Apple stock lower on market share data

“Apple Inc. headed lower on Friday on data that showed the global market share of its flagship iPhone fell,” Sue Chang and Saumya Vaishampayan report for MarketWatch.

“Apple shares shed 0.6%. Data from Gartner showed market share for Apple’s iPhones slipped to 12.1% in the third quarter compared with 14.3% in the same quarter a year earlier,” Chang and Vaishampayan report. “Market share for its rival Samsung Electronics Co. was flat at 32.1%. Sales of iPhones jumped 23.2% to 30.3 million unit while Samsung sold 80.4 million units, up 46%.”

Chang and Vaishampayan report, “‘While the arrival of the new iPhones 5s and 5c had a positive impact on overall sales, such impact could have been greater had they not started shipping late in the quarter. While we saw some inventory built up for the iPhone 5c, there was good demand for iPhone 5s with stock out in many markets,’ said Anshul Gupta, principal research analyst at Gartner, in a statement.”

Read more in the full article here.

MacDailyNews Take: Some say it’s possible for knowledgeable investors to profit when the rest of the market misinterprets data.

Stupidity is rampant; use it to your advantage.

[Thanks to MacDailyNews Reader “Jersey_Trader” for the heads up.]

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33 Comments

  1. Tim Cook era, folks. Hold one of the big Apple over hyped events, announce the latest tweaks in great products that are now even greater all the time knowing you haven’ produced anywhere near enough to satisfy demand and this is what you get. Disappointed consumers find competitive alternatives – especially if they ask the sales guy if they have anything similar and the answer is something like – oh yeah, and actually with better features and more options. Tim Cook era, folks. It is what it is.

    1. Who here is happy with the stock performance this year — maybe just maybe this is not far off base–I for one is very disappointed with Tim’s comments “just wait until the back half of the year” these long awaited and supposed incredible announcements didn’t do anything for the stock price — I am a large shareholder and very disappointed with the current execution

    2. Please lol the 5s was on sale for 10 days in the end of the quarter. Get a life with your stupid comments.
      Wheres the comments about the gs4? It was on sale for a month and a half, and its sales sucked.

  2. RIMM tried to prop up their market share with “2 for 1” and cheap prices. We all know how well market share vs. profit went for RIMM. Pay no attention to the growing pile of cash in Apple’s bank account. It isn’t about money. It is only about “market share” right up to when you have to close the doors. Right Mr. Dell.

    1. You’re right on the money in that case. RIM was certainly seen as THE major iPhone competitor until Wall Street suddenly pulled the plug. However, RIMM investors earlier managed to get two immediate splits and each time the stock ran higher each time.

      I have to admit I’m puzzled about market share valuations. Although I know it doesn’t have to mean anything positive about a company, it does to Wall Street. There’s something they see that’s attractive about it but it eludes my understanding.

      Maybe Apple simply has to find some product that can be a market leader and it can’t be touched by Android. It’s unlikely because Google will specifically modify Android to follow whatever product Apple makes. If Samsung’s Tizen OS replaces Android on their smartphones, that could certainly halt Android’s growth because Samsung controls so much Android market share. It would at least fragment the mobile market somewhat and Apple’s share would look less pitiful to Wall Street.

      I’m getting a headache trying figure out what Apple can do to get around the market share “conundrum” to increase shareholder value.

  3. Honest to gosh, don’t these people know anything about option expiration ? Today was another perfect pin at max pain– the stock price at which the maximum number of options expire worthless and the market makers take home their exorbitant paychecks.

  4. Someone once said that the world is run by “C” students. I say that these days it’s being ruined by the “F” students who somehow managed to become anal-ysts. Maybe that should be anal cysts.

  5. Why is it analysts don’t understand that CHEAP, LOW-QUALITY PRODUCTS SELL MORE UNITS THAN EXPENSIVE, HIGH-QUALITY PRODUCTS? Apple doesn’t produce cheap, low-quality products. The fact that Apple continues to increase sales should be all that analysts need to know. And so long as each Apple customer is however-many-times more profitable for Apple AND for third-party developers, Apple will be fine.

    If I sell a million products with almost no profit on each individual unit, yes, I’ll make money on volume. But if I sell even 1/10th as many products and make 50x to 100x the profit on each device sold, you’re going to make the moron producing a million products at no profit look like an incompetent fool.

    What good is selling a LOT of something, if you can’t MAKE a lot off of it?

    1. It costs $230 to manufacture a $1000 iPhone 5s. THAT is a cheap product, sold as an expensive one. And THAT is why APPL is failing. They have to accept that the world is wise to them now and will not tolerate being sold a cheap, lower quality product at an exorbitant price any more.

