Apple‘s stock price is up nearly 60% this year, and it has doubled in the last 12 months. At $2.16 trillion, the company’s market capitalization is the largest on the U.S. exchanges; and until a recent pullback, shares were repeatedly hitting all-time highs.
Those data points might scare some investors away. After all, the company was already huge. Now, its market cap is roughly $400 billion more than the next two largest companies, fellow tech giants Amazon and Microsoft, which are both around $1.7 trillion.
Is Apple’s big run a result of overly exuberant investors who have sent it soaring too high? Or can this tech behemoth keep getting bigger and continue to produce market-smashing returns?
The valuation has gone up — a lot
Here’s a look at some of Apple’s key valuation metrics and how those compare to a year ago:
|Date||P/E Ratio||P/S Ratio||P/FCF Ratio|
Those numbers illustrate that investors have gotten much more optimistic about Apple in the last year. A year ago, a dollar of sales was valued at $4.10 in the stock price. Today, that dollar is valued at $7.60. The same thing has happened with the company’s earnings and free cash flow. Put simply, Apple’s stock price has gone up much faster than its earnings, sales, and free cash flow.
How do these metrics compare to its largest tech company peers? Here’s a look.
While Apple’s valuation has risen quickly, it remains lower than those of its peers. One reason is Amazon and Microsoft have higher growth rates. Amazon is forecast to grow adjusted earnings per share by 38% this year, and Microsoft just completed its fiscal year with 21% year-over-year growth. By comparison, Apple is expected to grow 9% in fiscal year 2020, which ended in September.
Reasons for investor optimism
In recent years, Apple’s iPhone sales growth stalled, and the device accounted for about two-thirds of the company’s total revenue. If iPhone sales weren’t growing, investors wondered, how would Apple grow?
That skepticism was reflected in the company’s relatively low valuation. In May 2016, when legendary investor Warren Buffett started scooping up Apple shares for Berkshire Hathaway, Apple’s P/E ratio was only about 11. It has since tripled, and a lot of that expansion has come in the last year. I believe there are two main reasons investors have changed their view of the company.
First, there’s optimism that iPhone sales could be in for a boost. On Oct. 13, Apple is expected to announce that its iPhones released this fall will support 5G connectivity, a technology that could significantly improve download speeds. That update could prompt many iPhone users — and there are about a billion of them — to upgrade to a new phone.
Second, Apple has been diversifying its revenue streams. In early 2017, CEO Tim Cook said he wanted the company to double its services revenue by 2020. That has happened, and in the quarter ended in June, the company set a record for services revenue ($13.2 billion). Apple has an installed user base of more than 1.5 billion devices, and if it can get those customers to increase their use of services like Apple Music and the App Store, that will fuel growth.
The company also has grown its wearables, home, and accessories segment, which includes products like AirPods, Apple Watch, and Beats. When Apple reports full-year earnings on Oct. 29, it will have more than doubled the segment’s revenue in just three years.
Those two segments are having a much more meaningful impact on revenue. In 2016, they accounted for just 16% of Apple’s revenues. Through the first nine months of fiscal year 2020, they produced $62 billion, accounting for 30% of total revenue. Even with that growth, the iPhone still accounts for more than half the company’s revenue.
Is Apple overvalued?
Valuation is in the eye of the beholder. That means the question of whether Apple is overvalued can only be answered by each investor. After all, the market is built on people taking opposite sides of trades: buyers and sellers.
For investors who emphasize traditional valuation metrics, Apple probably looks scary. It hasn’t had valuations this high in more than 10 years.
For investors who look at Apple as one of the most innovative companies of all time, the perspective could be different. The company’s innovation has helped build a massive and loyal customer base, which is why Forbes magazine ranks Apple as the world’s most valuable brand year after year.
With that track record of innovation and customer loyalty, I don’t think Apple is overvalued. Historically, there has never been a bad time to buy Apple stock, as long as you held those shares. As a $2.16 trillion company, Apple’s largest growth days are behind it, but I think it can continue to provide long-term investors with market-beating returns for years.
