“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.
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