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Even with this recent drop, Cook has been good for Apple.
Full disclosure, I own several thousand shares, but Apple showed MANY areas of strength.
1) Despite this revenue miss, Apple is still going to report record EPS.
2) Services hit a record $10.8B in revenue, 25% y/y growth.
3) 100M more active users added to the user base in last 12 months.
4) “Non-iPhone business grew 19% y/y
5) Double digit iPad growth
6) 50% growth in wearables (Watch, AirPods)
7) $240B in cash
8) Biggest buyback in the world
9) Still did $84B in sales in 90 days.
10) AAPL trades at 10X 2019 earnings.
11) The revenue miss is concentrated in China and on iPhone there.
Now this wasn’t great news. Not at all. I’m disappointed in the execution and feel Apple needs to fix their strategy in China and emerging markets.
HOWEVER...you need a deeper understanding before you dismiss Cook as a failure.
Even with the decline, Apple has returned about 20%/yr with dividends under cook, outperforming the broader market by about 80%.
Markets do crazy things in the short term, but this company still makes so much money, it’s almost unbelievable. The $5B top line miss is pretty specific to iPhone in China and emerging markets.
Haters will get upset, but Apple STILL hit records in United States, Canada, Germany, Korea, and other developed markets.
Trading at about 10X earnings, you might want to buy the stock instead of bashing Cook. His results have been good and less than a year ago, Cook was given a huge vote of confidence by investors by approving all board members for new terms.
Cook is a genius and Jobs PICKED him to be CEO.
If you don’t see the innovation in the mobile silicon, FaceID, depth sensing camera tech, imagin processing, wearables, and the push to services, you aren’t paying attention. Apple still drives the industry. Look how many manufacturers are still trying to get a secure version of FaceID? Or even copying the notch? Or even something silly like removing headphone jacks? Pixel, Samsung on their new mid tier A phones.
The market had been bad th last 3 months. Amazon is also down 25%. You want to fire Bezos? Google is down huge too.
Check back in a year. The stock was $230 just 3 months ago. Apple didn’t change much since then and the valuation has never been sky high.
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