Apple: Nice close

Apple zigged Monday while the market zagged.

apple nice close 4-13

Two drivers that I can see:

  • This morning’s Bloomberg item promising four 5G iPhones, tags and a new, cheaper HomePod this fall
  • This afternoon’s report from China Taiwan Economic Daily, via AppleInsider, that Apple has stepped up its orders for A-series processors

After the close, a “signs-of-improvement” note from Evercore’s Amit Daryanani crossed my desk (more on that later).

Anything else?

3 Comments

  1. Gregg Thurman said:
    This afternoon’s report from China Taiwan Economic Daily, via AppleInsider, that Apple has stepped up its orders for A-series processors

    This may be a case of Huawei having placed its initial order before Apple placed its initial order (first come first served). Apple, then, could not order as many units as it wanted because of TSMC’s 3-nanometer production capacity limitation. The downward order revision from Huawei enabled Apple to increase its order volume to what it wanted in the first place.

    I’m not placing any import to the news other than it will change the iPhone product mix that Apple intends to manufacture. I’m thinking the 3-nanometer processors are intended for a 5G model (more transistors on the same real estate).

    If, and only if, a 5G version of the next iPhone comes at a premium, then an increase in 3-nanometer processor orders implies iPhone revenue should increase (YoY) just on that one point. Add to that loose assumption demand increase created by 5G hype, then FQ1/2021 should be a standout quarter despite the COVID-19 slowdown of the world’s economies.

    1
    April 13, 2020
  2. John Konopka said:
    It was nice to see Apple up at the close. Also, if you look at the daily charts for a number of stocks there was a fair amount of variation today. The algorithms were not simply buying and selling the market in unison. Volume was about 30M, healthy, not excessive. I think Apple is up in anticipation that we can look ahead a few months to see past the worst of the coronavirus damage.

    It boggles my mind that we have devices where the smallest dimension is 3nm. That’s about 100 atoms. I work in the fields of electron microscopy and X-ray spectroscopy. It takes a special electron microscope to see things that small. It takes a really special machine to view cross sections of these transistors and to measure their elemental distributions.

    Edit: It looks like Apple is ramping up 5nm product purchases. 3nm is a bit on the horizon.

    https://www.patentlyapple.com/patently-apple/2020/04/tsmc-cut-5nm-cpu-capacity-to-hisilicon-due-to-slower-huawei-phone-sales-apple-grabbed-that-extra-capacity-for-2020-iphones.html

    0
    April 13, 2020
  3. Fred Stein said:
    Finally investors get it. Apple is the one to own in good and bad times. In 5 years:

    Apple’s service revenue doubles to $100B annually.
    Apple buys back 20% of shares outstanding, or more.
    Apple sells 1 Billion iPhones, most of them using Apple’s designed 5G chip.
    Apple introduces, and redefines, at least 2 new product areas.
    The rest of Apple’s business remains, ‘excellent to outstanding’.
    AAPL reaches $500

    For grins: Apple can pay dividends using only the cash flow from Services.

    5
    April 13, 2020

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