In an link headlined “APPLE FUTURE QUESTIONED” above the masthead, no less, Drudge Report links to a report by Anya George Tharakan and Julia Love for Reuters.

“Apple Inc. shares slumped nearly 7 percent in after-hours trading as its fourth-quarter revenue forecast fell short of estimates and it missed some targets for iPhone sales,” Tharakan and Love report. “Apple said on Tuesday it sold 47.5 million iPhones in the third quarter, up 35 percent from a year ago. But some analysts had expected around 49 million.”


“Colin Gillis, an analyst for BGC Partners, said the results highlighted the vulnerability of Apple’s dependence on the iPhone and the Chinese market’s growing importance to the company,” Tharakan and Love report. “‘Where are you going to find growth in the world?’ he said. ‘You’ve done an amazing job sucking all the smartphone profits into your balance sheet, but smartphone sales are slowing. What’s going to happen when the industry matures, just like PCs did?'”

MacDailyNews Take: Where are you going to find growth in the world?

Apple’s iPhone 6/Plus penetration among iPhone owners is a mere 27%. That means there are 73% primed for upgrading to the iPhone 6s/Plus. And, that’s not counting those fleeing from fragmandroid to quality in ever-increasing numbers.

Even a snot-nosed intern at BGC Partners knows that PC sales have a far longer replacement cycle than smartphones, which turn over every two years (and even that’s declining rapidly with new carrier plans that do not lock subscribers into hardware for two years). And iPhone has 99% user satisfaction. Every year or two, there are hundreds of millions of iPhone users waiting to upgrade. Wholly unlike PCs. Big time “analyst” Colin Gillis either knows this very basic fact, and is trying to obfuscate, or he’s a vapid-eyed mouth-breather who somehow got a job as an “Apple analyst” (wouldn’t be the first time). Take your pick.

Apple Watch’s best month last quarter was the last month of the quarter, in June, as supplies finally hit stores and could begin to satisfy demand. Demand that is sure to grow as we approach the holiday shopping season.

“iPad Pro” (likely) and, indeed, true iPad multitasking for iPad Air 2 and newer (also to debut this fall), await in the wings, with iOS 9 set to arrive in a few months. Older iPads need not apply. Cue the first real round of iPad upgrades!

According to IDC, Apple’s Macintosh has 13.5% market share in the U.S. and 7.5% worldwide. Apple’s Mac has outgrown the PC market for the last several years. The Mac has headroom of a mere 86.5% in the U.S. and 92.5% worldwide.

We won’t even get into Apple TV, Apple Pay, or Apple Music, much less Apple Car.

There’s your growth, Monsieur Dumbass.

“The company forecast revenue of $49 billion to $51 billion, missing analysts’ average estimate of $51.13 billion according to Thomson Reuters I/B/E/S,” Tharakan and Love report. “The company said net income rose to $10.68 billion, or $1.85 per share, from $7.75 billion, or $1.28 per share, a year earlier. Analysts had expected earnings of $1.81 per share, according to Thomson Reuters I/B/E/S. Revenue rose 32.5 percent to $49.61 billion from a year earlier, beating Wall Street’s expectations of $49.43 billion.”

Read more in the full article here.

MacDailyNews Take: So, to recap: Some analysts expected growth of more than a mere 35% (in the June quarter, no less) and wanted guidance of more than $51.13 billion – $51.13 BILLION! – in the 90-some-odd-day quarter over the dead of summer (sorry Aussies!) in which Apple’s all-time record for the September quarter, so far, stands at $42.1 billion, but Apple only gave guidance with a top end of $51 billion, not $51.13 billion. OMG, what a disappointment! Quelle tragédie! Mon Dieu! Run for the hills! (dripping sarcasm)

Our point already having been made quite sufficiently, and with some French having already been deployed, we’ll refrain from breaking Godwin’s Law here, but, in times like these, The Big Lie fairly leaps to mind.

Apple poised for $50 billion valuation loss after posting ‘disappointing’ record earnings – July 21, 2015
Apple shares plunge after ‘disappointing’ record third quarter results – July 21, 2015
MacDailyNews presents live notes from Apple’s Q315 Conference Call – July 21, 2015
Apple pulverizes the Street with record third quarter results – July 21, 2015


    1. Apple only has one trick up its sleeve… the iPhone. Of course that doesn’t include any tricks turned by Tim Cook before he became CEO.

      Tim Cook is actually a worse CEO than Steve Ballmer. Without any inherent talent, creativity, or even a solitary innovative bone in his scrawny little body, he has systematically milked the iPad for 4-years without improving it until sales plummented.

      Because he can’t make any great hardware or create any compelling services himself (new hobbled Macbook, Apple Watch, unnecessary lightning connector, Apple Music), he has no choice left but to milk the iPhone until sales dive.

      Then, of course, he will leave the company, well after there’s virtually nothing else to plunder!

