“There’s a lot of hullabaloo right now about the prospect of Apple Inc. building its own electric car,” Jeff Reeves writes for MarketWatch. “Big freakin’ deal.”
“This electric car will never impact Apple’s bottom line within the next 10 years,” Reeves writes. “No, don’t say ‘unlikely’ — it will NOT add up to anything for Apple investors in the next decade. Period.”
“Apple racked up $74.6 billion in revenue last quarter. In roughly the same period, iconic electric car company Tesla Motors recorded $957 million in automotive sales. So even if Apple could instantly sell as many cars as Tesla, those sales would add a measly 1.3% to total revenue next quarter,” Reeves writes. “So forget the iCar. If you want to buy Apple, make sure it’s because you believe in the iPhone, which accounted for two-thirds of revenue last quarter. Or make sure it’s because you believe in the tens of billions being spent on dividends and buybacks, driving real value to shareholders.”
Read more in the full article here.
MacDailyNews Take: Reeves just assumes it’d be a plug-in electric car. The lack of imagination and the willingness to blindly leap to conclusions in stunning. Do not make investment decisions based upon potentially faulty conclusions based on possibly incorrect assumptions.
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