Apples outlook is not so optimistic

 Apples outlook is not so optimistic

Netease technology news on October 31, according to foreign media reports, local time on Wednesday Apple announced the fourth quarter of fiscal year 2019 report, the reports revenue forecast for the next quarter exceeded analysts expectations. But the analysis pointed out that although Apple will have a good start next year, due to the limited growth of the smartphone market, Apples new products and services are still facing uncertainty, the company faces structural challenges, and investors should not be too optimistic.

Here is the Translation:

Apples unhappy year has passed, and the next phase will have a good start, but expectations may have exceeded reality.

Earlier this week, Apples market value reached $1.1 trillion. Apples share price has outperformed the S & P 500 since June, as Wall Street began to be confident in Apples outlook after the end of fy19f.

Analysts dont expect a big jump in revenue next year, but they think Apples strategy of cutting the price of the latest iPhone will help boost sales. They also believe that more and more apple products, such as the latest release of airpodspro wireless headset to the soon to go online network video services, mobile video game subscription services, will promote the companys revenue growth.

That may be all right. Apples forecast for the next quarter means its median expected revenue is up nearly 4% from the holiday quarter of 2018. This is not a rapid growth, but it shows that new iPhones and other products are gaining more appeal after a year of downturn. Apple also reported strong growth in wearable, home and accessories businesses, including wireless headset airpods and apple watch Apple watch.

The structural challenges facing the company remain. Apple has been doing its best to provide fans with more product price choices and richer feature configurations, but it is no doubt that it has become the past to easily achieve performance growth, and it is not easy to change the status quo. Apples essential characteristics as a hardware manufacturer have not changed as optimists hope.

The smartphone market in many countries has reached saturation, new device sales in the whole industry are declining, and the potential for growth is hidden in the market that Apple cannot easily enter. The story has been repeated over the past few years, only now can it be really understood.

Apples market value has continued to rise during this period, but there have been some minor incidents. Although its current cash flow is far lower than the peak in 2015, it is still large. Apple is not going to fail, no one expects it to grow by leaps and bounds, or even grow as healthily as other big technology companies.

Perhaps investors didnt see Apple as a software company. Even if investors still see Apple as a company highly dependent on the stagnant smartphone market, the market impact seems modest. Apples share price is now higher than it has been in the past few years, according to data.

Apple TV +, a video service similar to Netflix, will make its debut in some countries on Friday, with a lot of headlines and coverage. New services like this help boost revenue, and apple wisely positioned Apple TV + as an effective way to stimulate iPhone sales.

Overall, however, Apples expectations for services such as Apple TV + may be too high. A large part of the revenue and profits in Apples services business come from long-term services, such as app commissions, traffic fees paid by Google, and the companys device warranty program. Apple has always been good at improving the revenue of these businesses by adjusting strategies, but there are uncertainties about the attractiveness and profit potential of the new services to consumers, especially for users other than Apple fans.

The next year will be the time to grasp the essence of apple. Apple is good at making hardware products and is now trying to sell more products and services to its fans. Apple is doing a lot of the right things, but investors must be careful not to be overly optimistic that apple can achieve its best from an uncertain reality. (Chen Chen)

Source: Wang Fengzhi, editor in charge of Netease Technology Report