AAPL - Embedded Expectations Analysis - 2021 05 28
Apple Inc. (AAPL:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 21.7x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management appears concerned about dividend increases, international performance, and their Services businessSpecifically, management may lack confidence in their ability to maintain their performance in China and continue to raise their dividend. Furthermore, they may be overstating the iPhone 12's 5G capabilities, Find My network's effectiveness with third-party products, and the potential of Apple Card Family credit card sharing. Moreover, management may lack confidence in their ability to ensure user data privacy, sustain paid Apple TV+ subscriber growth, and maintain the momentum of the Services business. Finally, they may be overstating their focus on environmental goals and the sustainability of iPhone's leadership position
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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