Apple Stock News: The Race to be the First Trillion Dollar Company May Depend on China

Apple Stock News

The race to get the title of first trillion dollar market cap is getting closer to the finish line.  Apple is sitting pretty with an $868B market cap.  Alphabet Inc. (Google) is in second place at $712B.  Amazon is in third at $556B.  Facebook is in fourth at $512B.  But Apple hasn’t always been in the lead.  It was temporarily overtaken by Alphabet Inc. in 2016.

What makes Apple the favorite in this horserace?  It’s not valuation.  Since Apple’s biggest driver is the iPhone, they are priced more like a hardware company.  That’s why Apple’s PE is 18 whereas Alphabet’s is 37, Amazon’s is 294, and Facebook’s is 34.  Although, Apple is investing heavily in its high growth Services business which could help to increase Apple’s P/E multiple in the future.

The main reason Apple is in first place is the tech giant generates so much darn profit.  They earn the vast majority of the profits of the entire smartphone space.  One significant differentiating factor that has helped them do this is their success in China.  Out of the four tech behemoths mentioned above, Apple is the only one that has truly flourished in the People’s Republic.  China is too big to ignore with 20% of the globe’s population.  In Apple’s 2017 fiscal year, they generated $44.8B in revenue from Greater China.  Even though that number decreased 8% YoY, it still amounted to 20% of Apple’s total revenue.  That 20% figure is much higher than the Chinese revenue generated from the other three tech titans.

Facebook doesn’t operate in China.  Alphabet does operate there, but many of its core services are severely restricted.  Amazon operates there as well, but is not even close to becoming a major player.

The Middle Kingdom’s significance to Apple has definitely incentivized them to keep the Chinese regulators happy.  This results in Apple removing hundreds of VPN apps from the Chinese App Store as well as building a data center in China to house Chinese users’ data.  Apple may not always like the Chinese regulations, but they certainly aren’t pulling out of China anytime soon.

For the latest Apple Stock News, AAPL closed at $169.01 per share on December 6th, 2017. It generated losses of 0.37% from its previous close on December 5th, 2017, when it closed at $169.64 per share.

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

Apple Stock News: New VP and Managing Director of Greater China

Apple Stock News

For the latest Apple Stock News, AAPL closed at $151.02 on July 19, 2017. It had a gain of 0.98% from its previous close on July 18, 2017, at $150.08 per share.

apple stock news

Source: Apple Newsroom

Apple announced on July 18 that the company has appointed Isabel Ge Mahe, a China-born Wireless Technologies leader, as the vice president and managing director of Greater China. This move is in the hope of “deepening our team’s connections with customers, government and businesses in China to advance innovation and sustainability”, said Isabel.

The smartphone giant seems to be experiencing some trouble in China. Apple has been facing increasing competition from local players and more pressure from regulators. However, this newly created position shows the positive sign that Apple is on the right track toward winning back the market.

Isabel has led Apple’s wireless technology team for over nine years. According to Apple’s release, she has worked closely with R&D team and carrier partners in China to bring more customized features to the iPhone and iPad.

China still represents one of the most promising market to Apple. The fast-growing middle class stands as a large potential customer base. It is obvious to the naked eyes that Isabel is perfectly positioned for this new role. She would more than likely to be tasked to capture the second-largest economy.

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 Data Centre and Renewed Positioning

Apple Stock News

For the latest Apple Stock News, AAPL closed at $149.05 per share on, July 14th, 2017. It generated a return of 0.87% from its previous close on July 13th, 2017, when it closed at $147.76 per share.

On July 13th, 2017, Apple announced that it has plans to build its first data center in China. This will be in partnership with a Chinese data management company. Thus making Apple join the ranks of other tech giants who have made similar moves, including Amazon, Microsoft, and IBM.

From a product functionality standpoint, this data centre and any future data centres are predicted to rapidly improve the various iOS services that are present with the iPhone.

This new data centre is expected to allow Apple to operate at a much more competitive level with local Chinese smartphone producers. These companies have generally offered smartphone products noticeably cheaper than Apple’s iPhone. Unfortunately, this phenomenon has cost Apple dearly in China.

It is therefore a strong signal that Apple is taking the appropriate and necessary steps to close the gap that exists between it and local players. Together, these measures are believed to become a positive boost to the sales and profitability of the American tech giant.

