LEE_D
Transcript: World's Most Valuable Company Just Got Even More Valuable

LINK: https://www.youtube.com/watch?v=Mby-L0viti0&t=12s

We saw how Apple shares are now at a new high positive analyst notes from UBS from Goldman Sachs. Apple out there communicating with analysts and giving them reason to be more optimistic. <o:p></o:p>

One of the interesting thing in earning shares a week they talk about the fact that upgrade rate was relatively low but they still manage to sell iPhone in the most recent quarter. Now, these implications of the course is that the iPhone, these added iPhone they sold were for the new customers. So therefore with a large upgrade expanded, expected, sorry more significant expected later this year tends to be named the iPhone 10 possibly the iPhone 8. That implies that more people existing customers will upgrade<o:p></o:p>

Of course one of the debates around Apple how much credit they should get for its services business. Some claims that they don’t fully get the priced in the way other companies do. Is there any evidence the investors are repricing that source of revenue<o:p></o:p>

It’s one of these things they did highlight in the earnings call but I think there’s still very much the expectation or the perception that Apple is the iPhone company. iPhone counts for two-thirds of these sales. What they do in services is significant for other companies, they did lose 24 billion dollars in sales in services but that’s a small percent of the overall pie and so you know, that’s not affecting their valuation at this stage.<o:p></o:p>

So when I come to Apple, we want to gain focus on the hardware which is the next generation phone you mentioned it will be either iPhone 8 maybe iPhone X or something we’ve seen analysts note a lot. UBS said that there might be augmented reality included in the phone, this would be a game-changer, right?<o:p></o:p>

Well, Tim Cook didn’t interview with the British press with the last week independent while he says that he sees augmented reality as, yes, as significant phenomenon for as the iPhone itself for our the small phone but all mentioned reality is a very broad spectrum. You know the likes of Pokemon Go could be considered augmented reality, they are quite rudimentary, you could take that to any number of level thing where you show the environments around you, you can see what’s in shops and all that kind of idea. Now we don’t know if something comes in the next iPhone to what extend to be full<o:p></o:p>

Right, understood, now in term of getting the stock prices to the next level. it’s at recorded high but everyone looking at what the company does which regard to its excess cash, dividends or buyback. Apple only announce that it once a year come to buyback as we are looking at more cash returned to the shareholder <o:p></o:p>

I think it’s always likely they’re extending not all those what’s interesting we’re looking at their history, they tended to extend the buyback and dividends in the time there’s product lull, it comes to props up the share price. I saw some analysis recently which said that without these buybacks their stock price should be closed to 100 dollars. These expectation will be as I said significant upgrade perhaps implies they won't need to to do those buybacks anymore drive stock growth but the more significant consideration is what the Trump administration is likely to do in term of reducing these tax costs of real operating offshore cash<o:p></o:p>

Absolutely <o:p></o:p>

And that could be free up money for that kind of movement

DID I TRANSCRIBE IT CORRECTLY

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Jun 3, 2018 10:52 AM
Comments · 3
@Kevin: Thank you so much, it's very helpful. I really appreciate!
June 4, 2018
Transcription:

Well we saw how Apple’s shares are now at a new record high. These positive analyst notes from UBS, from uh, Goldman Sachs.  Is Apple out there communicating with analysts, giving them reason to be more optimistic?<o:p></o:p>

One of the interesting things was from earnings the other week.  They talked about the fact that the upgrade rate was relatively low but they still managed to sell more iPhones in the most recent quarter. Now the implications of that, of course, is that the added iPhones, the added iPhones they sold were from new customers, so therefore with the larger upgrade [mumbling/stumbling over word] expected, sorry, a more significant upgrade expected later this year, tentatively named the iPhone 10, possibly the iPhone 8, that implies that more people, existing customers, will upgrade.<o:p></o:p>

Uhh, of course one of the, uhh, debates around Apple is how much credit they should get for its services. Some claim that they don’t fully get that priced in the way other companies do.  Is there any evidence that investors are repricing, uhh, source of revenue.

It was one of the things they did highlight in the earnings call, but I think there is still very much the expectation or the, uhh, perception that Apple is the iPhone company.  iPhone accounts for two thirds of their sales. What they do in services is significant for any other company, they do, they did last year about twenty-four billion dollars in sales and services, but that is a very small percentage of the overall pie, and, so, you know that’s not really affecting their valuation at this stage.<o:p></o:p>

June 4, 2018
I didn't have time to go through the entire thing, but hopefully this will be helpful to you. For the portion that I listened to your transcription seemed to get almost all of the main points, but it is missing interjections/other words that were spoken quickly.  I'll post my transcription of the portion I listened to for you to compare.

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June 4, 2018