“Apple shocked the street by missing analyst estimates as iPhone sales disappointed the financial prognosticators,” Michael Yoshikami, CEO, Founder and Chairman of YCMNET’s Investment Committee, writes for CNBC. “But rather than providing an indication of Apple’s decline, it instead highlights how easily influenced the investment community can be, caught up in momentum, and prone to setting unreasonable expectations for earnings estimates.”
“Apple is obviously in transition mode as the iPhone 4S was delayed by three months and released off its usual cycle. And with the new iPhone release, they appear back on track,” Yoshikami writes. “Just this last week, Apple reported record iPhone sales for this product despite geek disappointment that the next iPhone iteration did not change the form factor. Lines were back and sold out signs were the norm once again.”
Yoshikami writes, “with their pipeline overflowing with products including the iPhone5 and the iPAD3 heading our way, as well as very strong unit sales for Mac OS computers, you can expect this company to march forward. Look at the earnings miss as more of an indictment on overly optimistic guesses about earnings rather than a misstep by Apple. For the street to be shocked that the company missed lofty earnings estimates (despite business lines showed massive unit growth) simply illustrates that Wall Street has sometimes unreasonable expectations… Don’t blame Apple if expectations were more euphoric than they should have been; a $100 billion dollar fiscal year sales result is far from a disappointment.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]