Source: – Motley Fool
MagSafe Charger Only Charges at Full 15W Speeds With Apple's 20W Power Adapter – MacRumors
Alongside the iPhone 12 and 12 Pro models, Apple introduced a new MagSafe charger that attaches to the magnetic ring in the back of the devices, providing up to 15W of charging power, which is double the speed of the 7.5W Qi-based wireless charging maximum.
Apple does not provide a power adapter with the $39 MagSafe charger, requiring users to supply their own USB-C compatible option. Apple does sell a new 20W power adapter alongside the MagSafe Charger, and as it turns out, that seems to be one of the the only charging options able to provide a full 15W of power to the new MagSafe charger at this time.
YouTuber Aaron Zollo of Zollotech tested several first and third-party power adapter options with the iPhone 12 Pro and a MagSafe charger using a meter to measure actual power output. Paired with the 20W power adapter that Apple offers, the MagSafe Charger successfully hit 15W, but no other chargers that he tested provided the same speeds.
The older 18W power adapter from Apple that was replaced by the 20W version was able to charge the iPhone 12 Pro using the MagSafe Charger at up to 13W, but the 96W Power Adapter and third-party power adapters that provide more than 20W were not able to exceed 10W when used with the MagSafe Charger. Below are the results from Zollo’s tests:
- Apple’s 20W Power Adapter – 15W
- Apple’s 18W Power Adapter – 13W
- Apple’s 96W MacBook Pro Power Adapter – 10W
- Anker 30W PowerPort Atom PD 1 = 7.5W to 10W
- Aukey 65W Power Adapter – 8W to 9W
- Pixel 4/5 Charger – 7.5W to 9W
- Note 20 Ultra Charger – 6W to 7W
For maximum charging speeds with the MagSafe Charger and an iPhone 12 or 12 Pro, Apple’s 20W power adapter is required, and older power adapter options won’t work as well. Third-party companies will need to come out with new chargers that use the particular power profile that Apple is using to provide the optimum amount of power before a third-party charger will be able to provide the full 15W with the MagSafe Charger.
Zollo’s testing also revealed that Apple is using aggressive temperature control, so when the iPhone gets warm, the charging power tends to stay below 10W. The best speeds come from charging using the 20W power adapter without a case on the iPhone to better let heat dissipate.
Older iPhones, such as the 11 Pro Max and 8 Plus, charged at around 5W with the MagSafe Charger and Apple’s 20W power adapter, which is in line with the testing results we saw last week. It’s not worth buying a MagSafe Charger to use with a non iPhone 12.
The same goes for Android phones. The MagSafe Charger technically supports Qi-based charging and can work with Android devices, but when paired with an Android smartphone, the MagSafe charger was outputting at 1.5W, which is slow enough that it’s nearly useless.
iPhone 12 drop test results are in: Ceramic shield is as tough as it sounds – CNET
Apple has covered its new iPhone 12 with a brand- , which it says is the . Every year Apple makes a similar claim about its glass, but this time may be different because this is no ordinary glass. While it may look and feel exactly like glass, the ceramic shield covering the screens is, as the name suggests, a combination of glass and ceramic (which is harder than most metals). It’s a totally new cover material for the iPhone and it’s unlike anything we’ve ever tested before.
And testing it is exactly what we did. To find out how this new material holds up to the elements, we put two brand-new iPhone 12s through a few scratch and drop tests. And as it turns out, this new glass is incredibly durable. (This rival says its screen is.)
iPhone 12: Breaking down the glass
The ceramic shield only covers the front — the screen — of the iPhone 12. The back is covered with the same glass as last year’s iPhone 11, which Apple says is the toughest in the industry. Both types of glass are made by Corning.
Aside from the glass, the other factor that may play a role in how well this phone holds up to drops is the design. The glass on the iPhone 12 lies flush with the metal frame rather than curved up like in previous models which left more of the glass exposed. Apple says that design choice alone will make the back and front twice as durable as older models.
