,” to control a number of different accessories at the same time.” It makes clear that the experience gained by the public so far shaped the demand for a specific home assistant functionality which is more of a control hub for already exiting devices scattered around your house, and it is more of a nice touch to have for a more desired primary need – set up a nice mood by turning up good musical vibes. It seems to be a nice entrance point to this market for Apple as a sovereign player and it seems a good move from strategic perspective which investors expect from the Apple management team.

Conclusion – Q1 2018 results released

Based on the press release of the results for the Q1 2018 one should be totally amazed by financials – revenue of $88.3 billion, an increase of 13 percent from the year-ago quarter and quarterly earnings per diluted share of $3.89, up 16 percent. However, if we look up closely to the summary data for the quarter we will see that the most contributing to the overall growth item from the products range is not the newest iPhone X, but “Other Products”[1] section – 36% growth in Q1 2018 comparing to Q1 2017. At the same time we can see that although sequential revenue growth of 68% from Q4 2017 to Q1 2018 is significant it achieved by 113% growth produced by iPhone X and 70% growth produced by Other Products”. iPad and Mac products demonstrated insignificant changes in revenues ranging from -4% to 21% and from -5% to 18% for quarterly sequential and Year-year comparables. Such performance does not seem bad for general public as the market for tablets and laptops are not that dynamic nowadays, but from a strategic perspective it could become a worrying sign of the main revenue drivers’ convergence to just smartphones and accessories like Apple Watch. However, this worrying signs are smoothed out by the introduction of HomePod which may contribute significantly to the Apple environment value proposition to current and potential customers, but also by the fact that Apple became one of the biggest beneficiaries of the current US tax reform. The fact that Apple decided to repatriate extreme amount of cash from overseas which becomes available for reinvestment on US soil and, potentially, for dividends payout accompanied by the company’s stock buy-back program gives strong potential for further freedom to spend it on R&D and M&A activities. The best way to give sense of how much cash became available to Apple belongs to Luca Maestri, Apple CFO: “We have plenty of financial flexibility, of course” and from the published financial statements we can understand that it literally means almost $285 billion. In overall, Apple’s stock performance over Q1 2018 and the period until the press release of the financial statements was above industry benchmarks, but started dropping starting from the middle of January with a slight spike up around the date of the press release.

Apple_20171001_forecast

[Source: Yahoo Finance]

I Know First Forecast on Apple

As far as we have the release of the first quarter fiscal 2018 results of Apple at our disposal, I do believe that the company will continue to show increasing sales of the new iPhone X. However, there is a certain ambiguity around the other revenue drivers and the extent of dividends to be paid to the shareholders. As Tim Cook, Apple CEO mentioned at the annual shareholders meeting held on February 13, although the company has lots of available cash, but it is unlikely that all the amount will be spent in a form of special dividend. As far as it represents the strategic vision of the board on the activities of the company being aimed at investment into R&D and potentially M&A, one should not expect some quick win from the status of Apple shareholder. In my view, as of today the most of the value which shareholders needs to be expected within the long time horizon and we should expect the improvements due to conceptually new products, services and features being proposed as a result of the company’s investments. The I Know First forecast supports my opinion that in short term of 1 month the stock will be rather bullish than neutral with relatively significant predictability and is going to become even more bullish over 3 month and 1 year time with the signal and corresponding predictability increasing over those periods.

Apple_forecast20180218

Past I Know First Forecast with Apple

In May 22nd, 2016 Motek Moyen, a Senior Financial Analyst at I Know First, published an article about Berkshire Hathaway investing $1 billion into Apple Inc. shares just afterwards of Carl Icahn exit from the number of Apple’s shareholders. As per the reports of Berkshire Hathaway at that time it increased its holdings in Apple and went long on it with 23.3% shares. Motek’s bullish endorsement for Apple was backed by the positive algorithmic forecasts from I Know First. The 1 month, 3-month and 12-month algorithmic forecasts for AAPL were all positive.

Current I Know First subscribers received this bullish forecast of AAPL on May 22 nd, 2016.  

To subscribe today click here.

Since then, in accordance with the above I Know First forecast Apple’s stock price gained more than 70% in 1 year and continues to grow further as shown on the below graph:

Apple_1year[Source: Yahoo Finance]

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.

How_to_read_IKF_heatmap

To subscribe today and receive exclusive AI-based algorithmic predictions, click here.

[1] Includes sales of Apple TV, Apple Watch, Beats products, iPod touch and Apple-branded and third-party accessories [Source: Apple Inc. Q1 2018 Unaudited Summary Data, Official Apple Inc. Press Release on February 1, 2018]

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