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The Apple Watch's Profit Margin Power for Apple Stock
The Apple profit margin on its new Watch will outshine even that of the iPhone.
Just how big the gap will be depends on how far Apple Inc. (Nasdaq: AAPL) can penetrate the Swiss luxury watch market with its 18-karat gold "Edition" Watch.
A fat Apple profit margin is the magic that keeps the Cupertino, Calif. company wallowing in money despite not having dominant market share.
In its fiscal first quarter, Apple reported gross profit margins of 39.9%, an increase from margins of 37.9% in the same period a year earlier.
Apple makes money from pretty much everything it does, but amongst its hardware, the iPhone has had the biggest margins.
Morgan Stanley (NYSE: MS) analyst Katy Huberty estimates the profit margin on the current mix of iPhones is a robust 46.7%. Most smartphone makers, by contrast, squeak by with margins of only 2% to 4%.
Apple Stock Joining the Dow: Good for Share Price?
AAPL stock kicked off its first day of trading as part of the Dow Jones on Thursday, March 19th. There's one question on investors' minds – will the inclusion help or hurt the most valuable tech company in the world?
Apple Inc. (Nasdaq: AAPL) has done just fine without the Dow. AAPL stock is up 16.4% so far this year. The company has been generating billion-dollar revenue figures for more than a decade, raking in $182.8 billion in 2014 alone. It essentially created the smartphone market with the release of the iPhone in 2007.
So will being a Dow component trigger an even bigger share price rise? Find out what Money Morning Defense & Tech Specialist Michael A. Robinson had to say as he joined CNBC's "Street Signs" to tell investors what's next for the AAPL stock price.
Why Apple TV is a "Tipping Point" for Apple Stock
Last week, CEO Tim Cook promised the new Apple TV streaming service will "reinvent the way you watch television." But will Apple TV be a "tipping point" for Apple stock?
Apple Inc.'s (Nasdaq: AAPL) Internet-based TV service is expected to launch this fall with about 25 channels. Apple is in talks with several content providers, including Disney, Fox, CBS, and Discovery. Customers will be able to view content on their iPhones and iPads as well as via the Apple TV set-top box.
Money Morning Defense & Tech Specialist Michael A. Robinson explained on FOX Business' "Varney & Co." that the Apple streaming service is a "tipping point" for cable. It will encourage more people to drop cable service in favor of using the Internet to stream their programs.
The Apple TV service promises to be a new revenue stream for Apple, but can it make a difference to a company that rakes in billions?