A 10% fall in the value of a nation’s currency can boost exports by an average 1.5% of GDP, according to a study by the International Monetary Fund that reveals the benefits of a cut in the exchange rate for foreign trade.
13M in opening weekend, compared to 10M last year (but this time with China at launch). Also, 40 additional countries on October 9 (including Romania). Alas, just the first day of sales will count in Q4 (the rest in Q1 2016) – which is maybe why short-sighted Wall Street didn’t open 5% higher as it should.
Apple’s (AAPL) new iPhone leasing program will provide predictable cash flows that may boost its future earnings and stock price as Wall Street re-rates the company’s shares.
iPhone-as-a-Service, coupled with very high customer sat, means recurring revenues which can push the AAPL multiple up significantly. Plus, Apple takes more margin by bringing the sales into their stores, and takes another part of the carriers’ business.
Apple on Monday said it is on pace to beat last year’s iPhone first-weekend record of 10M iPhones.
Having China among the first wave of countries (unlike last year) is clearly a win.
“The product announcements were largely inline with speculation and did not seem like they could drive meaningful revenue growth. Although a slightly delayed launch of iPhone 6S (vs iPhone 6 last year) could help its unit growth in the Dec quarter. We remain concerned about tough iPhone compares for the next few quarters, which will likely keep weighing on the stock performance.” Neutral. $125.
This tough comparison with the great iPhone 6 cycle is what worries me too, from an investor (short term) point of view.
In the long term, they just announced a new platform which will redefine an industry with the app-enabled Apple TV.