Seeking Alpha

Apple beats estimates, but guidance disappoints

  • Apple (AAPL): FQ1 EPS of $14.50 beats by $0.41.
  • Revenue of $57.59B (+6% Y/Y) beats by $130M.
  • 51M iPhones, 26M iPads, 4.8M Macs. Gross margin of 37.9% (above guidance).
  • Expects FQ2 revenue of $42B-$44B, below a $46.05B consensus.
  • Shares -4.6% AH. CC at 5PM ET.
  • Press release
Comments (114)
  • wigit5
    , contributor
    Comments (3964) | Send Message
     
    And getting crushed after hours lol
    27 Jan, 04:34 PM Reply Like
  • wigit5
    , contributor
    Comments (3964) | Send Message
     
    should have put a strangle on my calls... ugg
    27 Jan, 04:36 PM Reply Like
  • pagreen1966
    , contributor
    Comments (573) | Send Message
     
    Apple crumble!
    27 Jan, 04:49 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1335) | Send Message
     
    The numbers are very similar to last year. They beat by a bit and guided a bit lower than expected. The price was in the low 500s and it dropped to the high 430s within days. I expect it to get into the 400s soon, but the market is a lot higher and multiples are higher, so maybe it stabilizes. We will see. Unfortunately, the next few months have been tough since Apple has rolled out the kitchen sink at the end of the year. They need new product categories to bring some animal spirits back imo. The current product lineup appears to have reached orbit and staying in orbit isn't a given. GLTA.
    27 Jan, 05:14 PM Reply Like
  • jjkiam
    , contributor
    Comments (331) | Send Message
     
    Thanks for your intelligent comments. I really appreciate your ability to look at this from a very rational perspective! You were anticipating this for a while when there was no updated guidance prior to this report. And now that we have very disappointing q2 guidance we can expect exactly what you alluded to-ie 400's tomorrow! Do you follow any other stocks that I can consider?
    27 Jan, 09:03 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1335) | Send Message
     
    JJ, thx for the kind words. I am wrong plenty, though. I have been thinking about doing an instablog on some off the wall ideas for '14. I'll promote it if I get it done. Believe it or not, my biggest long position, which I have owned for years, is CBI. Their business is more boring than watching paint dry, though, and I don't think I have ever written a word about it. They have also run pretty hard already. I like CHL, and if we get a China meltdown I will add to my position. Apple's interest in them got me started reading about CHL, and the more I study them, the more I like China Mobile. The bullish thesis is predicated on TD-LTE working. If it doesn't work, I will strongly reconsider. I actually like some of the airlines and have had a good run with AAL and HA, but I won't steal my own thunder for my article. Good luck!
    27 Jan, 09:46 PM Reply Like
  • Rollo Tomasi
    , contributor
    Comments (215) | Send Message
     
    How can anyone make more than 51 million iPhones in just 3 months?
    27 Jan, 04:35 PM Reply Like
  • Mike Maher
    , contributor
    Comments (2482) | Send Message
     
    They use machines, its not just one guy ;)
    27 Jan, 04:40 PM Reply Like
  • hyperion15
    , contributor
    Comments (66) | Send Message
     
    Are you the rational male Rollo Tomasi, by any chance?
    27 Jan, 04:43 PM Reply Like
  • ks_droid
    , contributor
    Comments (71) | Send Message
     
    Samsung is doing a good job in producing more than 51 milion smartphones ...
    27 Jan, 04:44 PM Reply Like
  • june1234
    , contributor
    Comments (2499) | Send Message
     
    And a lot of Chinese
    27 Jan, 04:58 PM Reply Like
  • 11146471
    , contributor
    Comments (458) | Send Message
     
    Foxconn produces those for them
    27 Jan, 05:08 PM Reply Like
  • gensearch2
    , contributor
    Comments (1390) | Send Message
     
    FoxConn has three shifts of 100,000 per shift.
    27 Jan, 05:24 PM Reply Like
  • fiveoh
    , contributor
    Comments (121) | Send Message
     
    All about the guidance
    27 Jan, 04:37 PM Reply Like
  • Julian Acosta
    , contributor
    Comments (123) | Send Message
     
    I wouldn't expect anything substantial from the conference call. They crushed it though, what part didn't the market like? The Q2 guidance?
    27 Jan, 04:37 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1335) | Send Message
     
