“Apple Inc. wants its piece of Silicon Valley love from Wall Street,” Daisuke Wakabayashi reports for The Wall Street Journal. “The iPhone maker is the most valuable company in the world. But investors don’t value each dollar of Apple profits as highly as they do profits from several Silicon Valley peers. Apple shares trade at about 11 times its earnings over the past year, according to S&P Capital IQ, compared with 33 times for Google parent Alphabet Inc., and 97 times for Facebook Inc.”
“For the first time, Apple put a number on its user base: In the past 90 days, Apple said, roughly one billion devices – including iPhones, iPads, Apple TVs, Apple Watches, Mac computers and iPods — connected to services such as the App Store, iTunes Store and Apple Pay,” Wakabayashi reports. “Those one billion devices generated $5.5 billion in services revenue for Apple during the three months ended Dec. 26, an increase of 15% from the same period a year earlier.”
“At $5.5 billion in quarterly revenue, Apple’s services business is roughly as big as Starbucks Corp.Apple’s point: This is a big loyal base of users who will spend, heavily, on movies, apps, books, and other services,” Wakabayashi reports. “For the fiscal year ended Sept 26, Apple said services revenue totaled $16.8 billion, up 13% from a year earlier.”
Read more in the full article here.
MacDailyNews Take: Apple’s fiscal year services revenue of $16.8 billion is just about equal to the entire value of HP Inc.
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