“Apple (AAPL) is under attack again Friday as Credit Suisse cut earnings estimates, citing iPhone worries,” Chris Ciaccia reports for TheStreet.
“Analyst Kulbinder Garcha cut his earnings estimates on the company, but kept the ‘outperform’ rating as he believes Apple will refresh its iPhone lineup in the second half of 2013 that will ‘return Apple to its growing ways,'” Ciaccia reports. “He now expects 30.6 million iPhones to be sold in the second quarter of 2013, due in large part to a mid-2013 iPhone refresh, which may cause some hesitancy on consumers.”
Ciaccia reports, “Even with all of these concerns, the iPhone is still a growth story, and continues to be the major driver of profits for Apple. Last quarter, Apple sold 47.8 million iPhones, up from 37.04 million iPhones in the year-ago quarter. That amounted to 37.1% year-over-year growth, not counting the extra week in the fiscal first-quarter of 2012 because of the leap year.”
Read more in the full article here.
MacDailyNews Take: When we’re told things that simply do not jibe with reality, we call bullshit.
World’s best-selling smartphone: Apple iPhone 5; iPhone 4S #2, third place Samsung Galaxy 3 brings up rear – February 20, 2013
Kulbinder Garcha, whoever TF that is, couldn’t analyze his way out of a wet paper bag.
Lemming “analyst” scurrying after other lemming “analysts”
I am a longterm Apple shareholder and fan but how do you now see this as true? What is hurting Apple is the screen size, trends are going to up to 5 inch. Apple is not keeping up and a 4 inch 5S will not do the trick. Tim Cook has driven Apple into a ditch, that is why the stock is getting hammered. Where is the TV that Steve Jobs mentioned that they cracked the code? No groundbreaking products under Cook. Apple has almost wiped out all of 2012 gains.
It isn’t screen size. It is the rest of what you said and much more. Have you seen any memorable TV ads? Anyone from Apple take these people to task in public? Buy the missing pieces to markets they are not in yet? Expand markets they are in (like an iPod car radio). Can the world’s biggest tech company not innovate more then once every few years? Re-shuffle the technology and features and many new markets can be created. Can I help you all with that at Apple while you smile while watching the decimation of our stock?
Time to man up and engage at Apple. You are killing your investors!
Jersey, you and Jeff D are both correct. The biggest problem is that Apple has no affordable phone for the emerging markets and no large iPhone. Jeff is correct, the iPhone 5S isn’t going to cut the mustard. iPhone 5 sales are already slowing. People want more. MDN and others here are living in the past. Last quarters sales no longer matter. That’s last quarter. Who cares if it had an extra week? No one. What matters obviously is the present and the future. That’s how you value a company. “Past performance is no guarantee of future results”. It’s in the first paragraph in every stock’s prospectus. And you are correct regarding Apple’s poor advertising campaign. Samsung is kicking their ass. In public constantly. If they had the larger phone and emerging-market phone right now the stock would be doing just fine thank you. We would be waiting for the ITV but not as desperately as now. As for getting into other areas, I think you are correct there too. But it’s the two phones that Apple doesn’t have that is the problem. And there’s simply no way for anyone to talk around that. Even though many here try desperately. Maybe the reason Apple has no defensive ads or statements is that it’s simply hard to deny what has occurred. If you don’t have them to sell you don’t have much of an argument. Sorry you are still working as opposed to retiring like you had planned. Needless to say next time Apple or any other stock you may own goes up, at some point you will take it off the table. It’s just simple investing strategy. Investing 101. You only invest to make money. Not to hold forever. That makes no sense. Or cents. And obviously never put all your money in one stock. Had you diversified you’d be retired today. Same goes for pulling the trigger on Apple in September. I hope others have learned from seeing these mistakes made by buy-and-hold forever investors. Next time do better.
Where do you think the $1.4B comes forom if not expanding markets?
