Chapter 454 Xinghai 2/2Pro sells well in overseas markets; amazing profits! (Seeking monthly pass)
Saturday morning, the 14th, Eastern Time.
David, a special contributor to the "Forbes" website and president of a market analysis company, wrote an article titled "Apple and the Illusion of Value."
Be the first to ‘reveal’ the ‘truth’ about Apple’s current abnormal stock market performance!
After a day, I didn't seem so impatient.
Anyway, the first feeling of netizens who eat melons is that the wait has finally come... some kind of 'justice'.
The article by the writer, who is also the president of a market analysis company, pointed out that due to the decline in innovation capabilities, declining market share and the infinite intensification of competition, it will be difficult for Apple to maintain an ultra-high return on capital, and its stock price will enter a downward stage!
The article even introduced the average return on capital common in the market and pointed out that Apple's stock price may fall to as low as $170 per share!
You must know that when the US stock market closed on the 13th, Apple’s stock price was as high as $4 per share!!
The article has never been able to break through the rules of competition, its innovation capabilities have declined, it is impossible to achieve both market share and profit margins, and it is difficult to maintain a high stock price. The four major categories point out the bad situation faced by Apple in order to confirm the theme of the article.
First of all, the article believes that the latest models 5C and 5S have begun accepting pre-orders, but initial indications are that the market is not as enthusiastic about the two products as expected.
Although Apple's stock price has been rising since the release of new products, this means that Apple's stock price is unsustainable.
At the same time, the article stated that Apple’s new CEO Tim’s innovation capabilities are not at the same level as those of his predecessor Steve Jobs, and there is no way to maintain the company’s competitiveness through innovation to maintain a high return on capital.
The article explains the dilemma faced by Apple on multiple levels.
For example, Apple's recent focus on repurchasing shares and paying dividends shows that it is at a loss when it comes to reinnovating.
For example, Samsung and Xinghai brands have recently released or announced smart watch products, but Apple's long-rumored smart watch is nowhere to be seen, which shows that other technology companies have taken their own steps in innovation and become leaders.
For example, 5S lacks innovative features that match its high price. Especially compared with new products of the Xinghai brand, the gap is very obvious, and the innovation capability is obviously declining.
The new 64-bit A7 chip is eclipsed by the Shenlong M2, and the A7 fails to substantially improve the experience of most users. Xinghai has fully transformed the leading advantage of the Shenlong M2 into a user experience, which is reflected in games and handheld devices.
On the support of entertainment and other aspects.
At the same time, it was also pointed out that not only Google’s Android and Google
Play is replacing Apple's iOS and iTunes stores, Xinghai brand Stars and Stars
Apps have also caught up from behind and are carving up share of the mobile ecosystem.
Then the global smartphone market share was highlighted.
According to incomplete statistics, the global smartphone shipments in the first half of the year were approximately 200 million units. Samsung’s share exceeded 30%, ranking first in the world. The emerging brand Xinghai also accounted for more than 16% of the global market with shipments of more than 69 million units.
%.
Apple’s market share has dropped from 16% to 13% or even lower in the past year!!
At the same time, the article mentioned in a special way that the Xinghai brand only had one model on sale in the first half of the year.
All of this, the article concluded with certainty that Apple cannot maintain a high level of profitability and cannot maintain its current ultra-high return on capital. Calculated based on Microsoft's return on capital, the reasonable price of Apple's stock price is US$170 per share!
This article has received maximum publicity.
Bolang, who is standing behind the scenes, is promoting it through marketing means, and some capital giants who are also standing behind the scenes are also pushing it with tacit understanding.
For a time, the whole Internet was talking about the real Apple.
Ami: "Yesterday, Apple's high-profile scheduled promotion just gave everyone more opportunities to understand the truth behind Apple's glitz. As the article said, Apple does not have such high profitability and has also lost its ability to innovate. From a leader to a
Lost followers! Shame on you!”
"It's really a false prosperity. It's a pity that I opened a position and was forced to close it!"
"Apple's stock price is very abnormal. Everyone can see that it will return to normal levels. Unfortunately, it is difficult to participate now."
"It doesn't matter, I just hope someone will come forward!!"
"..."
Many angry comments can even trigger an asterisk warning on overseas social media, which is said to be free.
There is no doubt that this is just the beginning.
…………
With the emergence of the first writer, all kinds of reports that had been suppressed before came out.
It also includes some platforms with mainstream media status overseas that have begun to ‘speak out’.
Claiming that Apple’s new products have no innovation and no ambition for progress.
During the two days of the 14th and 15th, it can be said that people and ghosts came out to compete with each other.
All charged at Apple.
Among them, Tim became the 'most innocent' person.
No matter what the charge is, it all comes down to Tim's execution ability, and his management ability is far inferior to that of Jobs.
"In fact, since Tim took office, Apple's performance has become increasingly unsatisfactory, especially after the emergence of the Xinghai brand. Apple's performance is extremely disappointing, which is related to Tim's lack of ability."
