Apple Stock News: Apple Is Offering $29 Battery Replacement After Slowing Down Oldest IPhones

Apple Stock News

After facing a few lawsuits for slowing down oldest versions of iPhones, Apple is offering cheaper battery replacements for a year. The price of batteries for the affected iPhones was reduced from $79 to $29.

Moreover, Apple also published a letter of apologize for their customers. According to this letter, everything was a misunderstanding. On the message, Apple stated that it never had the intention to shorten the life of any Apple product, or degrade the user experience to drive customer upgrades.

Furthermore, Apple will issue an iOS software update in early 2018 with new features that give users more visibility into the health of their iPhone’s battery.

The $50 discount on battery replacements is already available for iPhone 6, iPhone 6 Plus, iPhone 6s, iPhone 6s Plus, iPhone 7, iPhone 7 Plus and iPhone SE.

On September 8th, 2017, I Know First sent to subscribers a bullish forecast for AAPL. Since then, Apple Stock increased 4.94% in accordance with the forecast.

Current I Know First subscribers received this AAPL forecast on September 8th, 2017

For the latest Apple Stock News, AAPL closed at $169.23 per share on December 29th, 2017. It generated losses of 1.08% from its previous close on December 28th, 2017, when it closed at $171.08 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: Earnings Report Update

Apple Stock News

Apple released its second quarter earnings report on Tuesday after the markets closed and narrowly beat expectations. The company posted earnings per share of $1.85 and revenue of $49.6 billion. While these figures did beat expectations of $1.81 and $49.43 billion, the stock traded as much as 7% yesterday in after-hours trading as investors were unimpressed by the smallest EPS beat in two years. The recent quarter is traditionally the company’s weakest, but guidance for the coming quarter was also short of expectations leading to the selloff.

apple stock news

The recent quarter is usually the weakest for iPhone sales, but the company managed to sell 47.5 million units, 35% more than in the same quarter a year ago. Prices were also higher as revenue increased 59%. But the 47.5 million iPhones were less than the expected 48 million, and the resulting selloff of the stock represents just how dependent on iPhone sales the company is. The smart phone made up 63.2% of quarterly revenue, and investors are assuming that it will be hard for the company to maintain its growth rate, even with China posting impressive figures.

The lower performance of the iPhone 6 and 6 Plus also damages the belief among analysts that the current version of the phone would have a longer tail life compared to other versions. CEO Tim Cook did say that the company had the biggest ever rate of users switching over from Android, leaving the possibility that many Apple users are still waiting to upgrade their older phones. Besides the iPhones, analysts wanted to see how the Apple Watch did, but results were lumped in with other and Cook did not give specifics besides stating it did better than the company had expected.

The dip of the stock price should just be temporary, as the company’s valuation is now super cheap when taking the $202.8 billion cash pile Apple has now. The forward P/E ratio is now under 10, which is considerably less than the overall market, trading at 17 times earnings. With the company being punished for not beating its expectations by enough, look for the stock price to rebound and reach new highs going forward.

Apple Stock News: iPhone Projections Bullish

Apple Stock News

Recent estimates have Apple receiving 92% of all profits among the top eight smartphone makers in the mobile smartphone market during the first quarter. This is according to Canaccord Genuity managing director Mike Walkley, and is up from 65% last year due to the overwhelming success of the iPhone 6. Its share of profits is incredible considering it sells less than 20% of all smartphone units, highlighting the company’s ability to command higher prices for its superior products. Now, it appears that Apple believes it will continue to sell its iPhones at a breakneck pace.

apple stock news

The Wall Street Journal has reported that Apple is stepping up its productions plans for its newest phone, the iPhone 6s. The newest model will be an incremental update over its predecessor, much like the iPhone 4s and iPhone 5s were in the past. In the past, the tech giant has announced the updated model in early September before launching the phone later that month. Apple has reportedly told it manufacturing partners to prepare for an initial production run of 85 to 90 million phones by the end of the year, compared to an initial production plan of 70 to 80 million units for the iPhone 6 last year.

