“Although Apple certainly is not alone in getting hammered in the midst of one of Wall Street’s worst crises ever, the company’s demonstrated resistance to the general economic slowdown should have provided some insulation. But not with a stock as notoriously volatile as AAPL,” David Zeiler reports for The Baltimore Sun.
“Despite the prevailing sense of panic on Wall Street, the AAPL selloff makes little sense. The company has reported exceptional sales and profits throughout the year, and is expected to post more eye-popping numbers for the quarter that ends Sept. 30.
“Consider: Apple had its best March quarter in company history, with revenue growing 43 percent year-over-year to $7.51 billion. Mac sales were up 51 percent year-over-year,” Zeiler reports. “In the June quarter Apple revenue rose 38 percent year-over-year, led by a 41 percent increase in Mac units shipped. The iPod chipped in with a surprising 12 percent increase in sales year-over-yea.”
“More importantly Apple appears likely to sustain its healthy growth with minimal impact from weakening consumer spending. It defies logic, but that’s what the numbers have been telling us,” Zeiler reports.
MacDailyNews Take: Actually, it’s quite logical: Mac users tend to be better educated and make more money than their Windows PC-using counterparts, and are therefore the last to be affected during “tough times,” if they’re affected at all.
“In the current environment, few companies match Apple’s potential to keep raking in money. Throw in Apple’s lack of debt and staggering $21 billion in cash and you wonder why anyone would sell the stock, particularly as it gets cheaper,” Zeiler reports. “But then again most Wall Street muckety-mucks aren’t looking particularly shrewd these days, are they?”
Full article here.
In the past, I always thought that wall street didn’t understand apple.
Then over the past couple of years I thought they were starting to understand how apple is different than “normal box making companies”
Now I don’t know.
There is no reason other than “the ceo looks too thin” crap that is keeping apple so low. Fundamentally the company looks great.
I just don’t get it.
Damn day traders….some of them must be losing their shirts.
I am looking to buy because Appl can only start to go up once the election-induced uncertainty is over and hopefully the economy will stabilize
“Be greedy when others are fearful. And be fearful when others are greedy.”
– Warren Buffet
I don’t know why investors don’t realize that Apple is recession proof. The rich are getting richer and they need to find new ways to waste their excessive amounts of money. That’s why an $1,800 laptop with hardware that’s barely any more powerful than a $500 Eee PC can be successful.
The rich don’t need to worry about a simultaneous rise in the cost of living and drop in wages. The rich don’t need to worry about anything. That’s why Macs, with only one model that can be purchased for less than a thousand dollars, will survive just fine. That’s why iPhones are still flying off the shelves and iPods will be hard to find. Rich white people need their toys and Apple will be there to answer the call.
“That’s why an $1,800 laptop with hardware that’s barely any more powerful than a $500 Eee PC can be successful.” BARELY MORE POWERFUL than a $500 Eee PC – lets see which operating system does that Eee PC run again? Not very powerful now is it? I can do way more with my MacBook than you can do with your Eee PC crap.
You are a sick individual. What are you trying to say? People are rich for no reason? Their hard work shouldn’t be rewarded. What would the incentive to work hard be then? If you don’t have the money don’t spend it with credit cards and loans that you can’t afford. Communism is what you’re pushing. Bad, bad, idea. There are many people who abuse credit and buy things that they can’t afford. That is the problem. Then the other is the welfare abusers who could work but would rather take handouts. Last are the truly needy who should be helped.
LOL, where in my post am I pushing communism? Where did I say hard work shouldn’t be rewarded?
I just put the truth on the table without the powdered sugar. Apple is recession proof because it’s a brand for white people with higher incomes and even in the midst of economic turmoil they will still want to purchase consumer electronic goods.
Where am I wrong? Where did I say people shouldn’t feel good that they can afford to have it all?
“That’s why an $1,800 laptop with hardware that’s barely any more powerful than a $500 Eee PC can be successful.”
I don’t understand what you are comparing. Please show us the specifications.
Never mind. I see you’re comparing the MacBook Air to the Asus Eee PC. They do seem to be almost identical.
@R2
That’s funny. I see plenty of non-white people here in New York with Macbooks and iPods. Someone really should tell them Apple is for white people only.
