“Apple investors are braced for more bad news when the tech giant reports its latest results on Tuesday, with analysts warning that the abrupt drop-off in iPhone sales at the end of last year could continue throughout 2019,” Tim Bradshaw reports for Financial Times. “Shares in Apple plunged in early January when chief executive Tim Cook said that revenues in the three months to December, typically its most lucrative quarter, were likely to fall by as much as 5 per cent.”
“Many analysts remain concerned that Apple’s iPhone woes were not confined to the previous quarter and that its struggles in China go beyond macroeconomic conditions,” Bradshaw reports. “‘This isn’t a one-off thing. I think this is a potentially year-long problem, if not longer,’ said Ben Bajarin, analyst at Creative Strategies. ‘We don’t know where the bottom is yet [for iPhone sales].'”
“While Apple has already detailed the problems in its fiscal first quarter, Tuesday’s earnings report will be the first time it has provided any guidance on the rest of the year,” Bradshaw reports. “Analysts at Morgan Stanley, however, maintain that Apple’s share price already reflects an “extremely cautious” outlook for iPhone sales. The stock could rise further if Apple guides to March-quarter revenues of more than $58bn, Morgan Stanley said in a note to clients on Friday.”
Read more in the full article here.
MacDailyNews Take: As always, Apple’s guidance will be critical (although, investors would be right to be skeptical given Apple’s failure to even come close to their last revenue guidance figures).
Opportunities to buy in low. You can be sure that Apple are buying back like crazy at the moment. I wouldn’t be surprised if Berkshire Hathaway is doing the same.
If Apple readjust the iPhone pricing a bit, especially in the Chinese market then sales will rebound.
There will be no rebound of iPhone sales in China. Everyone in China is using WeChat so they have no need for higher-priced iPhones. iPhones will never be as cheap as Android smartphones, so Apple is royally screwed. Almost no one will pay more for privacy or security, so that’s no strategy for Apple to pursue. Android turned out to be a better mobile platform strategy and now there’s little Apple can do about it except to continue losing market share.
Any company losing millions of unit sales every quarter is rather frightening, so big investors will continue to dump Apple stock. Greedy investors can’t wait around for rebounds.
This stock is toxic. Tim Cook’s apple has ruined more investors than the crash of 1929.
If more bad news is on the horizon (and it probably is), you had better drop this stock like it’s a soapy iPhone 8.
Apple needs a new leader, new products, a new way of treating their customers… and most importantly, A NEW GAME PLAN!
You haven’t lost a penny until you sell it.
My shares would have to get below $4 before I would lose money from the original investment.
@Fesarius
The fallacy of Apple Fanboy Investors:
That Cook can continue to rip off consumers unfettered, without consequence
That Consumers will continue to consent to being overcharged and nickel and dimed by Cook each year
That minor product changes can continually constitute a 40% increase in price
That Cook can continue to mark up cheap storage by 10,000% in perpetuity
That consumers will continue to upgrade perfectly good working devices for overpriced new devices that are virtually identical
The gravy train is OVER. It has come into the station and the fat lady is singing like Mariah Carey. Apple consumers are done with Tim Cook. He can’t leave the CEO chair fast enough at this point.
The fallacy is in your cognitive dissonance.. and immature crybaby inexperience.. combined with a nauseating loud mouth!
U must have been brought up as spoiled ‘mommy’s baby ‘
Still are !
Someone who has zero sense of self discipline and responsibility.. who blames everything else except himself.. and expects others to clean up their Sh-t!
Hopeless!
YES, the “gravy traIn is indeed over.” And YES, Clueless Creative Deficient Cook needs to GO as soon as possible to save Apple from a political activist beancounter. Milking a one product cash cow is finally drying up and we see no pipeline innovations to spark the company forward. How many years has Apple worked on Project Titanic and the ONLY thing they have to show for spending BILLIONS is LAYOFFS?
Nuff said…
“….readjust the iPhone pricing a bit…”
How much is “a bit?”
The current trade-in will help out. Bringing the pricing down by $100 should also bring the range down to more reasonable levels.
Many people were willing to pay the premium prices when the X first came out, but after a year not so much.
It’s just scary how clueless Apple is when it comes to holding its value. It’s as though Apple never saw iPhone sales collapsing after raising iPhone prices as high as they did. Especially in China where everyone is happily using WeChat on smartphones and cheap Android smartphones, at that. Apple is either arrogant or foolish to think plenty of consumers are going to continue to pay higher and higher prices every year or two for a smartphone. There are only so many hardware features a company can add to a smartphone to boost its value. Processor speed and camera quality is already as good as most consumers will ever need.
