At some point Apple is going to find it hard to maintain their iPhone sales. With the flagships moving up in price, it just becomes less worth it to pay that amount. Not to mention the features are becoming less desired, a 30% faster processor, a marginal camera improvement, or Face ID vs Touch ID won’t impact most people enough to justify the cost. Sure I can buy a new iPhone every 2 years but why not save the cash for something that would materially impact my life, like saving. Not to say iPhone sales are going to drop but the age of high growth is over.
Always a great time to buy when analysts make these ridiculous pronouncements.
Huberty has been very bullish on APPL and it is her job to report the data as she sees fit. As investors it is our job to filter these analysts opinions in much the same way as we filter our rumors on Apple's products and services. APPL stock was at an inflection point earlier this week as it approached its all time high, so one should have expected some volatility - it could have gone either way in my opinion.As for Apple buying on the dips, I don't believe they can do that (as a public company this could be viewed as stock manipulation). Rather the Board approves a repurchase program (which I expect them to do again on May 1st) that is executed internally on a predetermined time schedule. I follow the stock very closely and agree with Huberty's assessments of an "in-line" quarter and lower June Qtr guidance. My prediction is that the Board will double their percentage increase in dividend yield (this has averaged about 11% per year so I'm expecting a 20-25% increase on May 1st), and an increase in the ongoing share buy-back program - all funded by the repatriation of offshore funds. That said I purchased my first APPL shares when they first went public and have been in and out of the stock ever since. I'm long term bullish for APPL and believe that it will win the race to be the first $`1T market cap company in the history of the world. But not all of their products are great and the stock is certainly not going to go straight up. 2018 is a transition year for Apple as the resources dedicated to the new Campus (which is absolutely amazing) and geo-political issues impact Apple's focus on making great products.
Did anyone else make a buy today?
Ms. Huberty is among the few analysts that, IMO, is not a moron. That said, what exactly was the point of guessing at the next quarter's numbers? There's no value to investors, since verification of the claim is at least five months away, but Apple will issue guidance on the next quarter when it reveals its figures for the previous quarter, which I believe is happening on May 1. Wouldn't it be smarter to wait for Apple's guidance (which hasn't ever had to be revised that I can recall, and the actual results almost always fall within the middle of the guidance range), and then speculate on the reasons for said guidance?It's just ... weird than any analyst would set themselves up for being easily disproven (either low or high) with less than two weeks like this.
In the days of Scully, there was plenty of stock manipulation behind the scenes too except it wasn't as accelerated by the current news cycle and automated by trading software that can run rings around any broker. The boiler room of analysts and investors went from a little room to an entire planet.
They don't want to update their computers in a timely fashion. They don't want to diversify their hardware business from near total dependency on the iPhone. They're not into any cloud business like most tech companies.