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

"diet for a short period of starvation preceding an increase of 5 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 they could be. iPod sales were excluded. The competitors are jumping on all sides on all their products. Apple will go bankrupt because of it. Finally, as the evidence cited 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 to buy shares in Apple, as we shall see.

First, I will share an important point of bullish investment philosophy. Bears often in search of perfection. If there are significant challenges in the corporation or enterprise, and provided there is no immediate solution, then the expected failure. Bears often miss the point that no human organization is ever perfect. companies and companies will always have challenges. The best corporations and businesses know how to manage the challenges and be successful in every case. 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 just in the last three quarters

Let us first notice that in the third quarter of 2008, Apple had total revenues of $ 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 it is a feat that very few companies can match the size of Apple - .. Although most companies have long done.

Now let us look at the graph for some patterns. Notice how Apple has a great pop any revenue in the fourth quarter or first quarter of each year. It makes complete sense for the U.S. Christmas holiday shopping patterns and buying computers for the students of the 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 in the second quarter, and then in the third quarter is quite normal.

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

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only imagine what was in the fourth quarter or first quarter of 2011 will be like for Apple after the holidays. But meaningful statistics are shopping after Thanksgiving weekend 2010. Retail much. higher in 2010 than they were in 2009, Apple has sold very desirable consumer products Apple will take a significant share of holiday shopping money and postage totals record revenues in that period revenues of $ 18 - .. $ 19 billion would be in line with the mean trend for the first quarter of 2011. we can even dare to dream of $ 20 billion or more! smart investor will buy 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.

Unit Sales

iPhone

Apple iPhone sales reached nearly 8.4 million mobile phones in the third quarter of 2010. This is a 61% increase over the same period in 2009. Apple's latest iPhone iPhone 4 ; This new model was launched late in the third quarter 2010 sales of these units are not fully baked in numbers from Apple Early indicators are that this product was extremely successful beginning of the 1.7 million iPhones sold ... in the third quarter of 2010. Apple is characterized as one of the most successful product launches in history. because there is a long history of iPhone sales, it is risky predicts a negative trend for the iPhone sales as a small drop in unit sales from other quarters. See the following chart.