Apple Stock Forecast: Why Project Marzipan Is Important To Apple’s Future

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 Forecast:

Summary:

  • Apple is gradually losing the K-12 education PC market due to Google’s Chromebooks.
  • Chromebooks are now even more attractive because they can run Android apps/games.
  • It is no surprise that Apple is also intent on letting x86 Intel Macs run iOS games and apps.
  • Project Marzipan is Apple’s in-development solution to allow iPad/iPhone apps run on macOS X computers.
  • Thanks to the Virtualization Technology of Intel’s x86 processors, Apple will likely deliver the promise of Project Marzipan.

Apple (AAPL) wants to make its Mac computers more attractive and useful. Its upcoming Project Marzipan solution will allow macOS computers to run iOS apps. Apple is merely trying to replicate Google’s (GOOG) successful implementation of running Android apps on Chrome OS computers. Apple is losing the K-12 education market to Chromebooks. I am confident that more college/high school IT administrators will consider buying macOS computers again if they can run iOS apps.

Mac OS X computers now only account for 3.5% of the K-12 mobile computing shipments. However, I suspect that Macs are still the preferred computers of college students. The lack of built-in keyboards of iPads makes them a hassle to use for long-form writing/typing. Giving Macs the ability to run any iOS application makes them more useful to students and business professionals.

Sad but true, the neglected state of the Mac App Store means there’s limited availability of education/business applications. By bringing iOS apps and games to macOS computers, Apple’s PC products can compete better against Chromebooks and Chrome OS desktop computers. There are now 2.1 million iOS apps/games available from iTunes. Some of them are likely useful for students, home users, and business users.

Apple sold 19.25 million Macs last year. By making future Macs compatible with iOS software, Apple could attract more buyers. My 3-year forecast is that Apple could hit the 25 million units sold milestone. The bigger screen sizes of the MacBook and iMac makes them suitable for hardcore mobile gamers. Continuous gaming on the iPhone/iPad also causes overheating which reduces their device lifetime.

Project Marzipan Is Coming Soon

Project Marzipan is supposedly going be implemented this year. This is realistic. Intel (INTC) processors have Virtualization Technology. All Macs now use Intel x86 processors. Current Mac computers are capable of running emulated iOS apps. The process is similar to how easy it was for third-party developers to create so many Android OS emulators for Windows and macOS computers.

It is actually possible to run iOS apps now on Mac even without Project Marzipan. Problem is you have to download and install Apple’s software development IDE, Xcode. All iOS developers use the powerful iOS simulator tool of Xcode to test their games/apps. However, downloading Xcode requires you to sign-up as a software developer.

My guess is that Apple will update macOS High Sierra to include an integrated iOS emulator that anyone can use. Since Apple itself is creating the emulator, I expect macOS computers to run iOS apps at near-native speed. Apple has expanded support for its own Metal API for the Mac. Playing advanced 3D iOS games on the Mac should not be a problem.

Why Apple Cannot Afford To Lose The Education PC Market

Winning back the education market is very important to Apple’s future. The students of today are going to be the workers, managers, and leaders of tomorrow. If Apple lets Google continue its dominance in the K-12 and college PC markets, students will be trained in Google’s productivity/collaboration software and Chrome OS ecosystem.

Going forward, Google-trained students means they will be the employees who will require Chrome OS and Android devices. The said future scenario is bad for Apple and its shareholders. Yes, Apple currently has tens of millions of loyal fans. However, Apple needs to retain a strong presence in the education market to keep its brand alive among young people.

The future of Apple will depend on how appealing/useful its products will be to the future citizens of the world.

Conclusion

The app ecosystem dictates the long-term success of computing platforms. The Mac App Store cannot match the software diversity and size of the iOS app store. Apple, therefore, is correct to implement emulation of iOS apps on the Mac. Project Marzipan can revive the flailing Mac App Store platforms with the massive ecosystem of 2.1 million iOS apps/games to the Mac platform.

A larger app ecosystem for the Mac makes it more useful. Consequently, its future sales could improve after Project Marzipan is finally implemented this year. Better sales performance from its Mac computers can help Apple offset further weaknesses in iPhone/iPad sales.

The Mac business accounts for 7.81% of Apple’s quarterly revenue. This figure could rise after Macs become iOS apps-friendly.

(Source: I Know First)

Past I Know First Forecast Success with AAPL

I Know First’s algorithm has made accurate predictions on AAPL in the past, such as my bullish article published on July 5th, 2017.  In the article, it outlines Apple’s many won accolades. For some people, Apple has the best smartwatch, headphones, smartphone, tablet, computer, and app store. Tim Cook’s reign also saw Apple’s ascendance as the most valuable company in the world. Apple sells luxury-priced consumer electronic products and is making tons of money doing it. At the time, Apple dethroned Wal-mart (WMT) to become the second-biggest online retailer in America, according to eMarketer’s trailing 12 month period ending last March 2017. Apple did e-commerce sales of $16.8 billion in the U.S., beating Wal-mart’s $14.3 billion. Additionally, the article mentions Tim Cook should be commended for making Apple an exemplary model for e-commerce. Unlike Amazon which specializes in thin-margin products, Apple sells pricey products online.

