Apple jolts Wall Street, resets the clock as investors await next big thing

“Apple Inc just bought itself some much-needed time,” Edwin Chan reports for Reuters. “On Wednesday, the company surprised Wall Street with news that it sold more iPhones in the March quarter than even the most bullish analysts had expected. It threw another $30 billion into an already sizeable stock buyback program and instituted an 8 percent quarterly dividend increase to boot. And profits rose by an unexpected 7 percent.”

“To top it all off, Apple unveiled a 7-for-1 stock split that should go down well with individuals who want a piece of a household name but could not afford to fork over $500 a share,” Chan reports. “The litany of positive numbers sent Apple’s long-stagnant shares up 8 percent. But it masked a more fundamental concern that has kept the company’s once-unstoppable share price in check for over a year: when will, or can, Tim Cook pull another gadget out of Apple’s hat?”

MacDailyNews Take:
• iPhone was released 5 years, 7 months, and 19 days after iPod.
• iPad was released 2 years, 9 months, and 5 days after iPhone.
• Tim Cook has been Apple CEO for 2 years, 8 months, and 1 day.

“Whether Apple can again devise a revolutionary new product remains the central question in the minds of investors and Silicon Valley executives. Many hope the next iPhone, which sources have said will sport a larger screen with new display technology, will provide a timely lift to the company’s bottom line in September,” Chan reports. “In the longer term, the company still needs a game-changer, not so much to end up being Apple’s next ‘iPhone,’ but because a truly successful new product will shore up Cook’s stewardship. That would boost Wall Street’s confidence in the post-Steve Jobs leadership while restoring Apple’s reputation as a leading light of Silicon Valley innovation.”

Read more in the full article here.

Related articles:
To everyone whose analyst told them to ‘buy on the dip’ after Apple earnings: Get a new analyst – April 24, 2014
Apple shares soar after stellar earnings report – April 24, 2014
Apple’s 7-for-1 share split makes joining the Dow more likely – April 23, 2014
MacDailyNews presents live notes from Apple’s Q214 Conference Call – April 23, 2014
Apple announces 7-for-1 stock split; boosts dividend, ups buybacks to $90 billion – April 23, 2014
Apple smashes Street with revenue of $45.65 billion in Q214 – April 23, 2014

11 Comments

    1. People forget, after Jobs was ousted in 1985 Apple did great… for a while. The new Macintosh started selling well, their new CEO was a rock star and all seemed to be fine.
      BUT, they were riding the Jobs wave, reality set in and the company quickly started to falter.
      The iMac: Jobs.
      The iPod: Jobs.
      The iPhone: Jobs.
      The iPad: Jobs.
      iCloud: Jobs.
      The numbers look good, right now, but long term there are *zero* signs that Cook is anything but a numbers guy, and WS knows this.
      One star this if you agree.

      1. You forget one thing. The Pepsi Whore ousted Jobs, and wanted to take the products in a totally different direction. He didn’t agree with Jobs or share Apple’s vision.

        Tim Cook is Jobs’ hand picked successor, and has been trained under Jobs for the last 10 YEARS, in accordance with Apple’s Succession Plan.

        Tim Cook and Jobs were best friends because their vision for Apple was aligned from day one. He doesn’t have the dissonance and disagreement issues that Jobs and the Pepsi Whore had.

        Apple will do just fine under Tim Cook.

    1. Yeah, well, fsck the NYT.

      They’ve had it out for Apple for at least the past two years.

      Remember, they helped W ‘catapult the propaganda’ leading up to the invasion / destruction of Iraq.

  1. Just because they can’t see what already is in play, doesn’t mean it will not happen. Reasons for growth are all around. Just “Think Different”.

    Example: Anyone buying the NEW 2015 cars this summer with the Apple CarPlay will require a NEW iPhone to hook it up the the NEW car or stereo system up grade they install in their old car. Those older fat plugs will not work with the NEW CarPlay connections.

    “Think Different”

  2. iBeacons was introduced under Tim. Although this is not as flashy and in your face as an iPad it is a important new product line. It is marketed to business, a highly profitable and loyal customer base. Mostly we have seen it as a way to track and market to people in retail stores. However there is a lot of potential for other uses. Museums can give more information to someone who is standing in front of a display. Hospitals can know where staff is located when they are needed. If Apple is going to get into mobile payments iBeacons is a great way to start that process. To say Tim Cook has not introduced a new product is at best showing your ignorance of Apple’s product line; at worst spreading FUD.

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