I don't pay any attention to Apple. It doesn't interest me. But have you looked to see if the float has increased in recent years. Maybe the Apple treasury is getting ready to screw its share holders by selling stock and converting it to cash while its high. They old fashioned way of accumulating cash is to make sure your income is greater than your expenses. I have heard that Apple low manufacturing costs -- I don't guess I'd want to work in one of their assembly plants -- but is able to sell their products at wide margin. That tends to put cash in the treasury unless the top exec's are taking it all in bonuses.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Apple Is Now Bigger Than The Entire US Retail Sector
- Thread starter Free Thinker
- Start date
I don't pay any attention to Apple. It doesn't interest me. But have you looked to see if the float has increased in recent years. Maybe the Apple treasury is getting ready to screw its share holders by selling stock and converting it to cash while its high. They old fashioned way of accumulating cash is to make sure your income is greater than your expenses. I have heard that Apple low manufacturing costs -- I don't guess I'd want to work in one of their assembly plants -- but is able to sell their products at wide margin. That tends to put cash in the treasury unless the top exec's are taking it all in bonuses.
Quote from Free Thinker:
apple only has a couple of hot products. margins on those products will deteriorate as they age and the market gets saturated.
That song has been sung for 10 years. Eventually, someone will get the timing right.
A better description is that Apple currently has two hot products, that have replaced earlier hot products that made equally insane levels of money, and quite possibly has a couple future hot products already in the pipeline to replace the current ones.
trade everytime they release a new product. Worked for me since i was in college. They are a marketing giant. Brainwashed a whole generation of youth to purchase their product via product placement in movies, tv-shows, music videos etc... They are eventually going to reach $700.
A lot of smart phone/tablet consumers are like this... when in doubt buy an Apple product. And all the teenagers... guess what phone they get.
Funny thing was back when i was in college it was hip to get an iphone or Apple laptop. Back when i was in high school at least 70% of the people at my school had some form of an ipod.
Apple also successfully markets this stuff abroad. They eat it up like MCDonalds back in the late 90s-00s.
Now I prefer Android phones.
My grandfather wanted to get an smart phone and came to me since i am the tech savy guy in my family. iPhone was the first phone he mentioned to me... not surprising of course. In the end, i told him to get the iphone since it had an easy learning curve (ie 1 button).
It ultimately depends on what they do with their excess cash...
A lot of smart phone/tablet consumers are like this... when in doubt buy an Apple product. And all the teenagers... guess what phone they get.
Funny thing was back when i was in college it was hip to get an iphone or Apple laptop. Back when i was in high school at least 70% of the people at my school had some form of an ipod.
Apple also successfully markets this stuff abroad. They eat it up like MCDonalds back in the late 90s-00s.
Now I prefer Android phones.
My grandfather wanted to get an smart phone and came to me since i am the tech savy guy in my family. iPhone was the first phone he mentioned to me... not surprising of course. In the end, i told him to get the iphone since it had an easy learning curve (ie 1 button).
It ultimately depends on what they do with their excess cash...
none of this stuff matters right now but it will eventually:
Since December 31st, Appleâs market value has increased by $172 billion, which is roughly the size of Johnson & Johnson, a large, well-established, innovative healthcare and consumer products company with a 125-year history. Johnson & Johnson has enjoyed many successes, has reinvested high levels of profit and is investing to expand its divisions, products and businesses. Apple attracted the same amount of investor capital in two and a half months that Johnson and Johnson attracted in its entire 125-year history.
â¦
Apple launched its first iPad in April 2010 and is now on its 3rd version, so the iPad has about a two-year shelf life for the company (it might milk a few more years out of each version, but the companyâs business model is to continually launch new product iterations and slash prices on the older versions). Though itâs not disclosed in the financials, a guess would be that the new iPad will sell 26 million units its first year and 14 million in its second. If each version of the iPad earns $260 per unit, then Apple investors can expect somewhere in the range of $10 â $15 billion in total pre-tax profit for this newest version of the iPad. Unless investors thought Appleâs stock was way too cheap before the new iPad announcement, they seem to be expecting much more value to be delivered to shareholders from the iPad launch than can be reasonably be delivered by sales of the iPad device itself. The $172 billion increase in the companyâs value far exceeds the approximately $15 billion that will come from the iPad, so it will have to come from something else. We donât know yet what that âsomething elseâ is.
