“Because many institutional investors do not know whether to classify Apple as a growth, value, or hybrid stock, they are significantly underweight in Apple, creating an undervaluation of the company. They are waiting on hints from both the Q42014 and Q12015 results in order to paint the larger picture of the company’s future growth potential,” Ryan Jones writes for Seeking Alpha. “I believe that after Monday, this picture has become notably clearer.”
“Apple recorded $42.1 billion in revenue, up 12% y/y, and $8.5 billion in net income (or $1.42 EPS, up 20% y/y). Apple shipped 39.3 million iPhones (growing 16% y/y), a record 5.5 million Macs (21% growth, y/y), and 12.3 million iPads (declining 12.7% y/y) in the quarter, reporting Gross Margins of 38%,” Jones writes. “And while there’s a lot to dissect in these numbers, there was also a tremendous amount of valuable information one could obtain by listening to more than just the first few minutes of the call.”
“Tim Cook was pleased to announce that in FY2014, Apple sold 250 million iOS devices. That means that since 2007, Apple has sold over 950 million iOS devices in total and is on track to sell it’s billionth iOS device sometime in Q12015,” Jones writes. “While bears have reported on smartphone saturation, Apple is not seeing that story with their own data. In China, for example, 80% of iPhone 4S sales three years ago were to first time iPhone users. In the past year, nearly 50% of iPhone 5S buyers in China were new to iPhone. Even in the U.S., 25% of iPhone 5S buyers had never bought an iPhone before. In Greater China, the expansion of the middle class along with a new 4G network rollout this year, there’s a staggering upside for the company as it rolls out iPhone 6 in China this week.”
Much more in the full article here.
MacDailyNews Take: One billion iOS devices – and not a single BYGO free unit, glorified feature phone, portable television, or Chinese/Amazonian fork among them.