AAPL - Embedded Expectations Analysis - 2021 02 19
Apple Inc. (AAPL:USA) currently trades at a historical high relative to UAFRS-based (Uniform) earnings, with a 27.2x Uniform P/E. Even at these levels, the market has bearish expectations for the firm, and management appears concerned about their global market share, iPhone user base, and subscription productsSpecifically, management may lack confidence in their ability to continue growing their business in India, gain global market share, particularly for Mac, and increase paid subscriptions adoption. Furthermore, they may be exaggerating the potential of their Apple One bundle and the rollout of 5G connectivity in China. They may also have concerns about the impact of the pandemic on consumer spending, possible headwinds stemming from phone trade-ins, and the rollout of new Apple Music features. Moreover, management may lack confidence in their ability to sustain iPhone growth among switchers and upgraders, maintain their record active iPhone installed user base, and secure opportunities from the shift in enterprise technology investments
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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