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Apple reports Q3 results

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Re: Apple reports Q3 results

#71

Post by throwanem »

vosper wrote: post #61
matthewdgreen wrote: post #3

Given 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.

Are these things actually luxury goods? A smartphone is probably one of the most essential and important devices in many peoples lives these days. Certainly one of the most used. There is the option of Android instead of Apple, but as someone pointed out one time, iPhones are cheaper than flagship Android devices if you account for the support lifetime of an iPhone being a lot longer than any Android device. And that…

I'd be fascinated to see a breakout of Apple's quarterly sales by product. I don't know if such a thing is published, and if so I've been unable to find it, but I had also wondered what fraction of it the SE 2 would account for. I remember seeing headlines that it was selling above expectations shortly after launch, but there wasn't any real detail that I recall.

Re: Apple reports Q3 results

#72

Post by anthony_r »

dastbe wrote: post #41
meddlepal wrote: post #37

Earlier quoted context omitted.

What's the split price? $Close / 4?

Possibly, but its really however the market prices it. For example, if the theory goes that more people will want to buy apple now that the price is a "steal" (people think it's harder to 2x a big number than a small number) then it could go above that on open.

Bitcoin and Bitcoin Cash ?

I prefer to believe that stocks are not in a bubble of such epic proportions that a stupid split can be an "event".

Re: Apple reports Q3 results

#73

Post by shadowtree »

matthewdgreen wrote: post #3

Given 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.

An iPhone is the durable personal computer for most people. They don't own a "PC", this is the only way to safely conduct e-commerce. Without it, you're done in the modern world (even government interactions, like scheduling a DMV visit).

A necessity, not a luxury. Best security, best long term support, best re-sale value. If you're poor, an iPhone is the smartest choice. You need to AFFORD an Android device.

Re: Apple reports Q3 results

#74

Post by m_ke »

shmatt wrote: post #6
matthewdgreen wrote: post #3

Given 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.

Unemployed Americans have (temporarily) discovered the world of fare living-wage unemployment that expires tomorrow. If you don't live in NY or CA, those extra $600 a week can go very far, and have probably helped stimulate the economy greatly

On top of that student loans have been frozen. That allowed me to save an extra $900/month.

Re: Apple reports Q3 results

#75

Post by eaenki »

anthony_r wrote: post #67
3pt14159 wrote: post #55

Earlier quoted context omitted.

Yeah, it was getting a bit pricy to buy lots of 100 apple shares at a time and sell covered calls. This is much better. Honestly I think selling covered call on Apple is one of the few good plays left out there. Long term the company's value is going to keep going up, but with so much volatility in the market lately option premiums are bananas and though I expect a pretty dramatic stock market pullback Apple is one o…

Ah yes, selling volatility via covered calls. The institutional investors' second favourite way of collecting "extra income" in the zero rates world, second only to explicit leverage. Some of them sold much more volatility, via variance swaps, with quite disastrous results. https://www.institutionalinvestor.com/article/b1lffwvwdh7xtq...

It will never cease to amaze me. LTMC is my favorite story

Re: Apple reports Q3 results

#77

Post by throwanem »

scarface74 wrote: post #46
shmatt wrote: post #6

Earlier quoted context omitted.

Unemployed Americans have (temporarily) discovered the world of fare living-wage unemployment that expires tomorrow. If you don't live in NY or CA, those extra $600 a week can go very far, and have probably helped stimulate the economy greatly

That’s on top of state unemployment around $400/week. That’s annualized at $52K a year. The median household income is only $65K.

Good luck staying on state unemployment for a whole year.

Re: Apple reports Q3 results

#78

Post by snowwrestler »

matthewdgreen wrote: post #3

Given 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.

Maybe a tangent here, but I don't think it's accurate to think about Apple stuff as luxury goods.

For example, I don't think the volume they do in phones aligns with the typical notion of a luxury brand. The best-selling single smartphone model on the market is the iPhone. In analogy with the car market: BMW, Mercedes, Lexus do not have a best-selling model among them.

The iPhone is more like the Ford F-150, in terms of how it fits into the broader marketplace, than it is like a luxury car. The F-150 is not inexpensive! But it's not a luxury vehicle either.

Why am I bothering with this argument... because I think it leads to confusion about Apple's business, like the comment above. Apple does well because they sell products people want, on the high end of the range, but well within what a lot of people can afford.

Re: Apple reports Q3 results

#80

Post by chollida1 »

crazygringo wrote: post #63
adtac wrote: post #32

>The Board of Directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, 2020 will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020.

I'm curious. Do trading platforms automatically adjust existing limit orders the night of August 24, e.g. dividing all prices by 4? (Or just cancel all limit orders?) I mean I would assume they do, but just wonder if there are ever any severe "gotchas" with a stock split with certain existing buy/sell arrangements, or derivatives etc.

Exchanges automatically cancel out GTC and GTD orders when splits occur.

Options are also split to take the stock split into account.

Trading platforms shouldn't have to do anything unless they are faking GTC orders by resending them out each day as Day orders.

But if your vendor is doing that then, get a new vendor as that's completely bush league.

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