Apple guided Q1 revenue around $84bn vs earlier guidance of $89-93bn. Consensus unsurprisingly pegged itself to the middle of the initial estimate. How original and staying ahead of the curve? It doesn’t take a rocket scientist to work out that pulling disclosure of handset sales was the precursor. It wasn’t so long ago that the US Federal Reserve ended disclosure of its balance sheet movements. Ahead of the GFC, Ben Bernanke pulled reporting of M3 money supply right before the GFC.
Apple has lost the entire GDP of Singapore in market cap terms since last September. How many funds are up to the eyeballs in this stock that they believed had endless growth. How soon before it loses another Singapore?
No doubt the iPhone 14S XR limited edition run of 100 million units won’t turn this around.
It is usually around this time in a decayed product cycle that companies launch into random areas they have no expertise in. Watch for M&A deals at silly prices to buy bolt on businesses that bring hopes of growth in a global economy that has maxed out! Cue the goodwill write downs in year 1.
Oh how the liberal feeds have lit up about Trump’s health diagnosis. The girther movement. No noise about Apple’s 22,000 new jobs plan and repatriation of $38 billion of oveseas cash to hand to the US Treasury. Virtue signaling works both ways. Just like the tax cuts had corporations promoting that they were rolling out their $1,000 bonuses for 200,000 staff etc one after another expect a conga line of tax dollars rolling into the coffers.
That’s right, US corporates will be eager to show their good citizenship status to get great publicity for doing so. Don’t wanna miss that train. Not even billions of advertising dollars would get the same reach. None of it would have happened without tax incentives to do it. What shareholder wants his/her company fritting away tax dollars to the tax man if it can be avoided? Yet the liberal media will whine about Trump pandering to evil corporates. Well evil corporates have even more sinister tax accountants who find “legal” loopholes. This time paying tax has strangely positive outcomes. Obama could have done it but he was too busy doubling debt and the numbers on food stamps!
Apple will certainly not be the last company to do it. Still better to focus on a septuagenerian’s waistline than the country’s bottom line. In typical liberal logic fashion they should be encouraging his poor dietary habits to hopefully force a medical issue which sees him out of office earlier. Roll on the 8 year term…
NB Estimates Show 70% of Americans have less than $1,000 in savings. A $1,000 bonus is not trivial in the slightest. For so many Americans that have been destitute since Lehman Brothers folded, don’t underestimate the power of improved economic fortunes to push partisan politics to the back of the bus. Why would people seek risking their wallets thinning just so they can feel morally good about themselves on Facebook?