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 Backs Foxconn to Buy Chip Business

Apple Stock News

For the latest Apple Stock News, AAPL closed at $153.93 on Monday, June 5th, 2017. It had a loss of 0.98% from its previous close of $155.45 per share.

Apple and Amazon are reportedly teaming up with Foxconn in its bid for Toshiba’s semiconductor business, according to Foxconn Chairman Terry Gou. This unit is the world’ second-largest NAND chip maker. Specifically, Foxconn’s bid for the business has a valuation of $18.2 billion. Foxconn is a multinational electronics contract manufacturing company with its headquarters in Taiwan.

Apple and Amazon have provided financial backing for the bid, though whether it was in the form of a direct investment in the business or financing for the deal is undisclosed. In particular, Foxconn is a major supplier to Apple. For instance, the company provides electronics components and device parts Apple products such as the iPhone. Moreover, Toshiba’s NAND flash memory chip business produces chips suitable for smartphones and cloud computing data centers. This aspect can explain Apple’s interest in backing Foxconn’s bid.

If the deal goes through, this can be an opportunity for Apple’s smartphone and cloud computing businesses. Foxconn’s chairman is reportedly very confident about securing the deal. However, there may also be political complications due to Foxconn’s ties to China, which may not be favorable in the eyes of Japanese regulators. On a positive note, with US technology giants, Apple and Amazon as backers of the deal, their presence may move the Japanese government to reconsider interference.

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 Remains Adament in China

Apple Stock News

For the latest Apple Stock News, AAPL closed at $142.27 on Friday, April 21, 2017. It had a loss of 0.12% from its previous close of $142.44 per share.

chinaapple

All the talk is about what’s in store for Apple this quarter. Current consensus estimates $52.61 billion, after an Apple guided indication of between $51.5 and $53.5 billion and $2.01 earnings per share.

iPhone unit sales are again expected to be strong, with 19 independent analysts expecting a slight uptick in sales. Apple sold 78.3 million iPhones in the previous quarter, up 5%.

China is the second-largest market being the US, the greatest amount of opportunity resides there.  Typically, countries create barriers for trade and China is no exception. Chinese regulators continue to make operations difficult, in a ploy to protect the local economy. Last year, Apple reported sales of $12.49 billion in the Greater China region. This year, consensus estimate sales to be down to $11.39 billion for the quarter. Despite the drop, Apple remains optimistic with the market potential in the region.

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: Turning Struggle into Opportunity

Apple Stock News

For the latest Apple Stock News, AAPL closed at $135.67 on Friday, February 17, 2017 with a 0.24% gain, from its previous close of $135.34 per share.

This week Apple surpassed Samsung in market share during the fourth quarter of 2016. Now, new data from Canalys offers up a closer look at the smartphone market and China. Apparently, Apple is struggling to keep up with younger manufacturers such as Xiaomi.

Apple Stock News

Smartphone shipments in China hit 131.6 million during the fourth quarter of 2016. That’s the largest quarter total in history for the Chinese market. According to Canalys, smartphone shipments in China hit 476.5 million during 2016, an increase of 11.4 percent year-over-year.

In 2016, Xiaomi shipped 51.4 million units to take the fourth spot in the market. Apple, on the other hand, shipped 43.8 million smartphones, a decline of 18.2 percent compared to the year before. Due to its drop, Apple fell to be the fifth largest smartphone manufacturer in China, while Xiaomi leapfrogged to become third overall.

Although Apple shipped less smartphones this year, CEO Tim Cook remains optimistic about Apple’s future in China. Tim Cook and CFO Luca Maestri explained during Apple’s most recent earnings call that China represents a huge driver of growth. Specifically, Apple points to China as a driver of its ever-growing Services sector.

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 Manufacturing Expansion into India

Apple Stock News

For the latest Apple Stock News, AAPL closed at $116.64 on Wednesday, December 21, 2016 with a 0.09% gain, or $0.11 from its previous close of $116.95 per share.

