Hmm, What Is Apple Doing?


#1949

Apple has 40%+ gross margins. Why enter a business where 10-15% margins are best in class? It’s also a very capital intensive business. It makes more sense to pay a higher dividend and buyback shares.


#1950

There is a glut of cars. Think about it. If self driving cars actually become a reality there will be a massive reduction in cars needed and all existing cars will become obsolete… not exactly a growth industry.


#1951

What are the margins on other phone companies?


#1952

2 Stocks to Buy in September With Double-Digit Dividend Growth by Daniel Sparks of TMF is calling manch to buy double digital dividend growth stocks, AAPL and SBUX.


#1953

Big bad Trump is after your Apple.

https://www.cnbc.com/2018/09/07/proposed-tariff-list-covers-wide-range-of-apple-products-report.html


#1954

The latest round of proposed tariffs would affect the Apple Watch, AirPods and Apple Pencil, the company said in a letter to the government, according to Bloomberg, which first reported the news. Apple CEO Tim Cook had previously brushed off tariff concerns, saying he’d had conversations with Trump about the tariffs and that Cook was confident tariffs wouldn’t hit the iPhone.

Sneaky Trump. He kept his promise not to touch iPhone.
At present, I have 3 pairs of AirPods, need 1 more pair. Need to pay more now. :disappointed_relieved:
Apple Event is on Sep 12, most of the time is “sell the event”, buy after the event :slight_smile:


#1955

The only Apple product I may buy is the AirPods. iPhones seem to be getting bigger screens and that’s all. First time in a while not upgrading every year. I am still pretty happy with my 8+.


#1956

Airpods are awesome, you won’t regret buying/using them.


#1957

I am still worried they may fall off easily because the EarPods that come with the iPhones are not very secure.


#1958

Upgrade annually? You bought the annual program?

So violent? You jump around?


#1959

Yes. The upgrade program. But I may stop upgrading this year even though I have the option to.


#1960

It does not fall off from ear unless someone jumps or does not fit into ear properly. Using it for more than 6 months, never had any miss/fall. The only issue may be easy to loose the airpods. You have to remember where you kept them. Functionality is too good (compared to many bluetooth sets).


#1961

Now, Tim Cook himself confirmed impact of Tariff on them !

Apple gets hit by tariff too.

What trump is planning is just add 25% on all items coming from China (except very few).


#1962

Stock market has not priced in much negative impact from tariffs. That in turn allows Trump to ignore any impact. Now the chicken is coming home to roost. Expect more negative news from companies.


#1963

manch posted that 1 hr ago!!!


#1964

My bad, did not notice it !


#1965

AFAIK, tariff comes to effective sometime from Nov or Dec. You can buy them now…


#1966

What about iPads and laptops? Desktops?


#1967

In addition to already readied 200Bln tariffs, Trump asked to create next list for 267 blns.

https://www.nasdaq.com/article/trump-says-has-tariffs-ready-for-further-267-bln-worth-of-chinese-imports-20180907-00524

Any components or finished products, with country of origin, even dispatched from HongKong, will be subjected to 25% tariffs when it reaches US port of entry. Bloomberg said that includes golf items to big desk,…any item.

This means, HD nails, Costco furniture, walmart items, Nike shoes, Apple components, all PCB boards…etc.

Trump is just creating pressure on China, come what may kind of challenge.


#1968

and any US businesses that exploit sweat shops in China. Instead of directly attacking US companies, make China the bogeyman.

No more out-sourcing? In-sourcing?