After iPhone 6 sales set new records last year and recorded a huge increase over the prior year, and because the iPhone 6s is only expected to be an incremental update, sales projections for the newer phones have been muted, with a projected increase of only 1%. The current production plans point to continued increased growth, however, as the company is expected to record 36% growth during the current fiscal year. One likely factor is China, where a large percentage of customers have an iPhone 5s or older version, leaving plenty of room for growth.

Apple Stock News: iPhone Set Up For Another Blowout Quarter

Apple Stock News

Apple will not release its next earnings report until roughly a month from now, but analysts are already trying to figure out how the company performed for the quarter ending in June. iPhone sales estimates are coming in over 50 million devices sold, a remarkable figure considering the amount of phones it sold in the previous quarters. Further, it appears that demand for the Apple Watch is not falling off, and it is well above that of the first generation iPhone.

apple stock news

A decent percentage of the demand for the iPhone this quarter has come from China. Analysts are projecting that iPhone sales could come in as high as 55 million, with most projecting over 50 million. This amount would be a 42% increase year-over-year, and is truly remarkable considering the 74.5 million and 61.2 million it shipped in the previous two quarters. However, there is reason to believe that reaching these numbers shouldn’t be too challenging, as the iPhone 6 and 6 Plus only make up 30% of the total iPhone market currently. Sales of 50 million would increase that percentage to 39%, which is reasonable.

The iPhone 6 is having a blowout year as Apple customers waited to buy the new iPhone, not upgrading last year to the previous device. This is because the iPhone 6 was a huge upgrade, specifically because of the larger screen that users want. Now, there is no huge upgrade on the horizon, so users continue to upgrade to the new phones. Plus, the Apple Watch is now in stores, increasing foot traffic to produce more sales. Demand for this new device is holding up well, and is currently higher than the demand for the original iPhone was 6 weeks after it was launched, a good sign for the overall market for the device.

Apple Stock News: iPhone 6 ‘Fundamentally Different’

Apple Stock News

According to a research note from Piper Jaffray, the iPhone 6 and 6 Plus models will not go through the lull that previous models’ sales have gone through in the June and September reports, as this model is ‘fundamentally different’ than previous Apple devices. With a larger screen and more success in international markets, this version of the smart phone should have higher than expected sales throughout 2015.

apple stock news

 

The iPhone has always followed a one-year lifecycle since the release of the original version. A new device is released during the fourth quarter as part of the holiday season, when there is an explosion in demand that outpaces supply. Demand then falls in the first quarter, and tails off throughout the rest of the year until a new version is released. But the newest iPhones are different and will not see the same falloff during the rest of the year.

The larger screen size has allowed the iPhone to have more success in international markets, such as South Korea. Samsung had previously dominated this market, and no other smartphone company had been able to get more than a 15% market share, but Apple now has 33% of the market. That figure is rising fast, and similar trends are happening elsewhere. The success of the smartphone suggests potential sales of as many as 250 million smartphones in 2016.

Apple Stock News: Market Share In China Increases

Apple Stock News

The latest numbers for iPhone sales in China show its market share has risen to 27.6% from December to February, up from 25% in the November to January period. Year-over-year, Apple’s overall market share increased 9.7 percentage points, surpassing local brand Xiaomi for the first time as the top smartphone maker in the market. The iPhone 6 is the most popular smartphone, while the iPhone 6 Plus is the third most popular.

apple stock news

The figures make it clear that Apple has become very popular in China, establishing itself as a luxury brand in the market. China became the world’s largest smartphone shipper in 2012, accounting for roughly 21% of the global smartphone market share at the time. Apple made the country a point of emphasis at the time, visiting the country multiple times. The company has shied away from using cheaper parts to compete with competitors Xiaomi and Samsung in emerging markets.

Data showed that the iPhone market share increased in seven of nine countries in February. The countries where the market share increased were the U.K., Australia, China, France, Italy, Germany, and Spain. The two countries where the market share fell were Japan and the US, where it still has market shares of roughly 50% and 40%, respectively. The data makes it clear that the iPhone 6 and 6 Plus are both extremely popular as a luxury brand around the globe.

