Someone posted in reddit (not mine) today
Title: After reading through Apple’s Q4 transcript here’s what i think about the reaction by analysts
Body: The obsession over this report is a blatant attempt to cool the stock off and lower the price of a company that is executing at the highest level, and AAPL will probably replace FANG as the stock that can cover up a shitty portfolio with its gains.
The report was very clear: Apple has built a business that has so much going for it now and focusing on how many new phones they sold is missing the point. I think they knew eventually the smart phone market was going to cool honestly because they have perfected it to the point that upgrading is not really as necessary as it used to be.
I have the Iphone XS and it can do pretty much everything you could possibly want it to: Its fast, its well designed, it’s durable, the camera is awesome, face id is seamless, and the apps can literally recognize things that they need to do before you even think of doing it yourself. It’s just… hard to really imagine needing something better, thats why their customers will pay a premium to upgrade, but really it is what the customer does with the phone and after that Apple sees a much bigger opportunity:
The apps, the music subscription, apple pay, icloud, the camera, messaging, streaming, you name it, all of that can be monetized; those aren’t as cyclical as iphone sales so they’d be stupid not to make that part of their business the focus.
People use the phone everyday, they will only shop for the phone what once every two years? Why is that 1 transaction so much more important than the other 600 days the user spends on the device. It’s like judging the profitability of facebook by how many people downloaded the app on a particular day.
Anyone that thinks the iphone slowing has anything to do with the actual profitability of the company is clueless and Cook even said if the unit number was significant in some way he would mention it so it’s not about transparency really. I think it was just something to nitpick at and distract from the fact that services, the watch, the laptop, music, pay and everything else was so strong that it can carry the business.
The guidance really wasn’t that bad either. They are expecting to hit new record profits and continue to introduce a bunch of new products to their customers.
Thought they killed it but the stock is selling off like they did something wrong. I’d be a buyer here for sure. The analyst community knows it was a great quarter and they saw a chance to get it for cheap. Cook I guess could have been an ass like Musk and told them to stop asking dumb questions, but he actually answered questions about it multiple times. He argued that if 1 unit generates more revenue than 100 used to why does it matter? It has always been a number used by the analysts to bury the company and that is probably something Cook just doesn’t want to deal with anymore.
Who cares? The company will buyback the panic any way and beat estimates again, so why are people selling the stock based on one very small part of the report? The downgrades yesterday were really suspect; I’m sure there are a few more to come, but you guys should read the report. It was pretty good.