“Apple had a remarkable quarter as it reestablished itself as the preeminent smartphone maker in the world,” Andrew Sebastian writes for The Motley Fool.
“It’s the premium prices Apple commands for its phones that make Apple such a great business and cash generator. The company captures 60% of the profits in the smartphone market through its high-margin strategy with only 40% of the U.S. market and 15% of the world market,” Sebastian writes. “This testifies to Apple’s business model and the affinity for its smartphones in the U.S. and international markets.”
“Apple’s innovative and user-friendly designs will afford the company continued success and loyalty from its die-hard users. Along with its envious financial position, Apple has the ability to wade through any ups or downs and come out on the other side with a hefty amount of cash,” Sebastian writes. “Even after the bump in the stock, Apple still trades at a low P/E multiple of 14 with a dividend yield of 2.3 percent. The company perennially generates returns on equity and capital north of 25% and enormous amounts of free cash flow, as it generated $44.5 billion just last year. In addition, the stock has seen significant insider buying lately with over 200,000 shares acquired by Apple’s board and management in the month of March. Investing along with company insiders is one of the smartest moves an investor can make and an opportunity exists in Apple to do so.”
Read more in the full article here.
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But they’re doomed…because it doesn’t have a physical keyboard!
“That makes it not a very good e-mail smart phone. Oh sure Apple may still sell a few….”
KABOOM!
Apple has no chance at gaining any significant market share. Right? No chance. Jobs once said if their goal was to gain @ least 1% of the global mobile handset share. Yeah Um that was 2008.
Here is a blurb from the transcript…
So game consoles. 26 million game consoles were sold in 2006 worldwide, actually a little smaller than you’d think. It’s not such a big market. Digital cameras dwarfed it at 94 million. MP3 players 135 million. And PCs, about 209. Mobile phones, just about a billion last year, worldwide. So what does this tell you? What this tells you is, that 1 percent market share equals 10 million units. This is a giant market. One percent market share, you’re going to sell 10 million phones. And this is exactly what we’re going to try to do in 2008, our first full year in the market, is grab 1 percent market share and go from there. So we’re going to enter a very competitive market, lot of players, we think we’re going to have the best product in the world, and we’re going to go for it and see if we can get 1 percent market share, 10 million units in 2008, and go from there.
News flash !!! AAPL is surely DOOMED .pff
Googles quarter was decidedly shoddy by any standard other than that used by an analist. Especially so considering the vast amounts of cash dumped into this jet pack/spyglass making money pit.