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WSJ: Apple investors shouldn’t expect any near-term bottom-line benefit from tablet

Wednesday, December 30, 2009 · 12:47 pm · 32 Comments

“Last time there was this much excitement about a tablet, it had some commandments written on it,” Martin Peers writes for The Wall Street Journal.

“Assuming the talk is correct, it is hard to see the device proving immediately attractive to the mass market given a price expected somewhere between $500 and $900,” Peers writes.

“Of course, it is dangerous betting against Steve Jobs. Apple could cut the device’s price,” Peers hedges.

“While it is good news that Apple is still innovating, investors shouldn’t expect any near-term bottom-line benefit from the tablet,” Peers opines. “The iPhone will remain the growth engine for the company for a while yet. Buying shares on enthusiasm about the tablet is putting the apple cart before the horse.”

Full article here.

MacDailyNews Take: Again: Blind prognostication is the practice of idiots.

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32 Comments

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DLMeyer

Wednesday, December 30, 2009 - 3:24 pm · Reply

ZT … beautiful! Well, except that you inserted a space between the 301 and the XCi … understandable, I guess. Anyway … not precisely a “tablet”, it has a 14″ screen (my MacBook has a 13.3″ screen), and a full keyboard on the section housing the 1.5 GHz Pentium (my MacBook has a 2.26 GHz Core Duo), and it WEIGHS IN AT 6.2 pounds ! ! !
And, yeah, this is likely to be the model any “tablet” from Apple will be compared with. Half a GB of RAM (to my initial 2 GB) and a 40 GB HD (to my 250 GB) … and this will be the price comparison! We can all laugh at them, if and when.
ken1w

Wednesday, December 30, 2009 - 6:02 pm · Reply

> investors shouldn’t expect any near-term bottom-line benefit

Investing is about the long-term, not the “near-term,” or at least it should be. Apple already has great near-term prospects, even without any new “tablet” product.

It’s great that these writers act like experts for a product that has yet to be released.
Planeten Paultje

Wednesday, December 30, 2009 - 7:42 pm · Reply

“Assumption is the mother of all fuck ups”
hairyhistorian

Wednesday, December 30, 2009 - 8:53 pm · Reply

Apple’s first quarter in fiscal 2010 ends to-morrow, and this should be the first quarter in which Apple ceases to exclude 7/8ths of the sales and income from its financial statements because the deferred accounting for the phone and the touch ended as and from October 1. This has nothing to do with the tablet. As well, the traffic at the Apple Stores in the iPhone section is truly astounding; hence the sales for the quarter should be outstanding, and not just for the touch and the phone. Ceteris paribus, the draw-down of the deferred asset account from prior sales should add another chunk of income to Q1FY10. It’s nice for Peers to warn about buying Apple stock, but what exactly has he to say about deferred asset accounting and Apple’s changing its accounting policy for FY 2010? He’s probably not up on his accounting. One wonders who is doing the hiring at the WSJ.
G4Dualie

Wednesday, December 30, 2009 - 9:15 pm · Reply

@hairy

you do realize the WSJ has changed hands, don’t you? It has now become the faux news for for the liberal ultra-right; liberal about OPM.
ac in WA

Wednesday, December 30, 2009 - 11:28 pm · Reply

The Apple Pie will rock!
Macrelated

Thursday, December 31, 2009 - 12:12 am · Reply

I would like to see Peers put his money where his mouth is.

Their is a great consistency here!

Murdoch employs idiots at all of his enterprises.

He provides an equal employment opportunity for jackasses, sleazeballs and hatemongers..
The Other Steve

Thursday, December 31, 2009 - 2:01 am · Reply

Love Martin’s opening lead!

He’s right, Apple’s products are deeply rooted and slowly built markets.
So is the stock price.
derekcurrie

Thursday, December 31, 2009 - 7:22 am · Reply

“WSJ: Apple investors shouldn’t expect any near-term bottom-line benefit from tablet”

Great. News Corp, experts at dishonesty, are blethering about the non-existent iTablet. Just STFU you blithering idiots.
Grouch

Thursday, December 31, 2009 - 1:16 pm · Reply

@hairyhistorian

The fiscal quarter ends on the last Saturday of the last month of the quarter not the last day. And its actually more than 7/8s that is not recognized for the sale quarter. After sale a 1/760th of the gain is recognized each day until the end of the two year period. For even sales distribution over a quarter that would mean a recognition of 1/16th (approximately) of the sales. Note that all production associated costs are recognized immediately so that drives the very high margin on iPhone sales recognition later on (I believe its about 65% margin on forward sales recognition.) That means that a one time recognition of all sales will produce a much higher gain than most analysts estimate.
Blind Turn

Thursday, December 31, 2009 - 6:13 pm · Reply

“Blind prognostication is the practice of idiots”

Or turns you into an idiot.
Bottom Line Benefit

Thursday, December 31, 2009 - 6:22 pm · Reply

Regardless of investors’ expectations, if the bottom-line benefit (whatever that means) from the tablet does not happen near-term, will it happen long-term?

I wanna know.