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Some Quick Facts About Apple Massive Market Footprint

Tyler Durden's picture




 

Just a couple of quick observations on how the market is now pretty much "all Apple." Using David Kostin's previously published data, the first chart below shows that Apple alone accounts for a substantial portion of the best margin performing group in the S&P: Information Technology. Indeed, as the second chart shows while most sectors have been cutting their margin forecasts for H2, with a particular emphasis on materials, healthcare and industrials, one sector has been doing surprisingly well: InfoTech. And of this, Apple is the dominant margin leader. As Kostin says, "AAPL was a key contributor to the market’s continued margin expansion." Take away this cult company and the entire market's forecasted margin improvement collapses. Furthermore, as was pointed out previously, and confirming just how massive Apple's role is in the S&P earnings picture, is the fact that  Apple (AAPL) which posted revenues $3.9 billion (16%) above expectations and single-handedly contributed a stunning 40% ($0.23) of the $0.57 per share of aggregate EPS surprise for the S&P 500. Upward revisions to AAPL’s 2H sales and earnings expectations contributed much of the Technology sector’s positive revisions." Lastly, "AAPL currently represents 3.2% of S&P 500 EPS for 2Q 2011." Woe to the market if anyone manages to disturb the precious market ecosystem which now relies exclusively on Apple to be the dominant power pushing and pulling everyone else higher. And as more and more market making power is delegated to the cult, what happens when one day, inevitably, Apple disappoints?

Infotech Margins with and without Apple:

Who did what to margin forecasts this earnings season:

 

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Sat, 07/23/2011 - 19:16 | 1485708 Manzilla
Manzilla's picture

What happens? The market will keep going higher. Broken system, bitches!

Sat, 07/23/2011 - 19:18 | 1485713 pan
pan's picture

Silver bitchez!

Sat, 07/23/2011 - 19:21 | 1485719 camoes
camoes's picture

Soon we will hear "nobody ever lost money investing in Apple"

"Trees don't grow forever, but Apple does!"

 

Sat, 07/23/2011 - 19:21 | 1485720 lilimarlene1
lilimarlene1's picture

Weekend at Bernies!

Sat, 07/23/2011 - 19:23 | 1485724 buzzsaw99
buzzsaw99's picture

heresy

Sat, 07/23/2011 - 19:28 | 1485729 snakehead
snakehead's picture

what happens when one day, inevitably, Apple disappoints?

 

Terry Gou buys it on a big dip.  "Meet the new boss..."

Sat, 07/23/2011 - 19:26 | 1485730 KingPin 999
KingPin 999's picture

Where's Reggie. Calling Reggie. You've been saying Apple margins would collapse for over a year now. How does it feel to be bitch slapped again.

Sat, 07/23/2011 - 19:45 | 1485759 Prof Gulliver
Prof Gulliver's picture

Reggie also has had WF going bankrupt every three months for about three years. Self-promoting blowtards like Reggie will never admit they are wrong. They will ignore 99 erroneous predictions and point to the 1 correct one. In Reggie's case, it will usually be with a headline like "Right again! I told you the sun would rise in the East!!!"

Sun, 07/24/2011 - 12:53 | 1487445 taraxias
taraxias's picture

BRING BACK THE J UNK BUTTON PLEASE

Sat, 07/23/2011 - 19:29 | 1485734 camoes
camoes's picture

Once the low/middle class in China/Brazil/India affords iphones/ipods/ipads/icrap, who else are they gonna sell to? How are they gonna keep growing?

 

Sat, 07/23/2011 - 19:40 | 1485754 JuicedGamma
JuicedGamma's picture

Invent new products maybe? I guess that's why the stock get's trashed every time Steve Jobs looks thinner, he drives that creative process.

Sat, 07/23/2011 - 19:43 | 1485755 JuicedGamma
JuicedGamma's picture

 

Dup

 

Sat, 07/23/2011 - 19:54 | 1485775 dick cheneys ghost
dick cheneys ghost's picture

Some Women in China are selling their virginity for Apple products.......

 

Sat, 07/23/2011 - 20:36 | 1485884 snakehead
snakehead's picture

... while some other virgins who make the venerated objects jump to their deaths.  

China: it's bubblicious.

Sat, 07/23/2011 - 21:08 | 1485953 Sambo
Sambo's picture

First of all, they dont need Steve Jobs to grow. They have basically found the secret formula -> cloud computing + mobile space + cloud entertainment. They are ahead of the game in the last two categories and catching up fast on the first. Steve's genious was in realising long before the others that the PC was dead...and the future was in cheap but sophisticated hand-helds (smart cell phones, ipads etc) talking to the cloud (data + computing) space.

Sun, 07/24/2011 - 07:41 | 1486767 Smiddywesson
Smiddywesson's picture

Once poor Chinese kids run out of organs to sell, Apple is going down.

