If 15 million phones were 6 week inventory that would mean that they were selling 30 million iPhones in China per quarter. This is not the case.
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Apple Reports Record March Quarter Results, Splits Stock 7-for-1, and Boosts Share Buyback
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If 15 million phones were 6 week inventory that would mean that they were selling 30 million iPhones in China per quarter. This is not the case.
Guys I am still confused by this 7/1 split.?? What should I do?
Lets say I have 15 shares now by June 2nd and the stock is at say $550 should I sell all my shares before the stock changes to what people are saying $75??
Or does my shares (15) increase x7? so = I will have 105 shares? and if I wanted to sell each share it would then = $75?
If someone could please help and give advice for those who already have shares what it means? should i sell before 2nd June or carry on holding?
Explain in detail please
Thanks
I suggest you get some professional financial advice when it comes to investing. You clearly are very confused! lol
The "game" hasn't changed one iota. You invest in a stock because you believe their prospects of increasing earnings are good. If you don't, then don't invest in that stock. If you don't have any idea one way or another, then don't invest in that stock. And seriously, if you have to ask what a stock split means, you'd be better off not buying individuals stocks at all. Other investment vehicles would be far more suitable for you.
Here is the quote:
15.4 million China iPhones in inventory
iPhone performance in developing markets across the board is up by double digits YOY
Strong growth and major gains in many other developing markets, too.
In Japan, iPhone sales were up 50% YOY
It's from Arstechnica Live Blog
The stock price will be divided by 7, the number of shares each investor holds will be multiplied by 7, the net will = 0 and the world will continue to turn.
People still view it as something to care about, thus an interest in Apple being included in a list of "Blue Chip" stocks.
It's silly, but as long as people care about the Dow, people will care about Their Favorite Large Cap Company being on the Dow.
Isn't this kind of like saying best hope Google doesn't go out of business?
There's no indication whatsoever that the iPhone is going anywhere, so it's a pointless statement to make.
Who are these people? Seriously, that is not meant as a sarcastic question. It was invented in the days when adding machines were high tech. Does anyone even sell a DJIA index fund? I don't know how anyone even could, as this dumb index isn't even market cap valued. And when you consider the names represented on it, the DJIA might as well subtitled "the thirty dullest companies in the markets." Not great company for Apple, if you ask me.
Current price of 524.75 ÷ 7 = 74.96
Google split at the first of this month - 2 for 1.
Pay attention!
AAPL closed down 6.95 or 1.31%. I'm not sure where people are getting their figures of 7 to 8%. AAPL reached / started at a high above 531 and ended at 524.75.
Funny you say that yet few mutual fund managers can consistently (some even once) beat the Dow. So, yes, for unsophisticated investors (not meant as a pejorative) putting $ into a DJIA ETF isn't a bad alternative to a fee heavy conservative mutual fund. It's not for me, but I can understand why it's part of people's ETF portfolio, & certainly wouldn't chide them making that investment. They could do a lot worse.
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No, dividend is adjusted at split.
Oh goodie, I've been hoping for a stock split. I was expecting a 2:1, maybe 3:1, though, not 7:1. 7:1 is definitely better from the sense that non-insitututional investors will be more inclined to buy shares, at the lower price. On paper, it should make no difference, but in reality demand goes up (and with it price) by just a teensy bit more. There's also the psychological effect of the price. If it gets too high, people can get wary and want to sell. A lower starting point can encourage more to buy.
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Elaborate please. They make an extremely successful product that continuously exceeds sales expectations and has become a cash cow. That's effin TERRIBLE!
I'm astounded at the complete lack of understanding of the financial side of Apple. This stock split by itself means nothing, and is not the reason for the after market jump in price (the earnings beat is the reason, along with the share buybacks and increased dividend payments), but the split does encourage new investments from individual investors as opposed to the large institutions who were previously the majority of those who could afford the stock. In the near term you will see a bunch of complete investing newbies pile into the stock and artificially drive the price of the stock higher, without any consideration into the fundamentals. The big boys will use that opportunity to sell, and then buy again after the bubble pops. But overall the fundamentals of Apple have held strong without any new products being released.
