Apple Is Turning Green With Cash
For years, Apple fans have known the level of quality that products bearing the iconic Apple logo brings. Now everyone knows how valuable the logo is. On Tuesday, widely followed branding consultant Interbrand said Apple has surpassed Coca-Cola's
Increasing to the number one position is just the latest recognition of how effectively CEO Tim Cook is leading Apple. Under Cook, Apple has already delivered record revenue and profits. With Apple stock trading near a P/E ratio of 11, revenue and profits clearly haven't been enough to satisfy investors.
Concerns over margins have been debated ad nauseum in the media while critics simultaneously have called into question Apple's ability to produce new and exciting products. Well folks, the numbers and shortages reported with Apple's latest 5S phone should quash all investor distress.
Chris Whitmore of Deutsche Bank reportedly believes the latest iPhones' margins are slightly larger than the already massive margins iPhones enjoy. Back orders for various colors of iPhone 5S are widespread, but the iPhone 5c is available.
For Apple, the initial sales' margins are comparable, but Apple's real magic is monetizing the user base. Once a new client enters the iSphere, he or she spends more money buying iTunes and apps. Everyone knows this, but there are nine million reasons for highlighting the fact.
Last week Apple announced nine million 5S and 5C iPhones sold in the first three days after going on sale. Some are new and some are repeat customers but, as a whole, investors can expect the cash printing press to continue unabated.