Apple closes lower in spite of praise; Benioff sees Ahrendts as next CEO


Though sell-side commentary on Apple's (AAPL -2.3%) FQ4 numbers was largely positive, investors decided to take profits following a 26% rally from where shares traded going into July's market-pleasing FQ3 report.

Canaccord's Mike Walkley joined the list of analysts praising Apple's numbers; he sees Apple "well-positioned" to exceed Street estimates, even though he expects "more aggressive" 5C pricing in 2014 to boost international sales. Meanwhile, Needham's Charlie Wolf gave a thumbs-up to Apple's decision to maintain premium pricing, rather than move downmarket to better compete against cheaper Android hardware.

While the sell-side dissected Apple's numbers, Salesforce CEO Marc Benioff is predicting new retail chief/ex-Burberry CEO Angela Ahrendts will be Apple's next CEO. Benioff declares Ahrendts "the most important hire Tim Cook has ever made."

Also: The Korea Herald reports LG Display (LPL) and Taiwan's RiTDisplay ar expected to supply flexible OLED panels for an iWatch. A month ago, a Korean site reported the iWatch will feature a flexible OLED, and that Apple is working on prototypes sporting 1.3", 1.4", and 1.5" displays.

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Comments (22)
  • jsmunroe59
    , contributor
    Comments (122) | Send Message
     
    Way too soon to be naming a new CEO for AAPL. Cook has been exceptional. Going in behind Jobs was no small feat. Only one place to go but down. Cook has held the company together and strong. Retail is only one component of AAPL's success. Supply Chain and Product design/manufacturing far exceed it's present retail contributions although they too are TOP SHELF. Anyone stepping in behind Cook will have bigger shoes to fill then Cook did going in behind Jobs. Whoever it is, I hope they have the vision to realize the "ubiquitous" potential AAPL has for those fortunate enough to own their products.
    29 Oct 2013, 07:59 PM Reply Like
  • User7766461
    , contributor
    Comments (158) | Send Message
     
    I don't think he means immediately. Cook was hired as SVP of Worldwide Operations in 1998, was soon named COO (which just happens to be vacant right now...), but didn't get the reins for another 13 years. Ahrendts could definitely be a contender in 10 years. She has done some impressive things for Burberry.
    29 Oct 2013, 08:03 PM Reply Like
  • SoldHigh
    , contributor
    Comments (991) | Send Message
     
    Clearly, no longer a growth story. Let's go for the value-play argument.
    29 Oct 2013, 08:08 PM Reply Like
  • krames
    , contributor
    Comments (174) | Send Message
     
    There is absolutely no reason for apple to come out with a low cost phone at this point. 1. It would diminish the brand. 2. USA is accustomed to paying the higher price & they are even gaining share. The 5c is $100 cheaper than the 5s and for kids they can get the 5c for $ 99 Or threw carriers even at $0 cost. When CHL comes aboard then they should consider maybe a lower cost phone or discount the 5c a little. The elephant in the room is when CHL wants to role 4G, Its my understanding APPLE is the only phone that can support their 4G system. CHL customer that will get the 4G will represent 15% to 20% of the 750 million customers. I did not just come up with those numbers, there form China Mobil article not a author. So, roll the 5s and 5c out and get the top earners in china. 15% of 750 million is 105 million. Thats a lot of high end i phones. Catch the big fish first. worry about 2g 3g fish later or let somebody else have them. Personalty I don't thing the CHL deal will not happen until next year. I hope I am wrong..One more thing Japan can afford the high end i phone as well.
    29 Oct 2013, 08:09 PM Reply Like
  • 2puttwo
    , contributor
    Comments (656) | Send Message
     
    That's a pretty bold prediction coming from CRM which uses GNAAP, for their quarterlies. The n word stands NOT!!!.
    29 Oct 2013, 08:43 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (2751) | Send Message
     
    If Apple can fall that much with so many positive notes today, then we might be looking at $500 or the 50dma. We will see. It has run pretty well, even though it is still undervalued. The guidance seems very conservative, at less than 10% rev growth. Especially when you consider DoCoMo and the heavier rollout schedule. If you factor that in, then midpoint is really no growth at all. I don't see how they will make it below the top number. Looks impossible to me, but I must be missing something. Macs higher YOY, iPads higher YOY, Iphones higher YOY. Iphones in China and many more countries than last year. 5% isn't a whole lot. Any thoughts on where she bottoms?
    29 Oct 2013, 08:44 PM Reply Like
  • stevereid
    , contributor
    Comments (31) | Send Message
     
    I would like to start a conversation-- first with an observation, then with a question, and finally with a suggestion.
    1. The Observation: I see people using their smart phones a a "boarding pass" at airports. I assume they can do this either by sending it to the Passbook App, or by e-mailing it to themselves and "flashing" it under the light that confirms their authenticity to board.
    2. The Question(s): Does (can) Apple monetize these transactions? I would think this could grow to become a very lucrative market segment. Which leads to a bigger question: How far off is the day when smart phones will be used as credit cards?
    Apple has over 100 million customers (many are stakeholders) who could use this service. With the new fingerprint technology, I would think this application is not far off, as the security question should be fairly easy to resolve. The existing credit card companies would want in on this and would be best qualified to administer these programs as they have done the credit searches and approvals, but apple could monetize this by charging a small fee for each transaction. Given the large number of existing customers, the earning potential is huge.
    I am reminded of the Edwin Land Camera (Kodak) 20-30 years ago when the camera (the Polaroid) was practically given away in order to SELL the film (which is where the money was made).
    My hope is that others will add to this conversation and we can present a new and lucrative idea to the Apple Management Team. I am long Apple and want to see them succeed mightily.
    29 Oct 2013, 09:14 PM Reply Like
  • Joel F
    , contributor
    Comments (108) | Send Message
     
    Those boarding passes are from airline mobile apps. Not more convenient than paper the way currently designed and destined to be free unless airlines decide to start charging for ticket printing which is not impossible.

