Yeah, a company equipped with its own compiler, operating system, tool chain, API framework, even programming languages and many other not-so-profitable developers teams, earns at least my respect, compared to other 'manufacturers'.
W, Apple's ongoing success shows a huge population disagrees with you, that does not make them fools. The value of Apple's products is what people are willing to pay. There is more to great products than the BOM cost.
Of course, Apple always exceeds their own guidance. The analysts are the people who were coming up with earnings expectations far above what Apple indicates.
So, I've never understood this: the company beats its guidance, but doesn't beat the random numbers pulled out of the analysts' asses, and then the stock price gets punished?
Wall Street analysts are idiots. But we already knew that.
I believe the cash number is $137B, which represents almost 1/3 of it's share price.
The last paragraph of the story is of course history, but a really remarkable history -- "Apple's quarterly revenue of $54.5 billion was up 41 percent from the previous quarter and up 18 percent from the year-ago quarter. Apple's net profit for the quarter was $13.1 billion, or $13.81 per share, up 60 percent from the previous quarter and roughly flat with the year-ago quarter."
The fearful are dumping their shares at a huge discount, on a stock that was arguably already under-valued. I am anxiously waiting for a local minimum...
I don't pretend to understand financial markets but it seems to me Apple stock at it's current PE (price to earnings) ratio of about 10, is a relative bargin to the PE ratio of the S&P 500 index, currently at well over 16. It would seem to be a buying opportunity. Especially when you consider Apple reportedly has over 100 billion dollars in cash sitting around.
Another "bubble" bites the dust ??
Bubbles are inevitable when amateurs have access to day trading.
But even for them Apple's weaknesses ( total dependence on Suppliers / Competitors for critical components and technology, very little "secret sauce" that can't be replicated ) are finally sinking in.
To be able to get away with their high markup and maintain stock value, Apple needs totally new revolutionary products every 2 to 3 years.
Its been 3 years since the iPad.
Those are the analysts who brought the world economy to its knee a few years ago. Don't worry, you will have them as companions for many years to come. People like the CEOs of BoA, JP Morgan Chase, City Group, Goldman Sachs will keep feeding on the middle class in USA until the once-great nation becomes a ruin, all under the umbrella of free economy or whatever sound grand!
You are wrong. Apple's current lines of products are nothing innovative about. On the other hand, there will be many fools on earth who are willing to pay Apple $1 but are happy to get only $0.6 worth of goods (relative to other device makers like Nokia and Samsung) cents in return.
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