““Most Apple commentators focus on Apple’s hardware business, which is unsurprising given its size,” writes Societe Generale’s Andy Perkins in a note to clients Wednesday,” Philip Elmer-DeWitt reports for Fortune.
However, tucked away in the notes and management commentary are some intriguing details about app revenues. Using these details we calculate that apps are one of the few areas at Apple showing very good sales growth (100%+ in 2013) and are an increasingly important source of operating profits (8% of the total in 2013). We think this area is poorly understood but could be a key growth driver for Apple’s future profits. – Andy Perkins
Read more, and see the charts, in the full article here.
Sounds grand, but won’t help the stock price
Apple should offer a dividend, that will help the stock – NOT
Apple should do a stock split, that will help the stock – NOT
Just shows how manipulated the stock really is.
Where are you coming from, anonymous David?? At a post-split value of $91.86, AAPL is at a pre-split equivalent of $643. That is substantially higher than was just a few months ago and within 10% of its all-time high. You don’t have a clue.
David, David, David….chill man. The stock will soon climb so fast you will be scared. This past week has not been good to many stocks you might have noticed. AAPL is about to take off past 100. I have added as much AAPL as I can afford, and you should too.
Love to think you are right. I would put more money in if I had any confidence What makes you think it will go up?
If you think AAPL is too risky, then diversify into other investments.
Personally, I think AAPL has grown so much that its rapid growth phase is behind it, and that the future of AAPL is slow growth stock and steady increasing dividends, basically a “safe bet”. Rapid growth will be found in other much smaller companies, perhaps ones that can take advantage of Apple’s enabling technologies such as Healthkit and the App Store.
Keep doing these increases for a few more years and it could be Apps become 25% of revenues.