Tag Archive: apple

Should We Buy Apple’s Stocks?

Apple’s stock briefly broke the $100 barrier in previous trading session before falling back. Considering that its stock had reached more than $700 in 2012, this fact may not look too surprising. However, we should consider the fact that Apple implemented a “7 for 1” split this summer. The increase in price is fueled by a couple of products, the iWatch and iPhone 6 smartphone. The company hasn’t provided any confirmation about these devices and we can’t even be entirely sure that the company’s next flagship will be called iPhone 6.

Although less frequently mentioned, investors should also add the effect of iWatch into their calculation. However, some analysts say that the smatwatch won’t debut until 2015.

At the moment, experts advise investors to load up before Apple launches its new devices. It is believed that the stock could go until up to $120 sometime next year. Investors are clearly enthusiastic about this fact and Apple’s mojo is usually back on September each year, the most probable time of release for new iPhone model. By market cap, Apple is the largest company in the world and it still dominates the mobile market.

It’s clear that Apple’s investors will have a wonderful 2014 and probably a better than expected profit. Apple has shown itself as a fantastic opportunity again and again. Rumors say that there will be two iPhone 6 models released next month, a standard 4.7-inch model and a phablet-sized 5.5-inch model. The release of two premium models will potentially drive the company’s finances and ultimately its stock price at the latter months of the year. Here are things to consider before we purchase Apple’s stock:

  • Availability of higher tier model: The iPhone 6 with 5.5-inch display is likely a more expensive model than the smaller 4.7-inch version. The larger model will be more appropriate for multimedia consumption and playing games. It means, users would likely need to purchase variants with higher internal storage to store all the content and apps. iPhone units with higher internal storage are known for their higher margins and this contribute significantly to Apple’s profitability. It should also be noted that Apple finally has the ability to stand up against Android manufacturers that have released so many phablet models in the market. This fact should bode well for higher selling prices and increased unit shipments.
  •  iPhone 5S and iPhone 5C will be attractive low-cost models: With the release of two iPhone 6 models, Apple will designate the Apple iPhone 5S as a mid-range model. It will be available on-contract for $99 with a new 2-year contract agreement. The iPhone 5C will be a low-cost alternative of the other more powerful models and carriers may soon offer it for free also with 2 year contract. Regardless of its older design and smaller display, the Apple iPhone 5S is still attractive for consumers this holiday season with its Touch ID scanner and premium metal chassis.
  • Price reductions: Although Apple continues to sell high number of mobile devices, the company often drives sales growth through price cuts. In recent quarter, Apple made the iPhone 5S $20 cheaper at $561. This strategy may decelerate sales growth and this could be reflected by the slight reduction in stock price. For this reason, investors should be aware about when Apple will lower the price of both iPhone 6 models and this could take place on spring/summer 2015.

Throughout 2015, Apple will be able to consistently increase its iPhone, tablet and probably, smartwatch shipments. This will ensure near-consistent increase of stock price. It’s also interesting to know that Apple still offers a huge buyback program, so we should be rather enthusiastic for things that may lie ahead.

Do you currently invest in Apple Stocks? Do You plan to invest? Answer the poll below:

As the saying in the World Wide Web goes no juice they are all tablets. Your head buzz from all the beatings it got from those oozing press releases about the latest in iPad, the wonder Kindle Fire and the lukewarm Blackberry Playbook. They may be all tablets but each is a tablet on its own.

Let’s take the apple iPad this is the great old ancestor of these trendy tablets; trust apple to always come first in anything techy. This is the one most desired by many technology savvy personas including yours truly. There are so many things you can do with this apple iPad away from your desk tops and laptops that you’ll feel bereft without it after owning one. The only con for the apple iPad is it doesn’t support Flash. All the others; uses Flash on their tablet. One other thing is it has no front facing camera and cannot support video chat. This also has no support for sending messages because it can only connect to Wi-Fi and not to 3G.  You can never multi task with an iPad.

