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apple is becoming a services company, selling high margin services. This seems to be what the market is missing.

askaboutit 8y ago
Without devices to compliment its services. Why would someone use Apple Music over Spotify on android? Or appleflix over disneyflix or Netflix. Services are growing because of an established user base. Take away the hardware and they need to compete with many other companies. It’s a mistake I feel.
- MekaiGS 8y ago
  Apple services are also not very good outside of Apple's platform: Apple Music - Only major service which requires you to install iTunes to play with all kinds of funky issues. (ex: try to play an Apple music video fullscreen on a multi-screen system and all other screens goes to BLANK, I mean seriously??) Apple Maps - Not available on non Apple devices iCloud - You only pay for this when you are heavily invested on iOS ecosystem. Apple services works best on Apple products today; the real question is whether the price increase just forces your average consumers to buy/keep used/older products or they would switch to alternatives.
Someone1234 8y ago
It is possible they missed that, it is also possible that that assumption is already built into APPL's $194.17 share price. A lot of Apple stock holders are speculators who have bet big on Apple continuing to grow and expand their device and service business to even larger heights, stopping or slowing won't recoup the current bets.
- millstone 8y ago
  AAPL's P/E of 16.36 does not reflect speculation on a growth company. Compare to Google at 40, MSFT at 44, f'ing Oracle at 52...
partiallypro 8y ago
How is the market missing that? Their service revenue is almost always front and center during conference calls, and what analysts herald as Apple's future.
- tehlike 8y ago
  The reason is device sales are almost always "the proxy" to apple's future, which apple is diversifying away from. I think deep inside, people still count on device sales for the rest. Also apple cutting orders from one vendor might also be an indicator of vendor diversification.

Without devices to compliment its services. Why would someone use Apple Music over Spotify on android? Or appleflix over disneyflix or Netflix. Services are growing because of an established user base. Take away the hardware and they need to compete with many other companies. It’s a mistake I feel.

MekaiGS 8y ago
Apple services are also not very good outside of Apple's platform: Apple Music - Only major service which requires you to install iTunes to play with all kinds of funky issues. (ex: try to play an Apple music video fullscreen on a multi-screen system and all other screens goes to BLANK, I mean seriously??) Apple Maps - Not available on non Apple devices iCloud - You only pay for this when you are heavily invested on iOS ecosystem. Apple services works best on Apple products today; the real question is whether the price increase just forces your average consumers to buy/keep used/older products or they would switch to alternatives.

Someone1234 8y ago

It is possible they missed that, it is also possible that that assumption is already built into APPL's $194.17 share price. A lot of Apple stock holders are speculators who have bet big on Apple continuing to grow and expand their device and service business to even larger heights, stopping or slowing won't recoup the current bets.

millstone 8y ago
AAPL's P/E of 16.36 does not reflect speculation on a growth company. Compare to Google at 40, MSFT at 44, f'ing Oracle at 52...

partiallypro 8y ago

How is the market missing that? Their service revenue is almost always front and center during conference calls, and what analysts herald as Apple's future.

tehlike 8y ago
The reason is device sales are almost always "the proxy" to apple's future, which apple is diversifying away from. I think deep inside, people still count on device sales for the rest. Also apple cutting orders from one vendor might also be an indicator of vendor diversification.