Don’t expect the sale on Apple shares to last forever

“Apple (AAPL) announced financial results for its fiscal third quarter after the close on Tuesday. The results were overall better than expected, being near the higher end of guidance for revenues and earnings and beating analyst expectations for both. The biggest surprise was a much higher-than-expected 31.2 million iPhones sold in the quarter, while iPads sold under expectations,” Arnbjorn Ingimundarson writes for Seeking Alpha. “Another surprise was the rate at which Apple is buying its own shares – $16 billion worth over the course of last quarter. That is close to a quarter of a billion dollars each trading day.”

“Apple investors are now in a wait-and-see mode until the fall,” Ingimundarson writes. “The coming months will reveal what new hardware Apple will have to offer for the holiday quarter as well as how iOS7 and OS X Mavericks is received by users.”

Ingimundarson writes, “For every threat Apple faces, it has just as many opportunities. Tim Cook, who does not strike me as a man of hyperbole or cockiness, seems very confident in the company’s product pipeline. Apple’s management knows that the company’s shares are on sale for the time being and is taking advantage of the opportunity while it lasts. You should consider doing the same.”

Read more in the full article here.


  1. I understand Apple may be making a lot of money, but why would investors buy stock in a company with losing market share. It continues to fall at a rapid rate and the share price will likely follow. Samsung completely owns the smartphone industry at this point in time and Samsung is only going to continue to grab more more and more market share from top to bottom. They made it look easy. Any hedge fund manager will see Apple as a company that can no longer compete against Android in the smartphone industry and can’t even make most of the smartphone profits anymore. I’m only saying that Apple is running the company to become a distant second to Samsung.

    Does it really make any sense for an individual investor to put money into a company that hedge funds avoid? I’m sure Apple is doing just fine, but I just don’t see Apple’s share price going up with Apple’s market share taking such a beating. Only time will tell. I’ve recently bought shares and they’ve turned a profit so far but I’m way ahead, so I’m not going to take a huge beating if the hedge funds completely pull out of Apple.

  2. I don’t know. What is happening now is simply a snapshot in time. When Steve Jobs returned, Apple was growing as a company before there even was an iPod, iPhone, or iPad. Macs were increasing in market share. Now Macs represent only a small percentage of Apple’s total profits with iPhones and iPads giving it its strongest sales.

    What new product is Apple working on that would relegate iPhones and iPads to become a minor Apple product with the new product becoming the next “big thing?” Don’t underestimate Apple, Jony Ive, and Tim Cook.

    I see lots of opportunity, and maybe the next BIG THING will be related to the primordial Siri developed from an entertaining fun little feature, to a much more important role in highly advanced Apple hardware products that will make smart phones as archaic as cell phones in bags you used to plug into the cigarette lighter of your car.

    I myself will be buying more shares because what is possible, rather than dwelling on a small snapshot in time.

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