Hmm, What Is Apple Doing?


#603

https://mondaynote.com/forking-the-iphone-c18945c8388b

What we see is Apple is doing what they do best: Taking chances. They made a risky bet with the iPhone X and covered it with the iPhone 8. The new and improved perception of Apple might come from the realization that both bets are winning, and that the iPhone X is a radically new, as opposed to a merely improved, breed of smartphone — and probably is the start of a new succession of carefully incremented future models.


#604

Again, I can only speak for myself, but I ain’t buying a new phone just because someone comes out with a new model every year. That is simply an unsustainable strategy.


#605

Well, they have over 200M people that buy an iPhone each year and growing.


#606

Money is certainly being made as we speak, but my concern is that if mostly phones are made every year and marginally better with each release, Apple becomes just another one trick pony whose lofty valuation may not be warranted. How many phones does a person really need or need to upgrade so often?


#607

AAPL’s trailing PE is 19 which is below the S&P 500 average of 24. I’d hardly call that lofty. They are also growing revenue faster than market average. If anything, they are undervalued by 26%.


#608

Perhaps, but from a consumer perspective I am already looking down the road and I am not necessarily enthused with just phones, phones and more phones. Surely, Apple may have some tricks up its sleeve (it better) but all we hear again is phones, phones, and more phones…


#610

Invest in insurance companies. Buffet does. :sweat_smile:


#611

He bought insurance companies. Big difference.


#612

Well, I meant that you guys invest in real estate, so, you buy real estate, right? :wink:


#613

I believe I shared the same concerns yesterday…


#614

Should we follow Warren Buffett or someone obscure for investment advice?

Why Billionaire Warren Buffett Is 100% Right on Apple

The fact that the iPhone 8 beat expectations ahead of the iPhone X release is “incredible” even though there were rumors that its sales were “anemic” and were obviously plain wrong, said Patrick Morris, CEO of New York-based HAGIN Investment Management.
“Apple is actually the consummate Buffett stock and is available at an attractive Buffett price,” he said.
Apple also fits the bill of a company with sizable and varied economic moats, Johnson said.

For those who didn’t follow Apple that closely, some of recent hot Apple products are: Apple Watch Series 3, Air Pods, 4k Apple TV, Home Pod, Swift, 10.5” iPad Pro

Warren Buffett is a long term investor, a buy and hopefully hold forever guy who focus on company fundamentals so short-term concerns and macro-economical concerns are ignored.


#615

Not knocking Mr. B, but Soros is dumping Apple apparently. He has done well in investing too…


#616

Yes, Buffet is doing what real estate investors do, hold forever. That’s what I read from you guys. Right?

But we are talking at a higher level, like those in the shark tank program.

By the way, I used to hear about this shark tank program and somehow, I had seen an episode of another program of a guy who would transform anything into an aquarium. It wasn’t until one day at the office they had the TV on and that program was playing when I found out what it was. :rofl:

I must have been dropped on my head when I was born. :thinking::thinking::thinking:


#617

This is fake news. Only money was made is like first two days and profit only enough to cover transportation and a cheap lunch. And some even sell it for a loss. China demand for iphone x is poor. There’s overwhelming of supplies. People are switching over to huawei big time now.


#618

Just an observation really but a really, really good brand does not roll out new versions of the same thing so fast. Hints of desperation…


#619

Apple: phones phones phones
Google: search search search
Facebook: social social social
Amazon: retail retail retail

All one trick ponies… :rofl:


#620

I know it’s almost silly. Just wait a bit…


#621

Agreed. I’ve only used iPhone for my smartphones and I am planning to switch to Android soon. Apple is going down hill.


#622

Good… hope your Samsung phone doesn’t blow up when North Korea nuked Seoul… :rofl:


#623

I am just an open minded person and willing to give other brands a try. Apple clearly is no longer the leader of innovation for phones anymore. All that wireless charging and full screen features were already rolled out by other brands months before.