      1. Wait, there’s a $1000 iPhone 5s? Where’d you get that price quote from, eBay?

        (And 9 MILLION iPhone 5s and iPhone 5c sold in their opening weekend proves you wrong on at least one of your alleged points. Apple sells more iPhones in the first week than Samsung sells in the first month.)

        Oh, and it’s AAPL, not APPL. Now go bother some other website, please.

        1. Direct from apple, unlocked 64Gb 5s, £709. You will have to check the US price yourself, but the same costs $849 locked to T Mobile and contract free. It’s $1050 on Amazon, probably costs much more on contract.

          So what you are saying is that the AAPPL 5s and 5c sold lots more units in their first weekend (to carriers or customers?) than other phones that had been around a while? I doubt if that spurt will affect the yearly sales much, considering in Q3 iOS only had 12% of the total worldwide smartphone market.

          http://www.techhive.com/article/2063540/samsung-smartphone-sales-surge-while-apple-gets-a-small-boost-from-iphone-5s.html

          1. Go to Apple’s website and do some research. Apple does not sell its iPhone 5s for more than $849USD (64GB model). Anyone who sells it for more is a third party and is selling it at that price is responding to traditional market forces (supply and demand), because people will pay that much for it. There’s a reason for that, and it’s not because world is “wise to them.”

            Second, it took Samsung a month to come close to 10 million units sold when they debuted the Galaxy S IV. Apple got there in a matter of days. There’s a reason for that, and it’s not because the world is “wise to them.”

            Furthermore, if you actually read IDC’s report (instead of relying on second-hand hit whores), you’re realize that even though Apple’s overall market share has shrunk, sales have only increased–and 60-some percent of those Android phones are classified as “junk phones.” Apple’s profit share has also increased, and Samsung remains the ONLY competitor to actually make money in the smartphone market (Samsung and Apple make a combined 109% of smartphone profits, while everyone else breaks even or loses money). There’s a reason for that, and it’s not because the world is “wise to them.”

            Just because more poor people buy junk phones doesn’t mean that Apple should chase that market (because there’s no money in it), and it certainly doesn’t mean that Apple is failing. Market share means absolutely squat to Apple, so long as sales grow, profits grow, and customers are happy with their products.

            Apple is not failing. Quite the opposite has been happening, and will continue to happen.

      2. Oooh, Mr. Bigshot “will not tolerate being sold a cheap, lower quality product at an exorbitant price any more”. What an ass.
        Go then, buy an Android-phone. Go away and stop bothering us. Who the hell made you buy any particular phone?
        And for those who think marke tshare is somehow relevant, read this and weep – “Data from Canaccord Genuity shows that during that same period — Q3 of 2013 — Apple made more money than all of its competitors combined, taking in 56 percent of the profit in the mobile device market.” – that from an article just a few titles before this one. Broaden your horizons Mr. Troll.
        Apple is doing fine, it’s the investors – those short on Apple, who are the only ones hurting. Take Mr Icahn, for example, please, just take him somewhere and leave him there.

        Duuuuuuuuuuh!

        dmz

        1. Apple makes money by selling $200 phones for $600–1000. No mystery there, but it does smell of the dodgy dealer to me.

          I didn’t call you an ass either. Are you typical of iOS users? Rude and offensive?

          1. Again, Apple does not sell a $1000 phone.

            iPhone 4s is $449 off-contract.
            iPhone 5c is $549 (16GB) and $649 (32GB) off-contract.
            iPhone 5s is $649 (16GB), $749 (32GB), and $849 (64GB) off-contract.

            Please do actual research before claiming that Apple charges $150 more than they actually do. And no, Amazon is not a credible source. Amazon is a marketplace for resellers, and they charge whatever they think customers will pay–including huge markups.

            1. Off contract, but locked to a carrier. Anyway, you are quibbling about a $230 phone sold at $849? The point is, it isn’t going to be a value phone made in a far eastern sweat shop for $230, and certainly not worth $849 locked to a network. Your point was?

            2. Let me break it down in as tangible an abstract as I can: the market places a value, or a premium, on its perception of quality. Those who get it will happily pay what they consider the product is worth, whether it’s the TCO, the re-sale value etc. And also, if scamscum thinks it’s worth paying billions to copy and re-sell the iPhone under its own moniker, then you’d think their clueless customers would hold the iPhone in equal deference.

            3. You’re ONLY talking about manufacturing costs. You also leave out the amount of money and time Apple puts into designing each phone’s hardware and software, and now the money Apple is losing by giving away iWork and iLife, the cost of shipping, storing, and distributing the devices, paying the wages of the retail workers, and so on and so forth.

