Analyst: Apple is like a ‘freight train at the moment’

According to Ben Wood, chief analyst at CCS Insight, Apple is on an unstoppable run at the moment, like a mighty locomotive.

Analyst: Apple is like a 'freight train at the moment'

Sam Shead for CNBC:

“The interesting thing with Apple is it’s like a freight train at the moment,” Wood told CNBC’s “Squawk Box Europe” on Friday. “It’s weathered the pandemic extremely well.”

Apple said Thursday there are now 1.8 billion devices on the Apple network, referring to products like iPhones, iPads, Macs, Apple Watches and HomePods.

“That’s an astonishing install base, which gives them tremendous momentum,” Wood said, adding that he expects the number to climb past 2 billion toward the end of 2022.

MacDailyNews Take: We love train metaphors.

In a nutshell: The Apple locomotive remains unstoppable and AAPL is currently on sale.MacDailyNews, October 6, 2021

This locomotive is still picking up speed!MacDailyNews, August 20, 2021

Apple’s services business is an unstoppable locomotive that, someday, even Mr. Market might fairly value.MacDailyNews, August 9, 2017

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12 Comments

  1. “Apple’s services business is an unstoppable locomotive that, someday, even Mr. Market might fairly value”
    Apple has had its detractors on Wall Street for a decade. Bizarre.
    Wall Street likes its cookie cutter metrics. Wall Street would buy up a company losing money hand over fist if the company gave guidance that they cut the loss on half. That’s the metric they see. Many of them simply don’t look at , whatsoever, the deeper factors. If they did they’d see Apple is undervalued.

  2. There are people who don’t like Tim Cook’s politics, but he is above all the leader of arguably the world’s biggest company. And in that role, he has been brilliant. Jobs may have been the creative visionary, but Cook, having had to step into oversized shoes, has more than demonstrated his tremendous ability to make Apple what it is as a commercial powerhouse, especially since coming up with new wow-factor products is becoming more and more difficult unless there are paradigm-shifting scientific breakthroughs with consumer application. He’s also having to deal with increasingly fierce legislative and competitive headwinds. So take a bow, Mr Cook. In my book, you’re a genius at what you are expected to do.

    1. I believe in the next 1-3 years there will a few wow factor products from Apple..
      and the scientific break throughs will be of their own making as well.

  3. I’d like to know what constitutes a device in Apple’s 1.8 billion count. My old Apple Watch in my drawer? My previous 5-6 iPhones/iPads/Macs that may still be signed into iCloud and connected to wifi? AirTags? My HomePod? Millions of Apple’s customers easily own a dozen or more devices, the 1.8 billion sounds like marketing fluff. They’re doing great, but I’d be more impressed with knowing that perhaps 100 million customers own 10 or more Apple devices, or 50 million customers buy an average of 4 new devices per year, as a gauge of the “locked-in” user base. Tim kept up the tradition of fudging when asked about the Apple TV+ subscriber count on the earnings call, saying that they don’t release that number just the total subscribers for all products (which might be as little as a $2.99 iCloud sub).

    1. Are you unhappy with how they are performing?
      Apple for sure is not going to divulge competitively sensitive/critical information to the world…

      1. They don’t have 1.5 billion active users smart guy. They have 1.8 billion “active” devices (maybe) that are pinging their network. Active users definitely under 1 billion, my point is that 500 million or whatever active users with 3+ devices each is a much more impressive number than basically just stating how many devices you’ve sold in the last 5+ years. This was a quarterly conference call, not a half-decade retrospective.

    2. Devices from Apple, Google’s Android personal electronics, Microsoft’s Windows (and I’m sure others) regularly report back to these respective company’s servers with device technical/operational info. All these companies will be aware of almost every active device.
      For Apple this will include iPhones, iPads, Macs, Watches, HomePods, AppleTVs, iPod Touches, probably AirPods and any of the Beats products that contain chipsets capable of this reporting. So yes, the 1.8 billion number will include multiple devices even though one person will own a number of devices. So it is completely accurate to say there are not 1.8 billion active Apple product users. My guess at Apple active users is around 800 million (just a guess).
      To answer your other questions:

      No, it won’t include old devices that no longer operate after several months “in your drawer” as they will not be reporting technical operation info back. Though it is voluntary information Apple releases, they’d have to have a way to quantify the metric else shareholder ‘lawsuit’ will 100% be coming.

      No, Apple has no need to tell you these metrics. As a public company they are required by law to report straight financial performance. These individual metrics you ask for are voluntary, companies release them to solidify stock price. Thes metrics can and will be changed as they become a burden/turbulent to their stock prices. Example: Apple would report iPhone unit sales. This became a shock to stock price after hours and the next day. Another example on the other side: Google doesn’t report Pixel phone sales (its sales revenue is part of “Other” category). But when sales start booming they may start releasing Pixel units sold at earnings conference call. When unit sales start fluctuating and causing the stock to go insane on ER day/post ER day, they’ll probably change to just reporting Pixel sales revenue. Both examples are of companies reporting and changing reporting based on share price solidification.

  4. Apple For anyone who is wondering the accuracy of how many active devices Apple uses in their statistics

    On a daily basis I use the following devices.

    iPhone 13 mini ( My Phone)
    iPhone SE ( 2 ) As an IPod
    iPhone SE As an IPod
    iPhone 8. As an IPod
    iPhone 7. As an IPod

    iPad Air 2
    iPad Pro ( 10.5- inch )
    IPad Air ( 4th Generation )

    I’m 80 years old.
    I’m in a Spa At 6 AM each morning for 1 to 2 hours.
    7 Days a week.
    Winter weather can go down to 17° I live in Utah.

    This keeps 2 surgeons who wanted to operate on my neck after having been struck by a car by one of my students. This broke my neck 28 Yrs ago.

    I use them for:
    Reading the news. Studying scriptures.
    Religious Lessons.
    Prepare for the day with my Calendars and Reminders list.
    And Photo resources for when I paint in Acrylics

    I was a University Professor in Technical Theater for 33 years

    Designed and Built the Original Stage and Scenery for the Tony Award winning Utah Shakespeare Festival

    My wife graduated into Heaven 7 months ago. So I use her iPhone 8 for Facebook.

    1. God Bless you and your wife Mack. If I make it to 80 (a little over double my age now) I will have lived a good life. I myself use an iPhone 12 Pro Max and X, and iPad Mini 4, 2020 iPad Pro 11″, 13″ and 15″ MacBook Pros, an Apple Watch and Homepod on a daily basis. Apple threw out the 1.8 billion device number to sound good but I think the multi-device customer base is closer to 400 million, which is actually more impressive information for me as a shareholder.

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