“The reigning king of tech stocks took a bad stumble Tuesday,” Kevin Kelleher reports for TIME Magazine. “Apple reported financial earnings that, on the face of things, met or exceeded Wall Street’s expectations. Yet there were also signs that sales of its largest product, the iPhone, may be slowing faster than most investors have expected.”
“Apple isn’t having trouble selling iPhones. The issue is whether it can keep selling them after the initial surge of demand that follows a new release,” Kelleher reports. “Apple says it sold 47.5 million iPhones last quarter. The consensus among analysts had been closer to 49 million, with some of the more bullish analysts arguing that Apple would surprise us with as many as 52 million iPhones sold last quarter.”
“Yes, Apple beat expectations, but it really just kind of squeaked past them, whereas it typically leaps over them with a substantial margin. In other words, beating the numbers isn’t enough. Investors expect Apple to thrash them,” Kelleher reports. “It’s not so much that the iPhone will die. It’s that Apple releases a new generation every two years–with a semi-generation (the 4S, 5S, etc) released midway through the cycle. After Apple released the iPhone 5 in 2012, sales surged early before disappointing for quarters, even through the 5S release… The 8% drop in Apple shares is a hedge against this scenario playing out again. It may end up being a blip in Apple’s steady march toward a trillion-dollar market cap. But for investors focused on the next few quarters, it’s worrisome. Do investors have to wait for the release of an iPhone 7 in the fall of 2016 to ride a wave higher? Or does Apple have something in store to keep it from becoming a cyclical stock?”
Read more in the full article here.
MacDailyNews Take: 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. iPhone currently has 99% user satisfaction. 99%. Every single year now, there are hundreds of millions of iPhone users waiting to upgrade to Apple’s latest and greatest iPhone.
More than iPhone, knowledgeable investors will recognize that this is simply a return to the Apple guidance issue. With Apple stock, it’s all about the guidance. The rest of the “concerns” are mere periphery.
SEE ALSO:
Here’s your golden opportunity to buy Apple’s stock – July 22, 2015
Drudge screams: ‘APPLE FUTURE QUESTIONED’ – July 21, 2015
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
“Kid, I’ve been from end of the galaxy to the other…..just a bunch of silly tricks and nonsense.”
Of course, anyone buying or selling shares based on analysts should probably review how much attention they’re going to pay to people who consistently misjudge the biggest company in the world.
Theory: that Apple Inc. and their bankers are actually playing WallStreet at their own “pump and dump” game.
How you may ask:
By Apple Inc. being conservative with their iPhone inventory to ENSURE they come in slightly below Analysts wildest estimates, which sees the after hours sell off & a market open today lower by 6-7%.
Then the neat move; buy back as much Apple Inc. stock as possible at the depressed price before WallStreet wakes from its slumber.
Really? Idiot!
91 million and counting today, so presumably not you who is buying, as your wasting your time on useless comments!!
If these idiot analist knew waht they were talking about, they would be retired long ago and wouldn’t have to peddle their pathetic ignorace perpetually.
Apple is a cash cow for anyone who wants a great retirement anytime in the short and long future – Buy it now and reap the proven track record -Apple will be over $180 within a year or so, there’s no other company in the world that can even think of matching its innovation and superior products.
That’s what Microsoft thought also. And those who invested in Microsoft. There are no guarantees. Only a fool makes comments like yours. Get your head out of the sand. And out of your ass.
Whille I enjoy the yeilds and fruits of years of an ever growing and accumulated 25 year investment…
Sure little dickhead loser.😵
The missteps at Microsoft were easy to see by any investor that was paying attention. Microsoft stopped innovating and when the opportunity came to get into a new business they failed to execute. When the first iPhone was released Microsoft’s CEO and culture panned it, while others like Google were secretly trying to duplicate. I had the HTC “Windows smartphone” with a pull-out keyboard in 2008 and the software was a joke. I then purchased a Samsung Windows 8 “Pro” tablet in 2010 or 2011, and both the software and hardware turned out to be garbage.
Apple and Google dominate today’s mobile ecosystems. Maybe Microsoft can make a breakthrough with their augmented reality headset, but from what I have seen so far it needs a lot of work. And even if does come to market can Microsoft be trusted again with consumer hardware and software?
In contrast, Apple is in command of the high-end mobile market through continuous innovatations and by steadily executing their growth plans. They produce quality products, which work as designed, their ecosystem is supported by millions of developers and their services continue to build forward.
