Bought some more Apple Stock today...

[lendaddy]

Just checked the site, it's actually two years free and yes on one unit.

"2 Yr Ltd Warranty, On-site Service, and HW Warranty Supt [Included in Price]


3 yr Limited Hardware Warranty with Next Business Day On-Site Service [add $108]


4 Yr Ltd Warranty, On-site Service, and 4 Yr Tech Support [add $194]"

[dtw]

Originally Posted by john_cramer

That is a really dangerous and not well thought through interpretation of GAAP. Sale of a device, which is a one-time recognition in a single quarter if there ever was one, characterized as a two-year "subscription?" I would not at all be surprised to see a restatement at some point.

Sorry Cramer, wrong on this one. It is 100% correct and absolutely conservative. There's auth. guidance on devices like this where there are immediate deliverables (an iPhone) and future services all effectively wrapped up in the immediate sales price (warranty, service contract, etc.). There have been tons of restatements, but for the opposite approach that Apple is booking their sales. Google up the Tekelec restatement. I was one of the legions of CPAs that worked on that engagement, and it is a textbook example of how not to do it.

My favorite thing about the Apple store: when I go in there to buy some gizmo or another, the sales droid swipes my card wherever in the store we're standing, emails me the receipt, hands me a bag, and I'm on my way. Lines? What are lines? The only time I've stood in line at an Apple store was when I bought my 3G a few weeks after it came out, and even that only took about 15 mins.

[kstar]

Originally Posted by lendaddy

Just checked the site, it's actually two years free and yes on one unit.

"2 Yr Ltd Warranty, On-site Service, and HW Warranty Supt [Included in Price]


3 yr Limited Hardware Warranty with Next Business Day On-Site Service [add $108]


4 Yr Ltd Warranty, On-site Service, and 4 Yr Tech Support [add $194]"

That is a great deal.

Is this only for businesses or do individuals get the same service?

[lendaddy]

Originally Posted by kstar

That is a great deal.

Is this only for businesses or do individuals get the same service?

Looks like home users get the one year deal best I can tell.

[TheMentat]

Just read this today... food for thought:

http://seekingalpha.com/article/115748-apple-like-starbucks-and-whole-foods-a-trend-that-s-past-its-prime

When folks are flush, they will spend for status, but when things get tight and quality low-cost competitors enter the market, buying habit change ... fast. What is happening now at Apple (AAPL) started last summer (this also has nothing to do with Steve Jobs' shareholder deception).

So, the Apple nuts will send me more hate mail and call me names. Oh well...

Remember when WholeFoods (WFMI) was the only place in town to get organic food and Starbucks (SBUX) was the only place the get anything other than a standard cup of coffee? Remember? It seems like an eternity ago especially when I can get organic food at the 7-11, Wal-Mart (WMT), Costco (COST), BJ's (BJ) and every local supermarket. And a cappuccino can be had at any one of a dozen local coffee houses, McDonalds (MCD) and Dunkin Donuts.

Is WholeFood's $5-a-pound organic potato the best? Is Starbucks' $6 cappuccino appreciably better than an offering from anyone else at a fraction of the price? No.

Is the iPhone ($199) that much better than Research in Motion's (RIMM) Blackberry Bold or Storm that can be had for 1/2 the price ($99 through discounts)? No.

Is a Mac computer really worth 2x the amount I can get a similarly functional product from Dell (DELL) or Lenova? No.

For the coffee devotee, the person searching for the "one of a kind" generic item, the computer lover who wants a top-of-the-line item or a devoted Apple user, all of the above will continue to generates sales and profits from these folks.

But for the "unwashed masses" (yours truly is one of them) who are not married to a brand or a cup, who need a computer for basic functionality and who don't need organic-hand-picked-free-trade-union-only beets, we will always drift to the lower-cost comparable item. The problem with the three brands mentioned above is that they lack an item for us.

The Blackberry Bold and the iPhone are comparable items. Both have pros and cons vs each other and both have loyal followers who will tell you theirs is better. But at 1/2 the price, the Bold has the most important advantage over the iPhone.

I am reading Howard Lindzon's upcoming book "The Wallstrip Edge. " For the record I am not a trader, but the book is very good as it does force you to look at things a different way and it challenges "common knowledge". Lindzon has been in the game for decades now, and anytime you can get insight from someone as brutally honest as Howard, that has tremendous value.

As I read it, I realized the trend in Apple, like the others, is over. Shareholders are not going to see a $180 stock price in the future and like the other two, a stable or declining price is more likely. The iPod was revolutionary and had such a lead on the competition there was no answer (the real advantage was iTunes, not the player). The iPhone is a great product but was immediately matched by competitors that offer some things it doesn't at a far lower price point. Unlike the iPod, there is no iTunes for the phone that makes using a competitor's product impossible. Cell networks are as interchangeable as toilet paper, so the advantage the iPod has is not found on the iPhone. Now price rules.

With US sales down 24% in Q4, Apple is left with only more price cuts to stimulate sales. That will cut into margins and profits.

Are any of the three "name" companies going away? No. Are they in danger of losing money? Apple no, the others, for a while, yes. It does mean the glory days for the stock are over, unless they can tap back into the mass market that has left them. But that will require dramatic pricing alterations, something all three up until this point have been painfully reluctant to do. Starbucks and WholeFoods really have not significantly altered prices, and Apple only did so on the iPhone (from $599 to $399 to $199) after sales of the product ground to a pedestrian level; and even at its current price level, the phone is overpriced vs. the market.

What's worse is that all three brands now have the reputation of "expensive". That will be the hardest thing to overcome: convincing the newly thrifty bargain hunting consumer you are not what they say you are...

