Apple's growth in China has been impressive, writes Morgan Stanley's Katy Huberty, but it's also been constrained, as Chinese hold onto phones longer, and by competition in cheaper phones from Android-based vendors, but she expects it all works out okay for Apple because it still has a lot of customers who haven't bought the latest iPhone.
Apple for the first time ever took more than half of industry revenue of smartphones, according to research firm Strategy Analytics, thanks to rising prices for iPhone that make the business a "cash machine."
Cisco shares are on the march as bulls conclude growth is back like they'd hoped, Applied Materials is also going higher as it joins Cisco in boosting capital returns, Apple's sales into China are important, even if this year is not the "super cycle" some wanted, says Morgan Stanley's Katy Huberty, Broadcom management feel Qualcomm didn't really "engage" with them, according to a Reuters report, Salesforce is up on an upgrade from Jefferies's John DiFucci, who sees a pick-up in corporate buying, and NetApp has some explaining to do about its margins but you'll have to wait until April 5th.
Apple is not a market-share dominating firm, writes Guggenheim analyst Robert Cihra, it's a company trying to peel away the most valuable parts of markets for itself, which makes him bullish about its "Other" products, including Apple Watch, which is approaching $10 billion, and the recently released HomePod speaker system, which could gain capabilities and spur new form factors, he thinks.
Apple's rumored talks with a Chinese state-backed memory-chip facility to procure NAND is among positive signs for the chip equipment industry, and could be a validation for China's nascent chip industry, says B. Riley's Craig Ellis.
Apple (AAPL) shares are down 40 cents at $162.32, as the company goes into its annual shareholder meeting today, prompting a couple of observations from the Street. Proxy materials are available on Apple’s investor-relations website. The two proposals presented by shareholders are for Apple to lower the barrier for shareholders to nominate board members, and […]
Rosenblatt analyst Jun Zhang writes attention should now turn from Apple's financials to its product outlook this year, including prospects for an almost bezel-less iPad Pro, and a smaller, cheaper version of Apple's HomePod speaker system, mostly confirming rumors that have swirled in the gadget press of late.
Snap shares have increased in value by a third following Tuesday's earnings upside surprise, Twitter is catching a bid as well after a Deutsche price target increase, several earnings results are being bid up including Cognizant, Akamai, and New Relic, and Goldman Sachs wants to lend you money to buy iPhones.
Skyworks offered a lower-than-expected forecast for quarterly results, but both bull and bear said the company's management is carrying out its duties "flawlessly" given all the challenges, including lower-than-expected Apple iPhone sales, and a slowing market for smartphones in China. A bump up in the company's capital returns is also something to cheer.
Apple's plan to bring its net cash balance to zero, or near zero, will seriously reduce liquidity, but that's not a worry, says Moody's, as the company's buckets of cash flow and its paying down of debt will still leave it with a balance sheet that is "robust."
Shares of Lumentum are higher by 20%, and are helping to lift the entire optical complex, amidst an upbeat outlook for VCSEL lasers for smartphones, Skyworks despite missing with its forecast as it talks about wins in top-tier smartphones later this year, Cirrus Logic slipped as Apple's iPhone shortfall affects its fortunes, and Micron Technology's new finance chief could help the company boost its multiple.
Broadcom and Qualcomm are both set to lose in a major way in the next iPhones, speculates Romit Shah of Instinet, as Apple is poised to dump Qualcomm modems for Intel's, and some models of iPhone may replace Broadcom's wireless filter technology with chips from Qorvo, in a bid to cut the cost of the iPhone.
Qualcomm got an increased bid from Broadcom of $82, sending its shares slightly higher, but CNBC suggests Broadcom could be setting itself up to simply walk away, PayPal and Sprint got upgrades, while GrubHub is at risk from Uber incursions, Amazon could take a serious bite out of Alphabet's advertising dollars, and Synaptics could benefit from more LCD-based iPhones and fewer OLED models.
Bernstein's Toni Sacconaghi, cutting his rating on shares of Apple to the equivalent of a Hold, says he's not impressed with talk of a big buyback, saying that was already pretty much indicated in Thursday evening's conference call with Apple CFO Luca Maestri, and so it leaves little in the way of a "catalyst" come May.
Jim Suva of Citigroup predicts the company could buy back up to $300 billion worth of its shares over time, as its cash is freed up by U.S. tax reform, making the value argument for the shares in an appearance on CNBC.
Amazon and Sprint are the heroes of earnings season this morning, while Apple and Alphabet both decline, and VMware is the subject of Michael Dell's many potential possible actions, while small-cap tech company Impinj gets even smaller after warning about revenue and saying its CFO will depart.
Few on Friday morning were talking anymore about a "super cycle" for Apple's iPhone sales, after its report and outlook Thursday afternoon fell short of Wall Street's expectations for volume of iPhone sales. But several bulls found other things to love in the results.
Apple will deploy all of its remaining net cash balance, $163 billion, in "capital allocation," said CFO Luca Maestri in a conference call with analysts. An FT report quoting Maestri said that might also include M&A.
Shares of Apple slumped in late trading as its quarterly results beat, but, as expected, the outlook for revenue came up short. CEO Tim Cook noted the company's iPhone X beat the company's expectations and was its top-selling model, and disclosed Apple now has 1.3 billion devices active in the world.
Cypress Semi, a supplier of chips for Apple's iPhone, among other things, saw its shares rise in late trading as its quarterly report and forecast both topped analysts' expectations.