MacDailyNews Take: Why, oh, why did iPad sales “disappoint,” Gabe? And, after that headline and opening line, how much more crap will we have to wade through to find out?
Madway veers off-course first, “Jobs, who has not addressed investors on an earnings call for two years, lashed out at competitors Google Inc and Research in Motion and dismissed the smaller tablets made by rivals such including Samsung and Dell. ‘The current crop of 7-inch tablets are going to be DOA, dead on arrival,’ Jobs told analysts on the conference call. ‘Their manufacturers will learn the painful lesson that their tablets are too small.'”
MacDailyNews Take: OMG, somebody spoke the unvarnished truth. Quick, call the PC police! Gee, we oh-so-hope that nobody’s fscking feelings are hurt. (smirk)
Madway continues, “Shares of Apple — the second-largest corporation on the Standard & Poor’s 500 index, after Exxon Mobil — slid 6 percent in after-hours trading, which would be their biggest single-day loss since 2008.”
MacDailyNews Take: Get ready, wait for it, here comes the buried lede:
Madway continues, “Supply and production bottlenecks kept iPads, which have a 9.7-inch touch screen, from store shelves and buyers waiting weeks sometimes for their gadget. The company sold 4.19 million iPads in the fiscal fourth quarter. ‘A little bit disappointing there. Street was expecting closer to 5 million units. The problem is supply, they can’t make enough of them,’ said Gleacher & Co analyst Brian Marshall. Analysts said sales should ramp up in the holiday quarter as Apple resolves supply hitches.”
“Gross margins came to 36.9 percent, below Wall Street’s average forecast of 38.2 percent, despite better-than-expected components costs in the period,” Madway reports. “‘The one surprise is on the margin side. Everything else is pretty spectacular,’ said Gartner analyst Van Baker.”
MacDailyNews Take: Surprised?! We’re surprised Van Baker has a job because he obviously sucks at it. You were told very clearly three months ago to expect it, dummy. WTF are you “surprised?” Any analyst that claims to be “surprised” over Apple’s better-than-forecast gross margin for Q4 2010 is either incompetent or lying.
We expect gross margins to be about 35% reflecting approximately $14 million related to stock-based compensation expense. We expect most of the sequential decline to be due to a higher mix of the iPhone 4 and iPad sales, which have higher cost structures and provide great value to customers as well as the revenue deferral impact of the iPhone 4 case offer. To a lesser extent, we expect the sequential decline to be driven by back-to-school promotion and the absence of the favorable adjustment that benefited gross margin in the June quarter. – Apple CFO Peter Oppenheimer, during Apple’s Q3 2010 earnings conference call with analysts, July 20, 2010
Madway continues, “Apple sold 14.1 million of the smartphones, a gain of 91 percent and better than Wall Street had expected. The company said demand is still outstripping supply, with the iPhone now available in 89 countries… Jobs noted that Apple’s iPhone outsold RIM’s BlackBerry in its most recent quarter. ‘I don’t see them catching up with us in the foreseeable future,’ Jobs said. And he criticized Google’s Android as a ‘fragmented’ operating system.”
MacDailyNews Take: It’s not bragging if you can back it up. – Muhammad Ali
Now, let’s partake in some more scrumptious, even more deeply buried lede:
Madway continues, “Some analysts agreed with Jobs, and foresaw sales of the iPad, which came on the market only in April, jumpstarting next year as the gadget gets rolled out to more countries and to more mass-market retail outlets like Wal-Mart Stores. As an indication of industry bullishness, research group iSuppli said it expects Apple to sell a whopping 43.7 million iPads next year. ‘Pads were low, but I also think they had a lot of production problems getting that off the ground. So I don’t think that really is a good demand indicator for iPad,’ said analyst Jane Snorek of First American Funds.”
Full article here.
MacDailyNews Take: The convolutions now required to make Apple look “bad” are downright laughable. Our headline tells the real story – and right up front, too.
[Thanks to MacDailyNews Reader “Doug A” for the heads up.]
Hasn’t he heard of profit-taking?
Hasn’t he heard of profit-taking?
Bravo MDN!!!
Bravo MDN!!!
By the way iSupli has increased their forecast for iPad to 43.7 million units in 2011 and 63.3 million for 2012:
http://www.isuppli.com/Display-Materials-and-Systems/News/Pages/iSuppli-Ups-iPad-Forecast-as-Apples-Component-Supply-Improves.aspx
By the way iSupli has increased their forecast for iPad to 43.7 million units in 2011 and 63.3 million for 2012:
http://www.isuppli.com/Display-Materials-and-Systems/News/Pages/iSuppli-Ups-iPad-Forecast-as-Apples-Component-Supply-Improves.aspx
So they can’t keep up with demand qty? Sounds to me that if people are requesting your product faster than you can build, then you’re in the perfect position.
So they can’t keep up with demand qty? Sounds to me that if people are requesting your product faster than you can build, then you’re in the perfect position.
Lite demand my a$$
Lite demand my a$$
Microsoft may sell vulnerable pieces of crap, but at least there’s plenty to go around……LOL……….. Who cares about quality?????????
Microsoft may sell vulnerable pieces of crap, but at least there’s plenty to go around……LOL……….. Who cares about quality?????????
Analysts and reviewers struggle to appear objective discussing iPad versus no viable competition. Saying nothing at all is a greatly undervalued option.
Analysts and reviewers struggle to appear objective discussing iPad versus no viable competition. Saying nothing at all is a greatly undervalued option.
Gabriel is not Mad by the Way…he’s just a paid Moron that know full week that anyone disappointed by AAApple’s numbers need a brain transplant.
MDN’s Headline is the bottom line.
After the upcoming current holiday blowout, which will be one of untold magnitudes, that we are all about to witness, the proof will be that inventories of iPads and iPhone 4s will be ZERO while orders and demand will still be high…
This is Apple’s breakout.
Apple is going to the moon leaving behind it a blue trail of smoke!
Gabriel is not Mad by the Way…he’s just a paid Moron that know full week that anyone disappointed by AAApple’s numbers need a brain transplant.
MDN’s Headline is the bottom line.
After the upcoming current holiday blowout, which will be one of untold magnitudes, that we are all about to witness, the proof will be that inventories of iPads and iPhone 4s will be ZERO while orders and demand will still be high…
This is Apple’s breakout.
Apple is going to the moon leaving behind it a blue trail of smoke!
Sorry for the disapproved auto correction:
Gabriel is not Mad by the Way…he’s just a paid Moron that knows full well that anyone disappointed by AAApple’s numbers needs a brain transplant.
Sorry for the disapproved auto correction:
Gabriel is not Mad by the Way…he’s just a paid Moron that knows full well that anyone disappointed by AAApple’s numbers needs a brain transplant.
Isn’t that Foxconn group in China building another 300,000 employee factory / facility to handle this? I bet Apple can front them some money to build another after that one. You can do a lot with $51,000,000,000 in the bank!
http://www.bloomberg.com/news/2010-06-28/foxconn-plans-factory-with-300-000-workers-in-central-china-s-henan-prov-.html
Isn’t that Foxconn group in China building another 300,000 employee factory / facility to handle this? I bet Apple can front them some money to build another after that one. You can do a lot with $51,000,000,000 in the bank!
http://www.bloomberg.com/news/2010-06-28/foxconn-plans-factory-with-300-000-workers-in-central-china-s-henan-prov-.html
@ breeze
Yes, Apple will be going to the moon in the long run but in the short run there’s a lot of skid-dish investors just waiting for an unexpected sound to start them jumping off a cliff with the jerks who are peddling this FUD are waiting at the edged and collecting their shares just before they jump to their deaths.
@ breeze
Yes, Apple will be going to the moon in the long run but in the short run there’s a lot of skid-dish investors just waiting for an unexpected sound to start them jumping off a cliff with the jerks who are peddling this FUD are waiting at the edged and collecting their shares just before they jump to their deaths.
I saw a story this morning pushing the notion of “disappointment” over [yet another blow-out] quarter. After detailing all the supposedly bad stuff, the analyst they quoted to justify their scenario, noted he was raising his AAPL price target from 345 to 390.
I saw a story this morning pushing the notion of “disappointment” over [yet another blow-out] quarter. After detailing all the supposedly bad stuff, the analyst they quoted to justify their scenario, noted he was raising his AAPL price target from 345 to 390.
m159:
Piper jiffray raised estimates to $ 429…