AAPL - Embedded Expectations Analysis - 2020 12 18
Apple Inc. (AAPL:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 27.8x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management appears concerned about revenue growth, iPhone 12 mini and Pro Max pricing, and other Apple productsSpecifically, management may lack confidence in their ability to sustain revenue growth and invest in the new services they will launch going forward. Moreover, they may be concerned about the pricing of their iPhone 12 mini and iPhone 12 Pro Max. Furthermore, they may be exaggerating the potential of AppleCare in supporting more customers and their Apple Watch, HomePod, and MagSafe ecosystem. Finally, they may lack confidence in their ability to maintain the positive response to the Apple Watch Series 6, deliver deep personalization with Apple Fitness+, and sustain the partnership with Singapore through LumiHealth
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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