Um... This all sounds like normal legal speak to me, covering every concievable angel. I don't know anything about a 10K form, but my impression is that it's simply a place to announce things that could negatively affect Apple's business. That means that the 10K doesn't need to discuss possible solutions or work-arounds for these risks. I can't find anything mentioned in the article which doesn't fall under the "Duh!" category...
As an AAPL investor this statement makes me very queasy. I appreciate a 10K is to cover your ass but its wording is very arrogant. My first read of the last section is AAPL's proclamation that it intends to double-cross and go to war with its partners.
There are rumors that YouTube (part of Google) is getting ready to announce streaming of full-length movies. That could be a potential source of competition with a partner. And if Apple is working on GPS navigation software, that could compete somewhat with further enhancements to Google Maps.
Apple already competes with MS and Adobe each time they upgrade iWork, iLife, Aperture, Final Cut Pro, etc.
Can someone explain to me in a simple manner (or direct me to information about) what causes currency exchange rates to shift around so much?
Well, Currencies are traded and when you need to purchase something in say US dollars and have Euros, you will first purchase the US dollars and then pay the goods (or rents or loans or interest or whatever).
When US needs loans (which US does every day right now because US runs low) your president whant's them in US dollars. If any financial institution in the rest of the world are willing to lend a hand, they need to change the amount from say Yen, Euros or Pounds to US dollars, i e "purchase" dollars. The price of the dollar goes up because the way your banks has treated money they have effectively thrown what you had down the drain (subprimes).
It's a market our there - and it's running low on dollars for the moment.
Um... This all sounds like normal legal speak to me, covering every concievable angel. I don't know anything about a 10K form, but my impression is that it's simply a place to announce things that could negatively affect Apple's business. That means that the 10K doesn't need to discuss possible solutions or work-arounds for these risks. I can't find anything mentioned in the article which doesn't fall under the "Duh!" category...
I think that is exactly what this is about.
I think economic fears are blown out of proportion, but I would say that those possible issues should be in the filing because there is still a chance that economic problems will cause problems for Apple's bottom line. Personally, Apple's financials are a lot more sound than most other companies, AAPL stock prices are a lot more a reflection of jitters than they are of Apple's financial picture. Of all the major companies selling computers and consumer electronics, Apple isn't going to be the first to collapse, I would say among the last of the top ten to collapse, it's the other nine that I would worry about.
As an AAPL investor this statement makes me very queasy. I appreciate a 10K is to cover your ass but its wording is very arrogant. My first read of the last section is AAPL's proclamation that it intends to double-cross and go to war with its partners.
Section 1 describes a scenario of total financial Armageddon but offers no positive alternative. Maybe AAPL knows something I don't! Either the 10K was very poorly drafted or the company is on the rocks.
No, hey - any business has risks! Did you think apple were zero risk?
They are aware and I think third party should state that the risk is that Apple does it better than them and then they go down the drain. Say Microsoft - what does their 10K say?
Yeah... they've massively increased our MBP prices here to offset the conversion back to US dollars. Still like the machine, and I understand that they want to maintain the same US price as they convert, but it will reduce local sales significantly.
Perhaps.... say 30% fewer sales?
It is a typical Apple strategy, screw the rest of the world to benefit their home market.
Plus they included a comment like this
Quote:
Apple also outlined "continuing increases in fuel and other energy costs,
Fuel costs have dropped massively, what are they referring to?
Can someone explain to me in a simple manner (or direct me to information about) what causes currency exchange rates to shift around so much?
In the short run, currency trading is almost entirely driven by 'technical' factors, and close to 90% of it is driven by traders hitting each other up for profits in what is essentially a zero-sum game. Less than 10% of the trades meet some truly underlying need (such as a tourists exchanging money, a company paying for its imports, people borrowing or lending in foreign currencies, etc).
In the medium-to-long term (say, 1 to 5 year period), well-developed theory in economics says that the following factors matter: inflation rates, trade or current account balances (i.e., exports minus imports), productivity growth rates, interest rates, and money supply/demand. Here are the forecasted effects, and a brief explanation for the intuition (all are to be viewed as statements made relative to another currency):
US inflation up, US$ depreciates (more US$ chasing fewer goods).
US exports up, US$ appreciates (demand for US$ goes up)
US imports up, US$ depreciates (demand for foreign currency goes up)
US productivity up, US$ appreciates (increases demand for money in the US, and increased productivity keeps inflation down)
US money supply up, US$ depreciates (increased supply of a commodity called US$)
US money demand up, US$ appreciates (opposite of above)
And, the final one is a bit crazy and counter-intuitive, and I will not be able to explain it in full detail here: An increase in the US$ nominal interest rates will depreciate the US$ (through something called the 'Uncovered Interest Parity' theorem; best to google the phrase and take from there!) -- essentially, think of it as people expecting higher yields on securities to compensate for an expected currency depcreciation.
There are rumors that YouTube (part of Google) is getting ready to announce streaming of full-length movies. That could be a potential source of competition with a partner. And if Apple is working on GPS navigation software, that could compete somewhat with further enhancements to Google Maps.