    I was afraid the VZ numbers were a harbinger of low overall sales. The problem is that Asia (DCM and China) rolled out early compared to last year, so without the faster rollout and DCM iPhone sales would have dropped YOY! The low guidance confirms it. I expect to see Apple back in the 400s very soon. Mac was strong, but not great, as was iPad. Iphone is very disappointing imo. Guidance is very disappointing considering CHL. GLTA.
    27 Jan, 04:38 PM Reply Like
  • madbcolumbus
    , contributor
    Comments (117) | Send Message
     
    what was the guidance?
    27 Jan, 04:41 PM Reply Like
  • Stan Ackman
    , contributor
    Comments (806) | Send Message
     
    Agree. I don't invest in Apple, but it is interesting to look at a great company reaches its limit.
    27 Jan, 04:42 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1335) | Send Message
     
    mad, analysts expected guidance of 46+; Apple guided 42-44. They produced 43.6 last year in Q2, so guidance is about flat at best despite having CHL in the mix this year. Ex CHL, guidance likely would have been lower this year. Apple is still a great company, but the deafening roar of "Apple's growth is behind them" appears to be correct for the current product lineup.
    27 Jan, 04:50 PM Reply Like
  • Mark Krieger
    , contributor
    Comments (3790) | Send Message
     
    $42 to $44 billion versus prior analyst expectations of $45 B
    27 Jan, 05:05 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1335) | Send Message
     
    YHOO has 46 and change, Mark. Not sure who is right on that.
    27 Jan, 05:07 PM Reply Like
  • Piptief
    , contributor
    Comments (278) | Send Message
     
    What side of the world are you from? When did China mobile start to sell iphones? man talk about misinformation!
    27 Jan, 05:16 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1335) | Send Message
     
    Pip, they are in the guidance for this quarter, not the results from last quarter. You need to carefully read what I said.
    27 Jan, 05:22 PM Reply Like
  • David RG
    , contributor
    Comments (1039) | Send Message
     
    You nailed it Humble - with CHL, guidance is still flat. They need a new category.
    27 Jan, 05:53 PM Reply Like
  • milehr
    , contributor
    Comments (475) | Send Message
     
    It is not the first time that Apple "reaches its limit", Stan.
    27 Jan, 06:38 PM Reply Like
  • JG2000
    , contributor
    Comments (379) | Send Message
     
    Humble, I have to unfortunately agree. The iPhone unit volumes and FQ2 forecast were significantly below expectations in spite of the good FQ1 dollar metrics. I think to remain bullish you have to believe in a disruptive product this year or are just infatuated with the low P/E. Cooks says we are going to get something new, but will it be enough to move the needle?
    27 Jan, 07:06 PM Reply Like
  • Humble Eagles
    , contributor
    Comments (1335) | Send Message
     
    Thx, David, and JG I agree. The questions are when and what? He has been talking about some of these products for years, so if he is talking about a new watch in 9 months, I'm a little concerned about the stock and numbers. Apple will continue to survive and thrive, whether it is in a smaller premium niche, or it stays mainstream...we will see.
    27 Jan, 07:53 PM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    Overall not bad, but considering that Apple rolled out new iPhones, MacBook Pro's etc. this quarter, it is not that super. No wonder guidance is bad.
    27 Jan, 04:42 PM Reply Like
  • criticalbear
    , contributor
    Comments (81) | Send Message
     
    i don't understand comments like this. they've set record quarterly highs on iphone and ipads. for a company that can't innovate anymore, i think an S quarter with this much sales is quite amazing.
    27 Jan, 04:45 PM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    What I mean is that Apple is stagnating. Net sales rose 5.6% compared to previous year, net income flat.
    27 Jan, 04:52 PM Reply Like
  • Bluelight413
    , contributor
    Comments (68) | Send Message
     
    The market loves to punish this stock. Beat on top and bottom. It wouldn't have mattered what came out of the announcement....
    27 Jan, 04:43 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    another quarter, and no money made for me on this crap stock.
    27 Jan, 04:43 PM Reply Like
  • strozzi
    , contributor
    Comments (76) | Send Message
     
    By all means, dump it and don't come back.
    27 Jan, 04:50 PM Reply Like
  • BTM
    , contributor
    Comments (344) | Send Message
     
    The gravy train has come to end.
    27 Jan, 04:45 PM Reply Like
  • Davidoff
    , contributor
    Comments (287) | Send Message
     
