AAPL - Embedded Expectations Analysis - 2020 06 17
Apple Inc. (AAPL:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 22.9x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management appears concerned about their demand, global supply chain, and costsSpecifically, management may have concerns about the challenging global environment, iPhone SE's position in their long-term strategy, and the impact of store closures and reduced customer traffic on Apple Care. Furthermore, they may be exaggerating the usage of Apple Watch by medical professionals and their efficiency in implementing new projects and remote deployments for their clients. Additionally, they may lack confidence in their ability to improve their global supply chain and manage their OpEx using a long-term perspective. Finally, they may be concerned about declines in demand during shelter-in-place orders, and they may be exaggerating the potential of commodity price declines
Apple designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. The company's products include: iPhone; Mac; iPad; and wearables, home and accessories, which includes AirPods?, Apple TV?, Apple Watch?, Beats? products, HomePod?, iPod touch? and other Apple-branded and third-party accessories. The company's services include: digital content stores and streaming services; AppleCare, which includes AppleCare + (AC+) and the AppleCare Protection Plan; iCloud, which is the company's cloud service; licensing; and other services, which include Apple Arcade?, Apple Card?, Apple News+, and Apple Pay, a cashless payment service.
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