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Breakingviews: Apple's next act

Thursday, September 05, 2013 - 03:01

Sept. 5 - Ahead of Apple’s new product launch next week, Richard Beales and Robert Cyran discuss what investors can expect from the $450 bln tech company.

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-- apple has a new product events set she is today. This used to be suffered huge volatility great excitement. -- public company hasn't trade particularly exotic territory anymore and people -- that what are we expecting well then we're expecting mostly just adding that it gets an apple events you never know. But most people are expecting is a couple of different versions of the iPhone and other regretted it. A slightly more advanced version of the the iPhone 5 and then perhaps to cheaper version ready for sale in emerging market that is just a possibility that something else to talk but it watched the tournament. Some TV in -- for a long time but. These incremental what what analysts think of it leases and incremental changes things seem to bring the excitement. It's it's odd because that's an apple story for reform over ten years now they've introduced a big name brand new products like -- the iPod the iPhone and every everybody every three years. And so the last -- introduced was the iPad that was about three years ago as their money for something right but it shouldn't surprise anyone if it doesn't count on early next year -- that we told civilians -- about valuation you know apple trading more or less in line with -- some pretty boring is like. Cisco H do you Munich for the love it. It you know it despite the growth of splinter groups that could comes. If apple sells local office in China for instance that it's invest is to get that excite yeah I mean did that thing is like I depart China for instance they have they're having a big product law launch in China on what does that in the and that it I suspect that the event ever -- -- -- China Mobile finally getting the -- that's the -- itself from producer in the world that's not an extra sales right. However. The iPhone makes up about half of all sales for the company. And you can't really see it needed this this tremendous competition and if you look at Princeton's past history. The iPod used to make -- about it about 40% of sales when the iPhone came out breakfast sales through were cannibalized the way there -- idea -- sort of understand -- -- right the question is you know what's gonna come out now on the use the iPhone sales and and margins are starting to get under under pressure and -- -- -- is it cheaper iPhone which is expected and maybe that's the public -- to China -- -- until -- probably comes you'll see even more compression. And the problem is what -- new devices are coming out are they going to replace them the revenue coming from the iPhone but I don't really suspect so if you get a -- watch advocates agree to have that I can't really see everyone in the world having it ain't got the iPhone. Or TV right that could be bunch of revenue but again it's not something that everyone has to -- going to pay a lot of money for. They -- we go to 450 billion -- accompany us so forget it's the biggest public company in the world. By some margin again. You put you on the spot is that I think gonna change and that on Tuesday probably not. And it will leave it there will follow that event and we'll have more breaking -- tomorrow.

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Breakingviews: Apple's next act

Thursday, September 05, 2013 - 03:01

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