    Yes... The guidance... Right. Strong and steady growth, higher margins, higher revenue, higher sales, but what about "THE" guidance? The street shows us that we should bet on magician's hats - risky, "non-profit" startup companies with a highly uncertain future, like Twitter, FB, Tesla, etc instead of on solid money making machines like Apple. After all it's way more rational to invest in volatile trends and bubbles rather than in real cash.
    27 Jan, 04:46 PM Reply Like
  • banmate6
    , contributor
    Comments (677) | Send Message
     
    Stay patient. All stock prices must eventually track earnings. It's a matter of "when", not "if".
    27 Jan, 04:50 PM Reply Like
  • David RG
    , contributor
    Comments (1039) | Send Message
     
    No - they are guiding to zero growth next quarter.
    27 Jan, 05:50 PM Reply Like
  • sandyseeworld
    , contributor
    Comments (9) | Send Message
     
    Just what I'm thinking. I'm going to Las Vegas. At least they tell you upfront that it's a crap shoot. Someone is taking my money. Who is it? Seriously.
    27 Jan, 07:38 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    Problem is by the time the stock tracks earnings the earnings might be a lot lower.
    27 Jan, 08:31 PM Reply Like
  • banmate6
    , contributor
    Comments (677) | Send Message
     
    I wouldn't bet on AAPL earnings being lower. Companies like JNJ and IBM keep increasing earnings across decades. Sure, there are blips, but on the whole, companies with a track record of rising earnings and growth are a good bet to continue to do so.

     

    Again, when undervalued, the odds are high that the price will normalize to earnings...meaning the deserved PE. In this specific case, AAPL should at least deserves an S&P500 historical average PE = 15, which is often used in many fair value assessments. But I think there is a strong case that AAPL should command a premium PE, like KO or JNJ.

     

    On that note, why should GOOG or SAP get a PE = 26 or so? These are fine companies, but AAPL is easily in any of their leagues, more so depending on how you look at it.
    27 Jan, 08:42 PM Reply Like
  • Ashraf Eassa
    , contributor
    Comments (8821) | Send Message
     
    AAPL shareholders...welcome to the same purgatory that us INTC shareholders have to deal with :-(
    27 Jan, 04:47 PM Reply Like
  • BTM
    , contributor
    Comments (344) | Send Message
     
    You called it months ago and you're right on the money.
    27 Jan, 04:48 PM Reply Like
  • Van Hyder
    , contributor
    Comments (162) | Send Message
     
    Don't forget AMD investors as well!
    27 Jan, 04:51 PM Reply Like
  • techy46
    , contributor
    Comments (5524) | Send Message
     
    MSFT investors are not all that happy either ;(
    27 Jan, 04:56 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    i'm going to buy amd shares soon. Hope they stay in the 3.30's
    27 Jan, 04:58 PM Reply Like
  • BTM
    , contributor
    Comments (344) | Send Message
     
    @techy46
    I'm not sure about that. Of all the large cap tech stocks, MSFT is the one that now seems poised to break out of a trading range.
    27 Jan, 05:19 PM Reply Like
  • milehr
    , contributor
    Comments (475) | Send Message
     
    Not even close. Where Apple is, the game is only starting.
    27 Jan, 06:45 PM Reply Like
  • sam050787
    , contributor
    Comments (6) | Send Message
     
    This is BS man... No matter what apple does, it gets hammered. I want to start occupy wall street now
    27 Jan, 08:01 PM Reply Like
  • Rollo Tomasi
    , contributor
    Comments (215) | Send Message
     
    These $507 prices won't hold. It'll be $525 tomorrow and going up
    27 Jan, 08:06 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    You would be right in 2007
    27 Jan, 08:32 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    I don't think the occupy crowd would be found of companies that make billions of dollars a quarter. They are about defecating on police cars and leaving a mess wherever they go.
    27 Jan, 08:34 PM Reply Like
  • pman6
    , contributor
    Comments (270) | Send Message
     
    as soon as Tim opens his mouth, this thing is dropping to 495.
    27 Jan, 04:48 PM Reply Like
  • wigit5
    , contributor
    Comments (3964) | Send Message
     
    Now that is funny pman6 and you are probably right...
    27 Jan, 04:52 PM Reply Like
  • phxcrane
    , contributor
    Comments (415) | Send Message
     
    I hope so!!!!!!
    27 Jan, 04:57 PM Reply Like
  • ptnyc
    , contributor
    Comments (49) | Send Message
     
