Apple's challenge is there's a long wait to access the software, says Maxim Group’s Tom Forte

Published: Sep 08, 2024 Duration: 00:04:09 Category: News & Politics

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ON THE BASE MODEL. BUT FOR NOW IT'S ONLY ON THE PRO. >> 549 FOR THE MAX PRO. >>> THEY'RE GOING TO SUCCESSFULLY WORK ARTIFICIAL INTELLIGENCE INTO A MAINSTREAM GADGET. JOINING US TO DISCUSS THAT ALONG WITH SIRAT IS TOM FORTÉ. WELCOME. GLAD TO HAVE YOU WITH US. YOU HAVE A HOLD ON THIS COMPANY, AND YOU ALSO SEE 5 TO 10% EP GROWTH. DO YOU SEE ANY ANNOUNCEMENT THAT WOULD CHANGE YOUR RATING ON THE STOCK OR THE GROWTH RATE OF THE EARNINGS? >> WHAT WILL GET YOU MORE EXCITED, TYLER, IS BASICALLY A ROLLOUT OF APPLE INTELLIGENCE IN EUROPE, WHICH IS ABOUT 25% OF THEIR REVENUE. AND IN CHINA, WHICH IS ABOUT 19% OF REVENUE. SO THE OVERRIDING CHALLENGE TODAY IS TO INTRODUCE NEW HARDWARE TO THE CONSUMER. TELL THEM TO RUSH TO THE APPLE HARDWARE STORY HATER THIS MONTH TO PICK IT UP AND THEN WAIT FOR THE INTELLIGENCE, WAIT FOR THE SOFTWARE. FOR CONSUMERS OUTSIDE OF THE U.S., OUTSIDE OF AUSTRALIA, OUTSIDE OF CANADA, IT'S GOING TO TAKE A LONG WEEK. THAT'S WHAT WOULD GET ME MORE BULLISH. >> IN OTHER WORDS, PEOPLE ARE BEING ENCOURAGED TO GO GET THE DEVICE, BUT THE DEVICE ISN'T, SHALL WE SAY, CAMERA-READY. >> OR READY FOR PRIME TIME, HOWEVER YOU WANT TO THINK ABOUT IT, YES. SO APPLE IS PROMOTING THEIR HARDWARE, BUT THEY'RE ALSO PROMOTING THEIR SOFTWARE FOR THE NEXT LINEUP OF iPHONES, AND THEN COME SUPERS ARE GOING TO HAVE TO WAUTD AND THAT WOULD POISE PROBLEMS. >> DO YOU SEE IT THAT WAY? I WANT IT AND I WANT IT NOW AND THEY'RE NOT GOING TO GET IT NOW? >> I WOULD BE A LITTLE SUSPECT IN THE SENSE IF YOU'VE GOT THE HARDWARE NOW, WHY NOT WAIT UNTIL IT'S PROVEN. ONE OF THE THINGS WITH APPLE, ONCE THEY DOWNLOAD THE SOFTWARE, THERE'S A GLITCH OR HERE OR THERE. THEY ALWAYS SAY DON'T GET THE FIRST ONE. WAIT FOR THE SECOND ONE. PEOPLE MAY BE LOOKING AT THE CHRISTMAS SEASON AND ORDERING IT NOW. I GUESS WHEN YOU HEAR YOU HAVE 5%, 10% EARNINGS GROWTH, HOW MUCH IS BASED ON STOCK BUYBACKS VERSUS EARNINGS GROWTH AND REVENUE GROWTH. DOES THE "E" REALLY GROW WITHOUT THE DENOMINATOR ACTUALLY GETTING LOWER. >> AND IN SOME WAYS, TOM, DO THEY CARE? IF THEY CAN MAKE THE NUMBER DUO HIGHER -- WE TALKED TO TOM CROCKETT. HE SEES THAT SLOW INCREASE OVER TIME. >> IT'S IMPORTANT THEY GENERATE A TON OF FREE CASH FLOW, THEY'RE RETURNING IT IN THE FORM OF DIVG DENDS AND BUYING BACK SHARES, BUT WHEN YOU LOOK AT THEIR REVENUE GROWTH AND EPS GROWTH, YOU'RE LOOKING FOR MID-SINGLE DIGITS IN THE OUT YEAR, AND THAT'S WHERE THEY'VE BEEN VERY SUCCESS FELT. THERE'S A LOT BUILT INTO THIS STOCK AS REFLECTED IN THE HIGH 20s. >> TOM, YOU DON'T SOUND EXCITED ABOUT THIS COMPANY. WHAT WOULD GET YOU EXCITED LIKE YOU ARE EXCITED ABOUT THE LOCKSACK COMPANY? >> THE GU OOD NEWS ABOUT LOVE SACK, YOU CAN SEE RENEWED STRENGTH IN THEIR SALES, AND THEY'RE ALREADY TAKING A VERY SIGNIFICANT SHARE. WHAT'S ALSO GOING ON IS HUAWEI'S PRODUCT LAUNCH. THEY HAVE A SMARTPHONE WITH 3 MILLION PREORDERS. WHAT WOULD GET ME MORE EXCITED OTHER THAN A PULLBACK TO MAKE THE VALUE MORE INTERESTING IS SOMETHING THAT HAS ME EXCITED ABOUT SALES TRENDS I

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