I really hope no one on here is taking investment advice from AI forums.
1- dividend increase- yes. TC said he will increase it annually. Will it be a large increase? Significant but not mind blowing, AAPL doesn't want to juice its stock- it wants to buyback more on the cheap.
2- foreign currency headwinds - significant for this quarter. But who cares about one quarter? I just want to see continued increase in units of iPhones sold. Other categories help, but iphone is the big show.
3- iPad, Mac, iTunes Store - should show continued strength, it would be great to see iPad numbers not drop too much. But like TC said, new product with long replacement cycle, let's be patient.
is anyone else worried about the strong dollar really hammering the value of overseas sales? The dollar has appreciated about 30% year over year on the Euro and most other European currencies. Apple hasn't raised their hardware prices much it doesn't seem. If they're taking the full brunt of the currency fluctuation then their gross margins could really be affected. I'm not selling any shares, but I could see this limiting the gains made by moving more iPhones.
No need to go overseas, look up north. Here in Canada, since the last Apple currency adjustment a few weeks ago, an iPhone 6 64gb goes for 969$, it's 749$ in the US. Same goes for everything else, the Macbook Air, lowest model, 899$ in the US, 1099$ in Canada... The strong US $ is for sure not helping sales...
I really hope no one on here is taking investment advice from AI forums.
1- dividend increase- yes. TC said he will increase it annually. Will it be a large increase? Significant but not mind blowing, AAPL doesn't want to juice its stock- it wants to buyback more on the cheap.
2- foreign currency headwinds - significant for this quarter. But who cares about one quarter? I just want to see continued increase in units of iPhones sold. Other categories help, but iphone is the big show.
3- iPad, Mac, iTunes Store - should show continued strength, it would be great to see iPad numbers not drop too much. But like TC said, new product with long replacement cycle, let's be patient.
No need to go overseas, look up north. Here in Canada, since the last Apple currency adjustment a few weeks ago, an iPhone 6 64gb goes for 969$, it's 749$ in the US. Same goes for everything else, the Macbook Air, lowest model, 899$ in the US, 1099$ in Canada... The strong US $ is for sure not helping sales...
So what then? After all, iPhones aren't manufactured in the US.
The relatively weaker Canadian dollar buys less of everything no? Haven't PCs and Android phones gone up for you too?
Canadians have to buy something—you can't call your Mom or update your FB status with a slab of canadian bacon or a jug of maple syrup, after all. ;-)
I expect another monster quarter. Easily destroying all their previous Q2s.
1) Because of China and the iPhone 6 series I am also expecting an amazing quarter.
2) Not that I would expect it to account for much, but they have made any ?Watch sales in this quarter that will be counted in preparation for shipping to 3rd-party retailers.
Cant compare Apple to any other company because of their unprecidented cash pile
Their cash is one thing (for one, much of that cash is held overseas and consequently of little import), the dividend is another...and a dividend from Apple is no different from a dividend from another company.
This is what you said: "In my experience, companies that offer a dividend are usually ones which might be profitable but with little clue as to how to invest their profits to strategically grow their company"
My point is you can't lump Apple with all those other dividend paying companies. Apple is making $50B a year of free cash flows and has $180B in cash. No matter how much they invest to strategically grow the company they will always have excess cash. With their free cash flows they could literally buy a TESLA every six months.
I see your point, and I agree at first glance, but he did qualify it with in my experience and usually. I think it's safe to say that Apple is not a usual company.
How about these slight rewordings...
"In my experience, companies that [typically] offer a dividend are usually ones which might be profitable but with little clue as to how to invest their profits to strategically grow their company"
"In my experience, companies that offer a dividend are ones which might be profitable but with little clue as to how to invest [all] their profits to strategically grow their company"
I see your point, and I agree at first glance, but he did qualify it with in my experience and usually. I think it's safe to say that Apple is not a usual company.
How about these slight rewordings...
That's right. That's also why I'd have no problem with Apple ending the dividend. They are still growing and they could use the money for buybacks and acquisitions. They aren't GE, a massive conglomerate that remains profitable, yet rudderless.
"In my experience, companies that offer a dividend are usually ones which might be profitable but with little clue as to how to invest their profits to strategically grow their company"
My point is you can't lump Apple with all those other dividend paying companies. Apple is making $50B a year of free cash flows and has $180B in cash. No matter how much they invest to strategically grow the company they will always have excess cash. With their free cash flows they could literally buy a TESLA every six months.
If Tesla was a little cheaper they should buy it. Maybe they should start picking up TSLA on the dips.
That's right. That's also why I'd have no problem with Apple ending the dividend. They are still growing and they could use the money for buybacks and acquisitions. They aren't GE, a massive conglomerate that remains profitable, yet rudderless.
A contradiction right here. The level of acquisitions required to absorb even a modest amount of Apple's free cash flow would quickly result in a GE type company. Buybacks are fine but Apple is already aggressively taking shares off the table. As the share price increases the dividend becomes less appealing, so that's a likely area where they will move.
