• Sprott Money
    05/06/2016 - 06:03
    The US, in its own decline, is showing this same self-destructive tendency. The worse things get, the greater the inclination of the citizenry to say, “Carry on, everything’s fine.”

Apple: 36% Of S&P500 Q1 Earnings

Tyler Durden's picture


As AAPL crosses $600bn market cap, we thought it worth a reminder (as we noted last week) of the outsize impact Apple-as-Market is having on top-down views of US corporate performance.

(h/t John Lohman)

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Tue, 04/10/2012 - 10:03 | 2330958 Mr Lennon Hendrix
Mr Lennon Hendrix's picture


Tue, 04/10/2012 - 10:07 | 2330973 besodemuerte
besodemuerte's picture

Nice you beat me to it.

Tue, 04/10/2012 - 10:11 | 2330994 johnu1978
johnu1978's picture

That's great news for Apple, but bad news for everyone else!!!


Bowmaking Classes - Wild Edible Tours

Tue, 04/10/2012 - 10:36 | 2331116 Buckaroo Banzai
Buckaroo Banzai's picture

What an indictment of the ridiculous state of our economy. I wonder if there was a parallel situation in 1929, where one company accounted for a significant chunk of a major indexes' profits.

Tue, 04/10/2012 - 10:41 | 2331130 SheepDog-One
SheepDog-One's picture

In 'Idiocracy' 1 company also accounted for the entire economy and all jobs. 

Tue, 04/10/2012 - 10:45 | 2331142 The Big Ching-aso
The Big Ching-aso's picture



When Facebook IPO's will there be enough market attention left to sustain Apple's core?

Tue, 04/10/2012 - 10:48 | 2331158 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

We will all use our MacBooks to FaceBook on Farmville and stocks will go to infinity, and beyond!

Tue, 04/10/2012 - 12:23 | 2331497 BlueCollaredOne
BlueCollaredOne's picture

I'd like to see an instagram of that!

Tue, 04/10/2012 - 10:47 | 2331151 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I wonder how much AAPL the President's Working Group on Financial Markets owns, knowing that the Bank of Israel and Bank of Japan also own AAPL shares....

President's Working Group on Financial Markets - Executive Order:


Tue, 04/10/2012 - 10:56 | 2331179 Shizzmoney
Shizzmoney's picture

There definitely was, although it was more like 2: JP Morgan (who had big stakes in copper wires, coal, energy) and Standard Oil (Rockefeller, US first billionaire).

Lets see: AAPL makes up for 36% of US economy....Spanish bond yields rising like Jerry Sandusky at a Day Care center......France's economy numbers coming out today show *its* tanking.......Vegas credit downgraded by Fitch........Best Buy CEO resigns, while Kodak CEos trying to get their severance despite them filing for bankruptcy.....Labor participation rate lowest since the fucking 40s.......

....I dunno bout you guys, but that TOTALLY says *buy some stocks* to me!

Tue, 04/10/2012 - 10:20 | 2331039 TeMpTeK
TeMpTeK's picture

Cant wait to short the shit out of this thing...

Tue, 04/10/2012 - 10:25 | 2331063 CH1
CH1's picture

Yeah, but only the central bankers know when the Fed will stop pumping it.

Timing, timing, timing.

Tue, 04/10/2012 - 10:40 | 2331129 Buckaroo Banzai
Buckaroo Banzai's picture

Plus with almost all of Apple's competitors shitting the bed, one must be extremely cautious. At some point they will saturate the market for their iPhone and iPad products, at least for the short-term. That should be good for a 200 point drop even if the Fed has the spigots open.

Tue, 04/10/2012 - 11:04 | 2331212 SillySalesmanQu...
SillySalesmanQuestion's picture

Almost, almost...not quite yet....

Tue, 04/10/2012 - 10:07 | 2330959 GetZeeGold
GetZeeGold's picture





Guy at the shoe store was just telling me about his DCA purchase of AAPL yesterday. I nodded....trying to act polite.


Tue, 04/10/2012 - 10:30 | 2331090 DeadFred
DeadFred's picture

That is a great story and good to hear.

Tue, 04/10/2012 - 10:33 | 2331104 FlyoverCountryS...
FlyoverCountrySchmuck's picture

If you aren't on the Media-Approved Apple bandwagon, you must be a racist.

