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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Ryan Bartholomew who wrote (165494)	2/6/2014 4:48:32 PM
From: slacker711	Read Replies (1) \| Respond to of 213177

For $20/share, I'm assuming they shrink their iPhone/iPad sales to whatever would equate to something like 15% global market share, stabilize margins, and focus on serving their loyal fans well. Just like they do with Macs. I think you need to recalculate your earnings numbers. If Apple stabilizes margins and keeps a 15% share of the smartphone market then they are going to earn significantly more than $20 a share. Slacker

To: Ryan Bartholomew who wrote (165494)	2/6/2014 8:37:47 PM
From: pyslent	Read Replies (1) \| Respond to of 213177

For $20/share, I'm assuming they shrink their iPhone/iPad sales to whatever would equate to something like 15% global market share, stabilize margins, and focus on serving their loyal fans well. Just like they do with Macs. More fun with numbers-- If Apple really declines to $20/sh, I assume they'd eventually stop buying back stock. So let's say they end up with a 700M float at $20 eps, meaning they need to net $14M in income. They made this in 2010, a year in which they sold 40M iPhones and 7.4M iPads. If I'm doing the math right, your $20/yr "doomsday" EPS translates to 2.3% market share in smartphones and 2.3% market share in tablets. For this, you would pay $200/sh. tough crowd!