“Apple’s iPhone-driven growth era looks over. Its passing may also end its shares’ decade-long bull run,” John Shinal reports for USA Today. “Stock analysts had expected the company to post a 3% sales decline for the fiscal year ending in September.”
“Given the company’s habit of beating conservative forecasts, that had been enough to stave off the bears and keep Apple stock flat this year, after it recovered some of its losses that sent it into a bear market late last year,” Shinal reports. “But Wall Street estimates will be coming down given Apple’s weak results and forecast. For the March quarter, revenue fell 13%. The drop should be enough to drive away what loyal growth investors were still left supporting the stock.”
“The company also reported that gross margin, or what’s left after product costs, fell to 39.4% of revenue for the quarter ended in March, down from 40.8% a year earlier. It also said the average price of an iPhone fell to $642 from $658 a year ago,” Shinal reports. “CEO Tim Cook right now has no other product big enough to drive overall revenue higher, and none profitable enough to keep profits from falling this year as well. Put it all together and you get a recipe for a coming bear stampede out of Apple shares.”
Read more in the full article here.
MacDailyNews Take: Overwrought poppycock from someone who should have listened to and digested what was stated on the conference call before filing his pap to the USA’s leading producer of birdcage liner.
SEE ALSO:
MacDailyNews presents live notes from Apple’s Q216 Conference Call – April 26, 2016
Apple reports earnings miss in Q216 – April 26, 2016
I placed my orders for the AAPL in the roulette so please sell as much as you can and as cheap you can! Hurry! Sell short!
Mmmm.. Feels good..
AAPL : Great company, better investments out there. It’s your money. Invest it wisely. Never fall in love with an investment. Never fall in love with a company. Invest with your head not with your emotions. Loyalty is something you have for your family and friends.You owe no company or investment loyalty. You invest to make money not to brag about owning stock in a particular company. You can’t spend bragging at the grocery store. And it’s not a profit until you hit the sell button. Profits on paper or a screen are not real. Utilities pay dividends. AAPL is not an equity worth investing in just for dividends. It was, and perhaps will be again, a growth stock. It’s your money, invest it wisely. And no, past results are no guarantee of future performance. In any equity or investment.
Sober and insightful, great post.
You back again shithead troll???
No balls, no shame and no pot to piss in, after all your bullshit swagger.
Anyone with a decent amount of shares is libing large off dividends, which you, loudmouth will never get.
Now piss off and vote for trump dick.
Nothing wrong with apple that a little attitude adjustment wouldnt fix. Apple needs to ship
some of their advanced products they have in the lab do thatbwe can buy them.
I’m sure iphone 7 will be wonderful as the new ipad pros. have been.
Call your broker. Buy apple!
This March quarter was going to be a tough compare to last year because of the huge increase in sales last year and everybody knew that.
But, here are some surprising results derived from the territory revenues this March 2016 quarter compared to the last March 2015 quarter:
Japan UP 24%
Europe down 5%
Americas down 10%
China and Asia down 26%
With the price increases I thought Europe would be down 15%, instead of only down 5%. This could mean that the European market, as a whole, is doing much better than what is being reported in the financial press. It could also mean the Europeans are seeing the true value in Apple products.
China and Asia being down so much can be partially explained by the purchase timing of the iPhones. In 2014 the iPhone 6 was not available at launch in China. It went on sale much later in the December quarter and demand stretched well into 2015. The iPhone 6s series was available at launch in China, so much of this demand was satisfied before 2016.
I also thought the Americas would be down at least 20% instead of being down 10% because of tough compares, Canada in a slump and Trump telling everybody to ban the iPhone.
So, when you look at the numbers, and compare it to last year’s huge surge in sales the 2016 March quarter doesn’t look that bad.
Great analysis – thanks. It would be nice if the market would think about these things but of course it won’t.
Big dive tomorrow. Hold on to your hats everyone.
Trump never told anyone to ban the iPhone. Don’t make statements you know nothing about.
Everyone either believed or hoped Apple was going down in flames, so for many it’s a long-awaited dream come true. As long as Apple is giving me greater dividends, I’m not going to cry about Apple’s share price tanking. I know how Wall Street views Apple, so it was inevitable the share price would tank hard. It’s only a matter of time before three or four tech stock surpass Apple in market cap due to their outsized P/Es. Only Apple retains the P/E of a steel mill going out of business and that will never change.
At one time Apple was the stock for winners, now it’s become the stock for losers. What goes around comes around and Steve Jobs will never be back to save the company one more time.
You lack so many PISA points with this calculation that it is amazing. Tim Cook has already returned our investment who are Long AAPL shareholders that it is Amazing!! I am drinking Cava at the moment for the Tim&The Company! (Don’t like Champagne). Absolutely fantastic Ladies and Gentleman! Thank You Luka!
