“Another day, and more earnings estimate cuts for Apple,” Chris Ciaccia reports for TheStreet. “This time Barclays Capital and Citi cut their estimates, but for different reasons.”
“Citi is worried about both the iPhone and the iPad, reducing estimates for Apple’s two major product lines and saying that end demand is softening. ‘Indications of reduced demand to Apple’s suppliers contribute to our existing concerns that end demand for 10″ iPad and iPhone 5 in particular is softening, reflecting share loss by Apple in both the tablet market and the smartphone market,’ wrote analyst Glen Yeung, in the report. He cut his price target to $480 from $500, but kept his ‘neutral’ rating,” Ciaccia reports. “End demand for the larger iPad also concerns Yeung, as the iPad mini cannibalizes the larger version and the tablet market becomes more mature.”
Ciaccia reports, “Barclays Capital analyst Ben Reitzes cut his estimates, noting that he believes the second half of 2013 will see new products and potential carrier additions, such as China Mobile and NTT DoCoMo… He cut iPhone estimates for the March quarter to 35 million, down from 36 million, with the full year at 150.8 million units. iPad estimates were cut for the March quarter, “to account for weakness in larger iPads and seasonality.” Reitzes now expects 18 million units will be sold, down from 19 million. He expects demand will pick up in the third quarter, with 19 million units sold and 84.9 million units being sold for fiscal 2013… For fiscal 2013, Reitzes now expects earnings of $43.75 a share on $181.49 billion in sales, down from $44.56 a share and $184.66 billion, respectively.”
Read more in the full article here.
How many of these WS shysters have got their predictions right?
When Apple was on the way up, they undershot their predictions.
Now when Apple is on the way ‘down’, metaphorically speaking, they’re overshooting their dire predictions.
Take it easy folks, Apple will come in exactly where it said it would. The iPhone 5 remains a jewel amongst smartphones and the iPad 4’s performance blows any competing tablet out of the water.
The iPad is like Ironman, deflecting all comers with ease and panache.
The iPhone 5 is still the sexiest phone out there, bar none.
Reitzes, in other words, thinks AAPL deserves a P/E of 10. Really, Ben? MSFT has a P/E of 15.
“Indications of reduced demand to Apple’s suppliers…”
Not reduced demand for Apple’s products mind you. There are indications (not confirmed reports) of reduced demand to some of the suppliers they know about or happen to be able to talk with (and obviously no indications from the suppliers they don’t know about, or aren’t talking with).
Closed my accounts with CITI last December 2012, should had
been earlier. Not worth doing any business with them big or small.
Just more from the Klown car and the Karnival Barkers…. Good thing NOBODY is listening anymore….
Somebody check me on this but I believe I predicted yesterday that the run up in AAPL would likely be erased today. Well, we’re getting there. It may take until tomorrow but the Tim Cook effect is totally in control of this company’s fate.
You are absolutely right on this, pp. AAPL will close down at least 10 today (5.31 right now).
Folks who think TC should shoulder the responsibility of the decline with the attitude that he should be replaced if he does not – these people do not take into account that there does not seem to be ANY competent leaders out there that will or can manage the whole / complete operations of a company like Jobs did. And even at that, TC is doing a fantastic job compared to any others. He has the right balance. Too many people are do not know or remember the late ’80s and ’90s until SJ returned. Each leader had his strong points but still no GREAT products management and poor company leadership. TC is doing a great job in comparison to all of those of years ago, and even in comparision of other technology leaders today.
It is the outside forces that are playing with Apple’s value. IF this were going on with MS, WS investigators would be on it and fines and jail senctences would be in the works!