The Street beats Apple

“Morrisey got it right, of course, when he sang: ‘We hate it when our friends become successful,’ and that’s certainly the case when it comes to market reaction to Apple [AAPL] and its record first quarter,” Jonny Evans writes for Computerworld. “You see, while the company says the only way is up, gloom-laden analysts can’t see any way but down.”

“Reading Apple’s announcement release last night I could tell the company knows it’s sailing into stormy waters. The announcement had just a little too much emotion buried between its lines. It mentioned the difference in the length of the quarters, it threw a positive spin, but something inside seemed hurt, cold, angry,” Evans writes. “Cupertino is upset. It’s annoyed with the competition (who it still believes ripped-off its ideas, an opinion I share but many don’t); it’s upset with the analysts; it’s distressed at the lack of faith being shown by investors on strength of a simple leadership change; it’s infuriated that it can’t yet shake off the ‘Steve Jobs is the Messiah’ myth.”

Evans writes, “While you panic, it might be worth pondering just what kind of thermonuclear business an imaginative firm equipped with $137 billion in cash and investments can explore in a patent-driven mobile devices age? After all, that’s more actual cash in hand than most banks are worth.”

Read more in the full article here.

MacDailyNews Take: At 1:00pm EST, shares of Apple Inc. [AAPL] are trading down $57.86, or 11.26%, at $456.14.

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42 Comments

        1. two things…

          1. AT&T Earnings Miss by a Penny; Shares Rise

          2. AT&T boasts $3.9 billion profit in Q4 2012, $7.2 billion profit for the year

          Apple did that in their last 4th quarter.
          best quarter ever
          and they go down 63.51(12.35%)

    1. Money doesn’t always fix things. For example, if Apple holds off sending production specs to the factories as long as possible in an attempt to limit damage from leaks or industrial espionage, and/or if those factories have unexpected QA issues during ramp-up. The limiting factors there are time and capacity, not money.

      It would also be a cost that offsets revenue so actual increase in profit wouldn’t be as high as you’d think.

      1. You’re right money does not fix everything. But security leaks has nothing to do with spending more money on equipment. Nothing. They are completely separate issues. Same goes for QA issues. Those should be addressed and they have nothing to do with having more capacity. Nothing. In fact if the limiting factor is time then having more capacity available when you do start production will help you immensely. Obviously. And yes, it does affect profit as it is an expense. But lack of product affects more than a decrease in revenue it also affects the reputation of the company. And you have to spend money to make money. So it’s simply a cost of doing business.

        1. You obviously misunderstand me.

          You can have all the capacity in the world, but if you don’t start production early enough, any unexpected, significant QA issues mean some or all of the first production batches are held up as they’re fixed, with possible delays to further production while they determine and fix the issue.

          Capacity also can most definitely affect QA. Not all factories are equal, even when run by the same company. Some will produce better yields than others. Those get ironed out eventually, but can take time, and again money won’t help speed that process up very much. Apple has been stuck with Samsung for years longer than they’d like because others just hadn’t been able to produce enough components, fast enough, that also pass inspection consistently. Apparently this is finally not an issue anymore, but comments in the past accusing Tim Cook of taking too long to get away from Samsung are ridiculously naive.

  1. Tim Cook:
    “I like our strategy, I Like it a lot.”
    Larry Page
    “For as long as it takes.”

    Not rooting for or predicting, but it comes to mind.

    Only $55 to go.

    1. Um, except that Apple is making money hand over fist with their strategy and showing 18% growth, whereas Microsoft, not so much. Meanwhile, Google is not doubling its revenue every 3 years, and in fact, per click rates are tanking thanks to mobile search bypassing Google’s data mining efforts. It’s only a matter of time for Google. Motorola is sinking fast. How’s that $12B investment looking now, Larry?

        1. The Google story reminds of “Three Men and a Message”, a pamphlet put out by Enron just before they went belly up. It talked about the “vision” these three guys had for the company, and how it had an unlimited future. I give Google 3 years at the outside before it collapses.

          1. If you actually believe that, THEN SHORT THE STOCK. Otherwise, you’re just blowing hot air.

            They still have BY FAR the best search engine, and I don’t see that changing anytime soon.

            (BTW, I don’t work there.)

            1. BTW, the PC industry is declining by double digits. Google’s model doesn’t work very well on small mobile screens. Advertisers are paying less and less for mobile ads in general, and specifically for ads on Android devices, whose users are loath to spend any money for anything they might somehow snag for free. Apple mobile devices are by passing Google’s search and ad model more and more, and before long Google will be dropped as the default search application in OS X. There’s no good news out there for Google. Every Android device sold takes another user away from Google’s revenue stream, as does every Apple device sold.

  2. “After all, that’s more actual cash in hand than most banks are worth.”

    Try again, how about “more money them a lot countries are worth”. Or even better, “more then X of the top 10 tech companies combined are worth”.

    Banks? Phew, they not only suck but most aren’t worth $hit and don’t have that kind of cash on the books. Most are still swimming in a pile of debt and still trying to unload and hide it as fast as possible. Have you seen how long it takes for someone to actually foreclose now days and all the people who just stopped paying their bills because no one gives a $hit.

    It’s the new American way and it’s not just people but our wonderful government as well.

    1. We know Apple will be around for many years, even IF ‘Apple Bear’ BS ever comes true. What would be bad would be if Apple actually believed ‘The Street’ and went all insecure over their HATE and DOOM mongering. ‘The Street’ is currently insane and well worth ignoring.

      As for our fracked up US government: Blame the entire system. I loathe both of the big ‘parties’ and blame them both for ruining our otherwise very kewl country. I’d enjoy seeing them both FAIL into obscurity alongside the rise of We The People centric third parties that kick our Corporate Oligarchy to the gutter where it belongs. If you want a real source of US catastrophe, its our Corporate Oligarchy and their biznizz bozocity above all else. /rant 😛

  3. The wrong sort of people own Apple.

    They had the same bee up their ass when Jobs was around.

    Perhaps some can recall that after Jobs died, there were feelers out that maybe Apple could be bought. Nope….hm.

    The answer is staring at you right in the face.

    I’ve owned aapl since it was 19 (since split two times.) I’ve seen it all. Apple should be aware of what it’s up against. And it isn’t sales, product, technology…You guess what.

  4. Actually they are pissed at Wall Street not competitors. The stock is getting hammered for absolutely no reason and they are pissed about it.They give guidance and Wall Street makes up their own and when Apple doesn’t hit the number that Wall Street wants they hammer them even though Apple beats it’s own numbers. That is why they are pissed.

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