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Breakingviews: Apple's asterisks

Tuesday, Oct 29, 2013 - 03:21

Oct 29 - The iPad maker beat expectations, expanded in China and should have a new product soon. Jeffrey Goldfarb talks to Rob Cyran about the two ways investors can interpret Apple's latest results.

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The thing is when apple was beat expectations and generate depressive markets at all products -- -- -- wanted to buy. And growing China. And be on the verge of a new category well yesterday apple have results and unfortunately the company is beating expectations and generating impressive margins are growing in China on the verge of cracking -- category and share. So. What -- the problem is that each of these things as a caveat asked if so if you like for instance take China and they're grown they're growing -- -- less quarterly trend that sort of 5% in order of this court they group but the question is you know will China Mobile. Come out and accept their front looks like they may but it's not quite not quite there literally kill some hesitation about and it's the same thing with margins Christmas and ever and click OK Samsung is their margins are -- pressuring margins because we can't tell iphones for as much these -- And you know it investors look at this report that -- -- margins are stable and going to the holiday quarter they're going to be stable again -- there's even an extremely wrinkle on this one and that of the initial people thought marks for coming down again that on the call that. Tim Cook decided to explain why it was explained yet because what they're doing is because they're getting where this offer an added they're holding back partner -- part of the revenue. And what if you -- if you just make it. The simple cases actually they're trying to slightly different order. You saw -- think again and again every time there's something positive there's just like an asterisk for instance. You know they came out with their strongest hint yet the new a new products coming into inevitable he says -- you're in a product of recovery we're not in -- yet exactly which you know obviously means -- new item. When will that be. Probably in the spring but you know apple didn't say exactly it was -- -- hold you know. It's coming back right and then reverence knowing that character and I'm -- out there because those. By the farm must -- that they've put it yet yet there's no guarantee it's -- hit I mean you know obviously they're pretty good track -- because but yet that you just never know and the question is -- is they're gonna meet demand for that would be able to roll -- enough and all these questions. -- seem to get and again every time they they promised something it's like well not quite yet and and Kevin as those of the capital which is a whole other question that's come up more lately in the hasn't -- at a 150 billion of cast -- and an obvious -- and saying it should give them more that and then they begin off the call by saying the board is examining capital allocation again another hint. That there's gonna be -- -- they said we'll look at it next here and started bumped up weapons started at one number that bumped up a little more as the doubled its a 200 billion that they're saying opposites can go higher but again that's not have that won't happen. Before the end -- probably early next congress -- the question here is really about the offshore money. Outside -- an -- in Iraq again there is another pastor so you're saying they said well basically all our cash. We make domestically is going towards -- -- -- -- it back. On the question -- if you bar if you bring cash from overseas -- ticket there's attacks it. And to Apple's probably gonna borrow money instead they have to get to go to the market and our money. Well look there is very good case for the bears and the bulls to latch onto apple right now kind of complicate all of Eric we'll leave it there will be back with more breaking news tomorrow.

Breakingviews: Apple's asterisks

Tuesday, Oct 29, 2013 - 03:21

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