AAPL - Apple Inc.

[fareastwarriors]

Icahn buys more Apple as stock falls 5%; calls it a 'no-brainer'

 

http://finance.yahoo.com/news/icahn-buys-more-apple-stock-202112052.html

 

 

Icahn told CNBC on Wednesday he added to his already sizable position because the investment is a "no-brainer." The stock is relatively inexpensive and has upside potential.

 

 

 

[Liberty]

Icahn buys more Apple as stock falls 5%; calls it a 'no-brainer'

 

http://finance.yahoo.com/news/icahn-buys-more-apple-stock-202112052.html

 

 

Icahn told CNBC on Wednesday he added to his already sizable position because the investment is a "no-brainer." The stock is relatively inexpensive and has upside potential.

 

Why does he have to tell everyone before his 13F is due? Why can't he just keep buying more at low prices and/or let the company do buybacks rather than risk another price spike just because of this story? Makes no sense..

 

In any case, I also bought more today.

[Guest valueInv]

Icahn buys more Apple as stock falls 5%; calls it a 'no-brainer'

 

http://finance.yahoo.com/news/icahn-buys-more-apple-stock-202112052.html

 

 

Icahn told CNBC on Wednesday he added to his already sizable position because the investment is a "no-brainer." The stock is relatively inexpensive and has upside potential.

 

Why does he have to tell everyone before his 13F is due? Why can't he just keep buying more at low prices and/or let the company do buybacks rather than risk another price spike just because of this story? Makes no sense..

 

In any case, I also bought more today.

 

I'll be happy to join the party if it drops to $450.  :)

[plato1976]

Don't quite get his comments that "apple earns 50B cash every year"

Isn't it 40B every year ? I see earning around 40B

 

Icahn buys more Apple as stock falls 5%; calls it a 'no-brainer'

 

http://finance.yahoo.com/news/icahn-buys-more-apple-stock-202112052.html

 

 

Icahn told CNBC on Wednesday he added to his already sizable position because the investment is a "no-brainer." The stock is relatively inexpensive and has upside potential.

[Palantir]

I like these moments where Wall Street is caught flatfooted, I thought it was obvious that Apple was going to replace the midtier $550 phone in its lineup, not the entry level model because the 5 couldn't be sold at 550 due to margin pressure. WS had it wrong, so we have an opportunity to invest. Hopefully they will get bearish, I want to buy this in low 400s.

[DCG]

Icahn buys more Apple as stock falls 5%; calls it a 'no-brainer'

 

http://finance.yahoo.com/news/icahn-buys-more-apple-stock-202112052.html

 

 

Icahn told CNBC on Wednesday he added to his already sizable position because the investment is a "no-brainer." The stock is relatively inexpensive and has upside potential.

 

Why does he have to tell everyone before his 13F is due? Why can't he just keep buying more at low prices and/or let the company do buybacks rather than risk another price spike just because of this story? Makes no sense..

 

 

Because he is an attention whore.

[DCG]

do it seem a little strange to anyone else that they're not taking any pre-sale orders for the 5S?

[krazeenyc]

do it seem a little strange to anyone else that they're not taking any pre-sale orders for the 5S?

 

why weird ?

 

9/13 5c and 9/20 5s?

[constructive]

I like these moments where Wall Street is caught flatfooted, I thought it was obvious that Apple was going to replace the midtier $550 phone in its lineup, not the entry level model because the 5 couldn't be sold at 550 due to margin pressure. WS had it wrong, so we have an opportunity to invest. Hopefully they will get bearish, I want to buy this in low 400s.

 

It's easy to say that it's obvious now. But I don't recall you or anyone else in this thread predicting $550 for the 5C.

[Palantir]

I like these moments where Wall Street is caught flatfooted, I thought it was obvious that Apple was going to replace the midtier $550 phone in its lineup, not the entry level model because the 5 couldn't be sold at 550 due to margin pressure. WS had it wrong, so we have an opportunity to invest. Hopefully they will get bearish, I want to buy this in low 400s.

 

It's easy to say that it's obvious now. But I don't recall you or anyone else in this thread predicting $550 for the 5C.

 

I disagree, I did not write it on this forum, but I thought it was very clear that:

1) iPhone 5 will NOT be sold at a discounted price because it is expensive to make and hurts margins.

