1) Apple did about 75% growth in YOY earnings growth in Q1 (0.65->1.14) and 85% growth in YOY earnings in Q2 (0.
47->0.87). Split the difference for the next 2 qtrs (80% growth), and they need $0.
97 at this month's announcement and $1.11 for Q4. That's $4.
09 for THIS YEAR. That's basically what the street has ALREADY PRICED INTO THE STOCK. 2) Then, for next year, FY08, _minimum_ 30% growth on the $4.
09 number, or $5.30. In FY08, not 09!
Fortunately, they will do this and a lot more...
iPhone service revenues alone on 10m subs can add $1B to the bottom line next year--that's over $1/share in earnings, just on service, over this year. And they are going to blow away 10m units--they will do that in this calendar year alone easily. Posted at 2:50AM on Jul 13th 2007 by rooster Aside from ignoring the fact that most reviews have raved about the iPhone, while listing areas for improvement, comment #3 misses the point that Apple is much more than the iPhone.
It is one of the best-known and most respected (and coolest) brand names in the world. It is a large international retail store network with substantially more $$$ worth of merchandaise sold per square foot than ANY other American retailer, plus an online Apple store. (Meaning that Apple controls a huge part of the retail experience, connecting directly with customers without splitting sales $$$ with unmotivated big-box Mac sellers.
) It is a computer hardware business growing at three times the rate of the rest of the industry. It is an iPod business and online iTunes Store with massive market share and new iPods hitting the market before the holiday sales season. It is a software business with a major OS release this fall and substantial applications releases before the end of the year.
It is a company with virtually no debt and more than $16 billion in cash and short term investments. And after all that, the iPhone has enormous growth potential as new markets come on line and new models are introduced. And Apple intends to update and improve the iPhone software regularly and painlessly, the same way it updates and upgrades iPods and Macs.
Finally, don't forget, Apple gets a share of revenue from AT T and other networks as those iPhones are used. Posted at 3:39AM on Jul 13th 2007 by Craig Ferry "Two flaws to your argument: iTV is a flop. iphone is not a "business tool" or necessity by any stretch.
It is a techo wonder that falls under descretionary purchase for amusement. Too much money for consumers to absorb..
especially with the rate of foreclosures real money spenditures. Including paying for the shares!" While it is true that nearly all of Apple's pproducts are discretionary purchases, your take on the AppleTV misses the long term potential.
Steve Jobs is on-record saying that right now this product is a "hobby and not a business". However, as of July 1st, the FCC rules stipulate that cable companies must allow comsumers to use "universal" cable boxes that utilize cable cards for authentication. The weakness right now is that a cable box not provided by the cale provider probably won't work with on-demand systems.
But, last year the cable industry agreed on an industry standard programming language for the boxes, OCAP (Open Cable Application Program), which will allow for true "universal" cable boxes. Time Warner and Comcast are already updating their systems to comply. Imagine an AppleTV that could provide content from iTunes as well as serve as a cable box and DVR.
I think a lot of people would spend "discretionary" $500-$700 for this, and I believe that this is where the AppleTV is eventually going. If Apple includes DVR service, you also would pickup recurring subscription revenue like that of TiVo. Posted at 10:27AM on Jul 13th 2007 by kevinp after what I've digested from I-mania I can say the following points.
1) my local at t store was done in 1/2 an hour 0n 6/29. they had 30 phones. They probably could of sold 100.
2)my opinion of it. I WANT ONE..
..but its too expensive.
3) it will be x-mas gift of the year. 4) so what if it is not business app. there are far more consumers then commercial accounts.
People still can write them off as a business expense. its a phone. its e-mail.
its a write off PERIOD. 5) if I-phone is as big as the rest of the product line then apple makes 5.00 a share easy.
valueline has it at 3.75 for 2008, your paying for growth not p/e. 6)safari will make a bigger impact then you think.
this will open up apple to more applications. 7) if the sales numbers are low then apple tanks, everyone is looking for 1 million, if its 400k..
.. 8)can't get service?
no keyboard? not enough functions..
.. always one knuklehead in the group isn't there.
...
Posted at 11:41AM on Jul 13th 2007 by tom Please keep your comments relevant to this blog entry. Email addresses are never displayed, but they are required to confirm your comments. When you enter your name and email address, you'll be sent a link to confirm your comment, and a password.
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Line breaks and paragraphs are automatically converted no need to use p or br tags. 1) Apple did about 75% growth in YOY earnings growth in Q1 (0.65->1.
14) and 85% growth in YOY earnings in Q2 (0.47->0.87).
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