Apple Aims To Better iPhone Performance and Price

“If there’s a way to do it better – find it”- Thomas Edison

(Source: Flickr)

As fall approaches, so do the rumors of the brand new iPhone. This year Apple is planning to do something that everyone can rally behind: cut iPhone prices. Ming-Chi Kuo, Apple’s most prominent insider, has stated that new iPhone prices could be fewer than $300 their current price.

There will be three phones revealed this year: a cheaper iPhone X at $600, iPhone X at $800, and iPhone X Plus at $900. The upcoming iPhone X is clocking in 10% faster than past single core performance and an increase of ram from 3gb to 4gb. Although not as big of a performance upgrade as any other iPhone release, Apple is putting most of the improvements in iOS 12 to increase speed and fluidity.

New iPhone Renders (Source: Macworld)

 

The upcoming iPhone is also rumored to be incorporating a USB-C to Lightning Cable with purchase. The company seeks to have compatibility within all Apple devices, since the new MacBooks don’t support the current USB-A charger. The new charger would give up to 18W, allowing fast charging, which charges an iPhone to 50% in under 30 minutes.

USB-C to Lightning (Source: Apple)

Apple’s stock has been volatile the past week.

AAPL (Source: Yahoo Finance)

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.

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[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.

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

Apple’s Unusual Pursuit of Cobalt

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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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Apple Stock News: Apple’s Fall 2018 iPhone Lineup Most Comprehensive to Date

Apple Stock News

According to sources such as respected technology analyst TrendForce, as well as respected Apple analyst Ming-Chi Ku of KGI Securities, there will be three new iPhones released in 2018.  The most noticeable change will be the size of the devices.  The next generation of the iPhone X will come in two model ranges, standard and plus.  The standard handset will remain at 5.8-inches.  The plus version will have a display of 6.2-6.5-inches.  This giant of a smartphone will test the limits of premium smartphone pricing with a likely sales price of $1,099 to $1,149.  Both next generation iPhone X’s will use the second generation of Face ID technology which is expected to result in an increased screen-to-body ratio and possibly an increased memory configuration.

The third new iPhone should take the place of the iPhone 8 and 8+.  It will have a LCD display and is rumored to be an upgrade to the iPhone SE with the display size growing from 4-inches to 6.1-inches.  It is also rumored that the 2018 iPhones will rely on both Qualcomm and Intel 4G modems and they will all support Gigabit LTE transmission speeds.  Only the 2017 iPhones that had Qualcomm modems could support these speeds before.  This expanded iPhone lineup should be the most comprehensive to date due to the various options in terms of pricing and form.  Apple also seems to have learned from its iPhone X production mistakes because according to Piper Jaffray analyst Michael Olson, 3D sensing suppliers “are being told to generate volume for the Fall 2018 launch that is three times what was made for the iPhone X this past year.”

In Other News

It’s believed that the iPad Pro lineup will get some of the new technologies now in the iPhone X.  The new iPad Pro will have no home button, will feature a slimmer bezel, and it will support Face ID which would yield a larger display size.  The tablets should still have LCD displays.  Per Digitimes, Apple will also launch a new 9.7-inch iPad at a price of $259.  This price is $70 less than the price of the popular iPad launched in March 2017.

According to Citi, there’s a 40% chance Apple will buy Netflix.  It will be easier due to Apple having access to its repatriated cash soon.  Apple has never done large acquisitions before, but Netflix is the clear leader in the streaming space and Apple is keen on succeeding in this market.


On September 8th, 2017, I Know First sent to subscribers a bullish forecast for AAPL. Since then, Apple’s stock has increased 8% 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 $172.26 per share on January 2nd, 2018. It increased 1.79% from its previous close on December 29th, 2017, when it closed at $169.23 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: Apple Finally Caught Up With IPhone X Demand

Apple Stock News

Apple has finally caught up with the iPhone X demand. The phone, which faced shipment issues on its debut due to supply chain constraints, can now be acquired in only one day after ordering. The next-day delivery option is available in the United States, the United Kingdom and a few other countries.

With this balance between supply and demand, which does not mean weak demand, but rather better-than-expected production, Apple is expecting to break records on revenue and profitability. The company is expecting to sell 83 million units this holiday season, an increase of 5 million units from the previous record. Although this optimism released on Apple’s first-quarter guidance, we will have to wait to discover these numbers.

On September 8th, 2017, I Know First forecasted that Apple’s iPhone X would find many eager buyers, despite its high price. As expected, the new iPhone indeed met a strong demand and its production was increased. Since this bullish forecast that was sent to I Know First customers, Apple stock increased 9.4%.

