Like last quarter, Apple set another record for revenue in its first quarter of 2014. However, margins at Apple have receded, turning year-on-year profit comparisons negative for yet another quarter. Earnings per share are up because of stock buybacks. But Apple shares fell 8% after the earnings were released. Apple continues to try to maintain margins as high as possible without sacrificing share. This strategy means contraction in the Americas. But Apple is betting on Asia for growth.
My macro thesis regarding Apple has been that Apple as a well-run company which executes its vision quite well, will continue to be a cash machine. But the company will be limited in terms of growth opportunities by its one company, one hardware seller, one operating system motif. The onslaught from the An...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.