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

.

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.

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

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

.

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 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.

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

"A diet regime is a short period of starvation preceding a gain of 5 pounds" – from "The Ideal of the Great Clean Jokes" by Bob Phillips

 

Bearish . stock traders had been disappointed by the 2010 third-quarter earnings report from Apple.  They contend that Apple has gotten too big.  There are no new substantial revenue streams.  iPhone sales are down.  iPad sales were not as wonderful as they could be.  iPod sales had been off.  Competitors are jumping in from every side on all their merchandise.  Apple is going to languish considering that of this.  Lastly, as proof they cite two quarters of decreased income.  To be positive, there is at least some truth in all of these points.  Nonetheless, Apple is finding prepared to put on some key weight in terms of profits.  This is a particularly timely moment to buy into Apple's stock as we shall see.

Very first, I shall share an vital point of bullish investment philosophy.  Bears normally occasions look for perfection.  If there are significant challenges to a corporation or enterprise, and there is no immediate foreseen answer, then they expect failure.  Bears quite often miss the point that there is no human organization that is ever fantastic.  Corporations and enterprises will usually have challenges.  The greatest corporations and enterprises know how to manage the challenges and be effective anyway.  I think this is particularly true of Apple Inc.

Apples Revenue History

Let us first take a appear at Apple's revenue for the last three years – not just the last three quarters.

Let us initially notice that in the third-quarter of 2008 Apple's total income was $7.561 billion.  In the third quarter of 2010, Apple's income was $15.7 billion.  They have doubled their revenue in the space of two years.  That is a feat that quite few suppliers of Apple's size can match - although most corporations long to do so.

Now let us take a look at the graph for some patterns.  Notice how Apple has a massive pop in income either in the fourth quarter or the 1st quarter of every single year.  This makes total sense given that of US Christmas holiday shopping patterns and students shopping for .  Apple is not alone in this.  Statistically for several-countless decades, the fourth quarter is the top quarter for the typical public corporation.  A drop in income from the initial-quarter to the second quarter and then to the third-quarter is fairly normal.

But wait, the third-quarter of 2010 was truly a little bit greater than the very first quarter - $15.7 billion compared to $15.683 billion.  This is what is important.  Apple had a excellent third-quarter when you compare it to other third-quarters they had prior to!  Finally, notice the common upward trend in the income graph.  Sure income varies from quarter to quarter and that is typical for corporations.  Revenues do not go up in straight lines – even for Apple.  But when you draw a line by way of the mean income, the income trends are quite thrilling.

Just think about what the fourth quarter or the initially quarter of 2011 is going to be like for Apple soon after the holiday season.  Already, meaningful shopping statistics are in just after the 2010 Thanksgiving weekend.  Retail sales are significantly greater for 2010 than they were in 2009.  Apple is selling extremely desirable consumer items.  Apple will take a substantial share of holiday shopping revenue and post record revenue totals in this timeframe.  Income of $18-$19 billion would be consistent with the mean trend for the initial quarter of 2011.  We can even dare to dream $20 billion or significantly more!  A smart investor would get Apple now, before 2010 fourth-quarter and 2011 1st-quarter income totals are out.  This makes Apple a fantastic brief-term value play for the subsequent couple of quarters.

 

Unit Sales

iPhone

Apple iPhone sales reached practically 8.4 million handsets in the third-quarter 2010.  This was a 61% increase over the exact same quarter in 2009.  The  latest Apple iPhone is iPhone 4.  This new model was launched late in the third quarter of 2010.  Sales of this unit are not totally baked into the figures.  Early indications from Apple are that this item launch was hugely productive.  1.7 million iPhones had been sold in the third quarter of 2010.  Apple characterized this as one of the most profitable item launches in history.  Simply because there is not a long history of iPhone sales, it is risky to forecast a negative trend for iPhone sales with such a smaller drop in unit sales from the second quarter to the third.  Take a appear into the subsequent chart.