Analyst: I think Apple’s best days are behind it

“Just hours before Apple is set to report quarterly earnings, one top Internet analyst said the tech company’s best days are behind it,” Anita Balakrishnan reports for CNBC.

“‘The fear is that Apple is entering growth purgatory,’ senior analyst Toni Sacconaghi of Sanford C. Bernstein said Tuesday on CNBC’s Halftime Report. ‘It had the great last cycle with the iPhone 6. The fear is smartphones are in an increasingly mature marketplace, particularly at the high end. That’s almost all of Apple’s earnings and growth,’ Balakrishnan reports. “Shares of Apple dipped below Monday’s close just past noon Tuesday, after Sacconaghi compared its single-digit growth projections to the double-digit expectations for competitors Amazon and Alphabet.”

“‘You’d have to believe that the car would kick in, and drive revenues,’ Sacconaghi said. ‘Or that the watch would ultimately be something very big. But I think investors are worried about the next two-year period. Can there really be iPhone growth?'” Balakrishnan reports. “The comments are an about-face for Sacconaghi, who just two months ago told CNBC he believed iPhone sales could continue to grow in China and gain market share. Though he still believes the company will be a “moderate grower,” Sacconaghi told CNBC that Wall Street has already factored Apple’s decline into its math. ‘I think its best days are behind it,’ Sacconaghi said. ‘The Street is discounting that Apple’s free cash flow will decline in perpetuity.'”

Read more in the full article here.

MacDailyNews Take: iCal’ed.

Reminder’ed, noted, notarized, filed and collated for copious future use.

SEE ALSO:
Apple surpasses goal of 10 million iPhones sold in 2008; outsells RIM in September quarter – October 21, 2008
Analyst who couldn’t find ‘missing’ iPhones thinks Apple won’t hit 10m in 2008 goal – February 22, 2008
Where are those million Apple iPhones? All over the world – January 29, 2008
So-called ‘analyst’ finds his ‘missing’ iPhones – January 28, 2008
There are no ‘missing’ Apple iPhones – January 25, 2008
FUD Alert: CNET article based on lone analyst’s view tries to gin up iPhone demand issue – January 25, 2008

[Thanks to MacDailyNews Readers “Fred Mertz,” “Bill,” and “Sarah” for the heads up.]

30 Comments

  1. 1. Set it up…..

    “…….who just two months ago told CNBC he believed iPhone sales could continue to grow in China and gain market share….”

    2. Then TAKE IT DOWN….

    “…..Wall Street has already factored Apple’s decline into its math. ‘I think its best days are behind it…..’

    3. Laugh all the way to the bank.

  2. There is room to grow. Period. On all front: PC, TV, Phone, Wearable, Tablets, Apps, …

    I am amazed at how creative Anal-ysts are getting when it comes to Apple and how dump they are when they talk about AMZN, GOOG and MSFT. They have an agenda. The line is clear. The FUD is always near.

  3. The analyst who is very good wasn’t saying that Appel the company wasn’t doing well or it doesn’t have a bright future, just that the days of doubling and tripling or growing 30% a year is very difficult now that Apple has become so successful and the market cap so large.

  4. As of yesterday’s closing, Apple has a market cap of roughly 650 billion, Alphabet’s (sigh, that name…) is 490 billion, Facebook and Amazon each have a market cap of about 290 billion. Can someone explain why Wall Street analysts believe that the latter three companies have growth expectations that justify their market caps being anywhere near Apple’s? Alphabet is a revenue one-trick pony (search), Amazon doesn’t make any real money (and won’t be able to due to a price-sensitive customer base), and Facebook only does about 12.5 billion in annual revenue. I’ll stick with AAPL, thanks.

    1. Obviously, it’s just a perception that Apple has no growth opportunities. The future isn’t written in stone. Apple can at any point change policies and add new businesses the same as any other company. I remember how analysts used to talk about the solidity of Research In Motion and Nokia. They swore those companies were invincible until they weren’t.

      I don’t understand why Wall Street puts so much credence into the future when the future isn’t guaranteed. If Jeff Bezos got into a serious car accident or had a stroke, the company’s future could certainly be put in serious jeopardy. Who could possibly be qualified enough to replace Jeff Bezos? No one. Same with Tesla.

      Why is Apple considered a one-trick pony and Alphabet isn’t? Alphabet’s ad revenue makes up a larger part of the company than the iPhone makes up of Apple yet only Apple is perceived to lose it’s iPhone business but Alphabet’s ad business is seen as untouchable. Wall Street simply puts so much emphasis on future results because it’s not measurable and they can fudge company value that way. Having these crazy high P/Es is simply ridiculous. A company can either make the earnings or they can’t. If they can’t then something isn’t right or the value doesn’t really exist.

      1. Maybe Wallstreet sees Google’s Search revenues as more stable in the long term vs iPhone sales. There sure are a lot more viable alternatives to iPhone that people the world over can purchase vs viable Search services that people like to use competing with Google.

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