Apple, FX and Thoughts

The most recent quarter, Apple sold 75million iPhones, a whole bunch of other devices and walked away with $18 billion in profit. For that quarter alone.

First perspective: $18 billion is NASA’s entire 2015 budget.

With that windfall, Apple currently has $178 billion in raw cash on their balance sheet.

Second perspective: Celine Dion gets paid $500,000 per show. Her shows generally last two hours, so $250,000 per hour. At that rate, Apple has enough cash to pay Celine Dion to sing without pause, from now until somewhere in April 2096.

Apple’s market capitalization at the moment is almost $700bn. It’s easy to look at that and assume that means Apple is worth more than Nigeria. I even made a comment to that effect on my twitter. However, this isn’t an accurate comparison, because a lot of Apple’s capitalization are driven by the future value of the money it will make in the future. GDP on the other hand is always about the present or immediate past.

Read about Apple’s monster quarter on their website here.

Meanwhile, the recent assfuck that was the Swiss National Bank’s unpeg of it’s currency to the Euro, was surprisingly good to JP Morgan’s FX traders, who made almost $300 million on that move, while others either looked on, missed the ride or got caught on the wrong side. Side eye to Barclays them. Read more about it here. 

Personal thoughts: because I’ve been studying exchange rates recently to help me learn how to trade in FX markets, I’ve started to think about companies (my personal strong suit) a bit like countries. In this sense, Apple has shares, which is basically it’s own currency with which it buys stuff (usually other companies) and pays employees with. Issuing more shares or buying back shares is a lot like printing more money or taking money out of circulation. The share price is Apple’s exchange rate which stands today at about $116 to 1 AAPL. I’m really drawing out the analogies to see if there are any insights from company fundamentals that could prove useful for countries. I’m not exactly a whiz at Econ, although I did well in introductory Macro and Micro.

That said, if you know any books, resources, what have you that would help me understand forex intimately, not just from a technical trading standpoint (although that is also welcome) but from a fundamentals, ‘market driver’ approach, please drop me a comment or hit me up on twitter @eldivyn


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