carnegie

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carnegie
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  • Epic takes its 'Fortnite' fight with Apple to the Supreme Court

    carnegiecarnegie
    Apple is likely to file its own cert petition, asking the Supreme Court to consider aspects of the case, today or tomorrow. I think the deadline for filing that petition is, as it was for Epic, tomorrow.
    williamlondonronnchasmFileMakerFeller13485watto_cobra

  • Epic asks U.S. Supreme Court to enforce lower court's App Store order

    carnegiecarnegie
    Justice Kagan denied Epic's application today. Epic is now free to make the same application - i.e. asking to have the Ninth Circuit's stay vacated - to any of the other Justices.
    williamlondon

  • Apple's valuation will fall to less than $3 trillion for the worst reasons

    carnegiecarnegie
    lowededwookie said:
    What if Apple is buying back stock in order to kill it so that sooner or later it will take itself private?

    From what I can see Apple's stock has been manipulated regularly based on rumours and innuendo instead of actual product releases. What if Apple is sick and tired of idiot analysts that are trying to ruin Apple's reputation?

    Going private also makes huge sense for Apple. If there is no financial benefit to leaking Apple products before release then Apple can once again "WOW" people rather than have the rug pulled from underneath their feet.

    Of course, what if some of those senseless rumours that have been released to drive down Apple's stock is Apple's doing to be able to buy more back for cheaper? Thus allowing their move to private to happen sooner? That one would be dodgy because that's insider trading but if Apple was to go private then would they be beholden to SEC governance?

    But I don't know because I'm not a stock guy but Apple could very well be in a position to remove itself from the stock exchange and do whatever the hell it wants without being answerable to anyone.

    Is it possible?
    Is it possible (for Apple to effectively take itself private)? In theory, yes. But in Apple's case it might as well be impossible. At any rate, I think it's safe to say that's not why Apple has been buying back stock for the last decade plus.
    muthuk_vanalingamFileMakerFeller

  • Epic asks U.S. Supreme Court to enforce lower court's App Store order

    carnegiecarnegie
    On Friday Apple filed its response to Epic's application asking Justice Kagan to vacate the Ninth Circuit's stay.
    williamlondon

  • Apple's valuation will fall to less than $3 trillion for the worst reasons

    carnegiecarnegie
    twolf2919 said:
    Apple's price isn't going down because Apple missed some arbitrary consensus figure in iPhone sales.  I believe on the conference call someone mentioned that it has been 3 quarters of iPhone sales declines YoY.  You mention analyst "missing" the growth of services and Apple's journey to diversify away from being a one-trick (iPhone) pony.  Since that has been going on for years now, I don't think any analyst missed such an obvious thing.  But even now - almost a decade after services began to contribute to Apple's bottom line, they still only contribute 20%.  Yes, that's much better than just a couple years ago, but Apple still gets most of its revenue from iPhone sales.

    And the growth in services has definitely slowed.  Just a couple years ago, I think that segment was growing at 20%?  I think they said in the last quarter it was 8%.

    So with iPhone sales slowing, services revenue growth slowing, and no new growth drivers on the horizon for several more years (until Vision Pro becomes a set of affordable glasses people would actually want to wear), analysts are coming to the realization that Apple doesn't deserve its current 32 P/E valuation.

     think Apple is a great company - we have every conceivable Apple device and are happy inhabitants of Apple's walled garden - but I agree with the analysis that AAPL doesn't deserve its current valuation.  It would have been a different story if the Vision Pro announcement had been more compelling than the technical tour-de-force it was and previewed something that could actually take iPhone's place as the next major growth driver.

    Services likely contributes more than 20% to Apple's bottom line. For FY2023 it's contributed 21% to Apple's revenue (i.e., Apple's top line). We don't have definitive numbers for bottom line contribution, but we do have them for gross margin contribution and there for FY 2023 Services has made up 35%. The gross margins for Services are about twice what they are for Products.

    Just looking at this past quarter, Services accounted for 26% of Apple's revenue and 41% of its gross margin.
    muthuk_vanalingamgatorguytwolf2919roundaboutnowwatto_cobraFileMakerFeller