2) iPhone 5 can be put in a plastic case and sold for a cheaper price

3) That would point to the cheaper iPhone replacing the middle tier.

 

QED

 

Personally, my expectation was that they'd make a 450 plastic phone in addition to the 550 phone, but that part didn't pan out.

[Guest valueInv]

I like these moments where Wall Street is caught flatfooted, I thought it was obvious that Apple was going to replace the midtier $550 phone in its lineup, not the entry level model because the 5 couldn't be sold at 550 due to margin pressure. WS had it wrong, so we have an opportunity to invest. Hopefully they will get bearish, I want to buy this in low 400s.

 

It's easy to say that it's obvious now. But I don't recall you or anyone else in this thread predicting $550 for the 5C.

 

Yes, we were all wrong including me on the 5c price. We may not be wrong that they will have a cheaper phone to enter lower priced segments.

[DCG]

do it seem a little strange to anyone else that they're not taking any pre-sale orders for the 5S?

 

why weird ? A

 

9/13 5c and 9/20 5s?

 

Haven't they always taken pre-orders in the past? They're taking them for the 5c, but not the 5s.

 

I also noticed they're really pushing the 5c on Apple.com. You have to dig a bit to find info on the 5s.

 

 

The thing that is odd to me about the 5c being offered in 5 colors (although ther saying the C refers to colors, and not 'cheap') is that most people use cases anyway. Why not sell the glass 5 at reduced prices instead of the plastic?

[Guest valueInv]

do it seem a little strange to anyone else that they're not taking any pre-sale orders for the 5S?

 

why weird ?

 

9/13 5c and 9/20 5s?

 

Haven't they awkward taken pre-orders in the past? They're taking them for the 5c, but not the 5s.

 

I also noticed they're really pushing the 5c on Apple.com. You have to dig a bit to find info on the 5s.

 

 

The thing that is odd to me about the 5c being offered in 5 colors (although ther saying the C refers to colors, and not 'cheap') is that most people use cases anyway. Why not sell the glass 5 at reduced prices instead of the plastic?

 

A number of reasons :

- the plastic case may be cheaper to manufacture. So they are charging the same price as they would for the 5 but using a cheaper shell. Guess what that means?

- Segmentation: let's say they sold the 5 and 5s side by side. Then people would walk into the store and see two devices that look the same but cost different. The more expensive one has things like finger print, 64 bit, motion processor , etc. a lot of people don't know what they mean. Which device will they pick? With the 5c, they have adjusted the cover of the book to match the content. Now people can judge the book  by its cover more accurately. They are differentiating the segments and driving a bigger wedge between them. Now, the pricing in one segment has lesser effect on the pricing in another.

[Palantir]

This is a recognition that people will want to pay less for smartphones, so in response, they've moved down their prices. They now see a $550 phone as their "core" device, while keeping the $650 phone as the "flagship". It maintains margins while still lowering ASP.

 

As ValueInv noted, the metal/glass phone has a higher manufacture cost, so it can only be the "flagship".

[Guest valueInv]

This is a recognition that people will want to pay less for smartphones, so in response, they've moved down their prices. They now see a $550 phone as their "core" device, while keeping the $650 phone as the "flagship". It maintains margins while still lowering ASP.

 

As ValueInv noted, the metal/glass phone has a higher manufacture cost, so it can only be the "flagship".

 

The is no reduction in prices from Apple. In fact, there is a slight increase in prices for the middle tier. Now there is a middle tier phone that costs $199.

[Palantir]

No, there is a clear reduction in prices. Previously their star phone was 650, now it is 550. It is this 550 phone that they're going to pitch and hype up for the next few months, I fully expect tons of ads showing how great and colorful this phone is up to the Super Bowl, not so with the 5S, which as DCG noted, is much more subdued.

 

Simply put, Apple has recognized that prices are moving down, and have pivoted to maintain margins.

[Guest valueInv]

No, there is a clear reduction in prices. Previously their star phone was 650, now it is 550. It is this 550 phone that they're going to pitch and hype up for the next few months, I fully expect tons of ads showing how great and colorful this phone is up to the Super Bowl, not so with the 5S, which as DCG noted, is much more subdued.