    I think you are right as well--<$500 during conference call. Retail and the man on the street are long Apple and Wall Street could not resist selling expensive calls to us. Perhaps after the big boys cash out their puts tomorrow, the stock will slowly begin to rise again. The complicating factor is that since the Nasdaq is so heavily weighted with AAPL, the broad market selloff could continue bringing all stocks down, keeping AAPL down as well. We shall see.
    27 Jan, 05:07 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    You mean Apple store employees and the man on the street that uses the iPhone? that's a good sampling.
    27 Jan, 08:36 PM Reply Like
  • Momintn
    , contributor
    Comments (3822) | Send Message
     
    I don't trade after hours, but I'm thinking of picking up a few shares on this dip. It is likely they are trying to lower expectations for next quarter. Mar 2013 was $43.6B revenue. I believe they will beat that just like they beat this quarter. They really need to do a stock split so that people can buy a share cheaper.
    27 Jan, 04:54 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    I would stick to your trend of not trading after hours as AAPL will open down tomorrow as well.
    27 Jan, 08:36 PM Reply Like
  • calikym
    , contributor
    Comments (226) | Send Message
     
    Apple beat all their guidance numbers big time. What more can one expect? This market reaction makes absolutely no sense. Apple had a plan and blew away all their numbers...
    27 Jan, 04:56 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    Growth it's all about growth. If they are not growing that means Android or Windows Phone is taking their market share. If you want a steady company that returns the same every year go buy a utility.
    27 Jan, 08:37 PM Reply Like
  • smart_investoor
    , contributor
    Comments (175) | Send Message
     
    at least margins higher
    27 Jan, 04:56 PM Reply Like
  • Rhianni32
    , contributor
    Comments (1995) | Send Message
     
    For me the disappointing aspect is the cashflow.
    $22.7b generated. $7.7b spent on divs and repurchases.
    So they are now sitting on around $165 billion?
    27 Jan, 04:57 PM Reply Like
  • solojif
    , contributor
    Comments (108) | Send Message
     
    160B in cash, TV, Iwatch, mobile payment. BUY BUY BUY !
    27 Jan, 04:58 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    LOL. 160b in cash would mean something if there was a fire sale. Apple tv? Have you seen the new xbox? Please look into that before you post again about Apple tv. iWatch? What do I need a watch to do that my smartphone can't? AAPL can prove me wrong but odds are they won't without Jobs. Mobile payment? *shrug*
    27 Jan, 08:41 PM Reply Like
  • Victor Liang
    , contributor
    Comments (168) | Send Message
     
    I think Apple did a great job in that quarter, considering how many iPhones and iPads it has sold. More importantly, it is stealing large market share from Samsung in the high end smartphone market. The market is being unreasonable and it will be a matter of time before the market recognizes how much value Apple has.

     

    2014 should be a great year for Apple since it is selling iPhones on the China Mobile network and there will be a new product category (iWatch, iTV). And Apple will likely release iPad Pro.
    27 Jan, 04:58 PM Reply Like
  • A Prudent Investor
    , contributor
    Comments (1192) | Send Message
     
    This is a knee jerk reaction in after hours trading which is meaningless. Their will be plenty of institutions buying Apple at a discount. A third of their market value is in cash and investments.
    27 Jan, 05:12 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    They stole so much market share from Samsung that they missed the expected units by what 4 million units? Ok. You add in China, Japan and supposedly stolen sales from Samsung and they still missed expectations. My dad's friends and recently my dad has been using iPhones on China mobile no big deal.
    27 Jan, 08:44 PM Reply Like
  • David RG
    , contributor
    Comments (1039) | Send Message
     
    Actually, Apple lost market share in 2013 while Samsung gained share.

     

    http://on.wsj.com/1k2Tul3
    28 Jan, 04:05 PM Reply Like
  • enthusiasticinvestor
    , contributor
    Comments (47) | Send Message
     
    I really was hoping this earnings release would vindicate AAPL from all the criticism of the bears. I guess it was not meant to be. I still believe in this company and will continue to hold my shares. Not a strong start to 2014 unfortunately.

     

    On a different note, I truly hope that management will choose to raise the dividend substantially this year. I seriously doubt it will happen but a yield of 3.5-4% would attract investors and give us significant capital appreciation on top.
    27 Jan, 04:59 PM Reply Like
  • Misho ILIEV
    , contributor
    Comments (569) | Send Message
     
    Or alternatively do more buy backs.