     

    Google already has a mobile payment system - Google Wallet. You may have seen these point of sale units at a local Starbucks for example. Again, not more convenient than just pulling out a card.

     

    If a company were to figure out a way to make it more convenient and secure, then yes the potential exists. Although it couldn't be more expensive then the current model if you wanted businesses to adopt it.
    29 Oct 2013, 10:02 PM Reply Like
  • gjg49
    , contributor
    Comments (510) | Send Message
     
    One of the big potentials of the 5s is the fingerprint security. If that proves very strong, I would rather use it than a credit card as my fingerprint would secure that only I can charge anything against it.
    30 Oct 2013, 10:05 AM Reply Like
  • jeanewight
    , contributor
    Comments (344) | Send Message
     
    Rather than subjecting myself to all the negative
    Pronouncements about Aapl, I seriously think I
    will tune everything out and check back in in about
    5 years. I believe in the company so why expose
    oneself to all the naysayers' opinions which are,
    after all, subjective and often myopic?
    29 Oct 2013, 09:17 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1814) | Send Message
     
    Make some money also. Sell me some cheap puts. With a five year strike. I'll pay an attorney to draft an agreement since the exchanges don't write 5 year options. Since you are so sure Apple will be in +ve territory, why don't you also profit by it?
    29 Oct 2013, 11:25 PM Reply Like
  • jeanewight
    , contributor
    Comments (344) | Send Message
     
    You are in essence challenging my either well-founded or misguided optimism with a rhetorical question.
    31 Oct 2013, 10:26 AM Reply Like
  • stevereid
    , contributor
    Comments (31) | Send Message
     
    Wouldn't it be great if Tim Cook would end his next presentation by using the Steve Jobs pitch (as he walks off the stage after making his presentation)

     

    "OH, THERE'S ONE OTHER THING"

     

    and have that "thing" be the monetization of the iPhone.
    29 Oct 2013, 09:18 PM Reply Like
  • ispank
    , contributor
    Comments (1130) | Send Message
     
    Jim Cramer on CNBC said that there was a headlines bashing Apple before the conference calls which caused a selloff yesterday. I was sweeping the leaves on driveway and thinking of what he got to say, then I
    realized there is an organized attacking on Apple all along It is time for Apple to do something about it. Those who sabotaged Apple need to face consequences.
    http://cnb.cx/HrlzoD#eyJ2aWQiOiIzMDAwMjEyM...
    29 Oct 2013, 09:44 PM Reply Like
  • MajorDude
    , contributor
    Comments (280) | Send Message
     
    Oh come on. Arendts may be a retail genius but it's a technology company.
    29 Oct 2013, 09:54 PM Reply Like
  • Hope128
    , contributor
    Comments (119) | Send Message
     
    Why did Benioff say that? Tried to make Tim doubt his hire of Ahrendts?
    29 Oct 2013, 11:25 PM Reply Like
  • NY2LA 1
    , contributor
    Comments (1462) | Send Message
     
    All the sr VPs will leave to become CEO of their own gigs if this happens, maybe one of them even becomes CEO of Burberry ?
    29 Oct 2013, 11:43 PM Reply Like
  • hyperion15
    , contributor
    Comments (73) | Send Message
     
    Apple hires a female handbag executive? No thanks.

     

    http://bit.ly/1cDoxEj
    6 Nov 2013, 12:24 AM Reply Like
  • rrosey2
    , contributor
    Comments (884) | Send Message
     
    All the nonsense about a new CEO, is just that.

     

    If you admired Jobs, then realize that his most brilliant accomplishment was Tim Cook.

     

    I hope that Cook stays on, even when he's 87. (I am 87 and am just as capable as I was when I was 52).
    30 Oct 2013, 01:52 AM Reply Like
  • ispank
    , contributor
    Comments (1130) | Send Message
     
    Congratulations on your longevity, may you have many years to come. God bless. Fully agreed with you, Tim Cook is doing great job with Apple.
    6 Nov 2013, 11:11 AM Reply Like
  • diaboliqueguan
    , contributor
    Comments (855) | Send Message
     
    So many out there wants Tim Cook to leave AAPL so that he can go work for them, eg Salesforce?
    30 Oct 2013, 03:55 AM Reply Like
  • june1234
    , contributor
    Comments (4412) | Send Message
     
    Apple profits down 8% yr over yr; Samsung up 26% over same period
    30 Oct 2013, 07:12 AM Reply Like
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