henry blodget

CHART OF THE DAY: What The Heck Happened To Apple’s iPad Business? (AAPL)

Source: http://www.businessinsider.com/chart-of-the-day-what-the-heck-happened-to-apples-ipad-business-2013-7

Apple’s iPad business, which is supposed to be its second mega-business, has already hit the wall as far as growth is concerned.

Last quarter, Apple reported sales of 14.6 million units, a 14% drop on a year-over-year basis. On the company’s earnings call, Apple’s execs said that if you look at the actual sell through of the iPad, and factor in channel inventory changes, then it was down 3%.

Part of the reason the iPad business fell is that Apple didn’t roll out a new version of the iPad last quarter. In the June 2012 quarter, it was introduced the high-resolution iPad which boosted sales. With no new model of the iPad, sales lagged in comparison.

However, last year Apple wasn’t selling the iPad Mini. The $329 iPad Mini should have provided enough of a lift to offset the lack of a new iPad model.

This isn’t just a one-off bad quarter. If you look at the trend, you can see that growth is in a general nose dive for the iPad. Analyst Gene Munster says the reason the iPad business is weaker than expected is that the market is “becoming more price sensitive than we previously expected.” In other words, consumers are buying cheaper tablets from Apple’s rivals.

For why that’s troubling for Apple, check out Henry Blodget’s take here…

ipad chart of the day

 

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Wednesday, July 24th, 2013 news No Comments

The Astounding Growth Of iPhone Profits (AAPL)

Source: http://www.businessinsider.com/chart-of-the-day-apples-gross-profit-per-product-2012-8

Make no mistake about it, Apple is now the iPhone company.

This chart, based on information from Apple and estimates from our own Henry Blodget, shows how gross profit from the iPhone has exploded since it was introduced in 2007. It basically overshadows profits from all other divisions at Apple.

Blodget estimates gross profits will be $67 billion in 2014, up from an estimated $44 billion this year.

Apple profits per product

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Friday, August 3rd, 2012 news No Comments

Mobile Advertising Really Means Mobile Search Ads

Source: http://www.businessinsider.com/bii-chart-of-the-day-mobile-ads-really-means-mobile-search-2012-6

Business Insider Intelligence a new research and analysis service focused on mobile computing and the Internet. The product is currently in beta. For more information, and to sign up for a free 30-day trial, click here.

We’re holding our Mobile Advertising Conference tomorrow, and one of the things we’ll discuss is the breakdown of mobile ad spend.

Right now, mobile ad revenue is predominately from mobile search. According to data from the Interactive Advertising Bureau, search accounts for 62 percent of mobile ad revenues, with the balance coming from display and SMS ads.

It’s even more dominant overseas. Search accounts for 48 percent of mobile ad spend in North America, but is 72 percent and 65 percent in Asia and Europe, respectively.

Conventional wisdom holds that mobile ad spend will surge to catch up with user engagement. However, as Henry Blodget wrote in January, “Most individuals do not spend more money buying things merely because they can now use the web on their mobile devices.” In other words, advertisers will only spend more money if they believe they can increase their return on investment. Mobile spending may indeed catch up with engagement, but it will come partially at the expense of other kinds of advertising.

Want more data about mobile ads? Watch for a special report from BI Intelligence on the State of Mobile Advertising later this week….

Mobile Ad Revenue by Segment

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Wednesday, June 13th, 2012 news No Comments

A Truly Embarrassing Chart For Wall Street Stock Analysts

Source: http://www.businessinsider.com/this-chart-shows-why-wall-street-stock-ratings-are-a-joke-2012-2


Only five percent of ratings on companies in the S&P 500 are sell ratings.

That’s right: 95 percent of ratings tell investors to hold or buy and only 5 percent say you should sell.

The following chart comes from FactSet via Cullen Roche:

chart

Henry Blodget recently offered a few reasons why you rarely see sell ratings:

  • Most stocks–especially growth stocks–generally trend up over the long haul, so saying SELL often means betting against the odds and/or making a short-term timing call.
  • Stocks with excellent fundamentals don’t often go down just because they’re “expensive”–instead, they just get more expensive. So saying “SELL” based solely on valuation often sets the analyst up to be wrong.
  • The lack of SELL ratings makes SELL ratings sound like a complete condemnation of the company, to the point where it seems the analyst has a vendetta against it. The more polite way to tell people to sell, most folks on Wall Street whisper, is to say “hold”–or just ignore the stock altogether.
  • The issuance of a SELL rating often drives a stock down, hurting investors who own it. These investors will not usually say “thank you.” Instead, they’ll want your head.
  • Most investors are long-only, meaning they can only buy stocks, not short them. Thus, “SELL” ratings are only useful to hedge funds and investors who already own stocks.
  • Most companies refuse to talk to analysts who hit them with SELL ratings, thus reducing the analyst’s ability to gather information about the company.

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Wednesday, February 15th, 2012 news No Comments

This Chart Is Driving Apple Bulls Crazy (AAPL)

Source: http://www.businessinsider.com/chart-of-the-day-apple-pe-2011-12

Apple’s price to earnings ratio is at a relatively paltry 14 right now, and it’s driving Apple bulls crazy.

The chart below, which shows Apple’s shrinking PE, from Apple analyst Andy Zaky has been passed around for the last week. (At the time Apple’s PE was 13.3.)

What’s wrong with this chart?

Zaky explains: “Now even though Apple’s growth has far and outpaced the growth of Oracle (16.35 P/E), Amazon (96.15 P/E), Google (19.19 P/E), Cisco (15.11), Qualcomm Inc. (20.62), Amgen, Inc (13.53), Comcast (15.11 P/E), IBM (13.95 P/E), Chevron (13.50), Johnson & Johnson (14.94 P/E), Procter & Gamble (15.49 P/E), and AT&T (13.91 P/E), the stock trades at a far lower valuation relative to these top holdings on the NASDAQ-100 and S&P 500. Some of these companies have actually contracted in 2011. Yet, the market values the earnings out of these companies on the order of 4-5 times more in some cases than they value the earnings out of Apple.”

Of course, there’s more than one way to value a stock. If you value it based on trailing free cash flow, it’s arguably priced fairly, says our Henry Blodget.

chart of the day, apple quarterly p/e ratio compression, dec. 7 2011

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Wednesday, December 7th, 2011 news No Comments

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