When did Apple started distributing dividends? I remember them being known for not doing so.
When they ran out of things they could reasonably spend their cash on.
Apple reports Q3 results
161–170 of 251 posts
Re: Apple reports Q3 results
#162Wow, iPad revenue up 31% YoY after being down ~10% in the last few quarters. Similar numbers to a Q1 (holiday season). I guess it makes sense that the tablet form factor is popular when so many people are indoors. Also, services revenue grew YoY but it’s the first time it didn’t grow QoQ in a long time, so it seems to have stagnated. Services include a lot of recurring revenue so they should be consistently growing Q…
My guess for increased iPad sales: Zoom conferencing during COVID
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Re: Apple reports Q3 results
#163Earlier quoted context omitted.
Berkshire Hathaway is at almost $300k per stock.
Buffett refuses to split BRKA so yes it's that much, but BRKB has split before and so is ~$200/share.
Also consider the difference in voting rights. Voting rights at berkshire require one to literally be rich. Funny that SNAP got shunned by S&P and literally was the genesis for a new rule [1] for excluding new stocks with split share classes yet BRK, GOOG, FB, CMCS, NWS, etc. can still exist in the index. Heck, companies like F & BF have separate voting shares to give families voting rights.
[1] https://www.cnbc.com/2017/08/01/snapchat-excluded-from-sp-50...
Re: Apple reports Q3 results
#164Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.
Remarkable? Perplexing. Like facebook revenues up while all companies are slashing their marketing budget.
Many sectors are slashing their marketing budgets, especially their vaguely-targeted mass-marketing or big-incumbent-brand marketing.
But Facebook's ad engine allows micro-targeting, and is especially valuable to upstarts & small-businesses in times of changing behavior/consumer-loyalties.
To the extent big spenders free up inventory, Facebook has bidders-in-the-wings, offering just-a-little-less, and plenty of impressions among the 2.99 billion people who visit one of the Facebook family-of-sites monthly.
Re: Apple reports Q3 results
#165Given the high rates of unemployment in the US and around the world (with possibly worse to come) this kind of consumer spending on luxury goods is pretty remarkable. Wonder how sustainable it is.
ipads for education, mac's etc. working from home can drive sales, as folks need mobile equipment. and most sane companies are able to let a user choose equipment. in the small to medium shops it's less costly to run mac equipment than windows in the long run due to saner security requirements etc.
Re: Apple reports Q3 results
#166Earlier quoted context omitted.
A Ford F-150 is absolutely a luxury vehicle. And I don't see any way you can look at an Apple iPhone as anything other than a luxury purchase, regardless of the market share.
"The F-150 carries a base price of $28,495, which is below average for a full-size pickup truck." This is just a quick search from Google. I think ppl might have different opinion of the word "luxury". But generally I would personally not categorize things that's widely sold like F-150 or iPhone as luxury.
I’d gauge luxury on necessity, not commonness.
Re: Apple reports Q3 results
#167Wow, iPad revenue up 31% YoY after being down ~10% in the last few quarters. Similar numbers to a Q1 (holiday season). I guess it makes sense that the tablet form factor is popular when so many people are indoors. Also, services revenue grew YoY but it’s the first time it didn’t grow QoQ in a long time, so it seems to have stagnated. Services include a lot of recurring revenue so they should be consistently growing Q…
I doubt this is sufficiently explanatory, but Apple has been giving away 1 year of Apple TV with their iPad purchases. That's arguably the most valued among all their services.
Re: Apple reports Q3 results
#168Earlier quoted context omitted.
Why is that irrelevant?
It’s not irrelevant, but it also isn’t a fair indicator of the total value of the company. Let’s say a company had 1000 shares outstanding at $1000 each. Just because one person would buy a share for $1k doesn’t mean that anyone would buy the whole company for $1mm. If people started selling off their shares, the share price would drop, so maybe in the end this hypothetical company would end up worth $500k. I’m not t…
> If people started selling off their shares, the share price would drop
This is only true if there is a lot of dispute about the value of the company.
Suppose a company is nothing more than the owner of a bank account with a million dollars in cash. Well, then it's worth a million dollars. If there are a thousand shares then you'll be able to find arbitrarily many buyers at ~$1000/share. Existing investors would have no reason to sell for less than that because they could get that much just by liquidating the company.
Where the values diverge significantly is where there is a lot of uncertainty about the value of the company, and then there could be a lot of variation in how different people value it, so that the existing owners might assign a much higher value than others, and if they tried to sell a significant fraction of the shares it's the others whose price they'd have to meet to find a buyer.
Re: Apple reports Q3 results
#169Wow, iPad revenue up 31% YoY after being down ~10% in the last few quarters. Similar numbers to a Q1 (holiday season). I guess it makes sense that the tablet form factor is popular when so many people are indoors. Also, services revenue grew YoY but it’s the first time it didn’t grow QoQ in a long time, so it seems to have stagnated. Services include a lot of recurring revenue so they should be consistently growing Q…
Tim specifically addressed the wearables decline as a result of store closures during the pandemic. He pointed to the fact that potential new watch customers prefer to try on the watch and view the band options in person before purchasing, and closed stores means this is not possible.
Re: Apple reports Q3 results
#170Earlier quoted context omitted.
Perhaps also that Apple is known for making quality phones. In times of economic pressure, people buy for the long-term.
In times of economic pressure, buying a $1000 phone is not the smartest idea.
And Apple, of course, makes no phones that sell for under a grand.