For every dollar spent on the iOS App Store, Apple makes thirty cents, but if you expect Cupertino to be collecting 30% of every buck spent on Apple Pay, you’re crazy. The world of finance is much more nuanced — and ruthlessly competitive — than selling apps: Apple will have to settle for just fifteen cents for every $100 spent. But that’s actually a lot of money in financial terms.
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It’s looking like it might be a dreary quarter for Apple. Not only has iPhone growth pretty much leveled off, but most Wall Street analysts believe that when Apple announces its quarterly numbers, iPad sales will have actually declined year over year. Is Wall Street wrong?
Here’s an interesting financial. Robert Paul Leitao, founder of the AAPL Independent Analysts, shows how Apple’s revenue has grown over 1,127% since 2006, and earnings per share has grown an incredible 2,457%.
Fiscal 2011 and fiscal 2012 have been particularly kind to Apple: 66% in 2011, and 54% in fiscal 2012, largely thanks to new deals such as the Verizon Wireless iPhone deal, and the announcement of a new product line in the iPad. In 2013, though, Apple grew only 9.2%, and so far, Apple’s guidance for the latest quarter suggests nearly no growth at all.
Leitao’s conclusion? Apple’s growth is dependent on the successful release of new and currently unannounced new products. “Apple is an episodic enterprise,” he writes. The best reason to believe that Apple has an iWatch coming this year is that, without one, Apple will stop growing.
Everyone knows that there’s a lucrative black market in iPhones, particularly in Asia, but did you know that iPhones are increasingly being used as currency? That’s the case in Rome, at least, where at least one journalist is using iPhones as a way to pay his bills.
Investment tycoon Carl Icahn has been bullish on Apple lately. In mid-August, Icahn unexpectedly tweeted that Icahn Enterprises, his diversified holding company, believed Apple to be “extremely undervalued.” Immediately, share prices jumped 5.6%. The next week, Icahn announced on Twitter that he and Tim Cook would be meeting in September to discuss a larger buyback program of AAPL shares.
That’s all nice, but Icahn is a business magnate, not an Apple fanboy. So what the heck is he up to here? A new theory being put forward by some investors is that Icahn has ulterior motives for his sudden Apple love affair: he wants Apple to buy Nuance, a company Icahn has a large stake in.
Remember how just a few months ago, Foxconn profits were slumping because — as the anti-Apple brigade hysterically shrieked — the iPhone 5 was a dud, and the iPhone’s meteoric rise in popularity was finally done?
Yeah, well, Foxconn just posted a 41 percent year-over-year increase in profit, driven by strong iPhone sales.
Two years ago, Apple overtook Exxon as the world’s most valuable company. It was a heck of a feat for a Silicon Valley company: for the first time, the world seemed to value silicon computer chips more than the bubbling, black goo of long dead dinosaurs. The future seemed rosy, and in the following months, Apple’s share price eventually rose to over $700 a share… before cratering thanks to bizarre Wall Street pessimism.
Somehow, though, even though analysts are bleaker about Apple’s futures than they have ever been, Cupertino has once more managed to claw the title of world’s most valuable company from Exxon. How?
Plain and simple, managing your finances can suck. The app featured in this Cult of Mac Deals offer was created to change that.
Moneydance sports an easy-to-use interface and its syncing capabilities make for a streamlined experience that will get you saving your money, rather than washing it away. It easily handles online banking, account management, budgeting, and investment tracking all in this single application and the best part — you don’t have to pay thousands of dollars to hire a financial manager.
There’s another part that’s pretty great as well – Cult of Mac has it for just $25 for a limited time.
Filippo Bigarella is best known for being the developer of some of the most popular jailbreak tweaks for iOS, including Springtomize, LivelyIcons, and PasswordPilot Pro. But he’s just launched his first official iPhone app through the App Store.
It’s called Balances, and it’s a wonderfully simply finance app with a gorgeous interface that’ll help you keep track of the money you owe and the money owed to you.
The consensus on Wall Street seems to be unanimous: for the first time in decade, Apple will report lower income this quarter than it did the year before. But don’t panic: even Wall Street doesn’t think Apple’s era of profitability and innovation is at an end.