It took more than 5 years to fully develop the iPhone. It became a big money generator for Apple. It took at least as long to filly develop iPad…same story.
As one comes so one goes, groundbreaking products don’t pop up overnight and Cook has only been at the helm a short time. Just because the American consumer wants instant gratification always doesn’t mean it’s reasonable or practical (ask her). Classics last for because they are comprehensive. Just because you have ants in your baggy pants, doesn’t mean Apple’s wad is shot, not by a long shot grasshopper.
Good things come to those who wait.
Classics last forever because….
Really? “Good things come to those who wait.” Is that what it is called when I loose 5 years of salary in my Apple stock in 5 months? Good to know.
As an engineer and also a programer, you do not need to create new technology to make a new market. You take the technology and features you already created and make something new. Think Different and Innovate.
A. Never invest what you can’t afford to lose.
B. Invest only in what you absolutely know and understand.
C. Investments are never guaranteed.
There are many Apple investors that have been doing exactly what you did with their money for upwards of 16 years, if you cant’t take the heat, get out of the kitchen. Apple stock has always been a roller coaster ride and not for the faint of heart or the hysterical.
You of all people should know how to differentiate between a ‘real’ reason for the fall (ie: Apple is fucking up…) and ‘noise’. Long term investment (and concurring evident results) is the true measure of justified confidence and a quality investment. Apple meets that measure and beats it with flying colors. It took Steve Jobs his entire second term at the helm of Apple to perfect the Newton, before naming and shipping it as the iPad which you aptly named ” A Tsunami”
Had it been up to Apple engineers and programers they would have released incomplete iterations of the iPad which would have tanked and disappeared long ago and we never would have seen the iPad because of that. Like Jobs said, it takes a lot more to say no to a product than just go ahead and release half baked stuff… In case you haven’t followed Tim cook’s profile before he was at the helm : he is a relentless boss and knows well how to crack the whip when needed.
How on earth do you expect to transform a company like Apple (which took many years of climbing back to it’s deserving respectful position as the best company in the tech) from a national giant to a world reigning Consumer Electronics giant without a unique long term execution and plan?? Apple has always done things in ways that most people never saw till it was obvious…it’s challenges are huge – game changing products and results take time. Chill.
Good points. All companies need long-term plans. Almost all large companies do have just that Breeze. Some execute better than others. Apple is hardly the only company that executes well. And Apple apparently failed to have a plan to compete in the emerging markets with an affordable phone and with a larger iPhone for the large form factor Android phones are selling like crazy. It didn’t take other companies much thought to see these things. So yes Breeze, you are correct about a company having a plan and executing same.
“apparently”???
They said Apple was too late to the game and missed the train with MP3 players too and that iPod ( remember iPod?) would fail…
They said gateway already probed that retail stores do ‘t work and that Apple opening retail stores was doomed and would bankrupt the company…
Emerging market will be owned by Apple and not necessarily by Phablets or fables either… We’ve been through so many death knells before the only difference now is that the cycles of FUD are so much shorter just like the ADD epidemic that has gripped the restless consumer that expects “instant gratification” when it is not only unlikely, but also impossible.
‘Scuse the typos
“apparently”???
They said Apple was too late to the game and missed the train with MP3 players too and that iPod ( remember iPod?) would fail…
They said Gateway already proved that retail stores don’t work and that Apple opening retail stores was doomed and would bankrupt the company…
Emerging markets will be owned by Apple and not necessarily by Phablets or fables either… We’ve been through so many death knells before the only difference now is that the cycles of FUD are so much shorter just like the ADD epidemic that has gripped the restless consumer that expects “instant gratification” when it is not only unlikely, but also impossible.
How do you know the frankephones/phablets are selling like crazy when Samsung, etc. don’t actually report how many they sold? These guys can’t compete with the iPhone directly so they come up with bigger screens to try and differentiate. It’s possible there may be a huge market for 5+ inch phones, but guess what, apple will do it better and take its fair share and then some just like they have done with the iPad mini.