              It’s not just the cost of parts. It’s the value of the entire device. That’s true of ANYONE in this industry, or any other industry.

              It burns me up when people like you ignorantly proclaim that the iPhone is only “worth” $230. Because that ignores all the other factors that go into creating the phone and getting it into people’s hands, which is just part of the reason WHY it’s so gosh-darn expensive. And the iPhone’s superior build quality and software is why each iPhone handset retains so much of its value over time, while Android and Windows handsets shed value like a dog. That is real value to the consumer, because the consumer knows he or she can turn around and sell it at only a slight loss when they’re done with the phone.

  6. It’s not just a matter of analysts not understanding Apple because they’re not buying the stock. I’m talking about honest-to-God big investors who are avoiding Apple like the plague. They don’t feel they’ll get their money’s worth by investing in Apple and that’s a real problem. I have to guess they must see Apple as a company with absolutely no growth potential. I’m sure they’re not relying on analysts to tell them that. I doubt that they’re all that stupid.

    OK, so Apple might not climb to $700 or $800 but honestly if Apple isn’t seen to be worth even $600 a share then there is something seriously wrong with how the company is being perceived. Apple seems to be very unattractive to big investors for whatever reasons and I don’t see why that can’t be remedied in some way other than buybacks.

    1. Or maybe the investors and analysts have it right, and AAPL is seriously overpriced? I don’t see why any of this is a problem. If you want to make money yourself, just short AAPL stocks. Why does anything require a remedy here? It’s the way the markets work, for good or ill. If you have confidence in AAPL, put your money there.

      1. I understand what you’re saying but I don’t see Apple as being overpriced based on fundamentals and there are still people saying it is undervalued. I will continue to keep my money in Apple because I still feel there can be improvements made and meanwhile I still get my dividends. Yes, the market is what the market and I can always play the momentum stocks but I’m not comfortable with shorting any stocks.

    2. It’s pretty much a value stock these days. Not a momentum stock. It is considered a good buy at these prices. But as a value stock not a momentum stock. The recent release of new devices and a good earnings report has not accelerated the stock price. Perhaps the next earnings report for this quarter (Q1) will be enough to make things move up briskly? But with production restraints for the 5S and the iPad mini, it may not be a great quarter after all? Production is something that is hurting AAPL. That simply cannot be denied. The holiday quarter (Q1) is the most important quarter of the year. That is a fact also. Positive guidance for Q2 (given in the January earnings report for Q1) may help the stock price. But that is more than two months away. When the China Mobile deal is announced that will help. At least short-term. It looks as though the iTV has been put on hold to concentrate on the iWatch.The iTV, if it ever gets here, would really help the stock. Now it appears that that is far away if ever. Maybe the iWatch will help? Who knows about that one? Apple is a good value at these prices. Hopefully it won’t turn into a value trap for people who want to buy and hold forever. But that of course is never a good idea for any company/stock. But AAPL is not a momentum stock. It has great fundamentals and lots of money. But things like production problems/meeting demand are part of running a business. Either you do it well or you don’t. There are no excuses in business. And it doesn’t matter how much you like a company or its stock. When you invest in a stock you invest in Wall Street and the whole process. Never be so naïve or childish enough to think that you know better. AAPL and all other stocks (believe it or not) are slammed at different times by things that we may not think are fair. Wall Street and the whole fucking world are not against AAPL. Despite what a few here believe. People who think that way, if you call that thinking, should never ever invest in the stock market. Thinking that way and commenting about how unfair Apple is treated on this site shows absolute ignorance and lack of experience in investing. To say the least. When you step up to the bar you have to man up. Otherwise you should be at the table for the women and children. There is no “they” out there out to get AAPL. There is no fucking conspiracy against AAPL. Apple still makes the best stuff out there. It’s all I will buy. It’s what I used to make a living every day. But I can separate my love of Apple’s stuff with investing my money. It’s as simple as that. Quit moaning and groaning and bitching. It’s embarrassing

  7. $3.05 of what  was down today was due to the NASDAQ adjusting the price down because of the dividend payout. So $3.17 minus $3.05 means they were only down by 12¢. The analyst should report ALL of the facts, AND get their facts straight!

  8. Sigh. More garbage numbers upon garbage numbers. Samsung is supposedly the market king but had refused for the past 3 years to provide official unit sales figures. Doesn’t that strike anyone as odd? Gartner and IDC churn out these “global marketshare” statistics, but never give mythology or margin of error or reveal their clients. So why do so many people treat these numbers as anything more than disguised PR?

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