Apple Stock News

As we all know, President-elect Trump wants to bring jobs back to America. Apple is one of the companies that Trump has talked about moving their manufacturing back to the United States. In 2013, Apple reinvested $100 million into US manufacturing by strictly producing their MacBook Pros in Austin, Texas. This was a great idea in theory, however; the factory had to train workers and use custom made tools for the production which then negatively affected production. Because of these factors, the factory was much slower than previous factories abroad and the company could no longer meet demand. Movement of their production facilities in general would be a huge expense as well as a hassle.

Recently, Apple is starting to look for expansion of their manufacturing into India, similar to how they produce products in China. Though Trump is trying to shift their gaze to the United States, it seems like Apple isn’t going to change its stance.

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 Moving Production to the US?

Apple Stock News

For the latest Apple Stock News, AAPL closed at $110.06 on Friday, November 18th, with a 0.10% gain, or $0.11 from its previous close of $109.95 per share.

apple stock news

Apple and China are trying to figure out how to compensate for the possible tariffs President Trump is trying to impose once he is sworn into office. They are studying the effect of what would happen if they move their Chinese assembling back to the United States. Apple has two Chinese Assemblers, Foxconn and Pegatron. Apple asked if they would accompany them in developing a plan to move to the United States. Foxconn, although not enthused, jumped on board with Apple while Pegatron refused to partake in the possible move. The reason being the added production costs.

MIT estimated how much added cost to the consumer would result if Apple moves all production to the United States. If Apple decides to assemble its phones in the U.S. it “would add a negligible $30-$40 to the final cost of an iPhone. (Retrieved from Investopedia)” Manufacturing the components in the U.S. would make the phone $100 more expensive at most. This doesn’t sound like much. Apple’s argument as to why moving jobs to the US would disrupt production is that there are more stringent labor laws. Also the infrastructure wouldn’t be able to keep up with production demands.

Moving Apple production to the United States may take some time. And it may need to be redesigned in order to comply with the United States labor laws. Movement to the US is possible and may not add too much in production costs.

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: President Trump’s Tariffs on China Affect AAPL

Apple Stock News

For the latest Apple Stock News, AAPL closed at $105.71 on Monday, November 14th, with a 2.51% loss, or $2.72 from its previous close of $108.43 per share.

apple stock news

Once again, President Trump is affecting AAPL. Trump wants a 45% tariff increase on Chinese imports when he takes office. China is warning him that if he does make this change, that they will retaliate. During President Obama’s ascension, the US Trade and Commerce authorities began to increase tariffs on Chinese tires to 35%. As a result, China began to raise tariffs on US chicken and automotive products. This became a trade war and both sides lost business. If Trump does impose the 45% tariff, China warns that similar retaliatory action will be taken.

How will this affect Apple? If the tariff is imposed, China won’t just increase tariffs on just any items, they warn that they will impose a heavy tariff on Apple. Losing Chinese consumers of Apple would be devastating for the company, thus negatively affecting the stock price. Apple’s loss of those sales would essentially stall their growth until the iPhone 8 comes out next year. Though Apple has released more products and continually updates them, their feature item is the iPhone, and that’s where most of their surges come from. Without China, Apple will see immense losses.

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 Opening Another R&D Facility in China

Apple Stock News

For the latest Apple Stock News, AAPL closed at $117.34 on Wednesday, October 12th, with a 0.89% gain, or $1.04 from its previous close of $116.30 per share.

Apple is continuing to look abroad. After opening Apple’s first iOS Developer Academy in the University of Naples Federico II in Naples, Italy, on October 6, 2016, CEO Tim Cook traveled to Asia. Upon arriving in China, Apple announced a new research and development (R&D) facility to be built in the city of Shenzhen. With this addition, China will have two Apple R&D buildings in Beijing and Shenzhen by the end the year 2017. So, what it is the significance of Shenzhen? Why does Apple need another R&D facility in China?

Apple Stock News

Apple sees the investment necessary in the heart of the manufacturing city. Mr. Cook believes a facility close to the manufacturing plants will bring closer collaboration. As a result, this could lead to further improvements in the product. The new research and development facility will focus in hardware and software development. Some speculate this move as a means to earn more market share. Unfortunately, Apple’s iPhone is decreasing in market share due to its local competitors: Huawei and ZTE.  Maybe this decision could attract buyers as more local talent are hired and another Apple store will be open in the city.

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

 

Pages:12»