Apple awarded $1 0Billion dollars. Good time to buy apple shares?

alanq

How many potential customers will decide that a company sitting on that much cash must be overpricing its products and decide not to buy?

mulronie

I just can't get over that Apple has a higher market cap than ExxonMobil, Boeing and JP Morgan combined... it just feels wrong

YoungBusinessman

CKhalvashi wrote: »

This is the exact point!

Something that should be stated is that Apple have gone where no company has before worth-wise, however on that note, I'm also not going to be selling the shares I bought between 2000 and 2008 (original cost of £2,000 p.a and now worth a fortune!)

CK

Very well done, £16k investment, would love to know the "fortune" its worth!!

Biggles

jonj123 wrote: »

Is it good time to buy apple shares?

It's probably a good time to sell Apple shares, if you hold them.

All this will be in the share price already, plus they also had a good run before this. I'd sell before Samsung start costing them money in long-drawn-out appeals and the initial exuberance wears off.

sabretoothtigger

http://www.google.com/hostednews/afp/article/ALeqM5g9VLaVIIIIB1jji9tdrXQ6hI1WDw?docId=CNG.b7da466e7463234a849267d82ddd1600.921


Apple is fair value, last year they were cheap. It depends if they can sell to Asia just as much, it could be they are cheap if as popular east as in the west


A long term investment should give back its original value. Since there is no dividend really, I would at least take back my original money.
The profits are free then for investment or to diversify elsewhere but not much grows faster then tech can

Reaper wrote: »

So think of the biggest company you can - the market says Apple is worth more.

I can't help but wonder if they are really worth as much as that. Tech moves on rapidly .

mulronie wrote: »

I just can't get over that Apple has a higher market cap than ExxonMobil, Boeing and JP Morgan combined... it just feels wrong

Exxon is bigger, this is correct but its not more profitable. Look at the profit margin and oil is quite a tight competitive market.
We complain about excessive profits but exxon makes like 20cents a barrel of oil apparently where as Apple is gaining 70% of the sale price as it even self retails nobody is taking from them.

Costs are low, the development sucess is the main thing as mentioned. Exxon is bigger revenue, bigger operation and probably emloys more people but for smart high equity return as a company sharing profits, the price for apple shares is well justified


Also Apple can sell to every person in the world literally. Its like the Coke model. Sugared water is that big? yea really.
So JPM I will never deal with, they might have good margins but their market is restricted and tiny compared to billions that listen to music.

Apple wrote:

quarterly revenue of $28.57 billion

The 1bn in the court case means nothing as a figure. As a right for Apple to stand alone without competition its massively valuable hence the 70% margin will stay so its not 1bn its maybe 20% they might have lost in competitiveness on their revenue

So 1bn is headline, actual impact is more like 0.2 x 28 = 5.6 or 22bn in the next year that might have been lost.
However the market probably wont give full credit, they can appeal etc
Its likely over time Apple is a fair share to hold if development stays true to past success


The biggest thing to rock Apple shares in future will be the demise of the american consumer.
1 week view, 635 is a buy
1 year view, 570 then 420 is a buy
5 year view, 250 and 200 is a long term hold & therefore a buy on a fall with bad news

I'd be surprised if we do see 420 again but tech can be volatile and Im certain USA will suffer at some point so its possible with an overall negative market and traders taking money to spend, etc
I think 420 is possible along with weaker tech I'd rebuy my shares there. I wasnt clever enough to buy so long ago, I currently hold intel


On UK market ARM is related to Apple as they design the chips. In 2010 I considered them expensive at 200 though with great potential growth, now they sell near 600.
Its not a good idea to buy 1 share, a tech fund would have done well also and I think they'll supply the world in ten years just as much or more then now


http://en.wikipedia.org/wiki/Ronald_Wayne

jamesd

Best to look for the reason for the case, not the relatively small award. Apple took legal action because it's badly losing to Android phones in handset sales volume, with a loss rate to them that is increasing, and that's threatening Apple's business and making sure it'll stay a minority player. Android based phones look like the ultimate winner at the moment. But it's still too soon to say whether Apple can continue the commercial success of its high cost and very high profit margin business.

MoneySaverLog

jonj123 wrote: »

Hi all

I just found out that apple have been awarded $1 Billion in damages from Samsung in damages for the patent issue that's been going on. Does this mean apple share prices will go up? Is it good time to buy apple shares?

Investors in Apple would have been looking at the lawsuit over the past few months and speculating on it then. The award, and any appeal will have already been factored into the current share price.

In other words, it's too late.