“During its holiday quarter, Apple sold 5.5 million more iPhones than expected and earned $18 billion in profit. Total revenue of about $75 billion was 12% more than expected,” Peter Cohan writes for Forbes.
“Moreover, revenue in China soared 70% to $16.1 billion,” Cohan writes. “And its potential for growth there is significant since it has four stores there now and plans 40 by mid-2016, according to the Washington Post.”
“Given all this good news, what could possibly be wrong with Apple?” Cohan writes. “Here are six things that should give investors pause.”
1. Expensive stock
2. Tumbling smartphone prices
3. Declining margins
4. Shrinking iPad sales
5. Overhyped Apple Watch
6. Inability to innovate
Read more in the full article here.
MacDailyNews Take: Let’s all gather ’round to gawk at the village idiot, shall we?
Some advice for Cohan: When you do not understand a subject, it’s best to write about something else; something you understand. You know, like protective helmets and drool cups.
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1. Expensive stock – by what standards? P/E is reasonable, even low.
2. Tumbling smartphone prices – for everyone but Apple, who notched a significant increase with the 6 plus
3. Declining margins – for everyone but Apple, who increased gross margin last quarter
4. Shrinking iPad sales – yes, but this is not a new trend, and it must be considered in the overall context of Apple’s business where larger iPhones are replacing some iPads. Sales of 74+ million iPhones last quarter and increasing sales in China are much more important to Apple’s business.
5. Overhyped Apple Watch – overhyped like almost every other Apple product in the past 15 years, until experience shows that it was actually under-hyped. Besides, even without the Apple Watch the company is still solid.
6. Inability to innovate – says who?? “Can’t innovate my ass!” Try “innovating” a better article, Peter Cohan.
I just looked, their PE is about 15. That is what you would, historically, expect of a company with normal growth. Under current standards, it is probably too low.
1-wrong( lower PE than average S&P)
2-wrong
3-wrong
4-right for now( but still the best in the market )
5- wrong
6- wrong
Abd this moron gets paid for writing thus bogus stuff! ?
1. Expensive stock
Wrong. Everyone saying the stock is undervalued?
2. Tumbling smartphone prices
Wrong. Reports are that Apple is selling more expensive phones.
3. Declining margins
Ok. Perhaps. But there is plenty of room here. Though some might think otherwise. Record profits.. Still in a great place.
4. Shrinking iPad sales
Ok. But the customer is not leaving Apple! iPhone or iPad? To Apple it’s left pocket or right pocket. Makes no difference to Apple.
5. Overhyped Apple Watch
Huh? How do you know that?!!!
6. Inability to innovate
What? You gotta be joking? Your mad because Apple doesn’t invent everything in the world? But they certainly take REAL inventions and make them the best. Whether they invented it or not.
So.. As we all say.. DOOMED! APPLE IS DOOMED, I SAY! DOOMED!
Quite possibly the most idiotic nonsense I’ve ever read. Every point had flawed analysis. Jaheezus what an imbecile. The guys that sold their stock Tuesday at a 3% loss from the day before were probably listening to guys like this. Then they awoke to the stock having a 7% rise at the close Wednesday. Idiots. Freaking idiots.
I just love the MacDailyNews Take’s, keep them coming MDN!!!
Real informative and great bodily structure of subject matter, now that’s user genial (:.