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


To: pyslent who wrote (190175)5/2/2016 12:09:41 AM
From: MGV  Read Replies (1) | Respond to of 213182
 
Its a pointless exercise. We have no idea what products Apple will be selling in 15 years. In the shorter term, 5 years of 5% contraction in iPhone unit sales would be about 150m units in 2021, which would imply an average 5 year upgrade cycle for an iPhone userbase that will probably be nearing 800m by then. That seems unlikely for lots of reasons. Apple would need to start losing lots of users to Android for sales to drop to those level


You disproved your own point right after you wrote it. 5 years of declining iPhone sales is highly unlikely. A share price that discounts such an unlikely result is an opportunity for those who believe the result it discounts is unlikely. DCF models are useful for insight into determining what is discounted in a market price. You just have to understand how to use them.