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01-28-2014, 09:44 AM #1
AAPL Getting Pummeled on Wall Street Today
Shares of AAPL are down more than $40 today, pushing the embattled stock dangerously close to the $500 level for the first time in months as investors react in a surprisingly negative way to Apple's latest earnings results.
As MMi reported last night, Apple posted record quarterly earnings of $14.50 a share on sales of $57.59 billion last quarter. During the holiday quarter, Apple sold 51 million iPhones and another 26 million iPads. However, Wall Street was expecting Apple to post closer to $58 billion in revenues on sales of at least 56 million iPhones and 24.5 million iPads.
And the stock is getting hammered in response to the "not-good-enough" record earnings and sales.
Mark Moskowitz, and analyst with J.P. Morgan, says that the iPhone is stumbling into another New Year.
"We expect shares of Overweight-rated Apple to be under pressure in the near term," Moskowitz observes. "iPhone units were light, and the guidance for the Mar-Q implies continued softness, alongside higher OpEx. We think the iPhone air pockets reflect broader slowing in the smartphone market and company-specific factors. Apple is preparing for a few more quarters of turbulence in developed markets (North America) due to upgrade policy changes. Plus, Apple signaled the China Mobile roll-out will be limited by 4G-readiness. Our estimate revisions de-risk for these setbacks and higher OpEx, with a partial buffer in better-than-expected iPad trends."
01-28-2014, 10:34 AM #2
Maybe if they finally gave people what they want they wouldn't be in the position they are right now. I'm sure delivering a larger screen would be good enough to help Apple, they should've done that two years ago. On the meantime people are moving over to android because they are offering what people want. Instead of introducing the iPhone C, they should've introduced two different screen sizes. This company is nothing without Steve Jobs.
01-28-2014, 10:43 AM #3
Great time to buy. They posted record sales. Wait for it to drop a lil more and get in if you can. They will announce something soon there's no other option.
01-28-2014, 11:20 AM #4
Agree, if it drops below 480 I'm in. Android may have way more phones but they make way less money and that is the name of the game.
01-28-2014, 11:25 AM #5
While I was fine with the 3.5" screen, I have come to love the 4" screen. Im sure I will soon embrace the larger screens coming. Lets be honest, the only reason someone goes from iPhone to Android IS screen size. I have not heard anything to the contrary since they have come out. I agree that Apple should have made a larger screen instead of the C model, to at least test the waters so to speak. Won't be long before we see the outcome of these efforts. Will it just be another thing to complain about..time will tell.
01-28-2014, 11:25 AM #6
So they were expecting 300m more in revenue? I'm sorry but when we're talking more than $50billion, $300m doesn't seem like a lot to me. I feel like everyone expects way too much from apple. They expect impossible goals for a company to do at that time.
01-28-2014, 11:26 AM #7
Also, If Apple wants to "Buy back" stock, what better way to do it? Let the stock price drop and buy it up. Come out with two larger screens before years end and the stock sky rockets. Makes perfect sense to me.
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01-28-2014, 12:08 PM #8
01-28-2014, 12:30 PM #9
I'm so tired of hearing people complain with no Steve Jobs Apple is doing poorly don't forget how arrogant he was about what people need and want he made sure that the phone could be used with one hand and never believe a larger phone was appropriate
01-28-2014, 12:57 PM #10
01-28-2014, 01:10 PM #11
01-28-2014, 01:41 PM #12
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01-28-2014, 03:23 PM #13
I would be curious to see what would happen if the current two-model system was converted into a two-size system similar to the iPod and iPod Mini/Nano. If the next generation's iPhone xC model were a 4" phone (or, hell, even a 4.5 to 5 inch phone) in multiple colors (similar to the Mini/Nano) and the next generation's flagship iPhone (maybe maintaining the s branding [6s vs. 6c] or adopting a new name [like the iPad Air was this year]) were to adopt a bigger but still sub-phablet screen size (because then Apple will not have to answer as many questions about being a follower instead of a leader) and somewhat (but not insanely) better specs (i.e. don't just throw last generation's guts into the c model like they did for the 5c), I feel like this might be an acceptable compromise. However, it would be key to pick a screen size that maintains iPhone-retina classification (>320dpi or whatever it is, as opposed to "retina" for iPad and MBP, which are much lower because they are held at a farther distance from the eye) and a proportional resolution (to avoid fragmentation as much as possible).
For what it's worth, independent of whether or not introducing a bigger screen would help Apple, I have a hard time believing that Steve Jobs would have done it were he still CEO. If anyone believed in ignoring the public's expressed desires, it was Jobs. I think it is more likely that he would have either completely changed the form factor of the phone (to justify enlarging the screen) or written off the large-screen people and focused on trying to beat competitors on other features, so that the size issue could be written off until market tides turn again (think about how preferences for gadget size has oscillated in the last fifteen years).
01-28-2014, 04:35 PM #14
One of the other reasons I've made a change recently is due to the inclusion of newer technologies. Don't get me wrong, I like Touch ID. EMV compliance will drive the inclusion of techs like NFC. Read up on this white paper to better understand how chip & pin will likely force Apple's hand in bringing NFC on-board or trying to find another way to bring down per-purchase costs for companies when the transition comes at the end of next year. (White paper link: http://www.redhawkus.com/wp-content/...tms-to-emv.pdf)
Apple is behind the curve in this regard, and it's a reason why they lost 3.5% of the global smartphone marketshare over the last 12 months. (Source: Samsung pulls further ahead of Apple as smartphone shipments top 1 billion worldwide - GeekWire) One thing Apple has going for them is a rabid fanbase. Overall adoption of smartphones is on the rise, which is why even though year-over-year sales have increased, marketshare has decreased. The 5C was a shining example of missing a target emerging market demographic. Do they seem to care? Likely not so much, but they're taking a hell of a pounding because of it.
Edit: Forgot white paper link. Added now.
Last edited by TooSlo; 01-28-2014 at 04:39 PM.