Apple Stock News: Trade-In Program Expanded

Apple Stock News

Apple has now officially expanded its trade-in program to include non-Apple devices, as rumors hinted at months earlier. The company will now let customers trade in Android, BlackBerry, or Windows Phone smartphones in exchange for credit towards an iPhone. The trade-in program is limited to several smartphone models made by Samsung, HTC, LG, Sony, Blackberry, and Nokia.

apple stock news

The Reuse and Recycling Program allows customers to receive credit towards the immediate purchase of an iPhone 5c, iPhone 6, or iPhone 6 Plus, and the credit value depends on the age and condition of the device traded in. Customers are also now able to trade in their PC for credit towards a new Mac. The credit cannot be used for an Apple Watch, however. Consumers can begin the process either online or in one of Apple’s first-party retail stores.

The trade-in program is the latest in a series of steps Apple has taken to lure Android users in recent months. The iPhone 6 and 6 Plus drove the highest Android switch rate of any iPhone launch in the last three years. The timing of this program happens to coincide with the launch of Samsung’s new flagship smartphones, the Galaxy S6 and S6 Edge. These phones will launch around the world on April 10th, and Apple is hoping to get users to upgrade to the new iPhone from the Galaxy S5 instead of to the new Samsung device.

Apple Stock News: 4″ iPhone 6C Rumors Return

The latest rumors surrounding Apple claim that the world’s largest company is planning on releasing three new iPhone models during its annual refresh cycle in the second half of the year. One of these iPhones will have a 4″ display, just like the iPhone 5 and iPhone 5s had. This model will be an entry-level product, and will placate some longtime users who preferred the smaller screen compared to the much larger displays of the iPhone 6 and iPhone 6 Plus.

apple stock news

Along with the new iPhone 6C, Apple will also release updates to the two iPhone 6’s with the usual S designation. These updates usually include evolutionary changes like processor speed bumps, and the new models with 4.7″ and 5.5″ displays will run on an unannounced A9 chip. The iPhone 6C will still run on the current A8 chip, while all models will have the Touch ID fingerprint recognition and NFC support for Apple Pay.

Rumors of a 4″ display first surfaced in December, when reports mentioned that the C model would include purpose-built components to alleviate manufacturing costs. A possible update for the new models is they could include Apple’s new Force Touch technology, which Apple is also introducing with its newest MacBooks. On the software front, Apple is working on a massive stability release that will squash bugs, fix problems, and optimize performance.

Apple Stock Forecast: An Algorithmic Analysis For 2015

Apple Stock Forecast

Apple Inc. (AAPL) enjoyed an extraordinary year in 2014, as the stock price climbed more than 70% over the past year. The surging stock price has been driven by incredible sales of its newest iPhone, as the company sold over 74 million units last quarter. apple stock forecastApple made $18 billion in profit that quarter, more than any company had in corporate history.

With so much growth over the past year, investors understandably might believe that the company has saturated the smartphone market and does not have much room left to grow. They are wrong, however, as Apple’s stock price will continue to rise in 2015. Continued success with the iPhone, a revamped iPad strategy and new products offer plenty of room for growth, while the stock is actually still priced relatively cheaply.

iPhone demand will remain high

After selling 74.5 million iPhones in the last quarter, up 46% year over year, it makes sense that many believe that Apple can’t grow any further from here, or that sales could even begin to shrink. But there is still plenty of room for growth. For one, there is plenty of growth in foreign markets, such as China. Last quarter, they sold more smartphones there than any other company, jumping all the way from number six during the previous quarter. The company’s market share in China jumped from 9% to 17%.

Also, Apple CEO Tim Cook stated that less than 15% of iPhone buyers were upgrading from older iPhones, and that the majority of those who switched to iPhones had done so from a smartphone running Android. There are still currently a lot of people who own Android phones that will look to be upgrading in the future. With the iPhone 6 clearly the best phone in the market, it is safe to assume that more Android users will switch over.