Then let us do the kindle fire turn in the pit. Grilling the kindle fire will reveal flaws or heighten its spitting image more. The kindle fire by Amazon the newest addition to the family is still in infancy or shall I make it a little mature “a kid”. Amazon’s first tablet the kindle fire has been recently launched in the market without much ado, unlike the buzzing electrifying wait for the release of the iPad. This latest genetic generation of the tablet has a promising future or like the rest of Amazon’s wonder child will die a slow death. This is powered by Amazon’s promise that battery life is akin to immortal’s life or somewhat a little lesser. This is also supporting the Flash which apple has banned for their iPads. This also sports the Amazon’s latest browser that makes downloads a breeze.

We’ll do the blackberry playbook last but not as the least. This tablet shows a lot of multi-tasking features. Its speed makes email sending and updates like an expressway cruise. Managing accounts and communication is a love dance. This blackberry playbook belies its name but validates every online workers dream. This packs all the jack of all trades productivity dream. This features the most ultimate in reliability operating system. Just connect your blackberry smartphone with your blackberry playbook and use the smartphone as keyboard and mouse. With your blackberry playbook you can send messages and video chat. And you have to go visit someone in the great rural wilderness who is out on vacation you wouldn’t get lost with it GPS navigation system. This is great for business and work.

You have one or the three; nothing else you’ve missed. One is slightly higher priced than the other and one offers lesser features. Just choose what work best for you and go buy the hottest addition, the slightly hot or the ultimate hot. Which is which it’s up to you.

 

 

 

 

With the current happenings in the world of IT and the impending release of Windows 8, Microsoft may be able to jump up and eventually keep at pace with its competitors. As it is, the publicly listed company is lagging behind giants like Apple, Samsung, and Google. However, since Microsoft is not seen to take a slice of the Android platform, developers are inclined to take the company as a possible alternative, especially since the Bill Gates firm is not in any way connected with the ugly fight for the Android market.

Microsoft had already taken a slice of the tablet pie by offering its own Surface tablet. Although its competitors are waiting for it to fail, stock market investors are waiting for the effect of Windows 8 release. As always, the pessimists believe that Windows 8 is a massive failure although it hasn’t even been released yet. But, investors will have to decide even before Windows 8 is released. If they don’t see any value in the new Windows 8 operating system, stock market prices will surely fall. Currently, the price has risen by as much as 19% this year but it failed in comparison to Apple’s 60% increase in the same period.

Experts are predicting that Samsung and Google will suffer losses in terms of market share and there’s a possibility that the new Windows 8 will rake in a conservative $8 to the company’s stock market price, which represents a 26% increase in share price. But with the impossibility of foretelling the future, no one really knows how Windows 8 will fare. However, there are signs that it will be the company’s best OS since Windows 95. Microsoft is also to set to conquer smartphones and tablets. Windows 8 is said to be the OS of choice for Microsoft’s Surface tablet and will compete against Apple’s iPad and similar devices from Dell and Hewlett-Packard.

Aside from the effect of Windows 8 on the company’s share price, it is also interesting to note that Microsoft has huge $29 billion free cash on its coffers. It is expected that the 2.6% dividend yield will also increase by fall. With this, the value of Microsoft’s share price and value will also increase. The free cash is really not unexpected because Microsoft does have large gross margins.

Recently, the company has received a lot of flak for its decision to write down a Quantive’s value by $6.2 billion. It can be remembered that the online advertising agency was bought by Microsoft for $6.3 billion in 2007. However, its purchase of Skype in 2011 for $8.5 billion may have been a better decision.

With about $70 billion in revenue and $22 billion in operating income for the 2012 fiscal year which ended in June, investors are expecting more than the usual 80 cents dividend per year. Therefore, with solid cash in Microsoft’s coffers, experts are predicting that even if Windows 8 doesn’t perform above par, the money generated by Microsoft due to its high gross margins is enough for investors to be confident about their earnings from the company’s stocks.

The release of iPhone 5 last month had already surpassed web traffic volume of Samsung Galaxy S III. This is primarily because in such a very short time Apple had sold millions of iPhone 5. Add to that the fact that iPhone 5 is equipped with 4G browsing speeds thus escalating data usage to greater heights. In a 7-day Chikita Insights analysis between October 3 and October 5, there were 56% Apple iPhone 5 impressions as compared to 44% Samsung Galaxy S III impressions. According to Chitika, the reason behind it is that iPhone users are more active internet users.

