Apple: Why did you doubt them?

“After the bell on Tuesday, Apple (AAPL) released its much anticipated second quarter earnings report. Apple had fallen from a high of $644 to just $560 going into earnings,” Bill Maurer writes for Seeking Alpha.

“There had been some concern recently, especially over iPhone sales, with Verizon (VZ) and AT&T (T) reporting iPhone activation numbers that were down big over the prior quarter, when Apple sold 37 million iPhones,” Maurer writes. “This had some worried that Apple would only sell 30 million iPhones, or perhaps less, which would lead to a miss on revenues and earnings.”

Maurer writes, “I was not this pessimistic, and you can see that from my official Apple preview released on Monday.”

If you didn’t catch my preview, here were my headline predictions:
• Revenues of $39.17 billion, EPS of $12.03
• Mac unit sales of 4.75 million, iPhone unit sales of 33 million, iPad unit sales of 11.8 million, iPod unit sales of 8 million
• Q3 guidance of $34 billion in revenues and $9.50 in EPS

Maurer writes, “I was dead on with a few of those predictions…”

MacDailyNews Note: Apple today reported:
• Revenue of $39.2 billion, EPS of $12.30
• Mac unit sales of 4.00 million, iPhone unit sales of 35.1 million, iPad unit sales of 11.8 million, iPod unit sales of 7.7 million
• Q3 guidance of “about $34 billion” in revenues and “about $8.68” in EPS

Read more in the full article here.

MacDailyNews Take: The answer to the headline is: We didn’t and neither did most of the MacDailyNews regulars.

People who underestimate Tim Cook, earnestly or not, are like potholes that cause bags full of filthy, beautiful money to fall out of armored cars right into our laps.

Related articles:
Apple earnings crush analysts’ estimates yet again – April 24, 2012
MacDailyNews presents live notes from Apple’s Q212 Conference Call – April 24, 2012
Apple bulldozes Street with blowout $39.2 billion revenue; shares rocket in after-hours trading – April 24, 2012

22 Comments

  1. I had no doubt. And the “analysts” who collectively try to manipulate the stock DOWN before the quarterly report did not really have any doubt either (they are not stupid – they just sound stupid to people who know better).

    They got the dumb investors to panic sell at the short-term low, because AAPL is a “bubble.” Now, after the predictable smashing results, they will collectively try to manipulate the stock UP, and get the dumb investors to buy at the short-term high, because AAPL is “undervalued.” Rinse and repeat.

    The “manipulators” make money on AAPL because enough investors are actually stupid enough to LOSE money on AAPL.

    1. You are so dead on. If these analysts are ‘caught’ (very hard to) making these types of moves they can go to jail. But of course it will be close to impossible to catch any of them, imho.

  2. There’s so much background noise around Apple, it’s sometimes hard to distinguish the reality of Apple from the BS. Since I’m long Apple 2004, I’ve seen lots of growth so even a $100 hit in the stock leaves me way ahead, but newcomers need to be rather careful about what they hear and believe.

    I think of those investors that bought recently at around $630 or $640 and figured they’d panic sell at a moment’s notice. And if they purchased Apple shares on margin, well, they’ve probably got no other choice except to dump. I guess the institutions run the whole Apple show and they’re the ones that have the most to gain by tipping all the scales in their favor.

    There’s plenty to doubt when you’re playing the market with your own money and it’s not exactly disposable cash. I just figured owning a stock such as Apple should be a rather comfortable, low-risk investment for individual investors and not the frantic, chaotic mess like the last two weeks were. The manipulators/media make owning Apple a very scary stock in the short-term.

  3. Tim Cook may not be Steve Jobs, but he and the rest of the Apple team are still as great as they were when Steve Jobs was around, which means they’re still better than everyone else.

    1. Tim Cook may not be Steve Jobs but – he has had to hire a bunch ‘o new people just to count the money that stubbornly keeps rolling in like a tsunami, despite the mouthings of the nadaists.

  4. Makes me wonder if I should sell 2 weeks before next quarterly announcements if the stock starts slumping again? And them buy back in the day before they announce results.

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