Tag Archives: Tim Cook

The Chinese smartphone giant Xiaomi will go public in Hong Kong in July

The fourth-largest smartphone maker Xiaomi are planning to go public, and the company will start a roadshow in the U.S and Europe in a few weeks. After a collaboration with institutional investors in the U.S and Europe to value the firm at no less than $70 billion, the Chinese smartphone giant will go public in Hong Kong in July.

In my recent article I talked about Foxconn and their plans to go public a week ago, and more Chinese companies are on the way, One of them is Xiaomi, and their IPO is the biggest IPO so far in 2018 which is good for Hong Kong.

(Xiaomi`s profit is “only” $2, but their biggest market is India)

 

Hong Kong is on the way to be the destination of choice for global companies seeking to raise capital. Hong Kong marks the 21st anniversary of the citys return to Chinese sovereignty on July 1, and Xiaomis IPO can be a great birthday present to Hong Kong.

Xiaomi went from a start-up to surpass $16 billion in seven years, and their founder Lei Jun decided to make a smartphone brand selling handsets at “honest” prices. Eight years later, Lei Jun and the seven other co-founders have made a company that wants to challenge the global industry dominance by Apple, Samsung and Huawei.

Xiaomi are the cheapest smartphone on the market with the biggest market share in India. About 70 percent of their 2017 sales of 114,6 billion yuan came from smartpones, but there is a huge difference between Xiaomi and Apple.

Lei Juns profit from his low-budget price smartphone is "only" $2 per handset. Tim Cooks margin is between $151 and $250 on each iPhone.

Xiaomi more than doubled its overseas shipments to 27 million handsets in 2017. Its revenue skyrocketed to 32,1 billion yuan. There is no doubt that the global market is where their ambitions lie, and this is globalization at its best.

Xiaomi opened its first European sales outlet in Paris and plans to open additional Mi stores in France, Spain and Italy later this year.

Xiaomi do not only have a big potential with its smartphones but also from smart devices, better known as the Internet of Things (IoT). Industry revenue may balloon every year at a 13,3 percent compounded growth rate to $6,2 billion by 2021, according to IDC.

Their innovative products will make a tremendous change in every industry.

Xiaomis valuation can be $100 billion and it will be the biggest IPO since Alibaba in 2014. Alibabas IPO was the biggest IPO of all time with its 25 billion IPO in New York. Facebook went public in 2012 with an $16 billion IPO.

Former communist China are on the way up. This IPO will make even more rich people in China. Founder Lei Jun and his co-founders will be rich after the IPO. Not only that. 56 of the earliest employees pulled together $11 million to invest in the start-up. Today, they are the lucky 56.

Their stake in Xiaomi may soon be worth about $1 billion to $3 billion, depending on the stock sale. That works out to $36 million each at the midpoint.

Citic-CLSA, Goldman Sachs and Morgan Stanley had been appointed to arrange Xiaomi`s stock offer.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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More than 50% of Apple`s revenue comes from the iPhone sale and Service is a growth sector

More than 50% of Apples revenue comes from the iPhone sale, but for how long will that last? Its dangerous for a company like Apple to think it will last for the next hundred years, and that`s probably why CEO Tim Cook have targeted service as a growth sector.

Iphone is still a very important product for Apple and therefore it will be much talked about, but other products are also good and should be one the plan. Service revenue from iCloud, the App Store and Apple Music can all grow in the future.

We know the evolution of the mobile phone industry. The Swedish company Ericsson was hot during the 90s, before Finlands Nokia took over the throne, but it didn`t last forever. As you may know, Apple launched iPhone and have since then been the king of Smartphones.

Smartphones won`t last forever, and once those phones are “out”, Apple must be prepared and think fast. The way we use our phone as we know it today will change.

Apple`s market cap is $848,35 Billion and so far it has been a great ride for the last ten years. Their multi-hundred billion cash stockpile gives them a great opportunity to spend money on M&A, but also R&D.

Morgan Stanley thinks the company could increase the capital return program by $150 Billion. Earlier this year, Apple said it expects to pay $38 Billion taxes on what it plans to repatriate, implying it will bring back nearly all of its $250 Billion in overseas profits.

The Street are concerned about the iPhone X sale and total revenue based on higher selling prices. Service are growing about 20% YoY, but the revenue from iPhone X can be worse than investors like to think.

The newest generation of iPhones is not as good as the iPhone 7 has a year earlier. Maybe it is because of a stiff price or maybe consumers go for a cheaper phone?

Shares of Apple are flirting with 200 MA and after a jump of nearly 2 percent on Monday it will be interesting to see if the results on Tuesday will send the stock in the bullish territory or down again.

Apple Inc is expected to report earnings on 1 May 2018, after market close, and the report will be for the fiscal Quarter ending March 2018. Earnings for the quarter is $2,69 which is better than last years $2,1.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Google will launch its brand new phone Pixel 2 within a few weeks

It is a big day for Tim Cook and Apple today. The most expensive iPhone you`ve ever bought will be launched and that is happening ten years after its first release of their iPhone. That was then in 2007, but now it is 2017 and iPhone 8.

But Apple wont be long in heaven before I introduce another new phone on the market. Googles new release of their new phone called Google Pixel 2. Google Pixel and Pixel XL were both launched in October last year, so Pixel 2 will be launched next month, October 2017.

 

 

It isnt the most innovative product I have seen so far, but what I have seen is only leaked cases. The Pixel line is new and its building on the new defunct Nexus range. Apples new phone will be expensive, but you shouldnt expect Pixel 2 to be any cheaper than the old one.