If Tesla was a little cheaper they should buy it. Maybe they should start picking up TSLA on the dips.
So you are recommending a hostile takeover of Tesla by Apple? Even before we wonder at the logic of Apple owning Tesla, I have to wonder if you make a habit out of leaping from bridges.
So you are recommending a hostile takeover of Tesla by Apple? Even before we wonder at the logic of Apple owning Tesla, I have to wonder if you make a habit out of leaping from bridges.
Hyperbole much? TSLA will simply provide a better rate of return then money sitting in the bank and meshes with Apple both wanting to be 'in the car' and battery technology. Now if Apple wants to make an electric car, there are many more reasons for Apple to purchase TSLA.
Hyperbole much? TSLA will simply provide a better rate of return then money sitting in the bank and meshes with Apple both wanting to be 'in the car' and battery technology. Now if Apple wants to make an electric car, there are many more reasons for Apple to purchase TSLA.
Buying stock is not hostile.
Realistic much? A company trying to buy another company's stock to gain control is engaging in a hostile takeover, by definition. If not to gain control, then why? Despite their heaps of cash, Apple is not a hedge fund.
I don't see a single, good reason for Apple to own Tesla (though I can think of a whole lot of bad ones).
Realistic much? A company trying to buy another company's stock to gain control is engaging in a hostile takeover, by definition. If not to gain control, then why? Despite their heaps of cash, Apple is not a hedge fund.
I don't see a single, good reason for Apple to own Tesla (though I can think of a whole lot of bad ones).
You added key words to support your argument, but buying 10% of a companies stock is NOT a hostile takeover. Apple does invest in other companies.
If you can't see a SINGLE good reason for Apple to own Tesla you have little or no vision. There are a ton of synergies. They may or may not be worth it at a specific stock price, but to say no reasons at all shows you do not understand EITHER company.
You added key words to support your argument, but buying 10% of a companies stock is NOT a hostile takeover. Apple does invest in other companies.
If you can't see a SINGLE good reason for Apple to own Tesla you have little or no vision. There are a ton of synergies. They may or may not be worth it at a specific stock price, but to say no reasons at all shows you do not understand EITHER company.
In what other companies is Apple invested? (By which I mean, has purchased common stock.) A 10% common stock stake is actually very large and would come with the expectation of influence on the board. It would also come with the expectation that the holding could increase -- none of which Apple would do without prior agreement from Tesla (see: hostile takeover). If Apple and Tesla had any common interests, a far more likely avenue for it to be expressed would be a joint venture. Unfortunately for your argument not one iota of these "tons of synergies" have been expressed by either company.
I have plenty of vision. What I lack are delusions. The automotive industry is historically a very risky, low-margin business. True to that history, Tesla remains, to date, an unprofitable company. They may have a great future, or none at all. I have no idea. But I suspect it's highly unlikely that Apple would place a huge bet on it.
BTW, I've been an AAPL investor for nearly 20 years. That's a terrible way to not understand the company.
Comments
You seem to like the idea of banning yourself.
Can't imagine why. ????
1- dividend increase- yes. TC said he will increase it annually. Will it be a large increase? Significant but not mind blowing, AAPL doesn't want to juice its stock- it wants to buyback more on the cheap.
2- foreign currency headwinds - significant for this quarter. But who cares about one quarter? I just want to see continued increase in units of iPhones sold. Other categories help, but iphone is the big show.
3- iPad, Mac, iTunes Store - should show continued strength, it would be great to see iPad numbers not drop too much. But like TC said, new product with long replacement cycle, let's be patient.
4- wild card- first weekend sales of apple watch
is anyone else worried about the strong dollar really hammering the value of overseas sales? The dollar has appreciated about 30% year over year on the Euro and most other European currencies. Apple hasn't raised their hardware prices much it doesn't seem. If they're taking the full brunt of the currency fluctuation then their gross margins could really be affected. I'm not selling any shares, but I could see this limiting the gains made by moving more iPhones.
No need to go overseas, look up north. Here in Canada, since the last Apple currency adjustment a few weeks ago, an iPhone 6 64gb goes for 969$, it's 749$ in the US. Same goes for everything else, the Macbook Air, lowest model, 899$ in the US, 1099$ in Canada... The strong US $ is for sure not helping sales...
I doubt they do. ????
I agree with you on everything you say.
No need to go overseas, look up north. Here in Canada, since the last Apple currency adjustment a few weeks ago, an iPhone 6 64gb goes for 969$, it's 749$ in the US. Same goes for everything else, the Macbook Air, lowest model, 899$ in the US, 1099$ in Canada... The strong US $ is for sure not helping sales...
So what then? After all, iPhones aren't manufactured in the US.
The relatively weaker Canadian dollar buys less of everything no? Haven't PCs and Android phones gone up for you too?
Canadians have to buy something—you can't call your Mom or update your FB status with a slab of canadian bacon or a jug of maple syrup, after all. ;-)
I expect another monster quarter. Easily destroying all their previous Q2s.
1) Because of China and the iPhone 6 series I am also expecting an amazing quarter.