Whilst the iPhone X is truly in stock, Apple’s AirPods are sold out online. Frustrating last-minute holiday shoppers, the AirPods will only be available in the first two weeks of January. According to Tim Cook, despite Apple’s increased production capacity of the AirPods, the company is still not able to meet the strong level of demand.

For the latest Apple Stock News, AAPL closed at $176.42 per share on December 18th, 2017. It generated profits of 1.40% from its previous close on December 17th, 2017, when it closed at $173.97 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: Apple Poised for Record Holiday Quarter

Apple Stock News

Apple appears to be poised for a record holiday quarter.  iPhone X production is improving.  Three million units are currently being produced each week, but that could increase to four million units in December.  According to Rosenblatt Securities analyst Jun Zhang, Apple may have sold six million iPhone X units over the Black Friday weekend which would be an amazing feat.

Zhang is also saying that most consumers are buying the 256 GB model which carries a higher price tag.  He believes that Apple is selling twice as many 256 GB units as 64 GB units.  This would be fantastic news for Apple’s earnings and profit margin.  The 256 GB product costs $1,149 while the 64 GB product costs $999. Overall, Apple may have sold 15 million iPhone X units since it went on sale. Apple could end up selling 30 million iPhone X units during the current holiday quarter and 40 million units during the next quarter.

Consequently, Rosenblatt Securities’ December quarter iPhone X shipment estimates increased from 27-28 million to 30 million units.  However, due to the belief that normal seasonality will kick in after the inventory build, the March quarter iPhone X estimates decreased from 45 million to 40 million units.  The main takeaway is the holiday quarter should be exceptional, but then sales should pullback a bit as seen by the net decrease in sales estimates of 2-3 million iPhone X units sold for the next two quarters.

In Other News

Apple filed a countersuit against Qualcomm alleging that it is infringing on at least eight patents related to battery life.  The countersuit is in response to Qualcomm’s patent infringement suit filed in July relating to six of its own patents.  Apple is reportedly seeking unspecified damages in order to add pressure to settle the suit.  However, that doesn’t look like it’s going to happen soon.  The tech giant, meanwhile, appears to be accelerating its shift toward Intel modems in response.

Apple also recently revealed a new self-driving car system that can detect pedestrians, cyclists, and other 3D objects.  Apple’s ambition in this space has shifted from building their own self-driving cars to building the software that helps power them.  Company researchers claim the new system “outperforms the state-of-the-art detection methods by a large margin.”  However, the research is still in an early phase.

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: 3D Sensing To Be Standard In All IPhones Next Year

Apple Stock News

One week after the launching of the iPhone X, people are already speculating about next year’s iPhones. According to KGI Securities analyst, Ming-Chi Kuo, who has had fairly reliable predictions on Apple over the last few years, Apple will release three new models in 2018.

                                                       (Source: KGI Securities)

His expectations are that Apple will release two high-end phones. One is the second-generation of the iPhone X with the same size as the original of 5.8-inches. The other phone, “iPhone X Plus”, will have a significantly larger 6.5-inch display. These models will both come out with OLED displays.

It is also expected that Apple will launch a middle and low-end iPhone model. The 6.1-inch model with a lower resolution LCD display would probably cost around $650-750.

All three iPhones will probably feature a full-screen design, instead of a fingerprint sensor, and TrueDepth Camera (3-D sensing) as the original iPhone X. Kuo also expects no delays in 2018 launches, since Apple’s supply chain will already be well experienced with the iPhone X production by next year.

For the latest Apple Stock News, AAPL closed at $173.97 per share on November 13th, 2017. It generated losses of 0.4% from its previous close on November 10th, 2017, when it closed at $174.67 per share.

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: Positive Reviews for iPhone X leads to Positive Outlook for Apple Stock

Apple Stock News

 

A little more than a week after the iPhone X launch, reviews have begun to surface for the new smartphone, and they have been good so far. With many complementing it´s advances and stating the new iPhone is a huge leap forward in terms of the technology and components used.

Nevertheless, iPhone seems to have a problem functioning in extreme temperatures (from approximately 2ºC to approximately 35ºC), a fact which may represent a problem with winter fast approaching. Apple acknowledged this problem, stating it will soon release an update for the software, allowing the iPhone to work even at the extreme temperatures.

Despite the few problems it has been presenting, and a small depreciation in its stock prices on Friday, Apple prices are expected to grow significantly in the short and long term. The market is very optimistic about the demand for the new iPhone X and the impact it should have on Apple’s revenue. That coupled with the fact that Apple surprised the estimates for its Q4, should signify a good future for Apple stock.

