“The huge stock-market run-ups posted by technology companies reporting earnings in the past week have ratcheted up the pressure on the tech firms set to report quarterly results in the week to come, including Apple Inc.,” Wallace Witkowski reports for MarketWatch.
“Apple, set to report results after the bell Tuesday, has become an earnings bellwether, especially in the tech sector,” Witkowski reports. “Excluding Apple, the sector would be expected to see a 6% profit decline, rather than the 0.2% gain that’s being forecast, according to John Butters, senior earnings analyst at FactSet. That pronounced effect on tech-sector earnings appears firmly linked to a breakout in iPhone sales growth in 2014.”
Witkowski reports, “Sales of the Apple smartphone are predicted to decline slightly in the December-ending quarter, compared with the company’s record December-ending quarter in 2014.”
Read more in the full article here.
MacDailyNews Take: Some people are going to be quite surprised at how well Apple’s next-gen iPhones sell.
Our current estimate is that about 20 percent of the active install base has upgraded to a 6 or a 6 Plus. So, as I look at that number, that suggests there’s plenty of upgrade headroom in addition to, you know, we want to keep inviting over as many switchers as we can. – Apple CEO Tim Cook, April 27, 2015
Plus it’s like me who are waiting at the end of the new supply chain every time a new iPhone, iPad or WATCH ships.
Nuts like me
I’m offering a 6Plus recycling program: I’ll ride my bike to your house, accept your used phone, then recycle back home.
It’s not good for these people to keep talking up Apple stock. It raises up expectations which will unlikely be met. Market run-up has nothing to do with Apple because I’ve seen Apple do the opposite of other consumer tech companies time and time again. It’s going to be really frustrating to shareholders when Apple’s share price crashes for no good reason while the rest of the market soars. Recent investors can only take so much of that nonsense.
Spoken like someone who does not own stock, especially AAPL. I saw my equities lose half their value when the market crashed, and I’ve seen them all gain back much more than where they were at pre-recession. Life is very good!
Ditto. Apple is very healthy at the moment. That doesn’t mean that they can take their foot off the gas though. Someone is going to try taking the phone sales away from Apple.
I read the linked article. It seemed poorly written to me and despite say that Apple was propping up the phone business, it ended up with saying that iPhones were going to not grow in the last quarter of 2015.
The one interesting point is that Google, Netflix and Amazon made big gains last week. How much cash will be available this week to pump up aapl?
GOOG is down 15.65 currently. Investors must have awakened and are heading for AAPL.