2) Not that I would expect it to account for much, but they have made any ?Watch sales in this quarter that will be counted in preparation for shipping to 3rd-party retailers.
Their cash is one thing (for one, much of that cash is held overseas and consequently of little import), the dividend is another...and a dividend from Apple is no different from a dividend from another company.
You said Apple's dividend was different. Explain yourself because money is money no matter which company it's coming from.
I wish they'd get rid of the dividend and increase the buyback to suss out the fair weather investors.
Having a high stock price discourages speculators, but Apple tends to do a split whenever it gets "too" high.
I see your point, and I agree at first glance, but he did qualify it with in my experience and usually. I think it's safe to say that Apple is not a usual company.
How about these slight rewordings...
That's right. That's also why I'd have no problem with Apple ending the dividend. They are still growing and they could use the money for buybacks and acquisitions. They aren't GE, a massive conglomerate that remains profitable, yet rudderless.
I wish they'd get rid of the dividend and increase the buyback to suss out the fair weather investors.
I so agree with you. Take those shares off the market and make holders shares more valuable. Less dividends to pay out in the future.
This is what you said:
"In my experience, companies that offer a dividend are usually ones which might be profitable but with little clue as to how to invest their profits to strategically grow their company"
My point is you can't lump Apple with all those other dividend paying companies. Apple is making $50B a year of free cash flows and has $180B in cash. No matter how much they invest to strategically grow the company they will always have excess cash. With their free cash flows they could literally buy a TESLA every six months.
If Tesla was a little cheaper they should buy it. Maybe they should start picking up TSLA on the dips.
That's right. That's also why I'd have no problem with Apple ending the dividend. They are still growing and they could use the money for buybacks and acquisitions. They aren't GE, a massive conglomerate that remains profitable, yet rudderless.
A contradiction right here. The level of acquisitions required to absorb even a modest amount of Apple's free cash flow would quickly result in a GE type company. Buybacks are fine but Apple is already aggressively taking shares off the table. As the share price increases the dividend becomes less appealing, so that's a likely area where they will move.
If Tesla was a little cheaper they should buy it. Maybe they should start picking up TSLA on the dips.
So you are recommending a hostile takeover of Tesla by Apple? Even before we wonder at the logic of Apple owning Tesla, I have to wonder if you make a habit out of leaping from bridges.
So you are recommending a hostile takeover of Tesla by Apple? Even before we wonder at the logic of Apple owning Tesla, I have to wonder if you make a habit out of leaping from bridges.
Hyperbole much? TSLA will simply provide a better rate of return then money sitting in the bank and meshes with Apple both wanting to be 'in the car' and battery technology. Now if Apple wants to make an electric car, there are many more reasons for Apple to purchase TSLA.
Buying stock is not hostile.
Hyperbole much? TSLA will simply provide a better rate of return then money sitting in the bank and meshes with Apple both wanting to be 'in the car' and battery technology. Now if Apple wants to make an electric car, there are many more reasons for Apple to purchase TSLA.
Buying stock is not hostile.
Realistic much? A company trying to buy another company's stock to gain control is engaging in a hostile takeover, by definition. If not to gain control, then why? Despite their heaps of cash, Apple is not a hedge fund.
I don't see a single, good reason for Apple to own Tesla (though I can think of a whole lot of bad ones).
Realistic much? A company trying to buy another company's stock to gain control is engaging in a hostile takeover, by definition. If not to gain control, then why? Despite their heaps of cash, Apple is not a hedge fund.
I don't see a single, good reason for Apple to own Tesla (though I can think of a whole lot of bad ones).
You added key words to support your argument, but buying 10% of a companies stock is NOT a hostile takeover. Apple does invest in other companies.
If you can't see a SINGLE good reason for Apple to own Tesla you have little or no vision. There are a ton of synergies. They may or may not be worth it at a specific stock price, but to say no reasons at all shows you do not understand EITHER company.
You added key words to support your argument, but buying 10% of a companies stock is NOT a hostile takeover. Apple does invest in other companies.
If you can't see a SINGLE good reason for Apple to own Tesla you have little or no vision. There are a ton of synergies. They may or may not be worth it at a specific stock price, but to say no reasons at all shows you do not understand EITHER company.
In what other companies is Apple invested? (By which I mean, has purchased common stock.) A 10% common stock stake is actually very large and would come with the expectation of influence on the board. It would also come with the expectation that the holding could increase -- none of which Apple would do without prior agreement from Tesla (see: hostile takeover). If Apple and Tesla had any common interests, a far more likely avenue for it to be expressed would be a joint venture. Unfortunately for your argument not one iota of these "tons of synergies" have been expressed by either company.
I have plenty of vision. What I lack are delusions. The automotive industry is historically a very risky, low-margin business. True to that history, Tesla remains, to date, an unprofitable company. They may have a great future, or none at all. I have no idea. But I suspect it's highly unlikely that Apple would place a huge bet on it.
BTW, I've been an AAPL investor for nearly 20 years. That's a terrible way to not understand the company.