With that said, there are a number of other positive signs
I would not say that for the DJIA but the S&P 500. The latter is a benchmark index to be taken seriously, and one for which you can actually buy an ETF. Maybe someone does sell an ETF for the DJIA, but I have never heard of anyone buying it. Given the massive number of ETFs available these days, I don't know why anyone would settle for just the one anyway and not especially one based on such a narrow and arbitrary selection of stocks.
Will be interesting to see what they have cooking for the second half of the year. Tim made some interesting comments about iPad and was very bullish on it which makes me think they have more up their sleeve than just upgrading the processor and adding Touch ID.
Interesting to read the wide range of opinions here.
I hold a chunk of shares that I bought at an average price of about $100 and have held as a long-term investment. I bought most of these when strong rumors circulated that Steve's illness had come back strong (a couple years before he passed) and the share price tanked. I've weathered many wild ups and downs with this stock and yet hung in there. I rode it up to $700 and then all the way down to $400 as the world seemed to be convinced that Samsung was going to crush Apple. Yes I was gambling, but I was gambling with gains, not my original investment. I'm still not anywhere cashing in, but of course I feel better when the price trends steadily up. I also strongly believe that Apple is WAY undervalued. Investors don't understand Apple, because Apple doesn't make decisions like a typical public company.
Now, a split may just be a psychological thing, but anyone that argues that psychology isn't important to Apple's stock price hasn't been paying attention. I'd argue that Apple's price trends are more about psychology than hard numbers. Given that, I think the split plus the moves to return more money to investors will be huge. On top of that, I expect that Apple will release some very nice products this year and continue to make inroads in China, and that will be icing on the cake.
Looking forward to seeing how this summer plays out.
I hold a chunk of shares that I bought at an average price of about $100 and have held as a long-term investment. I bought most of these when strong rumors circulated that Steve's illness had come back strong (a couple years before he passed) and the share price tanked. I've weathered many wild ups and downs with this stock and yet hung in there. I rode it up to $700 and then all the way down to $400 as the world seemed to be convinced that Samsung was going to crush Apple. Yes I was gambling, but I was gambling with gains, not my original investment. I'm still not anywhere cashing in, but of course I feel better when the price trends steadily up. I also strongly believe that Apple is WAY undervalued. Investors don't understand Apple, because Apple doesn't make decisions like a typical public company.
Now, a split may just be a psychological thing, but anyone that argues that psychology isn't important to Apple's stock price hasn't been paying attention. I'd argue that Apple's price trends are more about psychology than hard numbers. Given that, I think the split plus the moves to return more money to investors will be huge. On top of that, I expect that Apple will release some very nice products this year and continue to make inroads in China, and that will be icing on the cake.
Looking forward to seeing how this summer plays out.
TC's reasoning was that at a split price, more investors could afford to buy apple. If I were a low_end investor that invested 10K per annum (as an example) and wanted to diversify my portfolio, apple's stock @ 500-600 price point meant that I had to be careful with my investment. It was the same with google..buy 10 shares of google or buy many more spread out (diversify)..If i wanted to put down a 1000$ on a monday morning i had to choose between google and apple..With the new split, i can buy one share of google and say 6 or 7 of apple..
Accounting practices and laws worldwide do not allow businesses to count items in inventory as "sold," or vice versa. Inventory is unsold merchandise. Sales is merchandise that has been sold. End of story.
You may be confusing "inventory" with "shipments." Shipments does not tell you how many of the items shipped from, say, South Korea to China, were actually sold. Some industry surveys estimate smartphone sales based on shipments, because it's easier to get that info. Apple reports unit sales by category, a fair number of its competitors don't.
Regardless, 15.4 million units in China inventory? You probably mis-heard. I couldn't find reference to it in the live blog (search on either "China" or "inventory"). Apple sold 43.7 million iPhones worldwide in the quarter. Apple would not have more than 1/3 of that number sitting around unsold in China alone. China contributed 20% of the company's gross earnings in the quarter. If we assume Apple has 1 month's supply of iPhones in inventory at any given time ( it's probably less), Apple would have 14.57 million iPhones in inventory world-wide. China's 20% share of that is 2.91 million.
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Edit/Update: Ars Technica must have mis-heard. The statement does not fit into the context of the surrounding information, and doesn't jibe with the MacRumors blog.
Sorry for putting their statement on your shoulders, lilo777.
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Quite correct, Inventory is stock in hand that you have on you to meet the demand..periodically you look @ your inventory to adjust production etc..