      1. Ah, the homophobic asshole is back with his ordure-filled vomitus! A day without one of your posts, “jughead,” is like a day without diarrhea. How proud your mother must be, that is if she’s not still on her leash in your backyard run.

      2. “No choice but to milk the iPhone…”

        Remember what Steve said about the Mac?

        “If I were running Apple, I would milk the Macintosh for all it’s worth — and get busy on the next great thing. The PC wars are over. Done. Microsoft won a long time ago.” – Fortune, 1996

        And he was only half right in that observation.

    2. Some of these moron analyst don’t seem to have a concept of “billion.”

      It doesn’t matter… The highs for AAPL get higher, but it’s important to note the that LOWS get HIGHER too. Less than one year ago, AAPL was in the mid-$90s. A year before that, it was in the $70s. And now, $120s is considered a “slump” for AAPL. We should all be so lucky and have such “slumps.”

      Well, that’s awesome. See you next year, when AAPL is headed for another doomsday at after “slumping” back to $150.

      These contrived fluctuations don’t affect long-term prospects for AAPL. In fact, the scheme does not work if there are not sufficiently higher highs between the progressively higher lows. As some point, when we need to sell some AAPL, take advantage of this predicable cycle to get a few extra percentage in gain on the sale. 🙂 Otherwise, don’t worry about it.

      1. <>

        To help put big numbers in perspective:
        — 1 million seconds is roughly 12 days
        — 1 billion seconds is roughly 32 years

        Don’t let Wall Street get you down. They are just making money for themselves. Trading algorithms, computers, etc. Silly ploys. But they make a lot of money this way. Wish the US would curtail all these non-productive Wall Street shenanigans, but somehow the pols never really stick their necks out for the good of the country. Sad. Anyway, as long as you don’t sell, you can stay above the fray. Apple shares will come back when the WS computers stop playing games.

        1. Wow, there really is big difference between 1 million and 1 billion if you look at it that way. It’s just funny how Wall Street investors think that billions of dollars are worth almost nothing. Apple’s $200 billion in reserve cash counts for almost nothing on Wall Street but potential future growth of Amazon counts for everything.

  1. Buy the dip tomorrow…..Colon Gillis is the BEST BUY INDICATOR For AAPL……..!!!
    Go listen to the CC at Apple.com and LISTEN to the Tim Cook color commentary during the Q&A session regarding Apple, China, China stock market, and the Watch true sales intel……..eye opening and NOT being discussed on the short-sighted Apple is doomed BS……

  2. I’ll do it – for educational purpose and because the concept actually is begin used by some Wall Street slimeballs against AAPL right now:

    In the big lie there is always a certain force of credibility; because the broad masses of a nation are always more easily corrupted in the deeper strata of their emotional nature than consciously or voluntarily; and thus in the primitive simplicity of their minds they more readily fall victims to the big lie than the small lie, since they themselves often tell small lies in little matters but would be ashamed to resort to large-scale falsehoods. It would never come into their heads to fabricate colossal untruths, and they would not believe that others could have the impudence to distort the truth so infamously. Even though the facts which prove this to be so may be brought clearly to their minds, they will still doubt and waver and will continue to think that there may be some other explanation. For the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying. — Adolf Hitler, Mein Kampf

    There, I broke Godwin’s Law. Sosumi.

  3. Why do analysts assume that “someday” the market won’t be there. While that may be eventually true under that reasoning nobody should ever own stock in anything because “someday” people won’t need burgers, gas, clothes, stores, services, etc..

  4. Tim on call – “…Highest android switcher rate ever… expanding the market size” – eluding to Android users from various price points are purchasing the iPhone, not just high-end.

    Question on call – “iPhone will have very difficult comps in the next few quarters…”

    Tim – “We think the phone has a lot of legs to it, Many, many, many years…we are in the early innings of it…the market rate of growth over the long haul will also be impressive. It will be multiple winners here”

    Tim later in the call – “LTE penetration in China is only 12%. That plays to an incredible smartphone future there.”

    Apple just reported a 33 percent increase in revenue. It would of been 8 percent higher if other currencies didn’t fall so much. Their EPS growth is 45 percent, which is 5 percent higher than last quarter’s growth. They are guiding for +20% revenue growth in the September quarter. These numbers are incredibly impressive at their scale and MUCH higher than the market.

    Apple has a problem?

    1. AAPL tanked after earnings for whatever reasons that not please Wall Street, nothing will reverse the course of AAPL plunged tonight. Tomorrow Apple will open low. What’s done is done. The best defended solution is Apple stepping up to repurchase shares buyback when the blackout period over. Agree everyone? 🙂

    2. Add back the 8% and revenues blew to top off. Maybe Apple should have sued the headline. Apple sells $51.63 billion in Q (before currency adjustment or earns $2.02 before currency adjustment.

    1. Even in previous quarters’ earnings reports, when Apple blew the doors off the clown cars, there were downsiders.

      As always, the best thing is to avoid getting contact high, and to not panic. Rationality is not guaranteed to save the world, but it remains our best hope.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.