Apple’s iPhones may be selling better than Wall Street bears think

“Broadcom reported better than expected quarterly results on Dec. 6 after the close. But more important the company saw better than expected wireless business growth,” Mott Capital Management writes for Seeking Alpha. “It should be a positive read through to Apple and suggests that perhaps things at Apple aren’t as dire as some have feared.”

“Broadcom reported fourth quarter revenue growth of 8% sequentially and 12% year over year. But more importantly, the company saw sequential wireless growth of 32% in the fourth quarter and a year-over-year decline of 5%. Broadcom had noted in its third quarter conference call it was looking for wireless growth of 25% sequentially driven by a ramp-up of its North American OEM. It puts the current wireless results ahead of expectations,” Mott Capital Management writes. “The company noted on its fourth quarter call that the better than expected wireless revenue was driven by upside volumes and legacy phone generation and also its North America OEM.”

“Broadcom is a significant supplier to Apple,” Mott Capital Management writes. “Based on the latest results out of Broadcom one can confirm that perhaps iPhone sales may be weak, but far from a disastrous… consensus revenue estimates have fallen just 1.5% to $91.54 billion which is around Apple’s guidance. Additionally, earnings estimates have dropped 1% to $4.68 per share. Again, despite all the fears of iPhone weakness revenue and earnings estimates have remained relatively unchanged. All of this would suggest that Apple’s stock is likely oversold on fears that may be greater than reality.”

Read more in the full article here.

MacDailyNews Take: “Apple’s stock is likely oversold on fears that may be greater than reality.” Gee, ya think?

SEE ALSO:
Apple supplier Broadcom suggests older iPhone models are in demand – December 7, 2018
Apple shares continue to fall as iPhone lens-maker reports sales drop; analysts downgrade – December 6, 2018
The pessimism and hypocrisy surrounding Apple is endless – November 28, 2018
Here’s why Apple is ending unit sales reporting of Mac, iPhone, and iPad – November 28, 2018
The end of iPhone, Mac, and iPad unit sales reporting is not bad news for Apple – November 27, 2018
Is Warren Buffett adding to Apple under $175? – November 26, 2018
Explaining the recent Apple selloff, and why the stock looks undervalued – November 23, 2018
Apple is no longer worth anywhere near one trillion dollars – November 23, 2018
Apple to lower iPhone XR pricing in Japan in order to boost sales – November 23, 2018
Why the bad news on Apple keeps on coming – November 23, 2018
In the darkest hour of Apple’s ‘white-knuckle period,’ some investors are loving it – November 21, 2018
Misreading Apple’s supply chain and iPhone XR demand – November 15, 2018
iPhone XR production cuts not due to soft demand – analyst – November 10, 2018
Nikkei claims iPhone XR production cuts, Apple stock drops over 3% – November 5, 2018

15 Comments

  1. Hilarious. Half a dozen Apple suppliers report poor earnings and even worse forward guidance and all that data is disgarded by the mouth breathing Apple fan boys.

    Then, ONE single supplier reports a positive earnings and it’s ALL GOOD.

    You can’t make this shit up.

    Pipeline is soooo lucky to have these cretinous apes on his side.

  2. All these suppliers stating lower forecasts also supply the other phone makers. I think the other phone makers are suffering not Apple – Wait and see the other phone makers numbers – You will see…

    1. Analyst hypothetically says, “Sell Volvo.” “Why?” “Because their sales are terrible. The company that provides their headlamps says orders are way down.” “Is Volvo their only customer?” “No, they sell to GM, Ford, and Chrysler, too.” “Then why blame the decline in orders on just one customer and not their competitors?” “Because everybody knows Volvo has terrible sales.” “But what is the proof of that?” With a puzzled expression, “There’s no proof. There’s no proof of anything.”

      And there we have it. Facts no longer matter when everything is treated as if it were a mere opinion. Since all opinions are equally subjective, all opinions are equally valid. The notion that decisions should be based on facts, evidence, and science suggests that informed opinions might be worth more than uninformed ones. That seems elitist to the populists who want us to accept their opinions on faith without evidence, because “there is no proof of anything.”

      “I don’t like Tim Cook, so Apple sales must be down,” is on a par with the Volvo argument.

  3. Next year cyber monday falls on December 02. This year it fell on November 26. For many, many people in America, this means one less paycheck before Black Friday / Cyber Monday. The holiday shopping season is far longer this year and deals have already been extended. Analysts and even Apple and its suppliers may be under on their predictions because the data models are based on last year, not on super early Thanksgiving.

    1. My heart was wrenched when AAPL fell below $200, so now I don’t have any bottom expectations. No matter, I’m long Apple 2004, so it still has a long way to fall to reach that level.

      It’s somewhat disappointing to see Apple now below both Amazon and Microsoft in market cap, but it is what it is. It comes as no surprise how Apple’s iPhone dependency is a biatch.

  4. Panic is a self fulfilling prophecy .. (and oh what a bitch it is )
    And in this case… The frenzied lemmings are jumping off the cliff in droves…
    The panicked individuals have no one to blame but themselves for enabling and going along this narrative way out of proportions and beyond….avalanching it out of control… or adding fuel to the fire with their panic, so to speak..

    People should makeup their minds on basis of information… not the other way around.
    But unfortunately its not so.

    Dont get played…

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