See feature articles below: (NASDAQ: AAPL)
About Broad Street Alerts:
Broad Street Alerts recent profiles and track record, 209% in verifiable potential gains for our members on the last 2 small cap alerts alone!
May 11th, 2016- (NASDAQ: STEM) opened $2.92/share hit a high of $3.90/share within a few hours our member potential gains- 33%
March 9th, 2016-(NYSE-MKT: MGT) opened at .64/share and hit 1.77/share within 4 days for gains of 176% for our members.
Report for – (NASDAQ: AAPL)
Sourced from: Fortune / Don Reisinger
It’ll no longer be the “iPhone company.”
Apple is expected to spend considerably more on research and development this year and next, but why?
Above Avalon’s Neil Cybart, a longtime financial analyst, Apple-tracker, and one of the more accurate predictors on the company’s earnings, has released an in-depth investigation into the company’s research and development efforts. His findings show that Apple AAPL 3.03% is ramping up its R&D spending at a rapid rate, suggesting that in just a few years, “we are no longer going to refer to Apple as the iPhone company.”
Cybart dug through Apple’s financials to look back at how the company has invested in research and development over the years. He found that Apple spent more than $4 billion on it in 2013 and then $6 billion in 2014. By 2015, the R&D costs had risen to $8 billion. Now, he believes that Apple is on track to spend more than $10 billion this year on research and development in 2016 and more than $12 billion next year.
“This is a remarkable feat considering that Apple was spending a little over $3 billion per year on R&D just four years ago,” he wrote.
The ramp up in research and development—an unprecedented one when compared to its expenditures dating all the way back to 1996—suggest something big might be up at Apple, Cybart argues. While he acknowledged that it’s possible the increasing spending is due to a broader product line or Apple could try to get into more product categories, he believes the most likely reason is that Apple wants to turn into a different kind of company.
“Apple is ramping up R&D because they have a few big bets that require a massive increase in investment,” Cybart writes. “The two most logical areas for these bets are wearables and personal transport initiatives. In both cases, Apple is moving well beyond its comfort zone of selling pieces of glass that can be held in one’s hand. Instead, Apple is literally building a new company with additional capabilities and strengths.”
Apple did not immediately respond to a request for comment.
Cybart’s comments come as rumors continue to pile up that the company is working on a electric car. Although Apple itself has not said for sure that it’s planning to a car, the company has hinted at such plans and made strategic hires in that market. Tesla TSLA 2.42% CEO Elon Musk says Apple’s car ambitions are an “open secret” in the industry.
Meanwhile, Apple seems committed to the idea that its wearable, Apple Watch, could be the leading device for what is expected to be a booming industry. While Apple has yet to share sales figures on its wearable, most analysts believe the company is leading the pack by a wide margin.
The idea that Apple would “pivot,” as Cybart claims, seems rather bold. However, in the company’s last-reported quarter ended March 26, its iPhone business, which takes up the largest chunk of its operation, saw revenue slide 18% year-over-year to $32.9 billion. Meanwhile, Apple’s iPad and Mac sales also fell. In total, Apple’s $50.6 billion in revenue was down 13% year-over-year.
Those issues, coupled with disappointing performance in China, has prompted worry among investors. Meanwhile, Apple CEO Tim Cook has been forced to allay fears, saying that the trouble is only temporary. He has also promised big things for the future, but won’t say exactly what they are. He has even pitched the idea of possibly spending more than Apple ever has on a major acquisition.
Simply put, major changes could be afoot.
For Cybart, however, the R&D expenditures make the prospect of those major changes seem real. He argues that the company will indeed get into the car business, and all that’s required to guarantee that prediction is looking at how it’s spending money.
“Apple is not spending $10 billion on R&D just to come up with new Watch bands, larger iPads, or a video streaming service,” he wrote on his blog. “Instead, Apple is planning on something much bigger: a pivot into the automobile industry.”
Cybart added that by pivot, he means that Apple will take what it has learned from other markets, like Macs and iPhones, and use it to its advantage in cars.
“Apple is designed to move from product to product, industry to industry,” Cybart said of the company’s organizational structure. “We see the company do just that by entering the smartphone market, followed by the wearables market and soon, the auto market.”
Given all the data and the expenditures, Cybart says that Apple’s chances of selling its own electric car are “80%.” Ultimately, he says, while the iPhone will remain important to Apple, it will eventually be less important to the company.
“Apple wants to move beyond the iPhone,” he predicts.
Broadstreetalerts.com is a wholly owned subsidiary of Small Cap Specialists LLC, herein referred to as SCS LLC.
Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.
PLEASE NOTE WELL: SCS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.
Release of Liability: Through use of this website viewing or using you agree to hold SCS LLC, its operators owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. SCS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and SCS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead SCS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D. SCS LLC is compliant with the Can Spam Act of 2003. SCS LLC does not offer such advice or analysis, and SCS LLC further urges you to consult your own independent tax, business, financial and investment advisors. SCS LLC has been compensated twenty thousand dollars cash via bank wire by star media llc for a two day investor relations campaign of STEM. SCS LLC does not hold any positions in STEM. SCS LLC has previously been compensated twenty thousand dollars cash via bank wire by DF Media for the mention of MGT. We do not hold any positions in MGT. Investing in micro-cap and growth securities is highly speculative and carries and extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled. We have not been compensated nor do we own positions in the company/companies that are in the featured article.
The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur. Understand there is no guarantee past performance will be indicative of future results.
In preparing this publication, SCS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, SCS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. SCS LLC is not responsible for any claims made by the companies advertised herein, nor is SCS LLC responsible for any other promotional firm, its program or its structure.
Please Note: We do NOT accept free trading or restricted securities as payment for our services.
SCS LLC is not affiliated with any exchange, electronic quotation system, the Securities Exchange Commission or FINRA. SCS LLC is not a Broker/Dealer and does not engage in high frequency trading.
Hot small cap stocks
small cap stock picks
FDA approval stocks
Become a day trader
Day trade stocks for a living
PDUFA date set
micro cap stocks
Best stocks 2016
Hottest small cap stocks
Best stock picks
Who to follow for stock picks
Apple news stock picks
Stock picks on apple news