“Apple Inc. suppliers Samsung Electronics Co. and Toshiba Corp. led declines in Asian trading and Hon Hai Precision Industry Co., the iPhone and iPad assembler, fell after the world’s most valuable tech company missed profit estimates,” Naoko Fujimura reports for Bloomberg. “Toshiba, the world’s largest flash memory maker after Samsung, slumped 7.3 percent, the steepest drop since the plunge after Japan’s March 11, 2011 earthquake, to 242 yen at the close of trading in Tokyo. Hon Hai dropped 4.3 percent, the biggest slump since April 30, to NT$81.90 at the Taipei close… Samsung dropped 1 percent to 1.16 million won as of the close in Seoul trading.”
Fujimura reports, “Apple itself fell 4.9 percent in German trading, adding to concern orders for components to make the iPhones and iPad tablet computers may slow. Apple missed analysts’ estimates as customers held off on iPhone purchases while waiting for a new model to be introduced later in the year… Among other suppliers, Seiko Epson Corp. (6724) declined 7.5 percent, Sony Corp. slumped 5.2 percent, LG Display Co. lost 4.8 percent and Sharp Corp. plunged 10 percent.”
“Apple’s net income climbed 21 percent to $8.82 billion, or $9.32 a share, in the period that ended June 30, the Cupertino, California-based company said yesterday in a statement,” Fujimura reports. “Sales rose 23 percent to $35 billion. ”
Read more in the full article here.
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I don’t understand this “MISS” crap.
Apple didn’t miss their own estimates. They never do.
Analysts are all over the board, but they hit and exceed their own estimates every time!
Should read analysts miss Apple’s profits. Again.
Confifdence in analysts hits a new low, investors advised to dump the lot.
Like many others (and, indeed, any truly thinking person) I’m tired of hearing about this “miss” — and a little annoyed that people keep calling it that.
Apple beat the consensus for 24 or 26 quarters straight (I don’t remember exactly). This embarrassed the professional analysts. This has caused them to over estimate Apple’s financial position in recent quarters. Now that Apple did not make their inflated estimate they claim that Apple is doing worse than it should be. In one word: Bull!
This is no different than back in the dark days when Apple had just started its turn around. Apple was predicted to do in the ball park of $125 million profit for the quarter. Apple predicted/advised lower. Because Apple advised lower, the stock fell by about half in about a week. The final numbers from that quarter came in higher than Apple’s advice but lower than the analysts claimed it should be. Thus Apple’s stock got hammered — eventually down to about 1/10th of that pre advice number. Yet, we all know the long term scenario.
Another point of the analysts continuing to hammer Apple’s “miss” is the real world effect of driving the stock price down. This allows their “friends” to pick up the stock at a reduced price just before the dividend as anyone who owns the stock as of 13 August gets a dividend on 16 August. (This way of defining who gets a dividend is asinine. It should be anyone who owns the stock for the ENTIRE previous quarter gets the dividend for that quarter. And distribute the dividend as of one week after the quarterly earnings report comes out. — but that’s a different rant entirely.)
So analysts guess high to not be embarrassed then Apple does better than it predicts but not what the guess is and the analysts blame Apple. Plus it drives the price down so their friends can buy the stock cheap and get the resulting bounce plus the dividend. Those who can play the game are rewarded while Apple’s long term investors (some of us have held stock in Apple since the dark days) get nothing.
Here we go again, more stupidity from idiots. Given the apple shares went down and so did the suppliers, all the suppliers have to do is buy apple shares of apple given they know more about the new imac and iphone,s coming out as they build the components like retina screens et all. Time and time again these manipulators and the media that fuels them have shown thier true colours, and the colour is not nice
“Apple’s net income climbed 21 percent to $8.82 billion, or $9.32 a share, in the period that ended June 30, the Cupertino, California-based company said yesterday in a statement,” Fujimura reports. “Sales rose 23 percent to $35 billion. “
And the stock dives. ANALysts opinion counts more than reality and results.
What a world we live in.