Not to mention one slip up with a new product could be very negative. Especially with Apples reliance upon often one device per category. One iPad or iPhone release that generates a negative feeling in the buying community would result in sharp drop in price. Even a poorly received iMac release would not go over well.
So while Apple may be flying high right now their marketing habits leave them exposed to a negative side that few other companies need worry about. In other words Apple has the potential to swing in either direction dramatically. This should surprise no one.
The idea that this huge avalanche of success is one small mis-step away from catastrophe is absurd.
What might happen if the Samsung screen production facility were to have a huge disaster? An earthquake or explosion for example? A military attack by North Korea?
Doing some quick math, Apple would need to sell at least 400 million iPhone and iPads a year at $625 ASP and 25% margin to have a shot at $80 per share
400 million x $625 = $250 billion revenue x 25% margin = $62 billion profit / 932 million shares = $67 profit per share
Apple shipped 52 million last quarter. 200 million run rate. So, would take massive growth - doubling sales - to get o the $960. A lot to ask for in 12 months
Company is on a roll. I expect the iPhone 5 launch will be like nothing we have ever seen
Doing some quick math, Apple would need to sell at least 400 million iPhone and iPads a year at $625 ASP and 25% margin to have a shot at $80 per share
400 million x $625 = $250 billion revenue x 25% margin = $62 billion profit / 932 million shares = $67 profit per share
Apple shipped 52 million last quarter. 200 million run rate. So, would take massive growth - doubling sales - to get o the $960. A lot to ask for in 12 months
Company is on a roll. I expect the iPhone 5 launch will be like nothing we have ever seen
Pretty sure Apple usually makes margins around ~40% on their products, and rumors recently speculated at 51% margin on the new iPad.
Pretty sure Apple usually makes margins around ~40% on their products, and rumors recently speculated at 51% margin on the new iPad.
That is the gross margin. The 25% is their net income % after all expenses. It is what is used to calculate the P/E ratio. I believe the actual percentage was 28% last quarter
Sometimes I see comments that are so stupid that I begin to believe that AI has someone post these moronic statements just to get page clicks (which, in itself, might seem like a stupid statement).
What might happen if the Samsung screen production facility were to have a huge disaster? An earthquake or explosion for example? A military attack by North Korea?
all apple's competitors would be doomed, but not apple itself with their 100billion and the healthier than ever mac. others have no chance but right now apple controls every chance.
Little Katy Huberty who put a hysterical sell on AAPL @ 80 gets religion? This woman's head is so far up her butt that her bullish call is prolly a bad omen for Apple.
What might happen if the Samsung screen production facility were to have a huge disaster? An earthquake or explosion for example? A military attack by North Korea?
LG and Sharp would work as hard as possible to pick up the slack and take in a bunch of new customers? Or do you somehow presume only Apple would be effected by this?
This reminds me a lot of the stock runs we used to read about in the last century.
Why do I get the feeling that the bankers/analysts are constantly talking up the stock to force it up and up before eventually they cut and run making huge profits in the process.
I know absolutely nothing about stocks and shares but this looks like a train crash waiting to happen to me. Maybe not now but at some point. Must be a nice ride while it lasts though if you have the stock which sadly I don't.
That is the gross margin. The 25% is their net income % after all expenses. It is what is used to calculate the P/E ratio. I believe the actual percentage was 28% last quarter
AI readers should categorically toss all AI articles with references to Munster, Shaw Wu, Huberty, and a a few others into the circular bin.
Without the caveat emptor, they are worthless. As a matter of fact, it might be better to take an opposite position from what those "anal-ists" are predicting since they have garnered a track record in piss-poor accuracy.
She is cautious, like Apple's Mgmt, with the quarterly #s. Nothing to get in a huff about. If you read her research she has been bullish on Apple for several years.
Predicting quarterly earnings estimates is just a small part of the job of an equity analyst at a large Investment Bank.
Comments
Not to mention one slip up with a new product could be very negative. Especially with Apples reliance upon often one device per category. One iPad or iPhone release that generates a negative feeling in the buying community would result in sharp drop in price. Even a poorly received iMac release would not go over well.