[Pazuzu]

Originally Posted by kstar

That is a great deal.

Is this only for businesses or do individuals get the same service?

We found that when we bought a single lowly laptop, on sale, bottom of the line style, on a business account (yes, for a business) we not only got great service, but a tech on the phone who was in America, spoke clear English, and who sent a pre-paid box for us to send the laptop back for repairs. The whole process took less than a week (they're only 3 hours away).

Yes, Business accounts seem to get significantly better treatment. I've been told that you can create a business account by using your last name as the company, they apparently don't check too carefully. I consider that wrong, but hey.

[techweenie]

Nice move, Wayne. Earnings call is over and stock is very strong after hours.

$79 to $90 in 24 hours. Hope you bought a lot.

[kstar]

Originally Posted by TheMentat

Just read this today... food for thought:

http://seekingalpha.com/article/115748-apple-like-starbucks-and-whole-foods-a-trend-that-s-past-its-prime

Doesn't sound very objective, but than I am biased. LOL

edit: The comparison between the iPhone and Bold shows that the author is not very objective - the Bold is a nice product, but it ain't no iPhone.

[lendaddy]

Originally Posted by techweenie

Nice move, Wayne. Earnings call is over and stock is very strong after hours.

$79 to $90 in 24 hours. Hope you bought a lot.

I would cash that baby in tomorrow. 18 months return in 18 hours!

[red-beard]

Originally Posted by lendaddy

Reality hasn't set in yet...it will and things will change. JMHO

A lot of little Jimmy's and little Janes are going to start hearing "Your old iPod is fine" and "You don't need a MacBook to do your homework, this $350 eMachines will do just fine."

I get a visual of OB1 doing this...

[Dottore]

Good call Wayne.

I had a buy order in for $65. But I think now I may have missed that boat, unless some of the market-skeptics here turn out to be right.

I agree with all you have posted about Apple fundamentals.

[Deschodt]

I bought some too, at $90, $85 then $80...

Like others said, the company is selling and making profits in the middle of a recession. They are so full of cash (reserves are huge) that they can afford to invest in research while others simply pinch pennies, so there will be more innovative products to come... Jobs has not been the source of innovation for a long time now...(though he's a great CEO)

Every product they make is wonderfully polished and has a fantastic interface. My kid is 20 months old, he picked up my iphone and figured out how to unlock it, browse between app pages, launch and quit apps, all in 2 minutes! That's a sign of a great interface...

And I can't recall ever needing their tech support in 24 years of apple stuff ownership. Not once. And I'm not a zealot, I have PCs too...

I think if you can afford to not think about that cash for a while, AAPL will be back at $200-300 within 2 years... a Lot of stocks are getting beat up, some are undervalued, but apple is *really* undervalued to me !

[the]

Serious question: How would the stock do if we were to go into a full blown depression?

[Dottore]

Originally Posted by the

Serious question: How would the stock do if we were to go into a full blown depression?

Well of course it would tank....and become a real buying opportunity.

[KFC911]

Originally Posted by the

Serious question: How would the stock do if we were to go into a full blown depression?

It would still be worth more than my 1500 shares of Enron! I didn't spend much, and though it's been delisted for several years now, I can't get that crap off of one of my portfolio statements . AAPL has been pretty good to me over the years and is one of my core holdings (though not always) but I do take some money off the table occasionally (like after the Iphone runup).

[jkarolyi]

Just saw this thread...I too bought in the same time as Wayne for much the same reasons he did. Steve Jobs is great for hype and product launches, but Apple has the best creative minds in the world working for them.

A big reason for the stock jump today...first ever disclosure of their cash hoard...Apple holds $28.1 billion! Sheez, that's more than Microsoft! Wish I had bought more.

[techweenie]

Steve Jobs is the reason Apple has some of the best creative minds in US industry. Few noted in his announcement of his 'health break' that he would still be involved in strategic decisions. The big difference is that before, he was involved in everything down to the smallest detail. If I thought he was out of the company for good, I'd sell my stock.

[charleskieffner]

hey now if we go into a full blown depression apple will be JUST LIKE HARLEY DAVIDSON STOCK! why???? because if i have the choice between feeding my family and a freeking computer or a motorcycle what in hells name am i gonna BUY! FOOD! not some computer gizmo nor a motorcycle. i think thats pretty simple stock advice until the economy changes. my puter crashes today and i dont have a job...............well trust me as the sun comes up in the east everyday the LAST ITEM I WILL BUY WILL BE A COMPUTER! thats me as a consumer speaking.

my best friend is head of all computer tech for wells fargo bank. they aint making ANY NEW EQUPMENT PURCHASES nor setting up ANY NEW CUBES until things turn around. and thats on the biz end of thangs.


sooooooooooooooooo............i would put my money in items that you need no matter what the state of the economy is YOU HAVE TO HAVE IT! ie: example toilet paper and other companies within that mindset.


kids its just legalized gambling and right now i am surrounded by the uber wealthy that would bring tears to your eyes the immense amount of wealth they have(HAD) and some are having to sell planes/boats/hangers/wifes mercedes(fer sure a dee vorce there), 2nd and 3rd homes here, name the freeking toy because they made VERY POOR STUPID FINANCIAL DECISIONS!

[Dottore]

Just wondered how the nay-sayers are feeling about this thread now?

Since January 09, when this thread was started, Apple Stock has more than doubled.

I bought in (again) a little earlier, when prices where a bit higher. But am still very happy with the returns.

Wayne bought in at the absolute low-point, and must be very pleased.

[Porsche-O-Phile]

Agreed.

I also think now would be a very, very good time to sell.