When we look at our cash flow models, assuming Apple can maintain its current operating margins (a heroic assumption in the face of increased competition in the tablet market), to justify the current stock price, it appears to us that Apple will have to sell about $2.6 trillion worth of total products and services over the next ten years. Last yearâs revenues (for the fiscal year ending 9/24/11) totaled $108 billion. If Appleâs margins shrink, it will have to sell a lot more. This level of Apple product sales will make up almost 1.5% of U.S. GDP (of course it also sells products outside of the U.S.). That means that with the average GDP per capita in the United States being around $50,000, each person must spend $750 on Apple products and services annually (since 30% of sales are domestic, this means that about $225 per U.S. citizen would go to Apple every year). Since not all 310 million people in America use Apple, those who do need to spend a lot more and the vast majority of those sales will need to be on devices because iTunes sales do not bring much profitability.
Since December 31st, Appleâs market value has increased by $172 billion, which is roughly the size of Johnson & Johnson, a large, well-established, innovative healthcare and consumer products company with a 125-year history. Johnson & Johnson has enjoyed many successes, has reinvested high levels of profit and is investing to expand its divisions, products and businesses. Apple attracted the same amount of investor capital in two and a half months that Johnson and Johnson attracted in its entire 125-year history.
â¦
Apple launched its first iPad in April 2010 and is now on its 3rd version, so the iPad has about a two-year shelf life for the company (it might milk a few more years out of each version, but the companyâs business model is to continually launch new product iterations and slash prices on the older versions). Though itâs not disclosed in the financials, a guess would be that the new iPad will sell 26 million units its first year and 14 million in its second. If each version of the iPad earns $260 per unit, then Apple investors can expect somewhere in the range of $10 â $15 billion in total pre-tax profit for this newest version of the iPad. Unless investors thought Appleâs stock was way too cheap before the new iPad announcement, they seem to be expecting much more value to be delivered to shareholders from the iPad launch than can be reasonably be delivered by sales of the iPad device itself. The $172 billion increase in the companyâs value far exceeds the approximately $15 billion that will come from the iPad, so it will have to come from something else. We donât know yet what that âsomething elseâ is.
When we look at our cash flow models, assuming Apple can maintain its current operating margins (a heroic assumption in the face of increased competition in the tablet market), to justify the current stock price, it appears to us that Apple will have to sell about $2.6 trillion worth of total products and services over the next ten years. Last yearâs revenues (for the fiscal year ending 9/24/11) totaled $108 billion. If Appleâs margins shrink, it will have to sell a lot more. This level of Apple product sales will make up almost 1.5% of U.S. GDP (of course it also sells products outside of the U.S.). That means that with the average GDP per capita in the United States being around $50,000, each person must spend $750 on Apple products and services annually (since 30% of sales are domestic, this means that about $225 per U.S. citizen would go to Apple every year). Since not all 310 million people in America use Apple, those who do need to spend a lot more and the vast majority of those sales will need to be on devices because iTunes sales do not bring much profitability.
is $ 462 billion supposed to be a lowball debt number for a cutting edge capitalistic contry laden with towering skyscrapers, natural resources and visionary entrepreneurs?Quote from highballs:
How BIG is APPLE?
http://www.cnbc.com/id/46606766/
The country of Greece has been in the international spotlight in recent years for its overwhelming debt load and potential for default that could rock international financial markets. Austerity measures in the country and international pressures for financial reform have sparked widespread riots and strikes as the country tackles its debt problems. Greeceâs debt is estimated at approximately â¬350 billion, or $462 billion â just under the total market value of Apple.
:eek: