Defying skeptics, Apple beats earnings estimates, issues healthy forecast

“Defying Wall Street skeptics, Apple says it plans to keep setting records for selling more iPhones around the world,” Brandon Bailey reports for The Associated Press. “The giant tech company reported another quarter of record earnings on Tuesday, boosted by surging sales in China. “And in a crucial indicator, Apple forecast healthy iPhone sales during the upcoming holidays.”

“Analysts said the forecast eased investor concerns that Apple’s holiday sales might fall short of last year’s phenomenal level,” Bailey reports. “Apple said it sold 48 million iPhones in the three months ending Sept. 26, 22 percent more than it sold a year earlier. The company’s forecast for the current quarter, ending in December, suggests it will slightly surpass last year’s record for selling 74.5 million iPhones during the crucial holiday season. ‘We think we can grow iPhone (sales) during the December quarter,’ Chief Financial Officer Luca Maestri told The Associated Press.”

“On a conference call with analysts, CEO Tim Cook cited strong response to the company’s latest iPhone models, the 6S and 6S Plus, which went on sale two days before the end of the last quarter,” Bailey reports. “He also said Apple is seeing record numbers of people switching from phones made by rivals. And he added that large numbers of current iPhone owners still own older models, making them likely to upgrade in coming months. Those factors should drive iPhone sales beyond the next quarter, Cook said, in response to analysts who suggested demand may still slow after December.”

Read more in the full article here.

MacDailyNews Take: “Analysts” who keep expecting Apple to act like another other company haven’t been paying attention.

SEE ALSO:
Tim Cook: 30% of buyers last quarter upgraded from Android to real iPhones – October 27, 2015
MacDailyNews presents live notes from Apple’s Q415 Conference Call – October 27, 2015
Apple beats Street with record fourth quarter results – October 27, 2015

22 Comments

  1. Half the population lost their retirement funds because the analists they listened to didn’t see the financial meltdown coming and told them to invest in junk.

    Anyone then who stayed put in AAPL and didn’t panic an sell, (iow, knew quality) got rewarded handsomely…

    Anyone who invests or divests based on what analists tell them to do, deserves to lose all they have.

    Any analist that says Apple is not the best quality investment with a long run up and growth ahead of it, steady dividend income and the most undervalued stock out there, is a lying, ignorant scum bag that should be sued for reckless disregard and held accountable for all the losses that their FUD brings upon the idiots that listen to them.

    1. With Apple in the past decade and half — anyone who did the opposite of analysts’s recommendations, made bank. With their track record, these “experts” would be fired in any other industry.

    2. But there are analysts who do believe Apple has some potential and they’ve put up higher price targets to prove it. It’s just that the big investors don’t seem to believe Apple is worth the money. I just can’t see how individual investors really believe that Microsoft is a better long-term investment than Apple considering the acknowledged meltdown of the PC market and Microsoft’s ailing smartphone division.

      Apple’s current earnings results were far, far better than Microsoft’s but everyone happily piled into Microsoft. It almost makes me believe I’m somehow missing the big picture. Almost. I simply can’t ignore Apple’s solid fundamentals, steady retail growth and $206 billion in reserve cash. All that means nothing to the big investors and I honestly don’t understand why.

      1. The big picture you are missing is ugly. Carl Icahn is one of the bigger investors and he believes Apple is worth the money and has said so. Other big investors who ignore him are on a different, possibly nefarious mission.

        You worry overmuch about individual investors being influenced by the advice of market analysts. If they did their own research they might come to another conclusion, but they do not do that, they heed the analysts.

        So we have a perfect storm of investors and consultants in an enabling relationship based on fear of change. Sounds like a domestic violence scenario. Are people clutching AAPL shares the equivalent of battered wives?

  2. these numbers are no surprise to anyone running even a basic BACN analysis on AAPL and adjusting +- for BUN, YTD.

    of course, the real question is whether EGG matches BACN such that gains are reflected in the price.

    1. TOZT production ramps crisped a market rally and fuelled investor concerns over supply chains at Mickey D drive-thru windows, where the analysts by rights should be employed.

  3. We might as well complain about the weather. The stock market is what it is and as long as people spread FUD, AAPL will languish because people don’t believe that Apple could be that great. After all, they aren’t succeeding so Apple can’t continue to succeed in their minds.

  4. Apple not going up at all still doesn’t make any sense. There should still be some investors who can look at Apple and see for themselves that the company isn’t failing. Why wouldn’t they buy the stock just for the dividends? So, what happened today means Apple simply isn’t going to go up and all those high analyst price targets are useless. Apple spent a freaking $17 billion on buybacks this quarter and shareholders saw nothing. Apple needs to immediately stop with those buybacks and make some acquisitions for some cloud services just like Amazon and Microsoft have. Wall Street loves cloud services because supposedly they have unlimited revenue streams. They’ve got to pay off better than these stock buybacks.

    1. Give it up. You know in your heart that Apple’s buying cloud services, or anything else, wouldn’t soften the hard hearts of Wall Street operators. Get it through your head, it isn’t products or services that is the problem; it’s Apple itself, the left-handed, red-headed bastard child of a couple of hippies trying to disrupt business as usual with inventions that people actually want. And in the business world, nobody wants that.

  5. Analyst on CNBC reporting that iPhone 6S is not meeting goals and that the estimated 80 million 4th quarter units is being “cut back” to 75 million units hurting suppliers. So if Apple does not sell 80 million units in Q1, they miss even if they beat last year. Perfect.

    http://www.cnbc.com/2015/10/28/why-now-isnt-the-time-to-play-on-apples-suppliers.html?__source=yahoo%257cfinance%257cheadline%257cheadline%257cstory&par=yahoo&doc=103115128

    1. CNBC is devoid of any update on the Apple Inc. results, other than what has been stated above. Obviously their copy for publication had nothing but negative stories, so nothing to put out but rubbish (as usual!)

  6. As always things are a bit more complicated than the over-simplistic view shown by MDN.

    Stocks values is a mix of “results” and “expectations” and here is the problem.

    Results are good but there are fears about expectations.

    There is ONE product on which Apple relies for its so good results and this product is the iPhone. The other products resist or sells stumble.

    The iPhone had exceptionally good results for two reasons. It entered the Chinese market and provided a large screen model (So much desired especially in Asian markets). It’s hard to imagine which new evolution to the phone could boost again sells in the same way. And it’s THAT that investors fear now.

    They see the risk that many people invested in the iPhone 6/6S but won’t invest again in a new iteration that won’t bring such a clear paradigm as for preceding models. If this happens with Apple’s cash cow (the iPhone), stocks will plunge. It’s as simple as that. And no… Nothing to do with “Apple is doooooomed”.

    1. You could say this for EVERY SINGLE iPhone iteration, we’ve heard a variation on that same theme since the iPhone was first released. It’s no more valid now than it was then. Basically it’s just FUD, which is what follows every single product apple makes.

      1. So you think that a new potential 1.3 billion user market and something as fundamental as large screens can be repeated every year???

        If you consider it as FUD it’s your problem… Fact is that it’s not you, Ron, and the other die-hard fanboys that decide of the market valuation of a company (even Apple) but large investors and speculators…

        If THOSE people think that what I described is true (and many start to think it) valuation will drop. December sales will be the numbers everybody will look at and that will decide of the direction AAPL shares will take.

Reader Feedback

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