I’m talking about the unofficial nonsense from the bill of materials estimates. Those are not margins. Margins are public information.
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Apple's Stock Sets New All-Time High
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Per 2019 June 10K Apple made 46.6% of net sales in the Americas. It made 53.4% of its sales internationally. I’d say in the upper mid and high end tiers of the smartphone and smartwatch markets, Apple is popular in the Americas and internationally.
Of course, in the lower mid and low price tiers where Apple doesn’t have product lines (yet), other brands or platforms dominate, especially in countries and regions which are price sensitive. Sadly, aside from Huawei and Samsung, the vast majority of Android vendors make little to no profits in these tiers and quite a few are losing money in their mobile operations.
If iPhones were made in the US, Apple would be forced to raise the retail price in order to retain their reasonable 38% GPM and 21% net.
In other words, iPhone manufacturing in the US will not be happening. Especially as the infrastructure and low-cost labor pool doesn't exist.
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No, that's not it at all. You are making a whole lot of narrow assumptions.
Do you recognize that things might not play out like you have predicted? You sound pretty confident that things "would be" happening and "will not" be happening. What if you are wrong?
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What "whole lot of" narrow assumptions are you speaking of? Be precise.
And, when you say "No, that's not it at all.," what is "that's" and "it?"
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Oh - you quoted me while I was editing my last post.
but my edits include referencing your "Apple would be forced" and "manufacturing in the US will not be happening" statements.
You sound definite about it. You assume that some things will be happening and you indicate why, but I can see a lot of other important factors that I think could be relevant and maybe you don't.
What you say does not convince me - and I am open to thinking through anything.
Throw some "what if" in there and run through the thought experiment again - that's my suggestion to help anyone.
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Well, having worked for a large US tech company and knowing hitting required margin targets was everything when I proposed new products (and the reasons why), and that all large companies live by their margins, I speak with some experience.
But again, what are the "whole lot of assumptions" that you assert I'm making. I'd like to know what they are.
"You assume that some things will be happening."
What are my assumptions and the "some things?"
You responded before I added to my last post again. Please go back a few messages and I think you'll see my criticism and counter point, and if it is not clear enough - it's all OK.
Oh no, I definitely still think he should resign but I've got no money invested in Apple so I've no interest in their stock price. Satya Nadella is doing a fantasic job with Microsoft and I'd love to see someone with his gusto take the helm and steer the ship in a new direction.
Generally speaking overall I would say that Tim Cook values user privacy a bit more compared to Satya Nadella. Apple does not like to share anything with governments unless forced to with no options where Microsoft is a bit different on this. Not only that but even with your own user info on your own computer of which some gets shared with their cloud servers. From there more sharing takes place
Thats what I was saying, Apple doesn’t report the total number of shares repurchased. But it does report the shares repurchased each quarter. So if you track such things, which I do, you can compile the numbers. I keep a lot of Apple spreadsheets and one of them has the shares repurchased each quarter through ASRs and through the open market. This allows me to know how many shares have been repurchased, the average price paid for them and how far Apple is effectively ahead on those repurchases.
If the number seems high to you, you probably underestimate how many shares Apple issues each year. I track that as well so the difference in the number of shares repurchased and the change in outstanding share count seems in line to me. Apple issued more than 250 million shares during fiscal years 2013 through 2018. Share issuance from the first 3 quarters of 2019 could easily bring that number up to 284 million.
You have to admit Apple is hitting the all the sweet spots on hardware, software, and services in terms of revenue. But it is reasonable to wonder how long can it last with the stalled innovation rate we witnessed in the last few years.
Innovation in areas you aren’t particularly interested in should not be conflated with a lack of innovation overall.
Xbox division, hardware, software and services (also financially if you give a crap about that, I don't). They're pushing some compelling products out there that compete well with Apple -- which is not something I ever thought I'd say. They're not without their flaws but it's a far stretch from the dark days of Steve Ballmer.
Pretty generic what you like. Software, services, hardware? Lol!
I also find it interesting people are so proud not not “give a crap” about financials of great American companies.
Don’t you people own any stocks?
You seemed savvy enough about tech to know what I was talking about without explicitly breaking down each item but that was my mistake.
Money is not a driving factor in my life. I'm happy for people like yourself that play that game but I enjoy other things.
Hard to enjoy other things without some money. I'm not saying you need to be Warren Buffett, but how do you make any meaningful progress with the power of compounding?
I don't think you're savvy enough to actually know what products you're talking about specifically or why they are great.
I looked at the numbers for your first example.
XBox sales were 11M per year in 2008, during Ballmer's time. The XBox One has hovered around 6M per year for the last 6 years and lags way behind Nintendo and Sony in terms of sales and marketshare. The XBox 360 sold more in its last year (2012) before the XBox One's introduction than the XBox One has sold in any single year since.
In what way is that "compelling?" It's certainly not compelling financially which you allude to. By what metric are you judging how "fantastic" a job Microsoft is doing?
I'll take your word for those figures. I'm not a shareholder so I'm more interested in what they're doing, not earning. I don't disagree that they dropped the ball with the hardware Xbox One (X, S, etc) but it looks like that's getting back on track.
What I was talking about the aquisition of respected studios (which will obviously take time for their games to come to fruition). Xbox Game Pass and the fact that it's now propagating to Windows, along with all first party titles launching on GP. There's the huge effort in accessibility with the controller that makes games more inclusive for people with disabilities.
They're a few things off the top of my head for Xbox.