People get so emotional about this stuff, so I want to be clear: it is not knocking Apple. Nor is it likely to maintain its current margins. Nor is it terribly likely to maintain a P/E ratio in the 40s for any considerable time. But do notice that Apple is not going to get to be the size of Dell in computing any time soon with current strategies. So in computers, it is around 15% the size of Dell.ĭon’t get too excited about the total market cap, which is just like the very low cap a couple of years ago, more a matter of the emotions of hedge fund operators than anything fundamental. It is true, and its a great comeback, but the story is a bit more complicated than it may seem, if you look at the 2005 financials.Īpple’s revenues were 14 billion, net income 1.3Īpple is on a P/E ratio of 46 at the moment.Īpples computer business is said (Forbes) to be 45% of sales. “BTW: AAPL beat Dell in Market Cap today! Yeah! Now if they can just do that based on Mac sales instead of based on iPod sales….”
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