For the latest Apple Stock News, AAPL closed at $174.67 per share on November 10th, 2017. It generated a loss  of 0.33% from its previous close on November 9rd, 2017, when it closed at $175.25 per share.

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 All Time High On Path To Reach $1 Trillion Market Capitalization

Apple Stock News

On November 7th, 2017, Apple shares hit an all-time intraday high and closed with a market capitalization above $900 billion for the first time. This is the first time a publicly traded US company reached this milestone.

Since Steve Jobs died in 2011, Apple’s market value has grown over 60%. As you can see in the chart bellow, Apple’s market capitalization under Tim Cook’s helm almost tripled in 5 years.

Behind this high rise is Apple’s recently released better than expected results on its quarterly earnings. The tech giant showed strong earnings with revenue reaching $52.6 billion, an increase of 12% from the same quarter of  the previous year. Moreover, the company also said during earnings call that it is expecting to have a very profitable holiday season, with a revenue forecast set in between $84 billion to $87 billion for the upcoming quarter.

As Apple’s CEO stated: “We are happy to report a very strong finish to a great fiscal 2017, with record fourth quarter revenue, year-over-year growth for all our product categories, and our best quarter ever for Services”, and furthermore, “we’re looking forward to a great holiday season, and with the launch of iPhone X getting underway right now, we couldn’t be more excited as we begin to deliver our vision for the future with this stunning device.”

Apple is the first publicly traded company on the way to reach $1 trillion market capitalization.

For the latest Apple Stock News, AAPL closed at $176.24 per share on November 8th, 2017. It generated a profit of 0.82% from its previous close on November 7th, 2017, when it closed at $174.81 per share.

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 Beats Estimates for Fiscal Q4

Apple Stock News

Apple stock rose to a record high this past week due to strong fiscal Q4 results and guidance.  The market capitalization nearly breached $900B as it added $32B to its total stock value.  The positive outlook also quelled any concerns surrounding the iPhone X.  There certainly doesn’t appear to be any lack of enthusiasm for the premium product which went on sale this past Friday.  Long lines of shoppers were flocking to get their hands on the device which is in short supply.

The great quarter from Apple led many analysts to increase their price targets for the stock.  Good news could be found everywhere.  Revenue was $52.58B, an increase of 12% YoY, which handily beat the consensus estimate of $50.69B.  GAAP EPS was $2.07 which also beat the consensus estimate of $1.87.

The exceptional results were driven in large part by growth in many non-iPhone segments.  This goes to show that Apple is not just a smartphone company.  Revenue from non-iPhone segments rose 24% to $23.1B.  iPad revenue grew 14% to $4.8B.  Mac revenue grew 25% to $7.2B.  Other Products (Apple Watch, headphones, tv, etc.) grew 36% to $3.2B.  The Apple Watch unit sales even rose over 50%.  Services revenue (App Store, Apple Music, iCloud, Apple Pay) grew 24% to $8.5B.  The big jump in Services revenue was also aided by a $640M revenue accounting adjustment that is rumored to be a payment from Google relating to a mobile ad partnership.  Apple also looks to have righted the ship in the Greater China market as revenue there broke a trend of declines and rose 12% to $9.8B.  Overall Emerging Market revenue was also up over 20%.

Holiday Quarter Guidance

For the upcoming holiday quarter, Apple gave guidance of $84-$87B, with the midpoint being slightly above the analyst consensus of $85.16B.  CEO Tim Cook stated on the conference call that the 8 and 8+ have been Apple’s best-selling models since they launched.  This countered the general opinion that sales have been lackluster.  He even said that the 8+ has “gotten off to the fastest start of any Plus model.”  Regarding the iPhone X, he implied that demand is extremely strong and the amount they sell in the future will be limited only by supply issues, certainly not by a lack of demand.  Apple will also be able to produce more iPhone X units this quarter than previously estimated.  Current estimates are for 30M units this quarter, a big upgrade from the previous estimate of 20M units, which was itself a past downgrade from 40M units.

The only non-spectacular news from the announcement was that Apple guided a 38-38.5% gross margin for the December quarter compared to the year-ago 38.5% GM (37.9% in September quarter).  Most analysts have been expecting an increase in margins due to the high prices of the new iPhone models.  CFO Maestri’s stated reason for the lower than expected guidance was high initial costs for new products, most likely a reference to the X model, as well as a headwind from higher memory chip prices.

For the latest Apple Stock News, AAPL closed at $172.50 per share on November 3rd, 2017. It generated a gain of 2.61% from its previous close on November 2nd, 2017, when it closed at $168.11 per share.

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

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