The Wall Street Journal Quotes Arif Karim on Apple’s Recent Stock Price Swoon

20 November 2018 | by Ensemble Capital

A few days ago, The Wall Street Journal quoted our Senior Investment Analyst Arif Karim in its reporting about Apple’s stock price decline since its recent earning call and earnings misses of its suppliers since.

Arif shared that we believe the market is adjusting its view from Apple as a company whose value is driven by iPhone unit growth to one that has a huge base of high value customers (top 20% income earning in the world) that it can create additional value for via greater service offerings (iCloud, Music, App Store, AppleCare, etc.), accessories (Watch, AirPods, Beats, even iPads), and moderate price increases – even for its high end iPhones at $1000, iPhones cost its users ~$1/day over a 3 year period, a fraction of the cost of a cup of coffee.

As of the date of the post, clients invested in Ensemble Capital Management’s core equity strategy own shares of Apple (AAPL). This company represent only a percentage of the full strategy. As a result of client-specific circumstances, individual clients may hold positions that are not part of Ensemble Capital’s core equity strategy. Ensemble is a fully discretionary advisor and may exit a portfolio position at any time without notice, in its own discretion.

While we do not accept public comments on this blog for compliance reasons, we encourage readers to contact us with their thoughts.

The information contained in this post represents Ensemble Capital Management’s general opinions and should not be construed as personalized or individualized investment, financial, tax, legal, or other advice. No advisor/client relationship is created by your access of this site. Past performance is no guarantee of future results. All investments in securities carry risks, including the risk of losing one’s entire investment. If a security discussed in this blog entry is owned by clients invested in Ensemble Capital’s core equity strategy you will find a disclosure regarding the security held above. If reviewing this blog entry after its original post date, please refer to our current 13F filing or contact us for a current or past copy of such filing. Each quarter we file a 13F report of holdings, which discloses all of our reportable client holdings. Ensemble Capital is a discretionary investment manager and does not make “recommendations” of securities. Nothing contained within this post (including any content we link to or other 3rd party content) constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instrument. Ensemble Capital employees and related persons may hold positions or other interests in the securities mentioned herein. Employees and related persons trade for their own accounts on the basis of their personal investment goals and financial circumstances.