"I think Apple's poor performance, inaction, and Tim's personal style have a lot to do with it."
"Yes, in contrast, the general manager of the company Bolang is very courageous and has surprisingly crazy investment in innovation. It is not so much another Apple as it is a sea of stars."
"Tim is disappointing. He actually started to place his hopes on the stock market. A technology company does not focus on innovation!!!"
"..."
Tim: "..."
He felt that it was really difficult for him this weekend.
He wanted to say that I was just a working man, unlike Steve Jobs who had a high voice and control!
He even wanted to say that I'm done with riding horses.
Until now, he was unwilling to recall what had happened more than twenty days ago, but at the same time, his memory became clearer each time.
That was the 'threat' he encountered when he was asked to cooperate with certain matters at the next core shareholder meeting after the Xinghai new product launch.
He clearly remembered that the middle-aged man said in an understated tone: "Tim, you don't want to lose your job. Apple's current situation is very embarrassing. This can't be explained by an insignificant vice president taking the blame and resigning."
.”
"In the business market, we are losing again and again, and we need something... that we can use."
"I believe you should understand what I mean."
Subsequently, Tim once again "humiliatedly" became an accomplice of the crazy plundering of capital in the stock market. He clearly understood that this was consuming Apple's many years of brand accumulation.
But he didn't expect that these people had such a good appetite.
It needs to be even more intense than last time, and it needs to be more intense!
First, he went long against the trend, and then took the initiative to go short. One positive and one negative. The market value fluctuated at least more than 150 billion US dollars. Such a transaction was indeed worth all the risks and trampling of all rules for the capital behind it!
Tim, who was not working in the company, was walking alone in the study room of his house, and he gradually caught the thread from the chaotic thoughts.
"Investors have the need to fully capture profits. When encountering such a good opportunity, it is absolutely impossible for them to let it go. Even if Apple's brand heritage is completely consumed, it will not be able to stop it."
"With Apple's revenue and profit margin, the cash benefits that can easily be obtained by more than 100 billion are a higher priority."
"But, my duty is not to be an accomplice!"
"It's one thing not being able to refuse, but you should be more attentive to your job..."
Then, Tim formed a system idea. He decided to demand the highest standards for Apple's internal system R&D departments and chip design R&D departments to perform their best at all costs and regain their position as a leader!
In order to achieve these goals, Tim believes that he must reach the necessary tacit understanding with various investors and fully support the company's development.
Anyway...
During this weekend of Internet violence, Tim believed that he had made the most important decision as Apple CEO, bar none!
He believes that Bolang must be valued and valued again. While making 5S and 5C transitional products, sacrificing the future of this generation of products and using them as stepping stones, the next generation of products must be a sure hit!
…………
However... despite Tim's expectations, he still underestimated the greed and eagerness of the capital giants from all sides.
Monday the 16th, Eastern Time.
At 9:21 a.m., UBS issued a report document, lowering Apple's rating from 'buy' to 'neutral'.
The target price has even been lowered from the earlier US$560 to US$480, which is beyond imagination.
In this report document, UBS stated:
“…The current price of Android devices on the market is only iPhone
40%~50% of 5C, and similar price products XingHai
Compared with 1C, 5C is too mediocre..."
“At the same time, in the Chinese market, iPhone
The price competitiveness of the 5C is very weak, and the pricing far exceeds that of the benchmark products, and even exceeds the pricing of the Xinghai 2, which performs far better than the 5C in all aspects, which will make the 5C, which is positioned as a cheap version of the iPhone, unattractive!"
“…Not only that, iPhone
5S's pricing strategy is also very bad, and the competitiveness of the product itself is even more vulnerable. Leaving aside the Chinese market, once the Xinghai brand opens to overseas markets, 5S will immediately become the second or even lower ranking among consumers.
choose!"
"..."
Also due to concerns about pricing strategy and market competition, Bank of America Merrill Lynch also downgraded Apple's rating to 'neutral'.
A warning was issued to investors.
Also due to price concerns, Swiss bank Credit Suisse downgraded Apple's rating from 'outperform' to 'neutral'.
This is not over yet.
Although U.S. stocks were already open for trading when reports from several major global financial institutions flooded the cyberspace, and Apple's stock price fell more than 6% at the opening;
But this is still just the beginning.
Chase, America's own financial institution, also warned about the prices of the 5C and 5S.
However, it did not immediately announce a change in rating.
It was only after a period of silence that a report was issued to downgrade the 'overweight' rating to 'neutral', and the attitude was rather hesitant, and it looked like it was going to continue to downgrade.
It didn't even indicate in the report what it thought was an appropriate price target for Apple.
Under the continuous targeted attacks, at the close of the US stock market that day, Apple's share price dropped from 4 to 8 US dollars, and the stock price plummeted 8%!
Nearly $40 billion in market value evaporated in one fell swoop.