Why hasn’t Apple gone into the cloud business as every other major tech company has done? Apple should be pursuing high-growth businesses instead of only sticking with some dead-end growth smartphone business. There are no countries left except emerging countries filled with poverty-level consumers who can’t afford even the cheapest iPhones. I can’t believe Apple wasn’t able to figure out such a simple thing.
Maybe these recent losses don’t hurt Apple very much, but it’s a real killer for shareholders who put their faith in Apple’s decisions. The FANG companies understand what it takes to keep their value up, but yet Apple doesn’t get it.
It’s not easy for a company of Apple’s size to lose a third of its value in a month or two, but Apple made that look very easy. One could think there must be something wrong with the way Apple is being run, but no company is perfect. I suppose I should be glad Apple didn’t lose 50% of its value because it depends so much on iPhone revenue.
“Apple is either arrogant or foolish….”
Both. Add greed too.
“Apple should be pursuing high-growth businesses instead of only sticking with some dead-end growth smartphone business.”
If Tim Cook knew what those high-growth businesses are, not being a follower in what others had already been doing (such as the Project Titan?), Apple would not be here in this turmoil. He had to be a strategic thinker with a good level of technical knowledge and a forward vision. He had to throw away his calculator. One might rightly wonder why he did not see the future, the coming of saturation of smartphone biz and why he relied on one trick and put everything in one basket when it was so easy even for a real layperson to see it coming. I am certain that the mystery would untangle in due course and perhaps rather quickly.
Spot on analysis…
??
Not many years ago Amazon was ONLY a bookstore, Now they are dominating markets Apple invented, Cloud? Alexa vs Home-pod? Movies and entertainment content? Fire TV Stick vs Apple TV, Search Siri vs Alexa, and more? It’s embarrassing. And with everything Amazon is “the All Brand New!” Apple has nothing new,,, WTF? And who sneaks by Apple in market cap? Microsoft. Embarrassing. And I say again, What walled garden? what ecosystem? I don’t search with Siri, I don’t use Apple Tv, I opted not to by the HomePod, I barely want Icloud (it doesn’t even work as time machine, I use Adobe and MS programs because they’re better, I can go on, Again, WTF? does anyone from Apple even read this blog? or are they doing yoga somewhere?
🤔🤔🤔
So many goodies out there u can enjoy beyond Apple.. …why are you wasting the precious moments of your life posting in a forum of such loser company?
Its baffeling!
Unless you have nothing better to do in your life.. which of course says something about your character more so than your comments about Apple…
Because it hurts watching Apple miss obvious “on-ramps”.. The same things every other poster here talks about. Because I’m heavily invested from two decades ago, have been a fan for 3 decades and because I built my business around Apple products, like FCP, and MacPros, and care about the company, and my investment, I care about privacy and seeing great Apple tech take humanity into the future. How’s that.. What ideas do you have?
Well then why all the bashing and irrational comparisons.
Apple has the iMac pros and FCPX both of which are very much capable of delivering.
And as promissed , this year modular mac pros will be available..along with Apple displays.
What products does Amazon offer that compete, as it seens you praise Amazon over Apple .
As far as company profitability;
Apple makes more profits in 2 quarters than Amazon has in Its entire existance!. ( now WS bs is a different matter )
If your intention is constructive feedback, then why bash and make irrelevant comparisons… with a company that does not even offer anything for you area of work?
Why not write Apple feedback with your suggestions.
Why not post constructive suggestions on forums that express a need or an improvement. ….
Spewing negativity is not to be confused with constructive criticism …
You are a mindless, drooling fan boy. JR offers all kinds of CONSTRUCTIVE criticism. You are just too dumb to read it. Tim Cook has dropped by ball on all kinds of initiatives that Amazon, MIcrosoft, and others have picked up and run right over Apple with.
Result: A spectacular drop in value for Apple. Investors seem Tim Cook for the total fraud that he is. Cook is a bean counter, and NOTHING more. He’s a Steve Ballmer and NOTHING more.
Without fresh blood, Apple’s days are dwindling away. China is not coming back. An Android phone with WeChat can do EVERYTHING a Chinese person wants. I’ve lived in China for 6 years and nothing happens on a phone that isnt done by WeChat. Apple has NO answer for WeChat. None.
Result: Rapidly falling sales in China. The market Tim Cook needs most. Cook’s total lack of innovation is killing the Chinese market.
Cook is in over his head. Surely he knows that now. For counsel, Cook relies on Eddie Cue and Phil Shiller. Two lazy morons who by any objective analysis are just mailing it in.
Greenspan, Von, Zero… ( different nanes same stupid mind )
You would not recognize constructiveness if your life depended on it, literally!… as u have prove over and over and over again everyday.
