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Apple’s Newest Business Isn’t at All What You Would Expect 

On Apple’s June quarter earnings call CEO Tim Cook shared expectations for the company’s Services revenue “to be the size of a Fortune 100 company next year.” We like the move into subscription services that generate recurring revenue and predictable cash flow, but we tend to doubt Apple Energy will share in those favorable characteristics. We’ll keep watching to see if this initiative becomes something of size to qualify Apple for our Scarce Resource investing theme.

Filings for Apple Energy list several assets, including a 130-megawatt solar farm near San Francisco, a 50-megawatt facility in Arizona, and another 19.9 megawatts in Nevada.

Rather than selling to the public, Apple is believed to be using Apple Energy simply to sell excess power to public utilities, helping to offset the cost of running its infrastructure. When and where possible, Apple uses solar as a primary source of “green” power for offices and datacenters.

Source: Apple Energy gets federal approval to sell power into wholesale markets

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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