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.

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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.

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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.

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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.

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Apple Stock News: Steve Jobs Theatre Hosts The Very First Apple Event

Apple Stock News: Steve Jobs Theatre hosts the very first Apple event on Sept. 12th

For the latest Apple Stock News, AAPL closed at $164.05 per share on September 1, 2017. It generated a return of 0.05% from its previous close on August 31th, 2017, when it closed at $164.00 per share.

steve jobs apple theatre

(Source: Apple)

From the very beginning of construction works, there wasn’t any single photo of Steve Jobs Theatre insides. Every drone youtube video just showed ground level glass lobby, and it’s not much as the theatre is underground.

Two days ago some user uploaded photos to Google maps, which give us a good look at how does auditorium look like before Apple’s September 12 event.

Photos of underground theatre were shared at the end of June but were shared by MacMagazine only now. They give a good view of what the theatre will look like.

In July journalists got their first good look at the upper-level lobby of the theatre. They suggested the exterior works will finish in August and Apple could bring its event there in September. Apple confirmed it two days ago.

New Steve Jobs theatre pics show the full-on construction mode. Now, since two months passed, stage main works should be finished. Just some details to be polished to perfection before the very first event to host.

The theatre features a 1000-seat below ground auditorium. In addition to carbon fibre roof, 20-foot glass walls, and traditional for the company all-white minimal design of the lobby, final touches can include some natural wood finishes to bring warmth to the underground hall.

apple sept 2017 event apple theater

apple theater

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 News: iPhone 8’s release could make Apple a $1 trillion company

Apple Stock News

For the latest Apple Stock News, AAPL closed at $156.39 per share on August 4th, 2017. It generated a return of 0.53% from its previous close on August 3rd, 2017, when it closed at $155.57 per share.

This week, Apple released an earnings report that was surprisingly positive. For that reason the shares spiked. In addition, the weekly “leaks” about the upcoming iPhone are so impressive that investors are happily buying shares, expecting a massive stock appreciation.

It has been a while since Apple became the most valuable company in the world. With this week’s jump its market cap is now over $800 billion. Analysts and investors believe that if Apple has a great fourth quarter, its possible that they could increase their market cap to $1 trillion.

The most obvious factor for such a milestone to be reached is for Apple’s iPhone 8 to be a blockbuster. It is no secret that their cellphone segment is their biggest of all.

Another key factor is to make the iPhone a “hub”. With so many new products like the HomePod and the Apple Watch, they should find a way to make the iPhone the controlling force of every apple product. It forces customers to be immersed in iOS, never thinking of buying a Samsung cellphone or any non-apple product for that matter.

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Apple Stock News: TSMC tend to be sole supplier for A11/A12 chips

Apple Stock News

For the latest Apple Stock News, AAPL closed at $149.50 per share on, July 28th, 2017. It generated a loss of 1.06% from its previous close on July 27st, 2017, when it closed at $150.56 per share.

Apple stock news

Taiwan Semiconductor Manufacturing Co. (TSMC) is going to secure orders for the A12 processor, a 7-nanometer chip that will be produced for use in the 2018 iPhone generation. While reports earlier suggested Samsung had secured a deal to make the processors, it could be just rumours.

Wafer-level chip packaging created by TSMC will make the firm’s 7-nanometer FinFET technology more competitive than Samsung’s equivalent. The technology innovation will apparently cut Samsung’s chances of regaining application processor orders.

TSMC has reportedly begun mass production of 10nm chips in the third quarter by fulfilling orders for Apple’s A11 chips. TSMC still going to be the sole supplier of A11 chips for the upcoming iPhone refresh, which sales might start in October or November.

The schedule for production and delivery is about the same as for the iPhone 7. The company is going to deliver 100 million A11 chips before the end of 2017. It is slightly ahead of what was delivered by the end of 2017 for the A10 Fusion. The iPhone 7 family utilizes the A10 Fusion quad-core system on a 16nm chip.

While it is possible for Samsung to take on some of the orders for the A12 chip, it is unlikely for Apple to completely switch away from TSMC. Apple can split the order between the two firms while they embark on using the new 7-nanometer process. Apple has used both TSMC and Samsung as processor suppliers, with the A9 used in the iPhone 6s produced by both companies, but since then, Apple has solely used TSMC for its A-series chips.

A switch to a smaller chip size, such as the move from a 10-nanometer to a 7-nanometer process, typically introduces a number of benefits. Aside from a speed boost, this can also make the processors more power efficient than previous generations, in turn increasing battery life.

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Apple Stock News: Impending iPhone 8 Release Date

Apple Stock News

For the latest Apple Stock News, AAPL closed at $152.09 per share on, July 24th, 2017. It generated a return of 1.21% from its previous close on July 21st, 2017, when it closed at $150.27 per share.

apple stock news

The highly-anticipated September 2017 release date of the iPhone 8 is approaching. Lately, new leaks, hype, speculation, and information are being released or spread about this new smartphone installment. These leaks continue to reveal key design details and features. However, official statements and releases are being withheld until September.

The iPhone 8 will be priced between $1,000 to $1,200. Thus, making the iPhone 8 the highest priced phone to be sold for Apple. It is no less reported to be revolutionary and unprecedented, incorporating Artificial Intelligence, Augmented Reality, waterproofing, wireless charging and the absence of the headphone jack (a feature present on the iPhone 7), just to name a few of the most attractive new features.

It appears Tim Cook and Apple are trying to pack in as much cutting-edge technology as possible. Hence, the unusually-high expected selling price. Now, although the iPhone 8 might simply appear to be just yet another extension of the iPhone product line (which it is), what is missing is that the iPhone 8 represents a paradigm shift in the smartphone business. This new addition is about luxury, fashion statements, new technology, and about changing the game.

Ultimately, as long as everything goes according to plan, the release of the iPhone 8 may very well be the windfall of sales and profitability that Apple so desperately has been searching for.

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Apple Stock News: Video Leaks iPhone 8 Dummy Model

Apple Stock News

For the latest Apple Stock News, AAPL closed at $144.02 on, June 30th, 2017. It had a gain of 0.24% from its previous close on June 29, 2017, at $143.78 per share.

 

Source: EverythingApplePro

On July 1, Youtuber EverythingApplePro released a video revealing a dummy model of Apple’s next smartphone. This comes amid recent leaks of design details and pictures of the anticipated iPhone 8. According to the video, Apple has sent the final CAD model of the iPhone 8 to case makers to manufacture phone accessories by the time of the launch. Subsequently, a case maker sent the Youtube the CAD model. Previously, case makes had also leaked the iPhone 7 and 7 plus design beforehand, so the dummy model in the video could potentially be the final design of the iPhone 8.

The video shows that the phone has a bezel-less edge-to-edge display and vertically aligned dual camera lenses. According to this video leak, the TouchID sensor allegedly will be embedded beneath the display. Apple may beat rival Samsung to rolling out this embedded  finger scanning technology. The dummy model in the video falls in tandem with recent rumors and leaks about the iPhone 8. However, it should still be taken with a grain of salt. The iPhone 8 is expected to be unveiled at Apple’s usual September event, but may not be released in stores until later in the year.

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