Sat, 07/23/2011 - 19:47 | 1485763 dark pools of soros
dark pools of soros's picture

don't worry - when Facebook goes public it will be worth more than four world economies

Sat, 07/23/2011 - 20:51 | 1485915 HungrySeagull
HungrySeagull's picture

If they do, I am closing mine down. If they sell and trade on what I put onto it, they need to pay me first bitches.

Sat, 07/23/2011 - 19:50 | 1485767 Atomizer
Atomizer's picture

George Orwell's "1984". Produced in 1954. Creative Commons license: Public Domain. Full Movie version- Share Freely.
http://www.youtube.com/watch?v=hATC_2I1wZE

 

Sat, 07/23/2011 - 19:59 | 1485791 exiledbear
exiledbear's picture

No, no, you're aksing the wrong question. The question you need to ask - is "What happens to AAPL when (not if, but when) Steve Jobs dies?"

 

AAPL's fortunes are inextricably linked with Steve Jobs. He dies, AAPL just devolves from being a cult back to being just another big corporation.

 

Sat, 07/23/2011 - 20:17 | 1485835 HungrySeagull
HungrySeagull's picture

Don't worry, leave Apple alone long enough and it will host a worm or rot.

Sat, 07/23/2011 - 20:44 | 1485898 darkstar7646
darkstar7646's picture

Well, with Netflix screwing itself and Amazon losing affiliates due to tax laws, yeah, we are pretty much down to Apple, aren't we?

(That and Google...)

Sat, 07/23/2011 - 20:51 | 1485904 Atomizer
Atomizer's picture

In 1977 (was 12), my father taught me about computers. He lovingly forced me to learn how to build a Heathkit H-89. I completely repected my father after having to use a crapple computer later in high school.

Oh ya baby.. we had two. one with a green screen and the other amber.

Sat, 07/23/2011 - 20:53 | 1485920 HungrySeagull
HungrySeagull's picture

I build my own machines at will when there is sufficient money.

I don't miss for one moment the blood, sweat and tears into the goddamn computers since the Tandy took data off a Cassette tape long ago.

Sat, 07/23/2011 - 21:00 | 1485937 Atomizer
Atomizer's picture

My school mate had a Tandy..we called it trash 80. LOL

Sat, 07/23/2011 - 21:01 | 1485940 jimijon
jimijon's picture

Just tried a Samsung Galaxy tablet, the newest one, and I can't believe what a piece of crap the Android operating system is.... things just don't work, un-responsive, the ui is all over the place... 

makes me miss MSFT!

 

Sat, 07/23/2011 - 21:20 | 1485988 Palladin
Palladin's picture

In addition, Apple, Microsoft and Oracle comprise 15% of the market cap of the entire Nasdaq.

Along with the other top 7, the top 10 comprise 30% of the total market cap.

More information is here:

https://spreadsheets.google.com/spreadsheet/pub?key=0Ap1-74tGswAXdEFRaDl...

Data is current as of 6/24/11

 

Sun, 07/24/2011 - 00:03 | 1486217 Merrekie
Merrekie's picture

It's disgusting. It's all like 'keep playing with yourself'. Those Apple-figures would have certainly meant something if the junk they sell would have been manufactured in the US of Debt. That's where the responsibility of corporates lie, not just shoveling boxes (pads, pods, puts) from Asia to the consuming western world.

Sun, 07/24/2011 - 01:51 | 1486462 sbenard
sbenard's picture

Another TBTF?

Sun, 07/24/2011 - 03:44 | 1486583 css1971
css1971's picture

My thought exactly. So when the ipone 5 appears and tanks, they will be due several tens of billions from the taxpayers.

Sun, 07/24/2011 - 02:50 | 1486540 robertocarlos
robertocarlos's picture

An Apple is too beaucoup.

 

Sun, 07/24/2011 - 04:06 | 1486605 Snidley Whipsnae
Snidley Whipsnae's picture

Testing new log in.

Sun, 07/24/2011 - 05:51 | 1486669 Instant Karma
Instant Karma's picture

AAPL is a great stock too.

Sun, 07/24/2011 - 07:27 | 1486750 goldencross10
goldencross10's picture

I have to say Apple is a great company and knows how to innovate, been holding their common for quite a while and it hasn't disappoint yet. The amount of cash they have is outstanding which makes me think of a share buyback or one time dividend. I mean, they could probably finance the government's debt, right? lol

Sun, 07/24/2011 - 07:46 | 1486772 Smiddywesson
Smiddywesson's picture

It's a whole new paradigm.  Who needs NASA when we have Apple to go to the moon?

/sarc

Sun, 07/24/2011 - 13:10 | 1487500 Hook Line and S...
Hook Line and Sphincter's picture

I envision a day when the Fed government provides 0% interest loans for 80 years and tax credits to purchase Apple products. or provides a 30% discount incentive to purchase your iPhone with physical silver.

/sarc

Sun, 07/24/2011 - 17:54 | 1488628 theprofromdover
theprofromdover's picture

Who said the bl**ding CLOUD!!!!!!!

What kind of slavery do you want; put it all on the cloud, who owns your data and your secrets?

Not you.

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