Apple Inc. (NASDAQ: AAPL) co-founder Steve Jobs has been dead since October 5, 2011. Tim Cook took over as CEO the same year. Apple has posted a huge stock and revenue run up since then, but the company’s primary product line has not changed. The rumored launch of an electric and autonomous car finally would put Cook’s stamp on Apple’s portfolio.
A look at Apple’s earnings for the year that ended September 26 shows the extent to which Apple’s revenue comes from products and services launched before Cook’s tenure as chief executive. Apple’s revenue was $274.5 billion. iPhone sales accounted for $137.8 billion of that. The first iPhone was released in 2007.
Cook can take credit for much of Apple’s portfolio of wearables, home products and accessories. This includes the Apple Watch. However, none of these individual products contributes considerably to Apple’s revenue. As a portfolio, the revenue from this segment was $30.6 billion last year.
Arguably, Apple’s biggest success in the past three years is its services business. Its revenue for the 12 months that ended in September was $53.8 billion. However, the heart of this part of Apple is well over a decade old. Its foundational parts include iOS and iTunes, which are over 10 years old. Granted, new products like Apple TV and Apple Pay have been added.
An Apple car represents the company’s chance to move into one of the largest consumer product sectors in the world. Global auto industry revenue will hit $2.7 trillion this year. That figure is expected to reach $3.8 trillion in 2030.
A great deal of the growth in the auto industry will be in the electric and autonomous vehicle segment. Some U.S. states and a number of the world’s largest countries have mandated a move to environmentally friendly engines. China actively promotes the sales of zero admissions vehicles. The United Kingdom plans to ban the sales of fossil-fuel-powered vehicles by 2030.
One sign of how valuable electric and autonomous car products could be to Apple’s market value is Tesla. Its current market capitalization is $627 billion, although it will sell only 500,000 cars this year. Its revenue is dwarfed by Apple’s, and its market cap is 28% of Apple’s.
The chances of Apple’s success received a visible endorsement from Volkswagen. Bloomberg quotes its CEO, Herbert Diess, as writing about Apple’s “practically unlimited access to resources.”
Electric car sales could reach 20 million worldwide by 2030. The battle for market share will be furious. Tesla leads the market already. Every major car company in the world wants to be a leader as consumers migrate away from gasoline-powered cars.
Apple’s chances to do well in the electric vehicle market are as good as any company, particularly if it has a next-generation battery technology that has not been matched by other manufacturers. Cook has started down a road that will take Apple well beyond consumer electronics products and services.
Apple Inc. designs, manufactures and markets mobile communication and media devices, personal computers and portable digital music players.
The Company sells a range of related software, services, accessories, networking solutions, and third-party digital content and applications.
The Company’s segments include the Americas, Europe, Greater China, Japan and Rest of Asia Pacific.
The Americas segment includes both North and South America. The Europe segment includes European countries, India, the Middle East and Africa.
The Greater China segment includes China, Hong Kong and Taiwan.
The Rest of Asia Pacific segment includes Australia and the Asian countries not included in the Company’s other operating segments.
Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay and a range of accessory, service and support offerings.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 120.59.
The projected upper bound is: 144.30.
The projected lower bound is: 129.72.
The projected closing price is: 137.01.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 5 rising windows in the last 50 candles–this makes the current rising window even more bullish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.7614. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 73.59. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 79 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 18 period(s) ago.
Rex Takasugi – TD Profile
APPLE INC closed up 4.720 at 136.690. Volume was 12% below average (neutral) and Bollinger Bands were 6% narrower than normal.
Open High Low Close Volume 133.990 137.340 133.510 136.690 124,486,240
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 129.26 120.06 99.49 Volatility: 37 39 52 Volume: 118,000,152 108,995,656 153,446,160
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
APPLE INC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
APPLE INC is currently 37.4% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect moderate flows of volume into AAPL.O (mildly bullish). Our trend forecasting oscillators are currently bullish on AAPL.O and have had this outlook for the last 18 periods. Our momentum oscillator is currently indicating that AAPL.O is currently in an overbought condition.
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