The low percentage of iPhone users that have upgraded so far is another promising sign for the company. Apple currently has roughly 400 million iPhone users. With 74.5 million new iPhones sold last year and only 15% of those already having iPhones, which means there are well over 300 million iPhone users who will upgrade their phones. Apple customers are extremely loyal, and are unlikely to switch to an inferior product now that the iPhone 6 has become so popular.

Some additional promising points for Apple’s iPhone sales is there are a lot of people who still don’t have smartphones and smartphone users are now upgrading their phones more often than ever. In the last quarter, Apple had the highest number of new users ever, and the iPhone is the clear choice for people looking to buy their first smartphone. At the same time, mobile providers have begun offering deals to existing customers so they can more frequently and affordably upgrade their phones. Add all these points together, and Apple appears set to enjoy massive iPhone sales again this year.

Apple focusing on enterprise to revive iPad sales

iPad sales saw their largest year-over-year decline ever last quarter, even as the company recorded record profits. Compared to a year earlier, sales were down 18% from a year earlier. The iPad sales were concerning, as sales have been steadily decreasing for a few years now. Cook remained upbeat about the iPad’s future prospects during the company’s most recent earnings call.

Figure 1. Source: Business Insider. iPad Year Over Year Sales Growth.

Apple is currently focused on getting iPads deployed to enterprise workforces. The tablets are already being used by most enterprises, according to Cook, but the enterprises are only distributing them to a small percentage of workers. To address this problem, Apple has partnered with IBM (IBM) to build more apps for specific uses. A couple of examples are a flight planning app for airlines and a customer-service app for insurance companies.

With the first ten apps that were released last year focusing on specific industries, or vertical solutions, the two companies are now focusing on more horizontal apps that any business could use. The partners plan to release 12 new apps during the current quarter and to have over 100 by the end of 2015. More than 130 companies are working with IBM to empower their employees with solutions on the iPad, and the list continues to grow.

Along with the wildly successful partnership with IBM, Apple is also making a new iPad with a 12-inch screen. It may come with a stylus, making it similar to Microsoft’s (MSFT) Surface Pro 3. The larger screens will make use of the tablets easier in the enterprise market, especially as Apple integrates its iOS software and Mac software more tightly than ever. While the product might be considered similar to the Surface Pro 3, people said the same thing about the iPhone 6 and some Samsung (SSNLF) phones that had larger screens, and that obviously worked out well for Apple.

New products will offer excitement

Apple will be shipping the Apple Watch for the first time in April of this year. Currently, only about 6% of people own a wearable, according to Morgan Stanley (MIDZ), as there has yet to be a breakout hit. If any company were to be able to make a wearable device a hit, it would be Apple.

These devices will not have a huge impact on the company’s profits in the first year, but they will be important for the company for other reasons. For one, the Apple Watch will be a big step for the company in the post-Steve Jobs era. The device is the first new product launch since the former CEO passed away, and it marks a significant milestone for the company under Cook. It will also drum up enormous excitement around the company, as advertisements and celebrity endorsements will be ever present when the Apple Watch hits the market.

Besides that, they will enhance Apple’s ability to be present in all facets of peoples’ everyday lives. Apple is in the home, the job, the car, and now it will be on people everywhere they go. Apps for things such as fitness will be able to update people throughout the day and may even have the ability to change people’s habits. Working with a connection through users’ iPhone, the Apple Watch will be able to monitor things such as weight, exercise and heartbeat. These features will make Apple a part of people’s daily routine.

Apple Passbook will also continue to become a part of peoples’ everyday lives in 2015, including Apple Pay. Introduced in iOS 6, Apple Passbook is a home screen app that acts as a single repository for all the movie and sport tickets, loyalty and payment cards, boarding passes, coupons and other passes generated by all the compatible apps on the iPhone. The key for this becoming successful is wide acceptance, and Apple appears well on its way. More and more banks are adding Apple Pay services, and companies like Southwest Airlines (LUV) are updating its smartphone apps to include boarding passes and other similar things in the Apple Passbook.

