Ed’s Daily Notes for July 24th   1 comment

ABC News: Apple (APPL) CEO Tim Cook: ‘Amazing New Products’ Coming

Apple’s earnings are the big story today in the markets:

Apple Inc. (NASDAQ: AAPL) reported that it sold 31.2 million iPhones for the three months ending in June, better than Wall Street’s expectation amid a competitive smart phone market. CEO Tim Cook promised “amazing new products that we will introduce in the fall and across 2014.”

Brian Colello, analyst with Morningstar, said the “strong” iPhone sales contributed to the company’s quarterly earnings of $6.9 billion and revenue of $35.4 billion, which were slightly better than expected, though earnings were still down from a year ago. Revenue is essentially flat compared to the same period a year ago.

…Colello said the biggest boost to Apple’s stock may be its “massive” $16 billion stock buyback this quarter.

…Colello said he was most interested in iPhone unit sales and Apple’s overall gross margins, which he expected to be affected by iPhone prices, and the mix of sales between the iPhone 5 and the older cheaper 4 and 4S models. Colello expected a decline in iPhone prices, which fell 5 percent sequentially, because prices tend to fall as products age.

The Cupertino-based tech company said it sold 31.2 million iPhones, a company record for the June quarter, compared to 26 million a year ago in the same period. Many analysts expected Apple to sell about 27 million iPhones in the quarter that ended June 30.

I have to give Apple it’s due: Being able to sell millions of older model iPhones is impressive, especially in an ultra-competitive market.

Links to other earnings reports: ARM Holdings, Ford, Boeing, PepsiCo, and AT&T.

Variety: Google Glass Eyes Sky-High Supply: At Least 2 Million Units Annually

Google has taken a stake in Himax Display, which produces microdisplays for head-mounted devices including Google Glass — indicating the Internet giant expects to ramp up production to more than 2 million units per year, according one Wall Street analyst.

Google has agreed to invest in the company, a subsidiary of Taiwan-based Himax Technologies, to fund production upgrades, expand capacity and enhance production capabilities for liquid crystal on silicon (LCOS) chips and modules used in applications including head-mounted displays like Google Glass. Under the pact, Google will purchase a 6.3% interest in Himax Display, with the option to increase its stake to up to 14.8%.

I see this as a good move for Google.

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Posted July 24, 2013 by edmcgon in Market Analysis, News, Stocks

One response to “Ed’s Daily Notes for July 24th

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  1. What diverging monetary policies signal: Andy Xie
    Commentary: Gold prices will top $3,000 per ounce in five years

    http://www.marketwatch.com/story/what-diverging-monetary-policies-signal-andy-xie-2013-07-24

    In five years my NUGT holdings will put me in league with Gates and Buffett. I will try to stay in touch with everyone I have met at Ed’s Talking Stock.

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