Why Apple investors should worry or something

“The big revelation in the financial media is that ‘Apple stock is in a correction,'” Bert Dohmen writes for Forbes. “Well, it’s a little late for that. The handwriting was on the wall for the past five months. The stock is now back to where it was last January. This means anyone who bought since that time holds the stock at a loss. Those are potential sellers, should the price get back to the $122 area.”

“It gets worse: Apple is the benchmark for some of the popular stock indices. Because it is the highest capitalization stock in the indices, it carries the greatest weight,” Dohmen writes. “Therefore, when the stock can no longer be supported because of big selling pressure, it is bearish for the stock market as a whole.”

“Let’s look at the facts,” Dohmen writes. “The iPod at one time was ahead of the competition in design. People loved it. But Apple didn’t adjust the price. It is now so vastly overpriced that no one even talks about it. One review on www.appleinsider.com says: ‘Apple’s insistence on a $149 price tag (Nano) is almost offensive.'”

MacDailyNews Take: Ooh, one review on AppleInsider. There that proves it.

“iPads are also uncompetitive in price, and sales are down more than 34%. Top management has the attitude that Apple does not have to cut prices,” Dohmen writes. “There is no innovation in spite of a multitude of requests for additional features. However, Apple is tone deaf.”

MacDailyNews Take: We thought we were taking a “look at the facts,” but all we see so far are lies. iPads have introduced numerous innovations and improvements over the years. Major innovations are coming to iPad with iOS 9 very soon. iPads simply have longer upgrade cycles than iPhones. Shocker.

“The iPhone is the one item that still has the big sales and the big profit margins. But one product, a mobile phone, does not justify making Apple the most highly valued company in the world, especially when that one product faces so much new competition,” Dohmen writes. “The spike in the stock’s price, produced by the catchup of the large screen iPhone, will now wear off and the competition with lower prices will encroach on what was a virtual monopoly in that market just a few years ago.”

MacDailyNews Take: By SteveJack

Some people haven’t been paying attention for the past three decades, so I have a newsflash for them: Apple sells premium products at premium prices to premium customers.”

Anyone who thinks Apple is going, or needs, to play at the bottom of the barrel either hasn’t been paying attention or was born yesterday. Wake up or have a happy birthday.

Listen, if you can’t afford an an iPhone (or an iPad, a Mac, an Apple Watch, or whatever), you’re not in the target market. Stop whining. Nobody cares. Developers aren’t interested in those who can’t, or won’t, muster up at least $199 for a current model iPhone on contract. Neither are advertisers. Neither is Apple, who are running a business, not a charity. If you want an iPhone, but you can’t afford it or are too stupid to pay for it, either save up for one or trot on over to Costco or Walmart and settle for a cheesy, plastic, insecure pretend iPhone and all that doesn’t go with it. The choice is yours. It’s like an IQ test.

So, to recap: Nothing has changed. Nothing will change. Apple sells premium products at premium prices to premium customers and, when all is said and done, they will sell hundreds of millions of iPhone 6s/Plus units worldwide staring in late 2015-late 2016. And then they’ll do it all over again, but even bigger still, with iPhone 7/Plus.

Dohmen writes, “The stock crash in China also produces an unknown about future China demand for the very expensive iPhone.”

MacDailyNews Take: Okay, oh facile one, we get it. You think iPhone is “very expensive.” Because you’re either cheap, stupid or, ahem, fomenting. Laughably, no less.

“The Apple Watch is a flop,” Dohmen writes. “One technology commentator said on national TV that the watch would never have been released under Steve Jobs. It needs big improvement.”

MacDailyNews Take: Ooh, “one technology commentator said on national TV” said something. It must be a fact. National and TV. Both. That ices it. Never mind that Apple CEO Tim Cook, just recently on an official Apple Inc. conference call stated quite clearly: “Sales of the Watch did exceed our expectations and they did so despite supply still trailing demand at the end of the quarter. And to give you a little additional insight, through the end of the quarter, in fact the Apple Watch sell-through was higher than the comparable launch periods of the original iPhone or the original iPad.”

Meaning some number over 3 million units (which is what iPad moved during a comparable period of time). With sales picking up during the last two weeks of the quarter as Watch production was finally able to satisfy millions of pre-orders and the Watch began to hit retail stores. Some “flop.”

“The huge, oversized ‘flying saucer-shaped’ new headquarters building is the major signal of an Apple top. It’s the typical ‘edifice-complex’ when a company has too much cash and too few ideas what to do with the cash,” Dohmen writes. “I predict that eventually, much of the space will be leased out to other firms.”

MacDailyNews Take: Seriously? That’s the best you can come up with? Sheesh.

More idiotic, rather laughable fomenting that’s meant to prod mom & pop retail investors to run for the hills and/or whore up a few hits for Forbes, but only manages to come off as the illogical rantings of a fool or a liar or both — tucked safely behind donotlinkhere.

MacDailyNews Take: We’ve seen all this before. Many times. And from far less ham-handed hacks, too.

At the most basic level, it’s extremely simple: Pump, then dump. Foment, then buy. Rinse, lather, repeat as the SEC sleeps. — MacDailyNews Take, April 26, 2012

Let’s look at the actual facts: Apple sold 47.5 million iPhones in the third quarter, up 35 percent year-over-year. But analysts had expected around 49 million units. Analysts also expected growth of more than the mere 35% that Apple posted (in the June quarter, no less) and wanted guidance of more than $51.13 billion in the 90-some-odd-day quarter prior to holiday shopping season 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 the $51.13 billion for which some analysts had hoped.

This is the basis for all of this so-called “worry” over Apple.

17 Comments

    1. I’m much more practical in my approach.

      Either AAPL corrects for EGG, YTD, as its BACN trajectories mature, or it risks plummeting PLUM going into the next quarter.

  1. I bought some more AAPL this morning. Too bad I couldn’t have read this first. I always like a good laugh in the morning.

    The article should have been titled, “Apple’s Stock is Down, so Apple is Dumb.” I stubbed my toe, and the sun came up. Stubbing my toe must cause sunrise.

  2. Maybe people aren’t talking about iPods, but it’s not because people re buying other similar devices at lower prices, it’s because the iPod has essentially been superseded by the iPhone.
    iPad sales may be down, but other tablets are hardly storming the market. The argument may be harder to make here, as people are possibly buying cheaper (crap) tablets, but that’s not necessarily a lost iPad sale, sales could be cannibalised by people deciding to use an iPhone (of any size) and a computer (Mac as sales are increasing) and not have 3 devices. There may be points to make about these devices, but this is not the way to make them.

  3. Apple at 100.

    Fire and brimstone coming down from the skies! Rivers and seas boiling!
    Forty years of darkness! Earthquakes, volcanoes…
    The dead rising from the grave!
    Human sacrifice, dogs and cats living together… mass hysteria!
    A Republican Presidential Debate on Fox!

  4. No, this isn’t any correction. This is:

    M A N I P U L A T I O N

    Been here, seen this, same old sh*t.

    The future: AAPL growth to its actual correction price, after the August WallNit Street game playing is over.
    [Credit to starkoman for ‘WallNit’]

    Please! Don’t believe me! Just watch and learn…

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