Tue, 04/10/2012 - 11:08 | 2331228 blunderdog
blunderdog's picture

The best way to identify racists is to note who brings up race all the time when it has no relevant connection to the discussion.

Tue, 04/10/2012 - 10:04 | 2330960 LawsofPhysics
LawsofPhysics's picture

In the spirit of Easter, it looks like all of America's eggs are indeed in one basket.

Tue, 04/10/2012 - 10:05 | 2330963 idea_hamster
idea_hamster's picture

Don't bump the Jenga pile....

Tue, 04/10/2012 - 10:05 | 2330965 Moneyswirth
Moneyswirth's picture

Holy iCrap, Batman!

Tue, 04/10/2012 - 10:13 | 2331000 Jake88
Jake88's picture

iCrap indeed.

Tue, 04/10/2012 - 10:05 | 2330967 Spastica Rex
Spastica Rex's picture

All you need is love, love - love is all you need.

Tue, 04/10/2012 - 10:06 | 2330968 Dr. Engali
Dr. Engali's picture

That's sustainable. Is that a seasonably adjusted number?

Tue, 04/10/2012 - 10:12 | 2330996 The Swedish Chef
The Swedish Chef's picture

Yes but transitory weather effects have not been accounted for...

Tue, 04/10/2012 - 10:27 | 2331083 Oleander
Oleander's picture

National Hurricane Service is calling for fewer named storms this year. In an El nino year the east coast is less likely to sustain a hit from a severe storm.  This should be great for summer seasonally adjusted employment numbers along the eastern seaboard. 

Tue, 04/10/2012 - 10:06 | 2330970 TideFighter
TideFighter's picture

Not much left of the ex_APPL pie!

Tue, 04/10/2012 - 10:08 | 2330975 Jason T
Jason T's picture

the bubble is in the margins.. 

Tue, 04/10/2012 - 10:08 | 2330977 scatterbrains
scatterbrains's picture

IS it possible that AAPL is joining IBM in our government's urgency to build out it's Utah spy center and other big brother expenditures?  and is this the reason why uncle Buffet recommended IBM ? Perhaps we will see all time highs in equities as a result of endless off-budget gov. spending on super computer spy equipment  causing IBM/AAPL to pull everything else up along with it.

Tue, 04/10/2012 - 10:17 | 2331021 SheepDog-One
SheepDog-One's picture

Remember where IBM got its start, records keeping of Nazi concentration camp prisoners.

Tue, 04/10/2012 - 10:27 | 2331076 Dr. Kenneth Noi...
Dr. Kenneth Noisewater's picture

Nigga please.

IBM'd been tallying censi and other shit for decades before teh 1930s.  Nazi golds were just icing on the cake.

Tue, 04/10/2012 - 10:51 | 2331163 GeezerGeek
GeezerGeek's picture

IBM was created in 1924, a renamed version of the earlier Computing Tabulating Recording Corp. Clearly SheepDog-One is mistaken. As an aside, Thomas Watson was the 'founder' of IBM, having been with CTR Corp. for 10 years when the name change occurred. Before that, Watson had worked for National Cash Register, where he had been involved in some less-than-legal actions. He left NCR - apparently they saw no future in tabulating equipment - and went to CTR. He claimed that he was an unwitting accomplice in those actions, of course, and that he was simply following orders. In modern terms, he claimed "It's Patterson's fault" (Patterson being the head of NCR at the time.)

Disclaimer: I worked for NCR from 1973 through 1991, being let go one Thursday afternoon as part of their plan to improve their local demographics prior to being sucked into AT&T and forming what some of us referred to as Cash Registers And Phones. History records how well that worked out. 

Tue, 04/10/2012 - 10:12 | 2330981 DormRoom
DormRoom's picture

like a forest fire, there's only so much territority it can consume. Reflexivity.  

Tue, 04/10/2012 - 10:09 | 2330983 francis_sawyer
francis_sawyer's picture

Are they invited to the G-7 summit?

Tue, 04/10/2012 - 10:16 | 2331017 Agent P
Agent P's picture

I keep clicking on the up arrow, but I only got it to change once. 

