In my opinion, you make the error that Apple is attempting to increase stock price.
Apple's primary goal is to retire as much stock as possible until they are net cash neutral, and that's proposed to be a seven year path. Apple's product roadmap, and now, some minor/major marketing adjustments, will provide the stock price growth. Earnings per share would expected to grow with this plan.
With stock prices this low, Apple may well decide to accelerate their plans.
Long game vs. short game.
I'm not sure I follow the logic. Why is being cash neutral a goal? Not arguing - just trying to understand. Same thing with regards to earnings per share: why would raising EPS be a worthwhile pursuit? If increased EPS doesn't translate to increased share price, then of what benefit is it to investors that their shares now "earn" a larger percent of total earnings? As far as I know, it doesn't even affect dividends directly - or does it in Apple's case?
I would not be able to describe it properly, if at all, so I'll post a link that does;
I agree with the gist of this article, and yes, “analysts” have been hysterical about Apple for literally decades. That these fools are able to influence investors in any measurable way is both baffling and infuriating.
That said, I am not happy with Tim Cook. At all. Where are the new product lines? Why has Apple completely whiffed on home automation while Google (!) and Amazon (!!!) churn out cameras, doorbells and thermostats? I thought Apple was supposed to be the ultimate ecosystem creator? Where are all those billions of R&D dollars going? Smaller iPhone bezels? Why does Apple continually drag their feet on desktop and laptop computer hardware to the point of absurdity? Why does Apple allow the Chinese to shamelessly rip off their design IP without any countermarketing? Why isn’t Apple telling consumers that Google makes its money by whoring out the details of their personal lives? Google is creating a corporate surveillance state and the only times we hear Apple protest are during Cook interviews at events the average consumer is unaware of. Why does Siri lag behind the competition despite being first to market? Why isn’t iCloud a viable Dropbox replacement (no file versioning)? Why has Apple dropped the ball on pushing Apple TV as a legitimate gaming platform? Where is an Apple non-tracking, non-invasive web search service? Why did they bail out of the WiFi router business? You’d think they’re running on a skeleton crew with a crimped budget. Hey Tim, some products don’t command the same profit margin as others, AND THAT’S OK, as those products exist to make the overall ecosystem more complete and compelling. Tim is always talking about “an exciting product pipeline in the works” yet all we seem to get are upgrades of existing products. Geez, I feel like we’re back in the Spindler or Sculley days when Apple innovation was merely a slogan but not a reality.
Frankly I wish Tim would spend less time posturing politically or crusading for social justice causes and more time INTRODUCING NEW INDUSTRY-SHAKING PRODUCTS. Despite being a leftist hippie, Steve knew that getting political only alienates half the customer base. I wish Tim would follow Steve’s lead.
Bottom line: Apple is a right-brain company currently being run by a Left-brain CEO, and I don’t think that’s good in the long term. Show us the innovation, Tim!!! WHERE IS THE ONE MORE THING?????
In the UK, I noticed a lot of people given Huawei's mobiles and tablets as a gift. That surprised me and started thinking that Apple wouldn't have a good holiday season in UK, so I am not surprised about the news. Pricing is definitely affecting iPhone and iPad sales.
The question is: why are so many Western consumers lapping up products from a company directly tied to a repressive Communist regime, with a history of industrial espionage and blatant IP theft, while the Chinese actively discourage its citizens from using competing products from American brands?
Oh, and thank you Google for providing free software development to the Chinese knockoff artists after destroying a great American tech company (Motorola) before selling it to, yep...the Chinese. Thanks Larry and Sergey!
There's no evidence that Apple spend more $Billions on stock buybacks will be driving the price higher than it otherwise would, and it's not stock that Apple holds as an asset either. I don't see the win-win for investors but whatever. I don't currently directly own shares of any of the techs.
No it's not stock Apple holds as an investment -- that's the whole point. They retire the shares they re-purchase, so that there are far fewer outstanding shares, and the EPS goes up accordingly.
Apple's vast amount of cash is regarded as a liability by wall street, and at the same time, wall street barely values Apple's business over and above its cash hoard.
Apple has become a big ponderous company. They move too slowly in a rapidly changing market place. Look how long it took them to get the HomePod released. Then look at how long it took for the HomePod to get AirPlay 2. With Google and Amazon updating their products every couple of weeks, Siri is hopelessly behind.
You can see this again in the streaming service they're releasing. They're way late to the game and they're coming without any real IP's or studio know how. They're going to spend a billion dollars on a flop
Same thing with the iPad Pro. There's no reason for it not to have a file manager, mouse support, a desktop browser, and be able to support external hard drives.
They're too slow to make changes and until they become more nimble, they will continue to stumble.
They don’t need to be nimble. The products they release must be of excellent quality, and the HomePod more than delivers that. Just because you think the iPad needs a file manager doesn’t make it ‘not a Pro’ . The Mac exists for traditional workflows. The iPad exists for modern app workflows.
Comments
https://www.fool.com/investing/2018/02/02/understanding-apples-new-net-cash-neutral-goal.aspx
Essentially, Apple generates more cash than it can properly utilize in its business operations.
Even without being able to see the byline it was obvious which was the DED article and which was from a writer that was competent.
That said, I am not happy with Tim Cook. At all. Where are the new product lines? Why has Apple completely whiffed on home automation while Google (!) and Amazon (!!!) churn out cameras, doorbells and thermostats? I thought Apple was supposed to be the ultimate ecosystem creator? Where are all those billions of R&D dollars going? Smaller iPhone bezels? Why does Apple continually drag their feet on desktop and laptop computer hardware to the point of absurdity? Why does Apple allow the Chinese to shamelessly rip off their design IP without any countermarketing? Why isn’t Apple telling consumers that Google makes its money by whoring out the details of their personal lives? Google is creating a corporate surveillance state and the only times we hear Apple protest are during Cook interviews at events the average consumer is unaware of. Why does Siri lag behind the competition despite being first to market? Why isn’t iCloud a viable Dropbox replacement (no file versioning)? Why has Apple dropped the ball on pushing Apple TV as a legitimate gaming platform? Where is an Apple non-tracking, non-invasive web search service? Why did they bail out of the WiFi router business? You’d think they’re running on a skeleton crew with a crimped budget. Hey Tim, some products don’t command the same profit margin as others, AND THAT’S OK, as those products exist to make the overall ecosystem more complete and compelling. Tim is always talking about “an exciting product pipeline in the works” yet all we seem to get are upgrades of existing products. Geez, I feel like we’re back in the Spindler or Sculley days when Apple innovation was merely a slogan but not a reality.
Frankly I wish Tim would spend less time posturing politically or crusading for social justice causes and more time INTRODUCING NEW INDUSTRY-SHAKING PRODUCTS. Despite being a leftist hippie, Steve knew that getting political only alienates half the customer base. I wish Tim would follow Steve’s lead.
Bottom line: Apple is a right-brain company currently being run by a Left-brain CEO, and I don’t think that’s good in the long term. Show us the innovation, Tim!!! WHERE IS THE ONE MORE THING?????
Oh, and thank you Google for providing free software development to the Chinese knockoff artists after destroying a great American tech company (Motorola) before selling it to, yep...the Chinese. Thanks Larry and Sergey!
Apple's vast amount of cash is regarded as a liability by wall street, and at the same time, wall street barely values Apple's business over and above its cash hoard.
https://www.fool.com/investing/2018/12/28/no-apple-didnt-lose-9-billion-by-repurchasing-shar.aspx
Apple has acted sensibly; and as mentioned in the article, Netflix, for one, provides an example of an unwise move re: share repurchasing.