Foxconn Shares Jump to Record High

On High or Foxconn, however you want to talk about it, always a great tell. We’ve been worried about its previous earnings, but now it looks that from a month on month basis or year on year monthly posting, we’re getting record sales for the company. If you look at the prior quarter, Hong High’s revenue, their expectations, their forecasts weren’t so hot, right? And then you saw Apple reveal its iPhone sales for the previous quarter last week and you saw the iPhone come in about $5 billion down on a year over year basis, right. But looking ahead to the June quarter, the current window that we’re in, Apple said it expects revenue to grow low single digits, right, so growing for the first time in a couple quarters here. And Foxconn’s expectations for this quarter as well seems to align with that given that they still assemble the vast majority of iPhones via Foxconn. Now not only iPhones driving that on high revenue, it’s also development and manufacturing of AI servers for various companies. However, I don’t believe that the AI servers that Foxconn is building are connected to Apple’s AI announcement coming in June. For all intents and purposes the AI from will be on device, at least from the get go and probably using third party infrastructure, not something they’re creating on their own. But one day I do expect Apple to move to its own AI server environment. Oh, interesting. OK. And and therefore talk to us about the long term commitment to Apple and indeed perhaps a slight pullback coming from what is its third biggest shareholder, Berkshire Hathaway, saying that we are pulling and trimming back, but they still seem to believe in Apple as a key tech winner. Yeah, I think Buffett does seem to believe Apple is a key tech winner. I mean, Buffett and his typical process for which stocks he buys Apple is right up his alley, right. You’re not going to see Apple grow tenfold or to some significant degree at this point. But you know that it’s more likely than not that you’re going to get solid returns off this company. You’re not going to lose your money. It’s certainly better than putting your money in a bond market or in a mutual fund in most cases. So it is a a very safe pick. Apple, I think for for many quarters to come despite the fact that it’s not going to be a high flyer or anything like that. I mean look $110 million a share buyback, many feeling that that’s the tail, it’s a value stock now rather than a growth stock mark. But I’m, I’m interested in a way from like the arbitrary way in which we describe whether you buy into this stock. We are all caring about the products and the unveilings and we’re going to get some. Yeah, that’s right. Tomorrow, Tuesday, 7:00 AM Pacific Time, 10:00 AM Eastern Time. Is there let loose iPad product launch? There’s going to be a few things coming. One is a revamped version of the iPad Pro. This will be the most significant update to the company’s tablet since the current model was launched in 2018. You’re also going to see a new iPad Air. Why is that important? Well, in addition to a spec bump, you’re getting a bigger iPad Air, something closer to the size of a MacBook Air for the screen, a 12.9 inch display. This will be the first time that Apple’s offering a 12.9 inch iPad at that mid tier price point, right, and at that mid tier product line. So that’s a big deal as Apple looks to make its iPads more like Macs and expand the product line there. And then you’re going to see them rebuild the ecosystem around its iPads with two key new accessories. There’s going to be a new Magic Keyboard, a higher end version that makes the iPad Pro look more like a laptop, all in use, something that’s a bit more durable and convenient. The second thing is a pro version of the Apple Pencil. So a new higher end SKU of its Apple Pencil stylus. That’s a really popular accessory that artists and creatives and others like to use for drawing. The new version will have some new gestures, so you can squeeze on it to have certain commands. Apple’s homepage was updated this morning where you can use an Apple Pencil, a virtual pencil, to erase the logo on Apple’s homepage, which might imply that the pencil’s finally getting an eraser on the back, like a like a classic #2 pencil. And the other thing I’ve written that will have is haptic feedback. So when you use the pencil, it’ll vibrate back on your finger so you know what you’re doing based on tactile feedback. So that’s going to be a a pretty nifty update as well. And I think overall for iPad fans, especially those who’ve been waiting many, many, many months, even years for revamped version iPad Pro, tomorrow’s going to be quite an exciting product launch for them.