Tue, 04/10/2012 - 10:51 | 2331165 Buckaroo Banzai
Buckaroo Banzai's picture

"Tim Cook led his fellow heads-of-state on a walking tour of Apple's Cupertino campus today, as the 2013 G-7 summit opened for business. Top item on the agenda: getting sign-off on Apple's takeover of the entire global cellular communications infrastructure, in exchange for BIS access to Apple's gigantic cash hoard, which will be used as the foundation for the new global currency scheme scheduled for launch in early 2014. In the wake of the Euro and Yen collapse in late 2012, Apple's rescue of the global currency system recalls J.P. Morgan's heroic backstopping of New York banks during the 1907 crisis, writ large."

Tue, 04/10/2012 - 10:10 | 2330988 the 300000000th...
the 300000000th percent's picture

I think Mr Jobs left it to the government in his will

Tue, 04/10/2012 - 10:10 | 2330990 kralizec
kralizec's picture

iPower, to infinity and beyond!

Tue, 04/10/2012 - 10:10 | 2330991 RoadKill
RoadKill's picture

Actually you mean to say APPL EPS GROWTH is 36% of SPX EARNINGS GROWTH. If Apple was actually 36% of SPX earnings it would be worth a lot more then $600bbn.

Tue, 04/10/2012 - 10:19 | 2331032 Dr. Engali
Dr. Engali's picture

How many flat screen tvs can people buy?

Tue, 04/10/2012 - 10:54 | 2331174 RoadKill
RoadKill's picture

I own a 65" 50" 42" and 32"

Also have a 30" cpu monitor.

NONE WERE BOUGHT AT BEST BUY. I go to Best Buy, look around for hours, decide what I want and buy it 20% CHEAPER online.

Tue, 04/10/2012 - 16:27 | 2332601 smiler03
smiler03's picture

lol @ 30" monitor. But seriously it must look good and great to use if you have the space for it. It'd show those stupid ipad users that size DOES matter.

For the record, I use a 15" Dell laptop. 

Tue, 04/10/2012 - 10:13 | 2330998 Jake88
Jake88's picture

Things can't be real bad if shiney overpriced electronic bling are making 36% of profits.

Tue, 04/10/2012 - 10:21 | 2331030 dwdollar
dwdollar's picture

Yeah... The government is paying for necessities, the rest goes on credit including the new iWhatever.

How does it work? The government prints money for the necessities it doles out and backstops all the creditors for the wants/desires.

What could go wrong???

Tue, 04/10/2012 - 10:13 | 2331003 jtz5
jtz5's picture

This will hurt Apple...

Carriers such as AT&T – faced with plummeting margins at a six-year low – are now considering reducing iPhone subsidies and adopting stricter upgrade policies.

If instituted, these changes could result in a more expensive iPhone and an estimated worldwide drop in sales of 27.5 million units in the June quarter, with a revenue estimate $1 billion below consensus.

Blame it on “aggressive” upgrade policies instituted by the world’s carriers. That’s the crux BITG Research analyst Walter Piecyk wrote in a Monday note to clients:

Operators, unwilling to stall the pace of ARPU growth, offered generous upgrade policies including some that enabled a fully subsidized phone upgrade only one year in to a two year contract. We expect those policies to change as the faster upgrade rate of smartphones compared to legacy feature phones has been a costly surprise to post-paid and pre-paid operators, alike.

Tue, 04/10/2012 - 10:13 | 2331005 schatzi
schatzi's picture

Surely these earnings are not transitory.

Tue, 04/10/2012 - 10:14 | 2331006 CvlDobd
CvlDobd's picture

I have yet to get a clear answer from an AAPL bull on why ARMH hadn't gone anywhere for a year.

Are the new iPads so badass they don't use chips?

Tue, 04/10/2012 - 10:15 | 2331007 The Swedish Chef
The Swedish Chef's picture

Sweden has got IMania but we actually buy the products. I just got myself a IPhone at a silly low price: 0 kronas. Didn´t really need the damn thing but need to cut my rate. So I got a 50% cheaper phone bill and the latest IGadget... I feel Irie.

Tue, 04/10/2012 - 10:15 | 2331011 monopoly
monopoly's picture

AAPL, whose products I use, makes Las Vegas look risk free. 

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