@R2
‘Apple is recession proof because it’s a brand for white people with higher incomes and even in the midst of economic turmoil ‘
Congrats,
You won the stupidest quote of the week award.
“But then again most Wall Street muckety-mucks aren’t looking particularly shrewd these days, are they?”
[ insert your own joke here ]
BC
I didn’t say “white people only.” If I go to an affluent neighborhood of 5,000 homes and 4,900 of those houses are inhabited by white families with 100 belonging to minorities, that’s a white neighborhood. Doesn’t mean the neighborhood excludes minorities from home ownership in that development.
Apple is the upper class suburbs of consumer electronics. Their customer base is whiter than Mitt Romney.
R2,
I know plenty of blacks who are much wealthier than this white guy.
It is that kind of thinking (“…it’s a brand for white people with higher incomes”) that perpetuates the racist attitudes among some blacks in the United States toward whites.
Dear Steve,
I’ve had my money in your company for many, many years, and I’ve done very well. I’m hoping this rotten thrashing passes soon, so I can sell a bit to buy a 5D MkII and several lenses in a couple of months. Do you need any analysts or hedge traders offed? Because I know people in the Russian fishing industry that can create untraceable targeted accidents. Please call me if you need a hand.
-c
When times are tough we still spend most of our income, but we are far more careful what we spend it on. To me that may mean a better/more expensive Mac to be shared or last a year or two longer than an equivalent PC.
And I know plenty of African-Americans, Asian Americans and Latino Americans with more money than me, Cubert. It’s a wonderful country we live in.
Apple still has a mostly white userbase.
It’s just the natural order of things. While we may know well off minorities, we know FAR MORE well off whites. White people dominate the higher income brackets, nobody here can dispute that. Apple is a brand that appeals to people in higher income brackets, as demonstrated by a computer line with one model that comes in under a thousand dollars.
It’s simple mathematics. Apple is a white brand. Apple is recession proof because of rich white people. Perhaps that’s difficult for a lot of you to swallow but it sure is the truth.
The stock market is rigged and a crapshoot anyway. Our whole financial system is imploding. A Depression is barreling toward us. The bankster gangsters are trying to get a humongo bailout and fleece the taxpayer to an unbelievable degree.
Soon it will be survival time, trying to find food and gas — the stock market woes will seem trivial.
If you understand Apple, and you don’t need to sell your stock RIGHT NOW, then you should be kissing all those dopey sellers. What a sweeeet AAPL BUYING OPPORTUNITY!!! I’m going to Ameritrade and adding $10K in AAPL to my portfolio. Wish I could buy $100K!
MDN take is weak.
“MacDailyNews Take: Actually, it’s quite logical: Mac users tend to be better educated and make more money than their Windows PC-using counterparts, and are therefore the last to be affected during “tough times,” if they’re affected at all.”
The whole premiss of growth is going beyond your installed base. Reaching and capturing your competitions market. If Apple only depended on Mac users, then our market share would not have climbed from 3 to 7%. I think a better explanation is that Windows users are finally getting it, not that Mac users earn more money.
@R2
You know nothing, the rich are worried. Why do you think congress is talking about a 700 billion dollar bailout? If this was simply to help the poor guys that can’t no longer afford their mortgage payments, no congressional discussion would be happening.
Don’t fret. Check out what is the future of AAPL by the investment analysts at http://finance.yahoo.com/q/ao?s=AAPL
I’ve bought as much AAPL as I can without putting my account way out of balance. But what a great chance to buy a stock that has significant investment potential.
@MDN Take
Mac users are also better groomed, have more attractive spouses and nick themselves less then shaving.
When the market falls, the vast majority of companies fall with it. Simple as that. It’s not surprising. Thing is, when the market recovers, AAPL will do very well.
@R2:
Oh dear, where to begin. Your drivel has made a mess everywhere.
“It’s just the natural order of things.” Is probably the most racist, dumb and ignorant statement I’ve heard on here in a long time. Claiming – in innocence – that you’re just telling it like it is, is bullshit. You know it. You’re nothing more than a cheap racist.
So your point is what exactly? That ‘white people’ are predominately in higher-paid jobs? That blacks are predominantly in poorly-paid service industries? Really? Wow, what a revelation, racism is still in the workplace.
I need to go wash my hands now.