Apple’s Earnings Show Its Steady State Weakness

Summary:

  • Apple’s earnings indicate fundamental weakness, with net sales increasing by only 1.5% and product sales remaining flat.
  • The company’s cash flow is strong, but it primarily goes towards paying dividends and repurchasing shares, limiting shareholder returns.
  • Apple faces risks such as pressure to open up the app store and the U.S.-China trade war, which could impact its profitability and growth.
Apple Store at 5th Ave in Manhattan, New York City

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Apple (NASDAQ:AAPL) announced its earnings, with a small dip after hours. Given the much larger volatility seen with the earnings of other technology stocks, one might assume that the earnings were middle of the road. However, as we’ll see throughout this article, the company’s earnings


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