 

Simply put, Apple has recognized that prices are moving down, and have pivoted to maintain margins.

 

Could it be that orders for the 5c are going first, so they're pushing it more right now?

[Palantir]

No, I don't think that's the reason. I think it's a conscious decision that the 5C is the one to market now, which moves it up in priority for both preorders and fabrication.

 

It is a new product after all and easier to market.

[Guest wellmont]

No, there is a clear reduction in prices. Previously their star phone was 650, now it is 550. It is this 550 phone that they're going to pitch and hype up for the next few months, I fully expect tons of ads showing how great and colorful this phone is up to the Super Bowl, not so with the 5S, which as DCG noted, is much more subdued.

 

Simply put, Apple has recognized that prices are moving down, and have pivoted to maintain margins.

 

aapl is running out of ideas so are now resorting to marketing gimmicks in attempts to alter market share around the edges. it's segmenting the high end market where it plays, into people that want an expensive phone, and people that want a Colorful! plastic expensive phone with expensive colorful accessories. Rich folk can afford more than one phone, which is something they count on I suspect. Nokia did the plastic color thing two years ago. this release was championed by the marketers in California, not the engineers. having said that, as a shareholder, I hope it works and buys them some time for them to really innovate.

[Palantir]

I wonder if Apple will ever start making home appliances like microwaves or coffeemakers. I'm sure it's crossed Ive's mind.

[Guest valueInv]

No, I don't think that's the reason. I think it's a conscious decision that the 5C is the one to market now, which moves it up in priority for both preorders and fabrication.

 

It is a new product after all and easier to market.

 

How do you know?

[Guest valueInv]

No, there is a clear reduction in prices. Previously their star phone was 650, now it is 550. It is this 550 phone that they're going to pitch and hype up for the next few months, I fully expect tons of ads showing how great and colorful this phone is up to the Super Bowl, not so with the 5S, which as DCG noted, is much more subdued.

 

Simply put, Apple has recognized that prices are moving down, and have pivoted to maintain margins.

 

aapl is running out of ideas so are now resorting to marketing gimmicks in attempts to alter market share around the edges. it's segmenting the high end market where it plays, into people that want an expensive phone, and people that want a Colorful! plastic expensive phone with expensive colorful accessories. Rich folk can afford more than one phone, which is something they count on I suspect. Nokia did the plastic color thing two years ago. this release was championed by the marketers in California, not the engineers. having said that, as a shareholder, I hope it works and buys them some time for them to really innovate.

 

Seriously? What are they going to do with the motion chip?

[Palantir]

No, I don't think that's the reason. I think it's a conscious decision that the 5C is the one to market now, which moves it up in priority for both preorders and fabrication.

 

It is a new product after all and easier to market.

 

How do you know?

 

I don't, I'm making an educated guess based on available information, and it matches up with what we see. Apple is clearly pushing the iPhone 5C more than the 5S.

[rkbabang]

I wonder if Apple will ever start making home appliances like microwaves or coffeemakers. I'm sure it's crossed Ive's mind.

 

Unless they can add some value to it in a way that is truly innovative and useful, I'd see an iMicrowave, iCoffee, or an iToaster in an array of fun colors as an act of desperation. Microwaves haven't changed much in a long time (since the sensor cook and sensor defrost modes were added to them all).  Coffee makers haven't changed much in an even longer time.  I'm not sure what else a microwave or coffeemaker really needs?  There is a small market for high end microwaves, I paid more than $600 for mine only because it matched my built-in double ovens and cooktop, but I don't think it is a huge market.  It's hard to get super excited over a microwave.

[tengen]

In the iKitchen, you have an iPad mounted on the wall.  You press a button and the iPad displays what you have in your fridge and highlights the things that are running low. You press another button and the iPad suggests some different meals you can prepare with the ingredients you have in your fridge and pantry. When you wake up in the morning, the iKitchen detects your movement and starts brewing your morning coffee. If you have enabled the iDiet app, the iKitchen prevents you from getting anything to eat once you reach your daily calorie intake limit or the iFloor detects an increase in weight. The iLifeExpectancy app shows a colourful chart indicating changes to your life expectancy based on the types of food you have been eating with playful animations showing you kicking the bucket if you are not maintaining a balanced diet.