Wall Street’s failure to put Apple’s iPhone sales into context

“When discussing a company’s financial results, context is extremely important. Yet when it come to Apple, and the iPhone in particular, analysts on Wall Street consistently seem unable to properly put sales data into perspective,” Yoni Heisler writes for Network World.

“Earlier this morning, AT&T released their earnings for the first quarter of 2012 and announced 4.6 million iPhone activations,” Heisler writes. “That’s about a 20% increase from the same quarter a year-ago yet Wall St is giving Apple’s share price a beating as it represents a precipitous drop from the 7.6 million iPhones it activated during the December quarter of 2011.”

MacDailyNews Take: How does Heisler know that’s the reason AAPL is taking a beating? In fact, AAPL was taking quite the beating before the AT&T earnings release, which strongly suggest the reason(s) for the AAPL beat-down lie elsewhere.

Heisler writes, “in the midst of Apple shares taking a plunge, investors seem to be overlooking an otherwise impressive fact, namely that iPhone activations on Verizon and AT&T during Q1 2012 represented more than half of all smartphone activations on each carrier respectively.”

Read more in the full article here.

Related article:
78% of all smartphones sold by AT&T last quarter were Apple iPhones – April 24, 2012


  1. Yes AT&T iPhone sales went up 20%, but Verizon and Sprint(?) did not sell any iPhones year ago and now Verizons smartphones are over 50% iPhones and same with Sprint (that hasn’t given any details) So iPhones are well up from year over. I don’t live in the US, so correct if I am wrong.

  2. Why is Apple’s stock taking a beating at all? The investors are STUPID! The best selling company in the industry and they’ve knocked the price 100 a share for NOTHING!!! No other company would be picked on like this. This is true manipulation from some where and there should be an investigation on it. Apple’s number one in Retail sales, number one in service, sales of all of its products are at record levels year over year. I think there is some serious funny business going on and it has to be STOPPED NOW!!!

    1. Apple is taking a beating because it is a stock with magical properties that makes it easy to manipulate. The company is strong and growing, yet it has a history of strong growth followed by failure. Market manipulators are able to regularly crank up fear and and uncertainty that Apple is about to fail again to depress the share price long enough to shake out the amateur investors. They gobble up cheap shares just before the quarterly fiscal results once again prove that Apple is strong and growing, and is the healthiest company on the planet. Until we run out of amateur investors that fall for this ploy every quarter, we will continue to see the regular orchestrated beat down of of AAPL.

    2. I’ve already asked all those questions earlier in the week and never got any rational answers. Now, I’m only left with only a few final questions.

      Will Apple investors start screaming as they jump out of the window, will they start screaming just before they hit the ground or will they remain silent and just let the pavement smash them in their faces? I have a feeling the street is going to be littered with bloodied bodies after the market closes today.

      Apple has 50+ analysts covering the stock and not one of them can tell you with certainty where Apple shares are headed. I’d love to have a paying job like that.

    3. The Wall Street objective is to make money on stock transactions. Making that happen has nothing to do with assessing the merit of a product, management, a company overall, a marketplace and certainly no interest in protecting the shareholers’ interests; it has everything to do with stock manipulation in the stock market — by whatever means possible — if they cannot manipulate a company directly (which in Apple’s case they cannot because Apple does not need capital through share offerings nor borrowing).

  3. Wall street seems to be forgetting that the iPhone 4S was launched on China Unicom during the quarter. The iPhone 4S and the new iPad are the most successful product ramps in history. there is about to be a squeeze and suckers will be parted from their money.

  4. I think the AT&T activations are true but they are comparing them to last quarter which was a week longer,a holiday quarter and it was a new phone. It’s still new but activations are not likely to keep up that pace. It’s better than the same quarter a year ago. But the street is looking, as always, to take down a stock. Any stock. Not just AAPL. Any stock. And they are crushing AAPL today. Can you say buying op?

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.