All four models of the iPhone 12 () have the same ceramic shield on the screen and the same type of glass on the back. The only difference in materials is the frame. The two Pros have a stainless steel frame, while the Mini and the 12 are aluminum. The performance of the frame may vary depending on the material, but the glass should offer the same type of protection across the board. For our tests we used the regular iPhone 12 in blue and green.
Scratch 1: It survived the pocket/purse tumble
For the first test, I put the iPhone 12 in a small makeup bag with some of the common culprits that scratch up our phones: a set of keys, a half dozen quarters and a metallic pen. I shook the bag vigorously for about 30 seconds to simulate what happens after a few weeks of bouncing around in a purse or pocket before inspecting it.
After wiping the phone down with a cloth, I couldn’t find a single scratch on the glass or the frame of the iPhone 12.
Click on the video below to see the results from the scratch and drop tests.
Scratch 2: No scratches on the screen after sliding on tile
Next, I wanted to see how the screen would hold up if it came in contact with a hard surface like a marble table, kitchen counter or bathroom floor. I slid the iPhone 12 back and forth 10 times on a textured ceramic tile, first along the screen, then on the back of the phone.
The screen had a bid of debris from the tile, but after cleaning it off I struggled to find any visible damage to the glass. Testing the back of the phone was trickier. The raised camera module doesn’t allow the phone to lay flat on its back, so I did a few slides with the phone at an angle. This didn’t damage the glass, but it caused some of the metallic paint on the frame around the bottom camera to rub off. It was barely noticeable and the lenses themselves were still in pristine condition. Then I did it again with the camera module hanging off the edge of the tile. After inspecting the back closely, I finally managed to make out two microscopic scratches, one on the silver Apple logo, and another right below it on the blue glass. Both were thinner than a strand of fine hair and about a quarter of an inch long.
Scratch 3: Rubbing it on sandpaper made a mark
Having passed the two scratch tests with flying colors, I decided to conduct one more (extreme) test on this iPhone 12: rubbing with 80-grit sandpaper. This is probably the real-world equivalent of sliding your phone across a driveway or sidewalk, which hopefully won’t happen too often.
I rubbed the phone back and forth across the sandpaper 10 times on either side, applying light pressure. This time, both sides of the phone were scraped up. The screen had the most damage, with lines running horizontally through the middle of the phone. A few of them were deep enough to feel with my fingernail, but it was still in working condition. The back of the phone has significantly less damage, again because of the protection offered by the raised camera module, but it still had visible scrapes in the center and on the lower edges. The metallic finish on the lens frames had continued to peel off, but the lenses themselves were still scratchless.
Scratching the phone compromises the glass and makes it a lot more likely to break during a fall, so my colleague, CNET Managing Producer Chris Parker, used another brand-new iPhone 12 for our drop tests onto the sidewalk.
Drop 1: 3 feet, screen side down
One of the more common times you might drop your phone is when you’re putting it in and out of your pocket. While dropping a phone from hip height can be harmless, if it lands on the street or sidewalk, you’re likely to end up with a broken screen.
When dropped from hip height, the top of the iPhone 12 hit the ground first, then the bottom. Then it bounced in the air once more before landing flat on the sidewalk, screen side down as intended.
The aluminum frame had a few dents around the edges of the phone, but nothing serious.
Drop test 2: 3 feet, back side down
Next, Chris did the same drop, but this time with the back of the phone facing the ground.
The iPhone 12 seems to be top heavy: It landed almost in the exact same way as it did before, with the top (where the camera module is) hitting first, then the bottom. Finally it landed back side down on the sidewalk.
The main difference on this drop was the sound when it landed, a louder thud than before. Sure enough, once we turned it over, we noticed the bottom half of the phone was broken. The edge felt a bit rough to the touch, mainly from the dents on the frame, but there weren’t any shards falling off the back of the phone, and it still felt smooth despite the cracks.
With the back cracked, we narrowed our drops to the screen only.
Drop 3: 6 feet, 6 inches, screen side down
This is about as high as Chris could drop the phone without needing a ladder.
