Friday, December 23, 2011

Apple Inc., a Stock Analysis for December 2010 – Buy a Bushel Basket of Apple Stock


, "diet for a short period of starvation before the gain of five pounds" - from "The Best of Good Clean Jokes" Bob Phillips

Apple Inc. bearish stock traders were disappointed in the third quarter 2010 earnings report from Apple. They argue that Apple has gotten too big. No significant new revenue streams. iPhone sales are down. iPad sales were not as good as it could be. iPod sales off. Competitors are jumping in on all sides on all their products. Apple will languish because of it. Finally, the evidence suggests two quarters of decline in revenues. To be sure, there is at least some truth in all these points. However, Apple is getting ready to put on some great weight in relation to earnings. This is a very timely moment for the purchase of Apple stock, as we shall see.

First, I will share important point bull investment philosophy. Bears are often searching for perfection. If there are significant challenges corporations or companies, and provided there is no immediate solution, then the expected failure. Bears often miss the point that no human organization is ever perfect. Corporations and businesses will always have challenges. top corporations and businesses know how to manage the challenges and be successful anyway. And I believe this is especially true for Apple Inc.

Apples Revenue History

Let us first look at Apple's revenue for the last three years -. Not only the last three quarters

apple-2010Q3-tot-Revenue-600.png

Let us first note that in the third quarter of 2008, Apple's total revenue was $ 7.561 billion. In the third quarter of 2010, Apple's revenue was $ 15.7 billion have doubled their income in the space of two years is a feat that very few companies can match the size of Apple -.. Although most companies do it long.

Now let us look at the graphs for some samples. Notice how Apple has a great pop of income was in the fourth quarter or first quarter of each year. This makes complete sense because of the U.S. Christmas holiday shopping patterns and students purchase a computer for school. Apple is not alone in this. Statistics for many, many decades, in the fourth quarter was the best quarter for the average public corporation. decline in the first quarter to second quarter, and then in the third quarter is quite normal.

But wait, the third quarter of 2010 is actually slightly larger than the first quarter - $ 15.7 billion compared with $ 15.683 billion that is what is important Apple is fantastic in the third quarter when .. compare it with other web-quarter had before! Finally, notice the general trend in the income of the graph. Of course, income varies from quarter to quarter, and that is normal for corporations. revenues do not go in straight lines, -. Even for Apple, but when you pull the line through the means of income, revenue trends are very exciting

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only imagine what the fourth quarter or first quarter of 2011 will be like for Apple after the holidays. Already a meaningful shopping statistics in the 2010 Thanksgiving weekend. Retail is much higher in 2010 than they were in 2009, Apple is selling very desirable consumer products, Apple will take a significant share of holiday shopping and money after recording revenue in this period amounted to income of $ 18 -... $ 19 billion would be in line with the trend means for the first quarter of 2011. We even dared to dream of $ 20 billion or more! smart investor will buy an Apple now, before 2010 in the fourth quarter 2011 and first quarter revenue figures are out. That makes Apple a great short term play value for the next several quarters.

units sold

iPhone

Apple Apple iPhone sales reached nearly 8.4 million mobile phones in the third quarter of 2010. This was 61% higher than the same quarter of 2009. Apple's latest iPhone iPhone 4 , This new model was launched late in the third quarter of 2010, sales of this device is not fully baked in numbers early warning from Apple that this product launch was extremely successful 1.7 million iPhones sold ... in the third quarter of 2010. Apple is characterized as one of the most successful product launch in history. Since there is a long history of iPhone sales, it is risky to forecast negative sales trend for the iPhone with such a small drop in unit sales in the second quarter to one third. Take a peek at the next chart.

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