Apple Inc

Fundamentals

Written by Ophir Gottlieb, 01-12-2016

PREFACE
Apple stock has collapsed of late as every headline has inevitably called of the end of the tech giant's run. Wall Street is wrong. Period.

Apple is leaving a bumbling Wall Street in the Stone Age and there's just no other way to say it.


TRUTH
In the CML Pro Apple research dossier we discuss the full line of Apple’s remarkable innovation, including a 90% increase in research and development in the last two-years. Yes, although Wall Street claims Apple is a “phone company,” the truth is, the largest company in the world may in fact be the most innovative as well.

Here’s the R&D chart over the last 16-years.



iPhone
Over 60% of Apple’s revenue comes from the iPhone. It’s also a fact that iPhone sales increased every quarter in fiscal 2015 compared to 2014 regardless of what the headlines have printed. The headlines have passed along inaccurate information.

But there’s more.

CHINA
Bank of America just released its research which came from a survey of more than 1,000 respondents in China. The net result: the iPhone results were stunning. Here are snippets from the report:


That last line is unbelievable and a result of a much bigger seismic change in China that the headlines simply don’t get.

Substantially more than half of Chinese consumers, per this survey, plan on buying another smartphone this year and Apple is the number one choice.

Friends, when Apple sold 74.6 million iPhones in the fourth quarter of 2014, people said it was impossible for the company to ever match that again. Now those same people, grudgingly admit Apple may have sold 77 million iPhones in the last quarter.

I'm telling you that with the iPhone 7 and this new data, along with the smaller iPhone coming out, Apple could break 80 million iPhones in Q4 of 2016.

Just like Facebook's growth was first incorrectly thought to be limited, so Apple's growth is also incorrectly limited.

In 2010, China had 40 million people in the middle class. By 2020, that number is seen to rise to 472 million.



Yes, that’s right, nearly half a billion more people in the middle class.

MORE
And by the way, rumors have it that Apple will be releasing a 4 inch iPhone with a metal casing. Research suggests there is still substantial demand for a smaller iPhone and all the other handset makers have moved away from smaller phones.



Estimates for 2016 put this new, massively upgraded small iPhone at 20 million - 30 million units.

FINANCING
Further, The Wall St. Journal’s Miriam Gottfried reported on Sep. 10th, 2015 that Apple will begin financing iPhone sales directly to consumers with no carrier-affiliation requirement. This could mean more frequent upgrades for iPhone customers.

Yes, Apple is going to take over control of iPhone sales itself, including financing, and whether that affects this quarter or next is nothing but noise – this is a huge move, and means more money to Apple.

MORE GROWTH
There's growth coming from Mac sales, which alone were the size of 35% of Google's total revenue in 2015 and more than 150% of Facebook's revenue. Apple Watch revenue in 2016 will be more than double Facebook's earnings in 2015. Remember, its version two of Apple products that begin the exponential growth and that's coming this March.

Apple TV is a seismic disruption that could make Apple, for all intents and purposes, the largest cable bundler in the world.

Apple Pay is an entire business line in and of itself. In fact both Apple TV and Apple Pay are so big, they have separate stand alone research dossier's in CML Pro to explain their colossus opportunities.

And don't forget the Apple Car, also included in the seminal CML Pro Apple research dossier.

WHY THIS MATTERS
Friends, the top 1% of wealth owners in the United States are keenly aware of the opportunities we just shared. If we're not using the same data and information, then we’re trading against people that simply have more information than we do. It’s time to stop the wealth transfer to the top 1% simply because of unfair access to data.

When you read the seminal research piece on Apple in CML Pro, you'll be stunned to learn how the facts have been brushed aside.

This is just one of the fantastic reports CML Pro members get. For a (very) limited time we are offering CML Pro at a 90% discount for $10/mo. with a lifetime guaranteed rate. And yes, we do have a “top picks for 2016” that is based on empowering our members. It’s based on knowledge. 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.