The top left hand corner of the screen, opposite the camera module, hit first, then the right side, then the left until it flipped on its back, landing screen side up. The most noticeable dent was on the top where it hit first and it almost looked like it had caused a crack in the screen right where it met the metal frame. But after rubbing it off we realized it was just metallic residue from the frame and the glass was still in perfect shape.
Drop 4, 5 and 6: 9 feet drop, screen side down
With the screen still holding strong, we decided to go even higher, using a step ladder to reach nine feet. Again this is not a realistic drop unless you happen to slide your phone off a second floor balcony, but we wanted to see how far we could take it.
At nine feet it became even harder to control the landing. While Chris was aiming to drop it flat on the screen, the iPhone 12 had a mind of its own and landed in almost the exact same way as the previous six-foot drop. With the top right-hand corner of the screen hitting the ground first, then bouncing off the left side and landing screen side up.
The dent on the top right-hand side of the frame got deeper, but the screen survived yet again.
We repeated this drop two more times hoping it would at some point land flat on its face, but the weight of the camera made it hard for it to land at that angle, especially at that height. The iPhone 12 finally landed with the screen down on the last drop, but only because it bounced off the side of the porch step. The frame had a few more bumps and bruises, but the screen still looked like new after three back-to-back drops from nine feet. The only way up from there would’ve been to climb up on the roof or rent a scissor lift, which we weren’t exactly prepared to do.
Let’s break it down
Because our tests aren’t scientific, we can’t say for a fact that the screen is stronger than any other phone in the market, but we can definitely say that our iPhone 12 was incredibly tough to crack (and scratch) even on tile and sidewalk.
The back of the iPhone 12, however, doesn’t seem to have the same drop resistance superpower as the screen. And while you may feel comfortable using this phone without a screen protector, we — and Apple — recommend using the iPhone 12 or iPhone 12 Pro with a case, as getting the screen or back replaced without AppleCare Plus coverage costs anywhere from $279 to $549 depending on the repair.
In a statement to CNET, Apple said, “iPhone 12 and iPhone 12 Pro represent the biggest jump in durability ever on iPhone … iPhone 12 models have gone through rigorous real-world testing and are designed to be durable, but not indestructible. If anyone is concerned about dropping their iPhone and damaging it, we suggest using one of the many beautiful cases available to protect iPhone.”
5 video games for kids to while away the fall hours – that parents might like, too – CTV News
With winter weather approaching and our social options limited due to the COVID-19 pandemic, kids and teenagers might be tempted to fill their free time playing video games.
Here are five games released in 2020 that parents might be comfortable letting their kids play as they while away the hours this fall.
MARIO KART LIVE: HOME CIRCUIT
Platforms: Nintendo Switch
ESRB Rating: E (everyone)
Suggested Retail Price: $129.99
The anticipated latest entry into Nintendo’s “Mario Kart” series literally takes the action into your house.
The “Mario Kart Live” kit comes with a real toy kart (Mario and Luigi are the characters currently available) mounted with a camera.
Players use the Switch to drive the cart around the house to create a racetrack. Once finished, players can race on the track in the game.
The “augmented reality” mix of real-world and virtual environments gives creative players a wealth of tools at their disposal to make challenging tracks. Standard Mario Kart elements such as items to boost speed or obstacles to impede karts can be mixed with everyday household items used as ramps or obstacles.
What’s more, the game is free of some of the limitations of similar toys like slot-car racetracks. Setup and takedown is a breeze, as the only items that needed to be placed on the floor is four gates for the kart to drive through.
There are, however, a couple of potential drawbacks.
To get the most out of “Mario Kart: Home Circuit,” you will need a large, well-lit space. It’s possible to make smaller tracks for more compact areas, but the scope of what you can do will be limited.
Also, multiplayer presents some problems. The game supports up to four players on a track, but each must have their own kart and Switch console. There is no online multiplayer option.
Not only can multiplayer be costly, but the pandemic makes it difficult to meet in the same space to race against someone not in your social bubble.
