AAPL – Market expectations are for Uniform ROA to recover, but management appears concerned about growth, services, and 5G adoption

• Apple Inc. (AAPL:USA) currently trades above recent averages relative to UAFRS-based (Uniform) earnings, with a 24.1x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm, but management appears concerned about sales growth, services performance, and 5G adoption.
  

• Specifically, management may lack confidence in their ability to sustain iPhone and iPad sales growth, compete in the semiconductor market, and generate cost savings. In addition, they may have concerns about the pace of 5G deployment in emerging markets, the performance of their services business, and the security of their new health data sharing feature. Furthermore, management may lack confidence in their ability to continue creating technologies that improve people’s lives and increase the number of customers engaging with their ecosystem. Finally, they may be exaggerating the potential of FaceTime’s new share play and spatial audio features and their capabilities in the accessibility space.