“Apple’s recent earnings announcements and product releases serves as a perfect example of how irrational investors have become,” Richard Saintvilus writes for Forbes. “I will concede that Apple’s Q4 was not on par with what I have come to expect – we can agree there. I think we can also agree that the macro climate has not exactly been favorable to even the best tech companies.”
“The take away from the report was that the company is being lead by humans, not magicians,” Saintvilus writes. “The question is, was the ‘disappointment’ (if you can call it that) a onetime blunder or is it a sign of something worse? … During the quarter, Apple generated revenues of $36 billion while earning $8.2 billion in profit. The math says that amounts to $8.67 per diluted share. However, on a year-over-year (side by side) comparison, Apple exceeded its 2011 results when revenues arrived at $28.3 billion with profits of (only) $6.6 billion. The math on that one equates to $7.05 per share.”
Saintvilus writes, “What’s more, Apple’s dominant iPhone line saw an impressive year-over-year unit growth of almost 60%. This is while the company sold 26% more iPads than it did last year. All in all, the company saw tremendous growth across all of its entire product lines. But still investors and those that don’t really understand the business scream ‘cannibalization’ at every turn. It doesn’t make sense.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]
Related articles:
Apple among Barron’s top 10 favorite stocks for 2013 – December 10, 2012
Why Apple investors are running from the U.S. tax man – December 9, 2012
Analyst: Apple’s stock price reflects ‘fantastically pessimistic assumptions’ – December 8, 2012
Wow! Comes off as an Apple Inc. employee! Apple Inc. will face the wrath of stalled or declining product consumption just like every other company on the Globe as we move along towards another serious recession.
The Tim Cook interview on NBC served as a reminder that SONY not so long ago ruled the roost and how difficult it is to stay on top. SONY not unlike Apple can thank Samsung for tearing them a new one.
One thing that hurt Sony was doing things like Installing Music CD rootkits on windows machines when you insert a music CD without telling customers about it. Sony does alot of crappy things to consumers to try to lock them in, that is a big reason why they declined. Google “sony screws customers” and you’ll find many examples…
What’s rather worrying is that Saintvilus needs to point this out. Many of us have known this all along.
If Apple isn’t careful and iPhone sales fall off a cliff, that will wipe out >60% of Apple’s top and bottom line. I’m getting irked by my iPhone 4S’s battery life which sucks. I’ve got every service turned off just so I can nurse the phone through the day. What’s the point of making a smartphone when all it does is dumb things because every other smart thing it’s supposed to do has to be turned off in order to preserve battery life.
That’s one of the principal reasons why I’ve sat on the sidelines and not bought an iPhone 5. It’s getting to the point where I’d be lucky to get half a day’s battery life if I hook it up to a Bluetooth headset and I talk for more than an hour (cumulatively).
Well, get a mophie juice pack air then…..
Don’t waste your time, trondude. BLN has a long list of complaints. He isn’t interested in solving them because that would curtail his incessant dissatisfaction with life, and with Apple.
heavy use = juice pack
just like it always did. people lugged around spare batteries for phones, back in the day. When they did way less for you than they do now.
Do you really think some cheapskate is going to buy a juice pack when it’s easier to complain and then go out to buy some heavily discounted Samsung Galaxy S3 and have even worse problems. Don’t bother to try and give them reasonable solutions because they think that Android devices are trouble-free.
There’s very few pocket devices whose battery life lives up to power-user expectations. Blame lagging battery tech for that. And even if batteries improve, companies will just stick faster processors in the devices to offset those gains.
Time to shut down all of your non-Apple Apps and find out what is causing it. Both my iPhone 5’s did this last week and though fully charged at midnight and gone completely flat by 10 a.m. the following morning! There have been a lot of IOS 6 updates, one of these will be the culprit. Look at Carat on the App store to help with this.
Give it a rest already.
If AAPL is such a great buying opportunity, I’d like to see Apple buy back the shares by boatloads. Instead we’re seeing quite a few Apple lieutenants selling there personal shares at this cheaper price.
Everyone feels the stock market and the street is being irrational. But instead of joining the hysterics, and I’m a long AAPL (since 1999 and haven’t sold any shares since), I feel the old money on the street know what they are doing. They have insider knowledge that most of us are not privy to. Every time the stock took a major hit, some big disappointing news came out just a few days later. This time, it was probably the US Patent and Trademark Office nullifying the Jobs patent or some such. It could also be that the street knows something about judge Koh’s decision before it is announced. All I’m saying, don’t treat/mistake the big money on the street as dummies playing roulette. Instead it’s us mostly, the little guys, who often find themselves dumbfounded.
Apple’s last quarter results were hardly disappointing. Only the Anal-ists were pointing at sky high expectations, not Apple.
iPhone sales were down because the iPhone 5 wasn’t launched yet. But Anal-ists lack common sense made that obvious when they slashed Apple’s stock, even though they were predicting Apple’s shares to go up to $800 a share at the same time! People were waiting for the next product to come out. Now that Apple has revamped 99% of its products I think Apple will surprise everyone.
Apple may have been a tad short of some realistic expectations, but the problem is, the vast majority of expectations were more delusional than anything else.
I’m privy to over 250k visits a day of stats – a big enough sample to see the writing on the wall :: Safari. Safari. Safari. Safari. It used to be under 5% of my analytics… now it is 39.2% and Internet Explorer is 21.48%.
Sliced up by OS,
43% Windows,
32.84% Mac OSX,
20.41% iOS,
2.38% Android.
or
53.25% Mac OSX+iOS
43% Windows,
2.38% Android.
(note: many sites are upscale and local to NYC, Miami, Chicago and Los Angeles, so results are somewhat skewed vs. national average, but real world stats show a HUGE trend away from PC).
does it not piss you off that media/anal-ysts logic:
so irrational!
Apple gives the most damn about consumers.
Apple tries hardest.
yet it’s NEVER good enough.
all competitors suck in products, services, stock market, yet only AAPL has to to magically perform!?
double standars.
stupidity.
media lies.
disinfo.
hype.
fudd.
stockholm syndrome.
etc.
everyone but Apple suffers from all this.
show me 1 other firm!
that is recession-proof.
defies gravity.
gives as much, rather than takes.
makes things as consumer ubiquitous & easy & stable.
Apple never claims to invent all, just that it does it better. sofar. still.
if Apple is so successful, financially, it is not a logical conclusion that they do it through greed or marketing hype, you schmucks, as that is the competitor’s erroneous zones, but that Apple’s success is a natural consequence of popularity through giving more than taking, on every level of the corporation, from concept to product to manufacturing to packaging to distribution etc.
think before you judge!
Stop thinking that institutional investors make decisions based on anything other than manipulating the market for maximum return. Two big Apple execs sold lots of shares last week. That makes twitchy Las-Vegas-Style bankers get rid of stock because they are betting they are aware of a downside. The market is more nervous than a pregnant Mother Superior. Don’t look to it for sense, logic or any semblance of wealth-building!