For the last 1 year, Apple posted a $40.13 billion net income and $148.81 billion revenue. It had posted a net profit margin of +26.97% and operating margin of +35.62%. There was also a 41.16% sales growth during the recent 5 years. Apple was +74.55% ahead of its 52-week low while trailing -10.44% behind its 52-week high price. However, its 1.2% share price volatility had remained stable.

With more than 5 million iPhone 5 units sold when Apple started selling in September, iPhone 5 is now regarded as the quickest selling cell phone of all time. But analysts projected the sales to be from 7 to 10 million units on its 1st weekend. This also caused the stock market price of Apple to dip by 10% which is translated to some $60 billion market capitalization. The culprit is iPhone 5’s anodized aluminum chassis which is reported to be easily scratched. However, the decline in number of units is reported to be due to Apple’s inability to keep up with the demand. Bloomberg said that the supply issue is caused by Foxconn’s quality control crackdown to minimize the scratches issue. Foxconn is Apple’s chassis maker and assembler in China.

When asked about the issue, Apple was reported to be saying that the scuffs and scratches are normal. Without publicly admitting iPhone 5’s flaw, it has however asked Foxconn to guarantee that all the units are shipped in perfect condition. Nevertheless, ensuring top-of-the-line quality control is just a temporary solution because the units may be shipped in perfect condition but may still be easily scratched because of daily use.

Foxconn is now instituting tighter quality control. Because of this, there’s a shortage in aluminum chassis for all production lines of Foxconn to produce output. According to Bloomberg, Foxconn had even stopped its operation in some factories but the company was quick to deny it. Eventually, Apple and Foxconn will be able to resolve the anodized aluminum chassis issue but analysts still predict that Apple won’t be able to deliver a lot of units from September up to December.

iPhone 5 is believed to pressure Apple’s competitors. Sterne Agee analyst Shaw Wu is quoted into saying that demands for Apple phone can easily go up to 45 million before the year is over. Mark Moskowitz, a JP Morgan analyst, assumed that iPhone 5 will be able to drive an upgrade cycle for the next 18 months.

Week Ends in a Rally

Stock Market Rallies for Second Week in a Row

by Idea go

I apologize for the lack of updates the past few days, my scheduling had me beat and I was unable to post updates. But now, I bring you good news at the end of this Market Week. The Stock Market rallied for the second week in a row and it is great news for us.

The Dow Jones today gained 166 points, adding onto yesterday’s rally. Although it dropped a little on Wednesday, it was not enough to stop the market from ending the week in the positive. The Dow currently sits at 11,644. We haven’t seen this number in a while because in the past, it seems that whenever we get close to a number this nigh, something happens in Europe and we all end up paying for it.

The NASDAQ Composite gained more than 47 points, or 1.8%. It currently sits at 2,667. The S&P 500 gained almost 21 points, or 1.7% and currently sits at 1,224. And the NYSE gained over a 121 points, and it sits in at 7,350 at the end of this market week.

This week has definitely given us a great push towards the 12,000 mark. Hopefully the momentum from this week doesn’t stop here and carries over to the next few weeks. It will give investors a great deal of confidence if the Dow can go back over the 12,000 mark, something we haven’t seen in months.

Gold has also been holding steady over the past few weeks between the $1,600 and $1,700 marks. Currently gold costs $1,680 an ounce. Surprisingly, the price of gold has gone up recently along with the stock market. Generally, they tend to have an opposite effect on each other. As the stock markets rally, gold usually drops, and vice versa. But this week was a bit peculiar with the price of gold and the stock market rally.

As predicted earlier, Apple (AAPL) has bounced back pretty well and has set new records over the past few days. Currently, apple costs $422 a share after gaining $13.57 a share, or 3.32%. Steve Jobs has left behind a great and very strong company and even though many investors and consumers felt as if Apple wouldn’t do as well without Jobs, many others knew that Apple was too big to be brought down. Apple will continue to thrive and I believe we will see this stock set bigger and better records for itself.

I am glad to be able to bring you some good news at the end of this market week. Hopefully things continue to go up in the coming weeks. What are your thoughts about what happened in the past week?