The old one from Google started at about $650, so it was already expensive.

Rumors tells us that the new Google phone will be a curved screen with a 5,6 inch 18:9 display and a 2,560 x 1,312 resolution. With its use of AMOLED it will be very similar to Samsung Galaxy S8. Further more, it is rumored it will be a Snapdragon 835 chipset for all three Pixel 2 handsets.

The competition in the phone market increase and search giant not only face big competition from Apple but also from Xiaomi and Huawei. The last one remains Chinas top smart phone brand and Xiaomis sales are still climbing.

Xiaomi shipped 15 million phones during the quarter to rank fourth in China. That`s a 60% rise from Q1 2017. Huawei shipped 23 million ahead of brother-sister companies Oppo (21 million) and Vivo (16 million). Apple completed the top 5, having been leapfrogged by Xiaomi.

Xiaomi is the opposite of Apple with its price-conscious consumers. CEO Lei Jun hailed Xiaomi`s resurgence this year, calling it this most recent quarter «a major inflection point in our growth.»

«After two years of internal recalibration Xiaomi is once again embarking on a rapid growth trajectory,» Lei Jun told the press. He added that the company is aiming to reach 100 million phone sales in 2018.

Competition from Oppo, Vivo, Xiaomi and Huawei are placing them all in the price-conscious to mid-range devices category. They are more likely to succeed in Asia than Google and Apple in the West.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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Apple will launch its new iPhone on September 12 and it will be the most expensive phone you`ve ever bought

Apple is planning to launch its new iPhone 8 on September 12. It will be a big day for Apple but also for Apple fans around the world. The new phone will be the most expensive phone you`ve ever bought and the price will exceed all of its competitors.

You are also hereby warned about the wow effect you`ll get with a big visual overhaul of the new iPhone. The new iPhone will be coming in a new Blush Gold color and leaks have been hinting that the new phone will outperform the elegant designed Samsung Galaxy Note 8.

 

 

The name of the new phone is not known yet, but Apple may call it something like iPhone Pro or iPhone X to mark the 10th anniversary. You will be able to see the new 10th anniversary iPhone for the first time ever at the Steve Jobs Theater venue.

It`s amazing to see how the technology giant are doing it. Shares peaked at an all-time high followed by a strong earnings report the last month. Shares of the giant jumped over 10% in August and that is based on a strong fiscal third-quarter 2017 results.

Earnings per share rose 17,6% to $1,67, and their gross margin expanded 50 basis points to 38,5%. Apple`s revenue rose 7% YoY to quarterly revenue of $45,4 Billion. How is it possible?

Belive it or not, but it seems like people haven`t got enough of the giant and their revenue rose in all segments.

Iphone sales jumped 3% YoY to $24,8 Billion. iPad revenue increased by 2% to nearly $5 Billion. Services revenue rose 22% to $7,2 Billion and sales of other products like Apple TV, Watch, Beats and accessories rose 23% to $2,7 Billion. Cook also reported accelerating growth an all-time high quarterly record for Services revenue. Amazing.

Not only that. Apple provided guidance for fiscal fourth-quarter revenue to increase in the range between $49 Billion and $52 Billion. Apple is very excited about the advances in iOS, watchOS and tvOS coming this fall.

Apple`s most popular product line is still iPhone and their widely expected iPhone 8 smart phone will be launched on September 12, 2017.

During the last call, CEO Tim Cook said: “We`re looking very much forward to the product rollouts”.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Apple have a cash hoard of $250 billion and enough software know-how to build great self-driving car technology

Apple is a big company with a market cap of $783,07 billion, and most of its success is coming from its flagship iPhone. CEO Tim Cook in May noted a «pause» in iPhone sales but Apple is expected to come out with a new and expensive iPhone in a few months.

It will be a super premium tenth-anniversary iPhone costing $1,000 or more, but that will not help the sales of their iPhone at the moment. In addition, the pause could also be delayed. Maybe into a new fiscal year.

 

 

What is an electric car actually? It is a smart phone with four wheels, because there aren`t much difference from an electric car and a smart phone. And who can enter the auto industry better than Apple?

Apple have everything they need to design a brand new electric car. They have more than enough much-needed software know-how and the company is already working with car companies on CarPlay. They have $150 billion of net cash and $50 billion of free cash flows annually.

Apple compete with Google and Microsoft and it will be very disruptive when they all enters the car industry with its brand new electric cars.

Whats funny to see is that these companies are not car companies but rather software companies. It speaks for itself. Apple is a strong brand with many fans worldwide, and Apple Car can take a large share in the auto market.

Tim Cook said in June this year that Apple has autonomous car ambitions. Apple is working to build self-driving car technology, referring to the endeavor as “the mother of all AI projects”.

But it seems like Google are leading. In December, Google launched Waymo, wich is “a new way forward in mobility.” So far, they have more than 2 million miles of public-roadway testing for its vehicles.

What will happen if Apple buy Tesla? They could quickly become a leader, but Elon Musk laughs off the idea of Apple buying Tesla. But earlier this year, Musk said “Never say never to Apple buying Tesla”.

Apple have a cash hoard of more than $250 billion, and that is giving them the opportunity to spend some of it for acquisitions or buybacks.

We know that Elon Musk earlier this year had a meeting with acquisitions chief at Apple and news regarding this case would be a bomb in the stock market.

Apple Inc is expected to report earnings on Tuesday August 01 after market close. Earnings forecast for the quarter is $1,57 versus $1,42 for the same quarter last year.

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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