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Breakingviews: The Apple pie

Monday, October 27, 2014 - 03:24

Breakingviews columnists assess Apple's latest run-up towards a new market value record and the chances of the iPhone maker becoming the first $1 trillion company.

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This time when apple one trillion was on everyone's mind. And answering all five down. But after the results last week to stop or start to pick up again it's heading back towards or. Record high of market value and Richard you think it may be more for real loose well I mean it's it's it's still it's still one of the big candidates the first trillion dollar company relating what thing you have to remember. The stock keeps hitting new record highs but because apple keeps buying back stock every quarter giving a lot of money back so this. The actual total market but it the company hasn't it go back to the high it hit a couple of years ago which is about 660. Billion dollars but it's now back up to around 65628. And so is actually not too thought to Canada if if the little recent run up continues. And I think what's and seeing as throughout this whole time apple it's not. Particularly high value it's a money making machine it's it's valued on a TE. President has multiple. And the low level on the S&P 500 index which seems crazy for it. Such a huge cash generating company and its Connolly little rule we've we've always taken the view it's fun to devote large numbers of people a little bit. Scanned the idea of a company getting to a trillion dollars in write the nation but. You know it it it it. Keeping up towards being the biggest company that well again it was ready just a couple of years ago and it's it's the biggest now but it slows because it wasn't it may get better against that driver out and rob you have there where they've got to do little talk that maybe groove rule. We get their first obviously won a big comparisons is the Microsoft as well when it was kind of the biggest car here's our chance that apple it's kind of a wall and and couples when Microsoft. Is it that it's always possible from unity can't eat him as Richard says that would come b.s get this big it's it gets harder and harder for them to kind of candidate because they had stopped producing it producing. There have products and then they don't want it necessarily innovate and make some failed a straight or they're existing monopolies. That said I mean Apple's got a pretty good record of not just sitting on the laurels on something like for instance when you know when the iPod they take humanities the iPhone. But companies wouldn't have done packages that well we were were wreaking a lot of money from this we honestly want to move into. I never got to worry that there was not going to be anything new or what was gonna look like and now we've got a couple things got payments he got the the the watched neither which has. Kind of lit the world on fire yet whenever I'm paying the payments in particular could be a very thanks moneymaking scheme for apple because it's it's great thing about this thing hit a slicing each transaction that people are making. And because they've seemed to figured out how to do payments. Easily and securely that should be the good this is on this Microsoft put also you took on the idea that. A Microsoft clubs trading at a much higher. Or it has little to Microsoft pulls you think about one as the one of the and a 1999 when. Likes of had a fraction of the profits and revenue that apple has now and then fell off a cliff that seems unlikely. What you see more recent Microsoft has more of the kind of hitting a little bit of a wall in terms of innovation and that's that's still concerned. For apple but does he just been discussed if you've you've got a couple of new product lines of different kinds and the other. Who knows we'll get to try and goals for us but. Apple asked me when other. So can our we will leave it there and we will be back with more breaking views tomorrow.

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Breakingviews: The Apple pie

Monday, October 27, 2014 - 03:24