I’n more focused on the software, content ecosystem which continues to hold a massive lead over the competition in terms of customer satisfaction, web usage and monetization. It seems like very little value is given to it at all. Continued refinement and innovation to the ecosystem is just as if not more important than in hardware.
it’s just true that screen size is getting bigger, all the Apple people
are just sleeping or what, TV ad tells you of it using one hand, hey
humans are born with two hands- use it. whoever decided not to
to increase screen size in APPLE ought to be fired. Sleeping on
the job! Those who have confidence in AAPL is getting less and less
not more.
Really? “he believes” … “may” … would of, could of, … Can they type any BS and get paid. Or they getting paid to create this BS fantasy to keep taking down Apple’s stock.
I am tired of this half year assault and Apple not taking these paid hatchet men on. MAN UP APPLE AND DEFEND APPLE AND IT’S INVESTORS!!! DO YOUR JOB NOW!
Defend from what? Unsubstantiated lies, FUD, ignorance, hysteria, stupidity?? (rhetorical for those that need a flag).
Substance talks, bullshit walks. Apple’s products and unrivaled track record speak for themselves and so will future performance AS OPPOSED to current “fabricated for the the ignorant” rhetoric.
these dickheads might aswell cut their earnings forecast to zero, but do it fast. one by one they will come out and hit the stock every other day.
Watch as Apple stock languishes in the very low $400’s, you will see a parade of price target cuts. Avg is still over $600. By June they will all be average $500ish. If Apples only product up their sleeve is an IPAD mini with retinal and a 5S 4 inch display in August then Tim Cook as truly wrecked a great company.
Well Jeff D (long term shareholder), if I were you and listened to your own comments I would become a former long term shareholder. No one is forcing you to stay.
What about software? Maybe that’s where the big stuff happens this year…
This could be a good sign: AAPL saw its greatest growth when these d’bag analysts were consistently underestimating the company’s potential.
Indeed, where is the Apple TV? Where are the memorable ads? Why spec bump the iPad 3? Apple has quickly become forgettable at times and their product development a tad messy.
I love Apple… But we need change. iOS: let’s have a more modern gesture intuitive update. That damn Settings is killing me! What a dumping ground. And OS X is full of fluffy features: we need a change! The Finder is 25 years old.
Etc.
Chicken Little and the sky is falling.
YEEESSS! Some MDN commenters are finally coming around and facing the reality I have been talking about for months. Surely this trend is going to pick up speed and we’ll see a new era at Apple Inc. under new leadership. For as long as that takes, you can just sit and watch what was once a $700 stock continue to descend into depths unknown. Tim Cook is a disaster. And, please don’t tell me about what great things he was involved in at some point in the past. The past is past. It DOES NOT MATTER. Only tomorrow matters. And there’s ABSOLUTELY NOTHING to expect unless you believe the “great products in the pipeline” worn out utterances from the hapless, clueless Mr. Cook.
You people are quite wrong when you think that Tim Cook just took over – he has been running the place for many years while Steve was sick. I’m sorry but I don’t buy that there is anything wrong except for the analyst. Apple makes so much money after the sale of their phones/tablets that none of the other phone/tablet makers get. Google gets all of that money – Apple is just fine and will continue to make massive profits – they may not double in size like they have done in the past couple of years but profit looks pretty good to me and should reflect in the stock – I still have yet to meet anyone who loves their Android device they all seem “Stuck with it”
Another reality: we are actually experiencing the post-Steve Jobs era everyone feared. It just took a little while for things to begin to come undone. But, we are well into it now. And, it’s every bit as ugly as feared. Even worse. For example, who would have thought that the iPhone would be found off to the side on the shelf with every competitors’ multiple choice models with far more features, larger screens, and much much cheaper (can you say “free”) that are exciting the pop culture while Apple’s look like yesterday’s news. Would Steve have allowed that to happen? The phone alone explains what is happening. But, every other device Apple sells is, to some degree, experiencing the very same transition from wow to a shrug. Steve would have let that happen? Keep on defending Tim Cook and we will continue to see this collapse build even more momentum.
