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> When you have $200 billion dollars lying around and your business is dramatically undervalued, it would be practically criminal not to buy some of it back, to

by jonknee 11y ago

> When you have $200 billion dollars lying around and your business is dramatically undervalued, it would be practically criminal not to buy some of it back, to save on dividend payments if for no other reason. Who's to say Apple is undervalued? It's one of the most widely held companies and they have been so for several years. Tim Cook doesn't know what's going to happen in China. Their US sales were down in Q4 2015 and they are forecasting global sales to be down in Q1 2016. They may have been spending billions buying back shares at an all time high.

macintux 11y ago
It's hard to imagine a scenario where Apple has peaked. Even replacement sales would sustain a healthy business, and they have extremely high satisfaction and retention rates. People value what Apple offers. A global depression could hurt the company badly. Anything short of that should allow them to keep making money. A bad Apple quarter is still lots and lots of money.
- jonknee 11y ago
  > It's hard to imagine a scenario where Apple has peaked. Even replacement sales would sustain a healthy business, and they have extremely high satisfaction and retention rates. It's not that hard, their largest growth market (by far) is a huge question mark. It's tough to rely on a single product that is expected to be replaced every year. There will be a ton of pressure on the iPhone 7.
  - scarface74 11y ago
    Apple's services revenue is growing every year. As long as their installed base keeps growing or even remains stable they can make money off of their existing customers. They aren't in the position of other phone manufacturers or computer manufacturers - with decreasing margins and only being able to make money at the point of sale. It was reported that the average selling price of iPhones was up by $3 and would have been up by $80 if it weren't for currency fluctuations.
9935c101ab17a66 11y ago
If you google "is apple undervalued," you'll find a litany of articles arguing that very point. One of the clearest indicators is the P to E ratio. Alphabet PE: 35, Apple: 11 (currently)

by jonknee 11y ago

macintux 11y ago

It's hard to imagine a scenario where Apple has peaked. Even replacement sales would sustain a healthy business, and they have extremely high satisfaction and retention rates. People value what Apple offers. A global depression could hurt the company badly. Anything short of that should allow them to keep making money. A bad Apple quarter is still lots and lots of money.

jonknee 11y ago
> It's hard to imagine a scenario where Apple has peaked. Even replacement sales would sustain a healthy business, and they have extremely high satisfaction and retention rates. It's not that hard, their largest growth market (by far) is a huge question mark. It's tough to rely on a single product that is expected to be replaced every year. There will be a ton of pressure on the iPhone 7.
- scarface74 11y ago
  Apple's services revenue is growing every year. As long as their installed base keeps growing or even remains stable they can make money off of their existing customers. They aren't in the position of other phone manufacturers or computer manufacturers - with decreasing margins and only being able to make money at the point of sale. It was reported that the average selling price of iPhones was up by $3 and would have been up by $80 if it weren't for currency fluctuations.

9935c101ab17a66 11y ago

If you google "is apple undervalued," you'll find a litany of articles arguing that very point. One of the clearest indicators is the P to E ratio. Alphabet PE: 35, Apple: 11 (currently)