Still, as both a collectible and a game, there’s little doubt that this will be high on the wish list for any Mario Kart fan. Those with the space and the desire to create increasingly devious tracks should find enough replay value in the title for months to come.
ANIMAL CROSSING: NEW HORIZONS
Platforms: Nintendo Switch
ESRB Rating: E (everyone)
Suggested Retail Price: $79.99
The latest instalment of the popular “Animal Crossing” game was released in March, just as households across the country were preparing for the lockdown in response to the spreading pandemic.
The lighthearted nature of the game, which tasks you with developing an island paradise for your anthropomorphic animal buddies, was a welcome contrast to the uncertainty of the time.
The charming title has grown since then, with Nintendo releasing a number of free updates to keep the game fresh.
The recently released fall update includes Halloween-themed costumes to wear and decorations to place around the island, giving players several creative options to make their habitat suitably spooky.
With a Thanksgiving/Christmas themed update announced for sometime next month, “Animal Crossing: New Horizons” gives gamers of all ages a lot of bang for their buck.
ORI AND THE WILL OF THE WISPS
Platforms: Microsoft Windows, Xbox One, Nintendo Switch
ESRB Rating: E (everyone)
Suggested Retail Price: $39.99
An action/adventure game in the style of the Nintendo classic “Metroid”, “Ori and the Will of the Wisps” game sees the light spirit Ori navigate a forest full of wondrous sights and treacherous traps in a mission to rescue a friend, and heal the land in the process.
The latest Ori adventure boasts beautiful art direction, clever level design and an empathetic tone that should resonate with younger players.
Some of the combat and puzzles could be challenging for inexperienced gamers, though that could be remedied by playing on an easier difficulty setting.
The sequel to the indie hit “Ori and the Blind Forest” received strong reviews for its gameplay and story when it was originally released for the Xbox One and Windows earlier this year. A version for the Switch was released last month.
Platforms: PS4, Xbox One,
ESRB Rating: E 10+ (Recommended for gamers 10 and over)
Suggested Retail Price: $79.99
With the 2020 Stanley Cup already awarded to the Tampa Bay Lightning in the NHL’s Edmonton bubble, and the next season delayed until at least the beginning of January, “NHL 21” might help fill the hockey void.
“NHL 21” lets you lead your favourite hockey team to glory, or you can create your own player and take the journey from promising prospect to all-star.
Players can compete online against others, so friends can match skills while staying in a safe environment. Parents may want to monitor if their kids play online against strangers.
EA Sports releases a new game in its NHL franchise every year, and there is often not a lot to differentiate the titles on a year-to-year basis. If you have a recent NHL title, you may want to direct your entertainment budget elsewhere.
If you haven’t bought an NHL title in a while, or are looking to pick up your first game in the series, then “NHL 21” is a way to scratch the hockey itch while the pro leagues are on hiatus and minor programs are suspended.
Platforms: Microsoft Windows, Xbox One, PS4, Google Stadia
ESRB Rating: T (Teen)
Suggested Retail Price: $79.99
It’s fair to say “Marvel’s Avengers” didn’t quite live up to its heroic hype when it was released last month.
Reviews were mixed, with praise for its short but excellent single-player campaign and a lukewarm reception for its directionless online component.
Still, superheroes are pop culture dynamos, and there is enough here for fans of Captain America, Iron Man and Black Widow to enjoy.
Combat is fast and furious, and each of the six currently available Avengers have their own play style. Rampaging into a horde of the enemies with the Hulk or lighting them up with Thor’s hammer feels right.
While the Avengers are a force for good, the violence might be intense for very young gamers. Teen players who are into superheroes, however, will find a relatable protagonist in the delightful Kamala Khan, otherwise known as Ms. Marvel.
“Marvel’s Avengers” might currently be a bit thin on content for those who aren’t big fans of the genre, but that might change. The game’s developers have beefed up the multiplayer since launch, and new characters are on the way, with the Kate Bishop version of Hawkeye expected in the coming weeks.
This report by The Canadian Press was first published Oct. 23, 2020.
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