Obviously having appeared in the old Donna Reed Show has addled your brain ppeterson. What makes you think Apple fared any differently or with any less a time frame between huge product announcements with Steve Jobs? If anything Tim Cook has neurotic expectations now beyond anything Jobs had to endure. “Prove it to me now! Prove it to me now!!” childish angst. The sky is not falling and as Steve Jobs once said himself, so he must have known something, the best from Apple is yet to come.
I have said this many times, but now more than ever it’s time for Woz to at least become part of the Apple board – preferably as chairman in a reasonable time.
I know many of you think Woz is not cut out to be ..say…CEO/CFO ..and I (reluctantly) agree, but how about a tailor made seat in the BoD?
I don’t think requires any credit from the Swiss.
$35 to go to $400.
You may be correct yet. Sad. It’s sad, all those people who have lost so much money and AAPL. $430! Jeez! That’s a $275 drop per-share from September. That’s real money. But the few buy and hold investors still throw out that “I’m not a day trader argument”. Never ceases to amaze me. A fool and his money. And it doesn’t matter your entry price. The only thing that matters is the stock is down $275 since September! That’s how much you’ve lost per share by not taking your profit then. That’s irrefutable. You didn’t take it at $700? You didn’t take it it’s $650? You didn’t take it $600? You didn’t take it at $550? You didn’t take it $500? You didn’t take it at $450? Buy low. Sell high. Sell, it’s not a bad word. It’s a term used in investing. Just like buy, dividend, stock, mutual fund etc. If you don’t sell, do you hold it until your death? Why the hell did you invest if you don’t ever plan on selling? Sell when you have made a decent profit not someday in the future when you have to sell and you are underwater! Right? Sell on your terms. It’s okay to take a profit. In fact it’s just stupid not to take your profit. The market goes up the market goes down. Stocks go up stocks go down. All stocks including Apple go up and down. If you can find one that hasn’t please tell us about it. So sell when you have made a good profit. Don’t be greedy. Don’t be foolish. You will of course be able to buy back in at a better price if you sell when your stock has risen appreciably. It’s just common sense.
How much money has apple made these people since the fall from $700.00? They have been short selling their way to 9 figure bonuses for months now and articles like this just help them along. This is one of the ways they make money, up or down it doesn’t matter.
You can blame Tim Cook if you like but I haven’t read one word about Jon Ive. I don’t blame anyone, It takes time to design and build these great products that other companies copy.
Remember how crappy cell phones were before the iPhone
good point…remember how crappy computers were before ?
Dear big investors of AAPL, tonight Apple is hitting its 52 weeks low , I am already very scared and frustrated that I decide to surrender all of my AAPL I bought at $680 . I don’t want to see AAPL to fall to $300 . I give up !!
No confidence? Bail
Exxon Mobil is about to surpass Apple once again 404B vs. 407B right now:(
“Much of the news media is afflicted with a collective mental disorder in which any estimate (read: guess), if it comes from someone whose job title is “analyst”, somehow becomes a fact.” — J.Gruber
Analysts are always short-term (what have you done for me since the last quarter) while Apple has always been thinking long term. They are not compatible. Markets are also not rational but tend to follow the herd & right now the herd is saying once again that Apple is losing. Everyone misses Jobs’ Reality Distortion Field, apparently most notably the analysts who have created their own reality distortion field. I mean Exxon could pass Apple as largest company, so who else is in the running? Apple last quarter made record sales of how many $Billions but every piece of good news drops the stock price even further? Come the close of this quarter & we’ll see sales even higher & the result will be a stock price below $400. How does this make sense?
Investors say they are looking long term? Since when? That went out of fashion in the 1980’s.