Proof of Apple’s pricing power wasn’t enough to assuage the market

“You might not know it, but one of the unsung heroes of the stock market so far this year had been Apple,” Danny Vena writes for The Motley Fool. “The iPhone maker was one of the few companies to buck the recent market rout, going into its earnings release up more than 31% in 2018.”

“With that kind of performance, investors were looking for a better-than-average earnings report in order to justify a continued ascent in the stock price, similar to its unexpected strength in the third quarter,” Vena writes. “Unfortunately a strong earnings report was dampened by weak guidance and an unexpected announcement, which conspired to strip Apple of its $1 trillion market cap.”

“In an unexpected move, Apple executives said they would no longer report the individual product unit sales figures for the iPhone, iPad, and Mac computers that have historically been part of the company’s financial disclosures,” Vena writes. ” The company’s muted growth estimates and the decision to stop reporting device unit sales gave investors an uneasy feeling, and took the sheen off an otherwise stellar quarter. Apple wants investors to focus more on the big picture, but sometimes the devil’s in the details.”

Read more in the full article here.

MacDailyNews Take: Proof of Apple’s pricing power wasn’t enough to assuage the market, but it will be soon enough.

Apple’s focus is not iPhone market share, it’s on dominating the higher end of its markets – November 3, 2018
Apple’s iPhone just had its best year ever – November 3, 2018
Why Apple’s unit sales reporting doesn’t matter anymore – November 2, 2018
The ‘smart money’ shrugs off Apple’s decision to no longer disclose unit sales – November 2, 2018
Apple rams their message home: Think ‘Apple as a Service’ – November 2, 2018
Investors bristle as Apple occludes iPhone unit sales data – November 2, 2018
Apple’s decision to stop reporting unit sales of iPhones, Macs, and iPads is a ‘defining moment’ – November 2, 2018
Apple to stop reporting iPhone, Mac, and iPad quarterly unit sales – November 1, 2018
Apple tumbles 7% after reporting record-breaking quarterly earnings – November 1, 2018
Apple beats Street with another record-breaking quarter – November 1, 2018


  1. The one trick pony has topped out on the market. They had to bump ASP to keep revenue from dropping but that only goes so far.

    They are hiding the fact that the entire arc of the iPhone phenomenon has passed and they are still highly dependent upon it to pay the bills.

    Tim Cook has built a ton of overhead and rental rap is not going to make payroll.

  2. Most anal-ysts overlook EGG trajectories (+-BUN) when calculating EGG curves anyway; you have to wonder how the absence of unit sales is going impact perceivable BACN thresholds as AAPL once again crosses the $1 trillion mark.

  3. Everyone can speculate all they want…… praise, bash, spread fud and doom and gloom…etc

    But hey.. lets just wait another 3 months…While remembering what we ranted about in the meanwhile.

    Im on the positive camp..i think it will be a great holday season.

  4. Wall Street was so happy to strip Apple’s trillion-dollar valuation and now Apple is naked as a jaybird. Everyone believes Amazon is the rightful owner to that trillion-dollar valuation and its climb is starting again in a quick way. Why can’t Apple find a way to stop that darn volatility with such a lowly P/E of 18 or so. It’s easier for stocks with P/Es of 50 and above to maintain their share price easier than Apple can. It’s just so darn weird. So few big investors cherish Apple as they do the FANGs. Everything Apple does seems to be a useless effort. I have no answers except maybe for Apple to acquire an unlimited growth cloud business as all the other major tech companies have done. Those cloud-packing companies will never have to have the crap beaten out of them each quarter like Apple gets. Dammit!

    1. I hope all fickle, disloyal, and money grubbing investors lose their shirts on Apple. You know why? Because Apple does not need their unsightly participation in its hard-earned wealth, so I anticipate maximum schadenfreude anytime that happens.

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