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Apple Disputes Goldman Sachs Analyst Report Claiming Free Year of Apple TV+ Will Impact Earnings
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He's just trying to cause a dip in the stock price so that those who want to buy in at this price can.
Market manipulation.
If it’s only Apples exclusive content on the service it will be a tough sell... but won’t there be all the other series and movies that you can find on other streaming services?
Agree. Brilliant - if not uncharacteristic - move by Apple. Why not leverage the slew of users upgrading handhelds right now, as well as others acquiring new gear between now and the holidays, and get them hooked on Apple TV+? Its drug dealer 101: give out samples and wait for the zombies to roll in.
Your Apple Pass concept could also be an interesting/a powerful way to bring more users into the garden. Details aside (obvi)... With several Apple devices (iPones, iPads, laptops, desktops, multiple ATVs, etc.) in my household, I would likely be into something like this. I could see them making something like this for all Apple Card users - where it consolidate all Apple service payments into one line item as opposed to several. Dunno... Interesting concept tho.
RE: "Apple TV+ is set to launch on Friday, November 1."
Apple picked that date because it's the most-likely date for their next Quarterly Earnings Release !
As a reminder, Apple announced a year ago from that date that they would NO LONGER be providing iPhone Unit Sales at future Earnings Releases.
Apple knows its AAPL cheerleaders will promote Apple TV+ on their Earnings Release date !
These are the AAPL cheerleaders who masquerade as Pro Stock Analysts.
You know them by their last names, Munster, Ives, Huberty, & yes, ALSO Cramer.
Apple picked that date because it's the most-likely date for their next Quarterly Earnings Release !
As a reminder, Apple announced a year ago from that date that they would NO LONGER be providing iPhone Unit Sales at future Earnings Releases.
Apple knows its AAPL cheerleaders will promote Apple TV+ on their Earnings Release date !
These are the AAPL cheerleaders who masquerade as Pro Stock Analysts.
You know them by their last names, Munster, Ives, Huberty, & yes, ALSO Cramer.
Just send my tax refund to Apple, please.Why is this awkward? the public side of the firm is different to the private and advisory side of the firm.
But yes, there are thousands of analysts and associates and Vice Presidents.
Yeah technically this shouldn't even be news. But I think it's the magnitude of the potential revenue shifting from one bucket into another very important bucket is what made GS speak up. The story Apple's been crafting has been "hardware is slowing, but services are growing at an even faster pace". And I think GS is basically saying "Your overall revenue is slowing and real, pure revenue from services is actually not growing that quickly".
Goldman dude: "Free" ATV+ for a year is NOT going to be a $60/per hit against hardware margins because the ATV+ service has already been paid for. Sounds to me like someone is trying to hit the stock so they can buy a crap-ton of shares when Wallstreet panics over the report, to later rake in the dough when the "negative impact" doesn't happen.
This is the kind of BS that has turned Wallstreet into a massive gambling venture. Stocks are no longer valued based on their actual value, it's all based on "which way the wind is blowing" today.
This is the kind of BS that has turned Wallstreet into a massive gambling venture. Stocks are no longer valued based on their actual value, it's all based on "which way the wind is blowing" today.
I'm going to be it is when you "activate" the service online somewhere. But I really don't know either. Will find out in October.
Was rare for Apple to make a statement like this. Usually means they are rather pissed at a stock manipulating analyst.
This is interesting, but they will put up their prices if their devices to more then cover the costs.. Apple has more then enough money to cover this.
You really think analysts like these impact on market values? Let’s panic sell because one analyst says they’re overpriced! If many do, maybe he has a point, but I doubt it’s got anything to do with TV+; more likely the lacklustre, even more expensive (marginally) iPhones this year.
I can’t see Apple’s market share or revenues bouncing back into positive this year for iPhones.
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What are they, on drugs? it's 60 dollars off the margin of whatever apple product they are buying. They are not losing any money. You give them the shows for a year, hope they stick around for the second season where it will cost them for the first time. And then keep introducing new shows that keep people in the bay.
People pay +$1000 for a phone and they give them a $60 tv package and are going to lose money? This analyst is a fkin clown.
While I do think what he's saying is a bit of a stretch, what he's proposing has nothing to do with not being clued in to the power of the ecosystem, as you're suggesting.
He's essentially saying that Apple's margin on products sold has effectively decreased. As now, paying $1,000 for an iPhone doesn't just get you an iPhone, like in previous years. It also gets you a $60 'credit' towards the Apple TV+ service. So basically, the iPhone gets a $60 price cut.
Given that iPhone is a major portion of Apple's revenue, that $60 price cut is significant and will materially decrease Apple's accounting profitability going forward.
Bold statement for someone that, I assume, has not seen a single offering from the service
Except under ASC 606 you have to estimate how much revenue you believe you’ll get in the years after the free service expires from customers who will continue. That plays a big part in the accounting that this analyst isn’t taking into consideration.
This is a hilarious take from a clueless analyst.
I would like a detailed analysis on how exactly a service with $0 revenue today will impact earnings because they are giving it away (just a $60 retail value) for 1 year.
If have to give away a lot of free subscriptions, THEY ARE SELLING A LOT OF iPHONES too!
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I would like a detailed analysis on how exactly a service with $0 revenue today will impact earnings because they are giving it away (just a $60 retail value) for 1 year.
If have to give away a lot of free subscriptions, THEY ARE SELLING A LOT OF iPHONES too!
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They make $0 from Apple TV+ today and much of the money spent on it has already been spent. Apple has PLENTY of money to offer a free service for 12 months WITH the purchase of another Apple product.
we don't know that he did or not. You're right, but apparently the assumption he's making is that the quantum of new subscriptions will be small compared to the $60 discount charge on every single iPhone and Apple TV sold.