Apple already competes with MS and Adobe each time they upgrade iWork, iLife, Aperture, Final Cut Pro, etc.
I'm aware they compete but the tone of the 10K sounds a bit strident.
Comments
As an AAPL investor this statement makes me very queasy. I appreciate a 10K is to cover your ass but its wording is very arrogant. My first read of the last section is AAPL's proclamation that it intends to double-cross and go to war with its partners.
There are rumors that YouTube (part of Google) is getting ready to announce streaming of full-length movies. That could be a potential source of competition with a partner. And if Apple is working on GPS navigation software, that could compete somewhat with further enhancements to Google Maps.
Apple already competes with MS and Adobe each time they upgrade iWork, iLife, Aperture, Final Cut Pro, etc.
Can someone explain to me in a simple manner (or direct me to information about) what causes currency exchange rates to shift around so much?
Well, Currencies are traded and when you need to purchase something in say US dollars and have Euros, you will first purchase the US dollars and then pay the goods (or rents or loans or interest or whatever).
When US needs loans (which US does every day right now because US runs low) your president whant's them in US dollars. If any financial institution in the rest of the world are willing to lend a hand, they need to change the amount from say Yen, Euros or Pounds to US dollars, i e "purchase" dollars. The price of the dollar goes up because the way your banks has treated money they have effectively thrown what you had down the drain (subprimes).
It's a market our there - and it's running low on dollars for the moment.
Um... This all sounds like normal legal speak to me, covering every concievable angel. I don't know anything about a 10K form, but my impression is that it's simply a place to announce things that could negatively affect Apple's business. That means that the 10K doesn't need to discuss possible solutions or work-arounds for these risks. I can't find anything mentioned in the article which doesn't fall under the "Duh!" category...
I think that is exactly what this is about.
I think economic fears are blown out of proportion, but I would say that those possible issues should be in the filing because there is still a chance that economic problems will cause problems for Apple's bottom line. Personally, Apple's financials are a lot more sound than most other companies, AAPL stock prices are a lot more a reflection of jitters than they are of Apple's financial picture. Of all the major companies selling computers and consumer electronics, Apple isn't going to be the first to collapse, I would say among the last of the top ten to collapse, it's the other nine that I would worry about.
As an AAPL investor this statement makes me very queasy. I appreciate a 10K is to cover your ass but its wording is very arrogant. My first read of the last section is AAPL's proclamation that it intends to double-cross and go to war with its partners.
Section 1 describes a scenario of total financial Armageddon but offers no positive alternative. Maybe AAPL knows something I don't! Either the 10K was very poorly drafted or the company is on the rocks.
No, hey - any business has risks! Did you think apple were zero risk?
They are aware and I think third party should state that the risk is that Apple does it better than them and then they go down the drain. Say Microsoft - what does their 10K say?
. Say Microsoft - what does their 10K say?
I read it, it says "help".
Yeah... they've massively increased our MBP prices here to offset the conversion back to US dollars. Still like the machine, and I understand that they want to maintain the same US price as they convert, but it will reduce local sales significantly.
Perhaps.... say 30% fewer sales?
It is a typical Apple strategy, screw the rest of the world to benefit their home market.
Plus they included a comment like this
Apple also outlined "continuing increases in fuel and other energy costs,
Fuel costs have dropped massively, what are they referring to?
Can someone explain to me in a simple manner (or direct me to information about) what causes currency exchange rates to shift around so much?
In the short run, currency trading is almost entirely driven by 'technical' factors, and close to 90% of it is driven by traders hitting each other up for profits in what is essentially a zero-sum game. Less than 10% of the trades meet some truly underlying need (such as a tourists exchanging money, a company paying for its imports, people borrowing or lending in foreign currencies, etc).
In the medium-to-long term (say, 1 to 5 year period), well-developed theory in economics says that the following factors matter: inflation rates, trade or current account balances (i.e., exports minus imports), productivity growth rates, interest rates, and money supply/demand. Here are the forecasted effects, and a brief explanation for the intuition (all are to be viewed as statements made relative to another currency):
US inflation up, US$ depreciates (more US$ chasing fewer goods).
US exports up, US$ appreciates (demand for US$ goes up)
US imports up, US$ depreciates (demand for foreign currency goes up)
US productivity up, US$ appreciates (increases demand for money in the US, and increased productivity keeps inflation down)
US money supply up, US$ depreciates (increased supply of a commodity called US$)
US money demand up, US$ appreciates (opposite of above)
And, the final one is a bit crazy and counter-intuitive, and I will not be able to explain it in full detail here: An increase in the US$ nominal interest rates will depreciate the US$ (through something called the 'Uncovered Interest Parity' theorem; best to google the phrase and take from there!) -- essentially, think of it as people expecting higher yields on securities to compensate for an expected currency depcreciation.
There are rumors that YouTube (part of Google) is getting ready to announce streaming of full-length movies. That could be a potential source of competition with a partner. And if Apple is working on GPS navigation software, that could compete somewhat with further enhancements to Google Maps.
Apple already competes with MS and Adobe each time they upgrade iWork, iLife, Aperture, Final Cut Pro, etc.
I'm aware they compete but the tone of the 10K sounds a bit strident.