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Breakingviews: Apple's coiled spring

Wednesday, July 23, 2014 - 02:44

Richard Beales and Robert Cyran discuss Apple's so-so quarterly earnings, its prodigious cash flow, and the prospects for new gadgets.

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That apple nearly 600 billion dollars of market -- 165. Billion dollars of cash in the kitty. Earnings yesterday wrote. You know everybody's waiting facility -- yes but yet the things. Pretty -- they were they're pretty good at sales -- 6%. What happened is that although -- ipads were quite as good as are expected I've. The Max did better a lot of confidence that and I offensive end and the whole thing is that Macs make more money than ipads and iphones are our immediate business or happened. Companies are so sales and more profits sixties and toppling growth minutes though what. You have with a new probability evidence now lives with Apple's surgeon -- gigantic amount of cash write and -- margins and it. -- tickets in the shares are down by about 6% number of -- over the past year. And with -- that the amount of cash actually up. Reader got it means they can do more buybacks if they want that this is all setting up war I'm when he unveiled their their new gadgets. What they're getting -- Tim Cook he gets on the conference call is like we've got exciting things in the in the pipeline but it didn't didn't if you hit eight Olympics did not specify what they are but there's some interest in things if you look -- like aren't you for example -- its highest point in several years last argues as high as a percent sales for the iPhone came out. So it seems like something is definitely in the works and by reducing the share cap they've they've they're kind of putting a bit pressure in the shares and so when when something actually does come out. The shares may pop with that a quick -- about this cash right -- the positive. Annapolis between by base in activism goes as apple. Just thinking for itself is is increased dividends increased ship by banks more than forty billion dollars. Let's go back and yet the cash balance still gonna -- list -- -- billion yen even the even -- the amount net cash announced he'd become thing for the day is still up. So assist it it again there's just producing so much cash and they're they're they're doing -- what's good for is their returning to shareholders. You know they've had some couple of acquisitions -- it's like oh my god you know they they've they've -- they thought he'd seen it's. Which isn't in the numbers it but yeah -- would which is a three billion dollar acquisition of the biggest acquisition by far to date -- apple still pretty they're they're pretty careful when it comes to him and that's that's that's. Good for Sharon has persistently if they would still waiting we should get new. Iphones we're expecting -- they could be this island mystery product -- -- that -- cutting in yeah that's pretty sure every hit the iPhone in. August September that's usually when they rolled out. The new device -- Sometimes it will leave it that apple will keep us guessing we'll have a breaking views you to work.

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Breakingviews: Apple's coiled spring

Wednesday, July 23, 2014 - 02:44

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