Some on this board have seen these things for years and years and have profited greatly from their do diligence, but for some outside the echo chamber it looks like it’s hard to come to peace and let that old filly out to pasture.
I find it curious that when Q2 earnings were announced the analyst consensus for Q3 was $47B revenue which was in line with Apple’s guidance of $46-$48B. What changed between then and now for the analysts consensus estimate to be $50B+?
It tells me that “analysts” set up Apple to fail. They set the bar really high to get a “miss”. For some companies, Amazon is a good example, they set the bar really low so the company will beat. Last quarter was a good example. 90 days before the end of the quarter analysts predicted Amazon would earn over a dime. In the ensuing 90 days analysts dropped their estimates to a $.12 LOSS; Amazon beat by 1 cent still losing money and the stock popped 14%. Wall St. can stack the deck when they want to.
Wall Street is full of thieves and charlatans!
Wall Street is nothing but a bunch of utter dickheads with no clue making wild guesses and punishing investors when they get their asses handed to them by Apple.
Fuck Wall Street, it’s a criminal operation (HFT etc etc) and I hope it destroys itself with its greed and selfishness.
You are correct, the only problem is if they destroy themselves they will take millions of ordinary people’s pensions with them. Not that they don’t do that in a way now buy pumping or dumping using millions of $$ that are in these pensions now.
John Gruber’s take: “Apple shares are, of course, way down in after-hours trading, because after-hours traders start drinking as soon as the markets close.”
Apple Q&A session timeline info for investors to busy to listen to the whole CC—-
The entire CC lasted from 2:00-3:00 pm 07/21/2015- Listen to the last 30 minutes to get the “gravitas” of what Tim Cook was saying about important issues—–!!!!!!!!!
:33:24- Munster/TC Apple Watch numbers extrapolation clarifications
:44:50- TC many, many years left in the iPhone cycle!!!
:48:56- TC excellent commentary on China sales, store openings, 4g build out, middle class expansion, and China stock market’s LIMITED effects
:53:30- Luca commentary on the FX issues affecting Apple earnings bottom line like all other international companies affected by the strong dollar……
Apple Q&A session timeline info for investors to busy to listen to the whole CC—-
The entire CC lasted from 2:00-3:00 pm 07/21/2015- Listen to the last 30 minutes to get the “gravitas” of what Tim Cook was saying about important issues—–!!!!!!!!!
:33:24- Munster/TC Apple Watch numbers extrapolation clarifications
:44:50- TC many, many years left in the iPhone cycle!!!
:48:56- TC excellent commentary on China sales, store openings, 4g build out, middle class expansion, and China stock market’s LIMITED effects
:53:30- Luca commentary on the FX issues affecting Apple earnings bottom line like all other international companies affected by the strong dollar……!!!
I used to own some Apple stock so, while I enjoyed my Apple products I tended to get upset when the market misinterpreted Apple’s earnings. So I sold the stock for a nice profit. Now I continue to enjoy my Apple products and laugh when the market misinterprets Apple’s earnings. The market analysts are remarkably stupid!!
“Do investors have to wait for the release of an iPhone 7 in the fall of 2016 to ride a wave higher?”
Oh no, you can sell the same model iPhone year after year for years with no refresh and still expect amazing & higher sales. Idiot.
What concerns me is Media. How do all these “news” organizations pop out the same story. It’s like Goldman Sachs has a conference call with all these news organizations PRIOR to the earnings report and says, “OK everyone, here is how we will pitch this—here is the narrative” . . . because quite frankly, the narrative doesn’t make any sense. They suggest a fear that there will be a decline in iPhone sales, when “everyone” knows that Apple is coming out with the new iPhone 6s in September (everyone already knows they are in production). If the iPhone 6s has a new feature, like force touch, a number of iPhone 6 users will upgrade their phone, in addition to the 75% of “old” iPhone owners (iPhone 4, 5, etc) who haven’t updated yet . . . . so all this “media” coverage is about moving the stock, not about the future of Apple.
As I write this, AAPL has bounced back a fair bit, already. Right now it’s $6.02 down from yesterday’s close, and I expect it to be back at 130 or so by the end of next week.
-jcr
What it really means is investors are the dumbest pieces of shit on the planet!
. . . It means that WallNut Street analcyst dicks are morons. They should be fired.