top of page
Search

Apple Caution Remains...

Updated: Oct 31, 2023

APPLE: Nutstuffs caution here remains: Apple is a brilliant business. Cynically Nutstuff agrees that they just launched new iPhones, watches and AirPods and we are set to pay 30% more for almost the exact same products. I fully agree with the excellent Dr Windsor.


Upgrading AAPL products for the whole family: 6x iPhone 14 Pro Max 256Gb £1,309 = £7,854, 6x Apple Watch Ultra £849 = £5,094, 6x AirPods Pro 2 £249 = £1,494. Total cost: £14,442/ US$16,564 When the most exciting product launch is aimed at a tiny minority of the user base it becomes clear that Apple is struggling to find ways to get the mass market to buy a new device this year.


The net result is that the iPhone 14 and Apple Watch 8 are unlikely to be able to offset the impact of the macro-economic malaise meaning that the seasonally strong Q4 season is likely to disappoint this year.


This was probably the least exciting launch event I have seen for some time which is not what Apple needed. Apple needed to wow the user base such that they immediately rush to the store or the website and buy all of the new products. Its failure to do this means that it is going to feel the full sting of the weak macroeconomic environment as there is simply not enough here to lead me to think that it is going to buck the industry trend. I therefore think that the coming buying season for smartphones is going to be disappointing and that Apple will fare in line with most of the rest.


Against this backdrop, APPLE shares are not particularly cheap are universally loved and giant index weight, and there are plenty of other options (with greater alpha opportunity) to look at that offer far higher growth at a lower multiple although they are riskier propositions. That is where I am focusing my attention.


Please see our disclaimer here: https://www.nutstuff.co.uk/disclaimer

65 views0 comments

Recent Posts

See All

VERY SERIOUS GAME OF WHACK-A-MOLE

To Nutstuff again this is a giant and very serious game of WHACK-A-MOLE, as the UK continues to take action against economic threats: First against Global; Mountain 1: commodity price inflation and n

More Bullish Than Consensus!

Yes, it is very clear how concentrated alpha in markets is. It’s the best excuse for underperformance I guess. If stock picking ever mattered it is now...Without FAANGMAT, “AI” Luxury and half a dozen

Duck hunting without a saxophone!

What we are seeing clearly now is the US trying hard to goad China in Taiwan, a diversionary tactic or a new game to play from the Washington bunkers. I suspect Xi plays the calm and longer game here.

Comments


bottom of page