So while Apple may be flying high right now their marketing habits leave them exposed to a negative side that few other companies need worry about. In other words Apple has the potential to swing in either direction dramatically. This should surprise no one.
This is very true.
Apple Tim Cook is Gay! Love it
1) This has something to do with the stock price!?
2) Seriously, you signed up to post this?
The idea that this huge avalanche of success is one small mis-step away from catastrophe is absurd.
What might happen if the Samsung screen production facility were to have a huge disaster? An earthquake or explosion for example? A military attack by North Korea?
Apple Tim Cook is Gay! Love it
How is that relevant to anything?
400 million x $625 = $250 billion revenue x 25% margin = $62 billion profit / 932 million shares = $67 profit per share
Apple shipped 52 million last quarter. 200 million run rate. So, would take massive growth - doubling sales - to get o the $960. A lot to ask for in 12 months
Company is on a roll. I expect the iPhone 5 launch will be like nothing we have ever seen
Doing some quick math, Apple would need to sell at least 400 million iPhone and iPads a year at $625 ASP and 25% margin to have a shot at $80 per share
400 million x $625 = $250 billion revenue x 25% margin = $62 billion profit / 932 million shares = $67 profit per share
Apple shipped 52 million last quarter. 200 million run rate. So, would take massive growth - doubling sales - to get o the $960. A lot to ask for in 12 months
Company is on a roll. I expect the iPhone 5 launch will be like nothing we have ever seen
Pretty sure Apple usually makes margins around ~40% on their products, and rumors recently speculated at 51% margin on the new iPad.
Pretty sure Apple usually makes margins around ~40% on their products, and rumors recently speculated at 51% margin on the new iPad.
Please take the time to understand the difference between 'gross margin' and 'profit margin.'
If that happens their market cap will be over $1 trillion! Unprecedented!
I hope they do a stock split soon though...
Pretty sure Apple usually makes margins around ~40% on their products, and rumors recently speculated at 51% margin on the new iPad.
That is the gross margin. The 25% is their net income % after all expenses. It is what is used to calculate the P/E ratio. I believe the actual percentage was 28% last quarter
Apple Tim Cook is Gay! Love it
Sometimes I see comments that are so stupid that I begin to believe that AI has someone post these moronic statements just to get page clicks (which, in itself, might seem like a stupid statement).
Oh yeah... love that AAPL!!
What might happen if the Samsung screen production facility were to have a huge disaster? An earthquake or explosion for example? A military attack by North Korea?
all apple's competitors would be doomed, but not apple itself with their 100billion and the healthier than ever mac. others have no chance but right now apple controls every chance.
Holy crap
My words exactly.
What might happen if the Samsung screen production facility were to have a huge disaster? An earthquake or explosion for example? A military attack by North Korea?
LG and Sharp would work as hard as possible to pick up the slack and take in a bunch of new customers? Or do you somehow presume only Apple would be effected by this?
Why do I get the feeling that the bankers/analysts are constantly talking up the stock to force it up and up before eventually they cut and run making huge profits in the process.
I know absolutely nothing about stocks and shares but this looks like a train crash waiting to happen to me. Maybe not now but at some point. Must be a nice ride while it lasts though if you have the stock which sadly I don't.
That is the gross margin. The 25% is their net income % after all expenses. It is what is used to calculate the P/E ratio. I believe the actual percentage was 28% last quarter
Gotcha. Sorry for the confusion.
Gotcha. Sorry for the confusion.
No problem!
AI never seems to point this out (MacRumors is now pointing out Gene Munster's unreliability), but Katy Huberty is one of the worst AAPL analysts and certainly isn't a star-rated analyst per StarMine.
AI readers should categorically toss all AI articles with references to Munster, Shaw Wu, Huberty, and a a few others into the circular bin.
Without the caveat emptor, they are worthless. As a matter of fact, it might be better to take an opposite position from what those "anal-ists" are predicting since they have garnered a track record in piss-poor accuracy.
She is cautious, like Apple's Mgmt, with the quarterly #s. Nothing to get in a huff about. If you read her research she has been bullish on Apple for several years.
Predicting quarterly earnings estimates is just a small part of the job of an equity analyst at a large Investment Bank.