Besides the Apple Watch and Apple Pay, the company also is rumored to be coming out with its own music streaming service to compete with companies like Spotify through its purchase of Beats by Dre. There is also the recent reports that the company is exploring the possibility of making its own car and constant rumors of the company’s television efforts, meaning 2015 is sure to be an exciting time for Apple.

Company is still undervalued

Even though the company’s stock soared last year, one could easily make the case that the stock is still not properly valued. A price-to-earnings (P/E) ratio is a valuation ratio of a company’s current share price compared to its per-share earnings. Apple’s forward P/E ratio is just above 15.25, which is pretty low for a tech company with so much growth potential and its market position. Google (GOOG), for example, has a P/E ratio of almost 24. Apple’s low P/E ratio would be lower if it were not for all the cash it has, roughly $178 billion.

The company’s low valuation is because investors believe that a company its size can’t grow as fast as smaller tech companies. But Apple has proven for close to 10 years that it is the best company at creating exciting technologies that people want to buy. Add in that the company is likely to increase its dividend in the close future and its desire to purchase back a large percentage of its stock, and it becomes clear that the stock remains undervalued and will only continue to rise.

Algorithmic forecast for last month

I Know First supplies financial services, mainly through stock forecasts via its predictivealgorithm. The algorithm incorporates a 15-year database and utilizes it to predict the flow of money across 2,000 markets. The algorithm has more data to forecast within the long term and, naturally, outputs a more accurate predication in that time frame. Having said that, intraday traders, along with short-term players, will also benefit by taking the algorithmic perspective into consideration.

The I Know First algorithm was able to correctly predict the behavior of Apple’s stock over the last year. Figure 2 is an I Know First algorithm prediction made on February 21, 2014. The self-learning algorithm uses artificial inelegance, predictive models based on artificial neural networks and genetic algorithms to predict money movements within various markets.

The algorithm produces a forecast with a signal and a predictability indicator. The signal is the number in the middle of the box. The predictability is the number at the bottom of the box. At the top, a specific asset is identified. This format is consistent across all predictions. The middle number is indicative of strength and direction, not a price target. The bottom number, the predictability, signifies a confidence level.

In this forecast, Apple had a signal strength of 1.83 and a predictability indicator of 0.3 for the one-year time horizon. In accordance with the algorithm’s prediction, the stock price increased 73.89% over that time.

Figure 2. 1-Year Algorithmic Forecast Updated February 21st, 2014.

Algorithmic forecast for 2015

Having demonstrated how I Know First’s algorithm was able to correctly predict the movement of Apple’s stock price earlier in the article, it is worthwhile to see if the algorithm agrees with the bullish fundamental analysis of the company. Figure 3 includes the three-month and one-year forecasts for Apple from February 25, 2015. In both forecasts, Apple has a positive signal, indicating the algorithm is bullish for the stock.

Figure 3. 3-Month and 1-Year Forecast Updated February 25, 2015.

Apple Stock News: Companies Sue For Copyright Infringement

Apple Stock News

In May of 2013, a company called Smartflash sued Apple for infringing six of its patents pertaining to data storage and management. Last week, a jury ruled that Apple was guilty of infringing on three of those patents in the creation and sale of iTunes. Apple was ordered to pay Smartflash, a company that merely serves as a patent holder and licensor that does not manufacture its own products, $532.9 million.

apple stock news

The company has now sued Apple once again, this time for newer products. Smartflash added another patent to the suit, arguing that Apple uses seven of its patents in the technology for the iPad Air 2, iPhone 6 Plus, iPhone 6, and iPad Mini 3. The seventh patent included in this lawsuit was awarded to Smartflash in August 2014. Now, another company is suing Apple for copyright infringement as well.

Swedish telecommunications equipment vendor Ericsson has filed nine lawsuits against Apple seeking to ban several Apple products in the US. The lawsuits claim infringement upon 41 patents. Many of the patents it is allegedly infringing upon are key to the core of how smartphones operate, including the ability to make calls. Apple held licenses for these patents until last month, at which point the two companies could not come to terms. Apple suggested the deal proposed by Ericsson was unfair, and they would let the courts help find a compromise.

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