“Apple’s recent decision to end unit reporting is evidence of Apple’s latest reinvention — into a services business,” Gene Munster and Will Thompson write for Loup Ventures. “It will take time, but this change lays the groundwork for future AAPL multiple expansion.”
“Six months ago we introduced our view of an upcoming investor paradigm shift from Apple as a hardware company to Apple as a Service,” Munster and Thompson write. “We are now in the midst of a four step transformation process: from news to knee-jerk to indifference to enlightenment.”
“From Mac to iPod to iPhone, the company has gone through several significant reinventions. Its next reinvention is beginning, as Apple transforms both its hardware and software businesses into a single unified service,” Munster and Thompson write. “In the past, when Apple entered a major transition, investor optimism initially declined, then stabilized, then improved. This process takes about a year to unfold… Late in 2019 and beyond – Investors will slowly credit the company for results in 2019 that support the Apple as a Service paradigm. Rising investor confidence in a more predictable hardware business, additive Services, and new products should result in a higher multiple for shares of AAPL.”
Much more in the full article – recommended – here.
MacDailyNews Take: Again, are unit sales figures that no other major tech company offers (or have ever offered) really worth $300 billion in market value?
As we wrote yesterday: We’ll gladly accept a nice AAPL discount sale that benefits not only smart investors but Apple’s buyback program as well. Tim Cook et al. are wise to clam up and let the manipulators and fools speciously talk down the stock in their fact-free echo chamber as loudly as possible before Apple reports all-time record holiday quarter earnings in January.
Eventually, the so-called analysts will wise up. As we all know, they’re always well behind the curve.
When the lemmings, er… “analysts” start their upgrade parade, then you’ll know the bottom has been found. – MacDailyNews, November 26, 2018
Analysts see Apple’s long-term potential despite recent overwrought selloff – November 30, 2018
Morgan Stanley projects Apple’s Services revenue to grow to $100 billion by 2023 – November 29, 2018
The pessimism and hypocrisy surrounding Apple is endless – November 28, 2018
In the darkest hour of Apple’s ‘white-knuckle period,’ some investors are loving it – November 21, 2018
Poor news curation at Bloomberg, CNBC, Reuters created misleading iPhone supply chain panic – November 19, 2018
WSJ: Apple slashes production orders for all three new iPhone models – November 19, 2018
Misreading Apple’s supply chain and iPhone XR demand – November 15, 2018
Apple: Ignore the noise – November 14, 2018
Dialog Semi says not seeing hit to demand from Apple – November 14, 2018
Don’t panic about iPhone sales just yet – November 14, 2018
Apple stock: This is not a repeat of 2015-16 – November 14, 2018
iPhone XR production cuts not due to soft demand – analyst – November 10, 2018
Apple’s Asian suppliers fall on report of canceled iPhone XR production boost – November 6, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018