The evidence is quite convincing that customers elected to delay iPhone purchases in anticipation of a new device from Apple coming in autumn.
“That was evident both from the fact that iPhone sales declined by 16% from the June period, and the new iPhone 4S sold a whopping 4 million units in its first three days on the market last weekend,” Dan Gallagher reports for MarketWatch. “The surprise shortfall – relative to Wall Street’s expectations – sparked a sell-off that pinched about 5% of Apple’s market value in the day following the results.”
“In the days following the report, it appears that analysts have tempered their forecasts significantly, at least relative to Apple’s own official forecast,” Gallagher reports. “For the December quarter, Wall Street’s current consensus earnings estimate of $9.55, according to Thomson Reuters, is only 3% above Apple’s own forecast of $9.30 for the period. That’s a sharp contrast to the 34% premium that the Street assigned Apple’s guidance for the September quarter.”
Gallagher reports, “Ditto for the Street revenue forecast, which is only 2% above Apple’s guidance of $37 billion compared to the 18% premium given for the previous period.”
Read more in the full article here.
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they didn’t mention that apple’s guidance, when they released it, was ABOVE the analyst’s expectations for the next quarter, so relative to what the analyst’s had been predicting this is actually quite a bit above what they had been saying even just a week ago.
$40B and $10eps.
+100500
Blah… Blah… Blah… APPL drops .62% on a day when S & P is up 1.88%???? Analysts are crooked retards.
It’s little wonder there is little respect for them.
Retard crooks, rather.
Earnings and guidance just came out 3 days ago and were a shocker. Give the street some time to settle in and adjust their estimates.
Why is there an apostrophe after Analysts in the title?
There is one missing in the front…
It’s the plural possessive.
As in the ‘wise up’ of the many analysts.
Which doesn’t seem at all correct, so it shouldn’t be there.
So they can learn? Next they might learn to actually analyze things… Imagine that!
The Street/WS continues to show their collective ignorance with their drastically reduced estimates for the December quarter. WS, myself included, made a significant mistake by not recognizing the effect of the delayed iPhone4S release had on September quarter results.
That doesn’t mean that all products were negatively impacted by that delay. Given historical growth rates going into the December quarter, and the speed at which Apple is expanding distribution of a new iPhone model, any estimate below $12 is ridiculously absurd.
“Any estimate below $12 is ridiculously absurd.”
Really? Did Tim Cook personally tell you that? Or could you share your specific unit sales projections for Apple’s major divisions and products?
Haven’t we learned anything at all about made-up earnings projections?
Ouch!
Analysts are not stupid anymore than auto mechanics,air line pilots,accountants or electricians are stupid. The constant berating of analysts by fanboys on this site is hilarious. Apple has always sandbagged their forecasts. Analysts do their best to guesstimate the earnings with the input they get from Apple. That’s their job. Apple doesn’t help. But that’s why it’s called “estimate”! Apple did not meet their sales estimate on iPhone sales because everybody, including myself, was waiting for the 5 which became the 4S. More buyers held back than Apple had figured. Apple misjudged. Period. It happens. Move on. Quit blaming everything on analysts. It’s not their fault. Quit throwing out the constant dumbass comments about analysts or writers because Apple has a misstep. Geez! Grow the fuck up! Apple will sell the shit out of iPhones this quarter. What will fanboys bitch about then? Damn! Look,Steve’s gone and Apple didn’t have a fantastic quarter. Quit blaming the world. You sound like a bunch of spoiled 10 year olds. Get a life. Buy a dog. Collect stamps. Quit bitchin!
But who are these analysts? I have never heard a single name. The MSM and blogosphere both like to talk about “the analysts” as some group sitting in an ivory tower handing down proclamations. But who are they? What makes them qualified? What scientific/mathematical/statistical model are they using to come up with their estimates? You’re right that sometimes they are wrong, but some accountability for being wrong would be nice. Hell, just knowing who they are would be nice.
Oh, and btw, 54% growth in profit YOY, a $6.6 billion profit is not a “misstep”.
ANALyst! The really cool job where you can be wrong time and time again, say completely clueless stupid things, tell huge corporations on how to manage their business and money while having ZERO experience running a multibillion dollar company and completely blowing number and NOT GET FIRED.