Boston, MA 04/30/2014 (wallstreetpr) – While there are a few weak spot, Apple Inc. (NASDAQ:AAPL) is mostly doing well. How long will the Apple juggernaut last?
iPhone Phenomenon Continues
With 2Q2014 revenues of $45.6 billion and a whooping profit of $10.2 billion, the iPhone profit machine does not appear to be slowing down soon. While Apple sold 43.7 million iPhones in the quarter, Apple is just starting to sell iPhones in China via the largest mobile operator there, China Mobile. China Mobile is selling iPhone 5S and 5C models for use on its 4G LTE network. Once the Apple 6 is launched and Apple offers a price cut of the existing 5S and 5C models, that will make these models more attractive for first-time smartphone buyers in China. Also, as China Mobile’s 4G LTE network grows, more users will buy 4G LTE enabled smartphones.
Borrow And Save Taxes
Apple Inc. (NASDAQ:AAPL) continues to take on cheap debt at home while it keeps about 88% of the $151 billion cash it has abroad — all in an effort to lower its tax bills and thus reward the shareholders. If Apple takes on a similar amount of debt as it already has, then Apple’s debt load will double from $17 billion to $34 billion making it the 16th largest corporate bond issuer in the U.S. from its current position as the 56th largest issuer. Sprint Corp. has $33 billion outstanding while P&G has $36.4 billion outstanding and Deere has $34.4 billion.
Other News
The 7-for-1 stock split is designed to attract both institutional investors and individual investors. After the split, Apple might even become a part of the Dow Jones.
Apple reduce the price of its MacBook Air laptop models by $100 to bring down the cost of entry-level models to $900 — the first ever that an Apple laptop is going to be available below the psychological level of $1,000.
Apple Inc. (NASDAQ:AAPL) is rumored to be working on wearable devices and may launch iWatches soon which won’t be a surprise considering the moves by Apple’s competitors Google Inc (NASDAQ:GOOG) with their Google Glass and Samsung with its Galaxy Gear.
So the Apple Inc. (NASDAQ:AAPL) journey continues under Tim Cook and the Apple story is far from over.
