Apple Inc

Fundamentals

Written by Ophir Gottlieb, 11-17-2015
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ABSURD
A report was released from Canaccord Research and in combination with research from IDC, we get these utterly absurd results.

* Apple accounted for only 13.5% of total smartphones shipped globally.
* Apple takes home 94% of the total smartphone industry profit.



Yes, while Apple sells 1 out of every 8 smartphones, it takes essentially all of the profit from the entire industry with just that market share. Huh? For the record, Microsoft (MSFT) accounts for -1% (negative, i.e a loss).

Here's an easier way to look at those numbers.

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MORE CONTEXT
There were over 1.2 billion smartphones sold worldwide in 2014 and Apple sold "just" 193 million of those. Yeah, but, Apple has reaped 85% of the profit from all of it in 2014 and now 94% in 2015.

And believe it or not, it's getting bigger, again. Read this below (emphasis added).



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Now there is a little problem with these numbers as the research firm points out. Specifically, some of the Chinese OEMs are purposefully losing money in order to grow global market share which makes the profit pool smaller and therefore over states Apple's share.

THIS IS REAL
But, before we just dismiss these numbers as useless trivialities, friends, note that Samsung earned 11% of smartphone worldwide profits, and that's not cherry picking a company. Samsung is in second place and it is a full fledged behemoth at over a $150 billion in market cap.

Apple earns more than 800% (8-fold) Samsung's profit from the industry. But honestly, all of that back and forth is just conversation. Last year Apple stood at 85% of the smartphone worldwide profit and now it's at 94%. That's just fact, even though it sounds impossible.

THE WORLD
CML Pro also revealed the research from BofA that shows that 57% of China's smartphone buyers plan to buy their next (or first) smartphone within a year and Apple is by far the preferred brand. All those calls for China's slowdown and Apple's collapse are simply wrong. A headline is not a story, and a headline is certainly not an investment thesis.

We also learned that Tim Cook's secret handshake with India's Prime Minister preempted a sudden move by India to single out "cutting-edge technology" as a segment that can side-step the country's regulations on foreign manufacturers; how convenient.

India's share of the smartphone market will increase a staggering 26% next year with forecasts calling for 140 million smartphones to be sold in India in 2016, alone. Enter Apple stage left, with the number one technology brand in the world with the best-selling technology hardware ever and of course this:



What a coincidence, Apple is coming out with smaller less expensive iPhone just as it shakes hands with India's Prime Minister. Estimates for 2016 put this new, massively upgraded small iPhone at 20 million - 30 million units and that does not include India.

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WHY THIS MATTERS
If any of the information we just covered feels like a surprise, in many ways it is. The mainstream media doesn't have the vocabulary to understand breaking technology and the top analysts that represent the wealthiest 1% of Americans have no interest in sharing the data they are keenly aware of.

In fact, it's the information asymmetry they created that has generated immense wealth to the benefit of the top 1% at the expense of the many.

The radical innovation Apple is bringing has created a juggernaut the world has never seen before. Here's an impossible chart of the largest companies in technology, ranked by their revenue per employee in the trailing-twelve-months.



What's astonishing is that both Apple and Microsft have over 110,000 employees, while Netflix, Facebook and Google have 2000, 12000, and 60000 employees, respectively.

In fact, while AAPL and MSFT have similar numbers of employees, AAPL generates $2.1 million per employee while MSFT generates about $800,00. That's beyond astounding and gone into incredulous.

These are the realities surrounding Apple:
Apple's Seismic Shift To Recurring Revenue Could Double the Stock
Research is Out: Apple Will Crush it in China in 2016
Apple Pay Has Enormous Upside
Apple TV is Seismically Disruptive
The Secret is Out: Apple Car is Coming
Apple's Secret: The Hidden Handshake with India Is Enormous

We must be in the know about these critical trends -- the top 1% are.

CONCLUSION
CML Pro has research dossiers that cover each trend above -- in fact, those are the actual titles of the pieces.

This is just a snippet of the fantastic reports CML Pro members get along with all the visual tools, the precious few top picks for 2016 that cover all of the rule breaking segments of our future, research dossiers and alerts. For a limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. Join Us: Get the most advanced premium research delivered to your inbox along with access to visual tools and data that until now has only been made available to the top 1%.

Thanks for reading, friends.