Gadget Stock Watch: Apple Disappoints, Handset Stocks Struggle, More

1. Apple's spoiled outlook. Apple (AAPL) tumbled 11-plus percent to $137.93 in extending trading Tues., following its FQ1 earnings release, and adding to its loss of 3.5% to $155.64 during the normal session. Despite record FQ1 earnings ahead of analyst estimates, Apple's current quarter EPS and revenue outlook ($0.94/share on $6.8B) missed expectations ($1.09/share on $6.99B) and fueled concerns over whether Apple can sustain growth in a deteriorating U.S. economy. See AAPL's earnings call transcript.

2. Motorola selloff pre-earnings. Motorola (MOT) dropped 7.6% to $12.32 on Tuesday and fell another 2.6% to $12.00 in late activity, on bearish analyst estimates and commentary. MOT reports earnings early Wednesday. Among other handset stocks: Nokia (NOK) -2.8% to $31.70, Palm (PALM) -4.8% to $4.94 and Research in Motion (RIMM) +1.7% to $90.08, although RIM fell 3.2% to $87.20 in late activity.

3. Garmin's woes continue. Garmin (GRMN) lost 5.8% to $59.36 on Tuesday, falling to a multi-month low, and was off 3.1% to $57.50 in late trading on light-volume. Morgan Stanley had "somewhat positive" comments on GRMN, noting NPD data showing market share expansion, and calling GRMN oversold.

4. Blu-ray sales surge, HD-DVD sales sink. Warner Brothers' (TWX) announcement earlier this month to only release films on Sony's (SNE) Blu-ray DVD format seems to have convinced consumers which player to buy. Sales of Blu-ray players increased 43% to 21,770 units the week after the announcement (ending 1/12), while HD-DVD player sales dropped 88% to only 1,758 units, according to data from NPD. In the week prior, Blu-ray had outsold HD-DVD by a more modest 5%.

5. Disney's cellphone plans for Japan. Disney (DIS) said Tuesday it will launch its cellphone service in Japan from March 1, with partner Softbank Mobile, Japan's third-largest wireless carrier. Disney plans to target women by offering a variety of value-added services. Last year the company closed its U.S. cellphone operations, which had targeted children and their parents, in a partnership with Sprint (S).