Sad news for to day. Nokia bought Whitings. Withings was not bought because
What they can do. It was bought because of the name and .com address. Whitings has amazing products that work fantastically with Apple products. ResearchKit, HealthKit, CareKit, HomeKit and they are MFi certified. Nokia will because they are stil married with Microsoft screw this thing up spectacularly. Nokia has nothing to give to Withings and Withings just sold their name for free. Thank me that Whitings is not the only company in the huge wide Apple Ecosystem so I don’t have to bank on them. I am already changing programs out from Whitings and getting the hardware out before the Nokia screw up. I can still get money out.
That reminds me… Please short sell as much you can!
This too shall pass.
Let’s hope so.
How low with the stock go? Do I hear 75$, do I hear 50$. I’m still making a profit at these bear bottom prices. Apple is doomed doomed.
Then again they might leave their country of origin and Apple would be blessed or they could come up with the next big thing, like the icar or the iring or the ishirt, or the ishoe, or the eyewear, and Apple will be saved, though no one will write about that.
Or Apple will make so much gobs of money from software services that will bring in billions but make their stock worth pennies cause face it Whore Street thinks they are a hardwear company.
Apple products and services are a good test for the spirit of Apple, bear stampedes notwithstanding.
“Apple’s iPhone-driven growth era looks over.”
It sounds like Shinal has never seen a stock chart before.
It goes up, then down, then back up again, then down, then up, then down, then up again, and down, and up . . .
Long as Apple’s CEO pays more attention to ‘social justice’ instead of business, it will continue to fall. Their practice of ‘incremental’ improvements is about to catch up with them big time.
Maybe fellow millionaires can bail them out with the iCar with preorders like Tesla.
Maybe not.
What I don’t understand about their ‘social justice’ focus, how they justify their high profit margins over volume sales. There is no ‘justice’ in fencing people out with unaffordable products.
What happened today was inevitable: global economy is still in a bad shape, everybody and their mother has a smartphone in those countries that can afford one. Also remember that Google and M$ had bad quarters too.
Let’s face it: Apple has done SUCH a good job over the years that the market is saturated and people (myself included) don’t feel that they have to update their phone every year. iPhones are simply just that good, we can’t hold that against Apple even tho revenues/profits are declining right now
Apple is still making OBSCENE amounts of money every quarter and even though there is always room for improvement we should be proud of their achievements so far.
I care about Apple, not that much about AAPL. Hopefully the upcoming iCar will be the next BIG cash cow for Apple.
just a thought… but we have seen this movie before, more than once, with mr. apple taking a big nose dive in valuation.
and it always resurfaces. eventually.
might i suggest to those investors who are getting a bit wary of the roller coaster ride that the stock has been on, and don’t have much spare cash to buy more stock when the downturn comes.
perhaps consider selling a goodly portion, maybe half ?, of your apple holdings, take the loss, which you can write off on next years taxes, but still have a wad of dough to repurchase more stock when it hits its inevitable low and ride it back up again.
GM gave some great advice about not falling in love with a stock, but if you are smart you can hedge your bets and still come out a winner
Apple performed as they predicted.
This new buying opportunity is not to be missed. It seems logical that the move to the new campus will be accompanied by incredible innovation.
Apple always surprises. These results were exactly as predicted. I am glad the Bears are selling because I am a big buyer going forward.
Last night I sold some holdings in other companies that I made a tidy profit on in preparation for this event. This morning I picked up more AAPL shares at bargain prices. Looking forward to a larger dividend haul now.
The reaction from institutional investors is to be expected. Despite the usual reputation of wall street being a “casino”, fund managers invest based on what they can reasonably try to quantify. Right now, all they have to go off are expected iPhone sales in the future, as it is the biggest piece of Apple’s business by far. Until Apple shows them something different that will bring in additional large revenues, the value will stay down.
The real question that I can’t wait to see answered is what comes next? Apple continues to hire employees every quarter, and they continue to take more real estate for them to work in. I have enough trust in the management to say that all these employees are working on SOMETHING beyond iterating the iPhone or fixing the shi**y interface on iTunes one more time. Just scaling the existing products/services doesn’t need significantly more employees.
One can only assume that it is either a case where the market is not ready for the product, or the underlying technology and/or supply chain isn’t far enough along to support a mass market release. I don’t think you will ever see Apple launch a limited availability product like Google did with Glass.
Either way, it will be interesting to see what comes out of Apple in the next year or two.
Bull shit run you mean. Apple’s shares should have gone back over 400 at least. The market has never really given Apple a bull run of any kind. Knocks it down for trivial rumors and lies most of the time. Apple’s growth is not over by a long shot. Even though they didn’t hit what the market wanted they were still plenty profitable. More new products to come will change buyers minds.
🍎🐻🐂💩
CU next ¼.