Since then, AAPL shares have risen 18% in line with the I Know First algorithm’s forecast. See chart below.

[Source: MorningStar, April 10th, 2018]

I Know First has positive 3-month and 1-year algorithmic forecasts for AAPL. I am therefore endorsing Apple’s stock as a buy. Based on the high predictability scores (0.7 and 0.82), I Know First has a long history of accurate predictions for AAPL’s 3-month and 1-year market movement.

Furthermore, my buy rating for AAPL is in line with its bullish monthly technical indicators and moving averages.

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.

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Apple Stock News: Apple Releases Updates Against Microchip Security Flaw Spectre

Apple Stock News

Apple releases security updates for iOS, MacOS, and Safari to protect users from a computer chip vulnerability. Called Spectre, the microchip security flaw, which left computing devices vulnerable to hackers, affected chips from Intel, AMD and Arm. Spectre affected nearly all computer chips made in the last decade.

Less than a week after news stated that Intel, Arm and AMD chips contained the flaw, Apple released the update. The hacking attack could reveal secret information on these devices. For the attack to work, hackers need to install malicious software onto the device in order to make sensitive information, such as passwords and encryption keys, easier to steal.

According to Apple, almost all of its devices are affected by this flaw. Despite the risk that it could expose billions of people’s personal data to cyber criminals, the tech giant affirmed that there were no known instances of hackers taking advantage of the flaw.

The operating system software update is available for Macs, iPhones, iPads and Apple TV. Spectre did not affect Apple Watch.

For the latest Apple Stock News, AAPL closed at $174.35 per share on January 8th, 2018. It generated losses of 0.37% from its previous close on January 5th, 2018, when it closed at $175 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: Intel launches 8th Gen Core GPUs suitable for MacBooks

Apple Stock News: Intel launches 8th Gen Core GPUs suitable for MacBooks

For the latest Apple Stock News, AAPL closed at $157.21 per share on August 21th, 2017. It generated a loss of 0.29% from its previous close on August 20th, 2017, when it closed at $157.50 per share.

apple stock news

12 years have been passed since Apple’s transition to Intel processors. This Monday Aug., 21st, Intel presented us 8th Gen family of chips, which can be installed in 2018 MacBook and MacBook Pros refresh.

The four processors launched yesterday, are for use in notebooks and all-in-one desktop systems. They were developed with a thermal design power (TDP) of 15 Watts, which means low temperatures during work. New chips can keep the MacBook battery life up to 10 hours and they doubled processing power of processors released five years ago.

Two new Core i7 chips, and two new i5 chips show impressive 40% speed improvement, compared to last Gen. As Intel says, due to added two extra cores to them and manufacturing process improvements.

apple stock news

Source: Intel

The new chips can handle 4K video, VR, 3D, and other recent innovations on a platform-wide level. The integrated HD 620 graphics built into the last generation of U Series processors is also getting rebranded to reflect that change in focus as UHD 620 graphics.

While it’s the “8th generation” processor family, these are not using the “Cannon Lake” architecture. In fact a refresh of “Kaby Lake”. The main aspect is that at the same price and power Intel will now be moving its product lines up to quad-cores with hyper threading. This gives a 100% gain in cores and 100% gain in threads.

Option of 32 gigabyte RAM is potentially possible in a future MacBook Pro. If Apple uses chips with a 10-nanometer architecture – “Cannon Lake”. Intel is thinking to be shipping the first of them at the start of 2018.

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 Unlikely Lawsuit

Apple Stock News

For the latest Apple Stock News, AAPL closed at $120.00 on Friday, January 20, 2017 with a 0.18% gain, or $0.22 from its previous close of $119.78 per share.

Apple Stock News

Source: https://goo.gl/l0juvu

Qualcomm Inc. (QCOM) is no ordinary company that designs and markets telecommunication products and services, they also specialize in chip making for Apple’s iPhones. On Friday, Apple filed a $1 billion lawsuit against their partner Qualcomm in regards to overcharging for chips and failing to pay $1 billion in promised rebates. Qualcomm is said to be withholding $1 billion of payments from Apple in result of their truthful cooperation with law enforcement agencies investigating the chip maker and Apple’s discussions with South Korea’s antitrust regulator. Apple does not want to disregard these rebates owed to them, though, they had already given up on billions in rebates when they broke an exclusivity agreement with Qualcomm from 2011 to 2016 for using Intel modems in the iPhone 7 and iPhone 7 Plus. In a statement from Apple: “Qualcomm insists on charging Apple at least five times more in payments than all the other cellular patent licensors we have agreements with combined” (Forbes). Apple insisted that this agreement diminished innovation and prefers to turn to multiple suppliers for cost efficiency reasons. Apple is extremely disappointed in the way Qualcomm has conducted their business and will continue using Intel as their supplier for the upcoming iPhone 8.

Apple’s lawsuit comes days after the Federal Trade Commission accused Qualcomm of excessive royalties and resorting to anti-competitive tactics to maintain control over key semiconductors in mobile phones.

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