If the major short sellers sell the borrowed stocks at the closing price on Friday the 13th and buy them back at this time, their floating profit will have reached 8% of the principal.
Taking Wen Liang's asset management company as an example, they can earn almost US$2.5 billion.
After all, the principal this time is abundant.
…………
While tens of millions of previous "victims" were applauding, Chase finally released the complete report.
Chase maintained its previous 'neutral' rating on Apple, but adjusted the target price to $450!
At the same time, three institutions, UBS, Credit Suisse, and Bank of America Merrill Lynch, have successively updated their own institutional analysis of Apple’s target price.
Each institution has different target price expectations for Apple.
The highest one is Chase.
Later, Bank of America Merrill Lynch adjusted it to US$435, and Credit Suisse lowered it to US$430.
UBS was the sharpest, lowering its target price to US$406. Based on the share price per share, Apple's total market value is just shy of US$400 billion.
What follows is still a chaotic dance of demons.
Many analysts have expressed their thoughts through social media platforms.
"iPhone
The price of 5C is set too high, and it is difficult to believe that it can attract consumers’ attention when there is pressure from competing products.”
"5S is a relatively failed product and is likely to lead Apple into the quagmire."
"..."
Affected by this, Apple's stock fell by as much as 82% again on Tuesday.
…………
At this time, Wen Liang and the others chose to sit on the sidelines and only asked the marketing company headed by Pei Xuan to maintain their marketing efforts for relevant information.
For example, the Xinghai brand is constantly bundled with Apple, a big brand, for comparative marketing.
At least the strength of Xinghai’s new products must be clearly defined.
There was no rush to take out the straw.
On Wednesday the 18th, Apple's stock price continued to fall, but this time the decline was smaller, only 97%.
Then, on September 19, the Mid-Autumn Festival on the 15th day of the eighth lunar month, on the same day as Wen Liang’s ID card birthday, he officially signed the document that fully opened up overseas sales of Xinghai products.
All Xinghai desktops and Xinghai workstations, including Xinghai 2/2Pro, will be released for sale. This time it will no longer be open to a batch of regions, but all overseas regions.
So, next, while Wen Liang and Li Ze and several friends celebrated the Mid-Autumn Festival together, they admired the two products Xinghai 2/2Pro that quickly became hot searches on overseas social media platforms and quickly sold out.
This time point is just over a day before Apple’s new products are officially launched for sale.
Moreover, the Xinghai brand places its main sales focus on the American market, more precisely, in California and California's Silicon Valley.
Xinghai also released the latest news through official channels.
"The Xinghai brand's first flagship store in the global market has been confirmed to be located in Santa Clara, California. It will show everyone a more elegant era of handheld entertainment."
"..."
One hour after it was officially opened for purchase, the total sales of Xinghai 2/2 Pro in overseas markets exceeded 2 million units, especially in the American market. Its impact on Apple's new products can be imagined.
Countless media outlets rushed to report this news.
They are all going crazy for traffic.
Not surprisingly, Star Ocean 2 and iPhone 5S were included in the neutral comparison process, and countless netizens started talking about it.
Public opinion unanimously believes that there is no comparison.
Affected by this, Apple's stock price plummeted 72% on the 19th!
Share price dropped to $3 per share!
It has dropped nearly $100 from last Friday's closing price, evaporating nearly $1,000 in market value!
…………
Of course, things are not over yet. On the 20th, the iPhone was officially launched and delivered to users, but Apple’s stock price continued to fall.
So and so.
On Wednesday of the new week, September 25, Wen Liang and his asset management company bought back a sufficient share of Apple shares and completed all deliveries.
At this time, the average purchase price of Apple stock was only $414 per share.
So far, the asset management company has actually made as much as US$1.9 billion in profits from Apple stock!
At the same time, asset management companies have actually made as much as $500 million in profits from shorting stocks including Microsoft and other companies.
The final actual profit converted into RMB was 15 billion.
If all were collected, Wen Liang alone would receive as much as 7.5 billion, and each of the others would receive an average of 500 million, which are astronomical figures.
The greed of capital is not over yet. After the asset management companies left the market, institutions led by UBS once again issued an announcement lowering Apple's target price and adjusted its rating to 'sell'.
but……
Good times don't last long.
With the retaliatory support of retail investors, Apple's stock price quickly stopped its decline. The greediest wave of capital stole the chicken but lost the rice!
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〇: This process is actually not that exaggerated. UBS and three other institutions immediately downgraded Apple's rating the day after the 5S conference. The stock price plummeted that day, falling by US$35.1 billion in two days. It was just the same as the book that was first capitalized.
Short selling is slightly different. In my personal opinion, there are generally people who are enjoying the big rise or fall of such stocks.
PS: I’ll work harder for exposure. Rich friends who see this and have the capital to buy the Golden Alliance can contact me. My idea is that the big guys will charge me first and get all the money back... Well, I don’t have any money.
However, the manuscript fee can be refunded after the payment is made~