Post Tagged with: "Apple"

Economic and market themes: 2014-07-25 Ukraine, China, Japan, technology overvaluation

Economic and market themes: 2014-07-25 Ukraine, China, Japan, technology overvaluation

Ukraine is at risk of becoming a failed state
China’s growth is due to stimulus
Japan’s macro figures worsen
Microsoft’s strategy is weak
Facebook is overvalued

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Apple’s shift into China shows the company’s masterful execution

Apple’s shift into China shows the company’s masterful execution

Apple’s Q3 2014 earnings report yesterday was a mixed bag in terms of actual results. But from my perspective the results show a company that continues to execute its strategy well given the onslaught from cheaper handsets using the Android operating system. Apple posted a smaller-than-expected 6% gain in quarterly revenue due to sluggish growth in saturated markets in Europe and North America. But revenue in China surged 28% despite Apple’s premium pricing. Apple’s growth days are over in developed markets. But I have been upbeat about Apple’s results because of the China strategy and this report shows that Apple’s growth has some momentum, mainly because of that market. Some figures and comments below.

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The mobile handset clone wars have arrived

The mobile handset clone wars have arrived

The last earnings report from Apple was good on many fronts. While I was concerned with the dip in sales everywhere outside of the iPhone, Apple’s iPhone sales showed great promise, both in terms of unit sales and average selling price. But I believe this is a blip. Downward pressure on margins will continue on Apple, Samsung and elsewhere. The mobile space’s clone wars are now beginning.

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US rents surging, technology competition heating up

US rents surging, technology competition heating up

Today is going to be a bit of a roundhouse review of issues in the news rather than a single topic daily newsletter because a lot of different things are creeping up on us that I haven’t highlighted. So I want to touch upon some of the links we have seen recently. Issues are housing and technology

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Why T-Mobile’s John Legere will continue to shake up the telecom industry

Why T-Mobile’s John Legere will continue to shake up the telecom industry

I have developed a great respect for T-Mobile as a wild card in the mobile space. Their actions as the smallest of the 4 major US mobile carriers are having implications both in terms of telecom pricing and revenue models and in terms of handset subsidies and net margins. The net benefit will accrue to customers. The question is whether a Sprint takeover ends this dynamic and what impact it will have on share prices in the space. Thoughts below

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Review: How My Ten Surprises for 2013 Fared

Review: How My Ten Surprises for 2013 Fared

In 2012, I started the subscriber newsletter out with Ten Surprises for 2012. The goal was to give Credit Writedowns Pro subscribers a list of things that investors only assigned one in three odds of occurring that I believed had a fifty percent or better chance of occurring. So if I was right, then I should get 5 out of ten predictions correct, while 3 to 4 out of ten should have been expected by investors. Last year, I graded myself at 7-3. Let’s see how I did this year.

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On the Moto X and Android domination

On the Moto X and Android domination

The new flagship phone for Motorola, Google’s mobile hardware subsidiary, the Moto X has grabbed the tech industry’s attention. It is made in the US and comes with a lot of flashy customization features. I think the phone is a bit disappointing. But it won’t matter because the Android ecosystem is so large now that its momentum cannot be stopped.

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Google latest moves in mobile are its most important yet

Google latest moves in mobile are its most important yet

Yesterday I wrote up a review of Apple’s earnings. And while the earnings are declining, Apple is still in pole position in the mobile space. Nonetheless, Google’s product unveiling yesterday was huge because the various products in handsets, tablets and for TV show that Android has entirely closed the gap with Apple. Today I want to review why this is so important.

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With Apple’s earnings declining, emphasis is on returning cash to investors

With Apple’s earnings declining, emphasis is on returning cash to investors

Late in January, I predicted why earnings contractions were coming for Apple in 2013. And since that time, Apple has indeed shown back-to-back quarters of earnings decline, with the announced earnings yesterday much lower than in the comparable quarter in 2012. This will be the new reality for Apple for quite a while, one reason the company must continue returning money to shareholders.

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Apple: Tax gimmicks could hurt the brand

Apple: Tax gimmicks could hurt the brand

One of the striking aspects of the Senate Permanent Subcommittee on Investigations hearing on Apple’s aggressive tax-avoidance strategies is the way the Senators bent over backwards to declare Apple love even as they poked and prodded at the tech giant’s various, um, devices. Being an icon of US tech prowess, even if the halo is slipping, will do that.

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Amazon and the benefits of low prices

Amazon and the benefits of low prices

I have been meaning to write a blurb about Amazon ever since I saw a great article on the benefits of Amazon’s low-price strategy a month or so ago. But a recent article in the Wall Street Journal about huge price cuts on Amazon’s top-of-the-line tablet has finally galvanized me into action. Here are my thoughts.

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Samsung Galaxy S4: Relentless Android product cycle will hurt Apple

Samsung Galaxy S4: Relentless Android product cycle will hurt Apple

In the mobile world, everyone seems to be in a frenzy over Samsung’s next Galaxy smartphone. Apparently, Samsung is the new Apple, where product launches are media events par excellence, marketed to build anticipation. However, while everyone is focused on the Samsung – Apple duel, the launch is verification for me that the relentless Android product cycle will be difficult for Apple to overcome.

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