You would not recognize cunstructivness if it slapped you flat on your face…
I reapeat again..
you suffer from massive cognitive dissonance.. and immature crybaby inexperience.. combined with a nauseating loud mouth!
U must have been brought up as spoiled ‘mommy’s baby ‘
Still are !
Someone who has zero sense of self discipline and responsibility.. who blames everything else except himself.. and expects others to clean up their Sh-t!
Get a f-ing life …. but nah…even that would be a waste !
Jimbo, I am absolutely stunned at your response and rate it your worst ever, sorry. You IGNORE the constructive criticism that is spot on by @Jr and @Alan Greenspan and many others. Your name calling churlish responses speak volumes. Too obvious as a blind fanboy you cannot debate the points and offer counter arguments. Personal attacks might make you feel good, fake upvotes might make you feel good, but they are worthless. Nothing against you and we have agreed for many years. But sad to say critical thinking is MISSING for months now in your DEFENSIVE cheerleading fanboy posts since Apple lost the trillion dollar lead. Like you are a different person. Recommend you step on and break the rose colored glasses…
Yup it seems so simple, All apple needs to do is:
1) update all their Macs once a year with spec/speed bump and price adjustment every six months.
2) build a “corporate box” with user replaceable RAM and SSD, with a few ports and 1 or 2 standard slots for a graphics processor and/or an audio processing board.
3) keep developing OS X and iOS with security and privacy in mind.
4) build a range of iPhones at different prices and sizes- I’m thinking a 4″, 5.5″. and 6.1″ would be plenty.
5) figure out someway an iPad user could be introduced to the Mac and vice versa.
6) do something smart like have an agreement with Parallels and Microsoft to have “1-click” installation of windows on the corporate box. Consider what people are doing with their Macs and make the iPad be like a Cintiq when connecting to a Mac. Why give Wacom $2k when the iPad is VERY close to that already- just get the iPad to be tightly integrated with Photoshop, Final Cut and other creative software. Even be smart and get Microsoft’s development software on the Mac.
7) consider if there is a market for a media/file/print/web/backup/license/software server for an “almost no touch” server for a 1 to 20 (or maybe 1-100) person company. Wouldn’t it great if you could buy a Mac, plug it to a network and have ALL you data, programs and licenses moved to the new machine with 1-click? Just imagine a Mac mini server under someone’s desk in a plumbing company and the owner KNEW buying/updating one of his employee’s Macs was no problem at all and his employee could be working efficiently on a nice, powerful, and quiet NEW Mac within 30 minutes of that Mac coming out of its shipping box. Just imagine. How many times have YOU discounted the possibility of upgrading because you didn’t want the hassle of configuring a new machine including software licenses? I do that AT LEAST twice a year.
8) STATE CLEARLY what Apple’s intentions are in the corporate- pro user market? Like this: Apple is committed to the Mac for professional use and will update the Macs/iPads/iPhones in a timely manner.
It seems to me in a week they could start to do all of the above and in 90 days have products on the shelves to sell. The above is worth 30 to 50 BILLION a year in gross revenue. Why leave that much on the table?
The worse scenarios is AAPL tanked on Tuesday afternoon. after earning reports. Apple’s investors should brace for the impacts. 🙂
I wouldn’t be surprised of Apple stock went up after the report. All the years that Apple exceeded expectations, their stock fell after the quarterly report. This year after and the negative press, announcements and predictions, Wall Street will probably BUY Apple stock.
I bought Apple when it was $29 a share. I’m yawning during this latest news. lol
People who can afford millions or even thousands of shares are making out like bandits as share price drops. Paid dividends are a gift that keeps on giving. All the trash talk over the past decade are about trying to keep out small investors while the big boys make out
As long as Apple continues to pay out dividends — the compnay’s profit margins are a constant and insane %30+ – there is little risk in owning stock.
Cook took a gamble setting the new X prices so high, it did not pay off. The new Android has great alternatives for the younger generation who change phones often. I am still on an iPhone 7 and happy, will not pay the crazy price for the Xs Max. It’s too expensive. That’s why they don’t sell. Plain and simple.
When was the last time anyone in this forum was blown away by new product announcements ? Apple can barely get a charger to market. Apple music has nothing exciting. Get some custom live concerts for content, something to watch, Speaking of watch, why not see commercials about it’s health benefits ? Pound the airwaves. We’re the customers screaming for what we want and need and it’s trickling out to the stores if at all. BTW, FCPX is still not embraced by the pro community, perhaps its good for bumping YouTube videos together, cool, but why not have a pro community, with all their money BUY Avid, or create something. Damn, the are saying they want to be a content king,, why not shout “made with FCP or Made on a Mac” with every production. (when they finally start rolling content out, Somehow Amazon “just did it” So this is about real money and real losses and matters If you have skin in the game.
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