     

    This Apple Computer company has reached the top, saturated the market and now growth is not easy at all. Doesn't mean it's not a great team of engineers and marketing experts. It's just tough to grow from here.
    27 Jan, 05:04 PM Reply Like
  • enthusiasticinvestor
    , contributor
    Comments (47) | Send Message
     
    EPS growth, helped by the current massive buyback program, has not proved sufficient to galvanize investors to buy more shares. I've always felt that a more aggressive dividend would attract more investors a la INTC. INTC has most definitely benefited from their fat dividend yield. There is no reason why a company with the financial strength of AAPL would not benefit at least as much.
    27 Jan, 05:09 PM Reply Like
  • ks_droid
    , contributor
    Comments (71) | Send Message
     
    Does this mean that the market has saturated or matured or whatever they call it ?
    27 Jan, 05:00 PM Reply Like
  • ChknCusCus
    , contributor
    Comments (19) | Send Message
     
    Apparently nobody in this thread bought it below $400 this Summer because it wouldn't matter if it drops 5% on "weak" earnings.
    27 Jan, 05:00 PM Reply Like
  • JamesAlpine
    , contributor
    Comments (72) | Send Message
     
    How much did AMZN make? Ahhh. I see...
    27 Jan, 05:01 PM Reply Like
  • june1234
    , contributor
    Comments (2499) | Send Message
     
    Wheres Carl when you need him?
    27 Jan, 05:02 PM Reply Like
  • hko2012
    , contributor
    Comments (238) | Send Message
     
    Is the high end smartphone market saturated, did Samsung do such a great job or why did Apple miss on iPhone sales ?
    27 Jan, 05:03 PM Reply Like
  • yliu54
    , contributor
    Comments (170) | Send Message
     
    So nasdaq comp should have broken down tread line support now, irrational exuberance.
    27 Jan, 05:05 PM Reply Like
  • Ted Bear
    , contributor
    Comments (574) | Send Message
     
    There it is.....earnings miss the whisper by a few pennies due to margin pressure, which is just exactly what you would expect: Lots of people in their space pushing down prices.

     

    Someone said it above: this is not your grandfathers AAPL.
    27 Jan, 05:05 PM Reply Like
  • StepUp
    , contributor
    Comments (420) | Send Message
     
    What a great quarter! Apple killed it. They always sandbag guidance; I am not worried about that. Buy the after earnings dip.
    27 Jan, 05:08 PM Reply Like
  • guy hubbard
    , contributor
    Comments (31) | Send Message
     
    What will all the apple sycophants do now? The cheerleader group - some are folding - some are desperately putting their heads in the sand like ostiches!!!
    27 Jan, 05:09 PM Reply Like
  • Piptief
    , contributor
    Comments (278) | Send Message
     
    Calm down a bit...AAPL is being way conservative on its projected earnings..which is good for long term investors...we get to buy the stock when the "traders" dump it after the earnings. Excellent for me.

     

    You can't go by the knee jerk market reaction...unless of course you are a trader. If we were to go by what analysts were saying, Apple's current record quarter was never going to happen...as indicated by their estimates...which apple handily beat. Nothing says they aren't going to handily beat the guidance they put out...let's wait until after the Q&A before we begin comparing apple with the likes of Intel..i mean that's an apples to oranges comparison.

     

    Long AAPL
    27 Jan, 05:13 PM Reply Like
  • flux8
    , contributor
    Comments (582) | Send Message
     
    I actually called it in StockTwits - minor beat on expectations, major drop in AH.

     

    I think this would be a great quarter for Apple to accelerate their stock buyback.
    27 Jan, 05:13 PM Reply Like
  • Book value
    , contributor
    Comments (72) | Send Message
     
    Already nearly going under $500. If this is not crazy, I don't want to know what is.
    27 Jan, 05:14 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    Nothing crazy about it. It's to be expected for selling sub-par products that aren't following market trends.
    27 Jan, 08:48 PM Reply Like
  • Momintn
    , contributor
    Comments (3822) | Send Message
     
    Investors are going to have to get used to this. Many people are missing revenue numbers that analysts want or they are projecting lower revenue numbers next quarter, even while they beat earnings. Apple has billions in cash, and Icahn is right that they should raise their dividend and buyback shares with some of it. But they also need to make some new product announcement or buy some innovative companies that mesh with their business. Apple is being treated the way we see much of large tech companies get treated, and it's getting especially tiresome as those companies with no earnings see their stocks being pumped by the pundits.
    27 Jan, 05:16 PM Reply Like
  • guy hubbard
    , contributor
    Comments (31) | Send Message
     
    Judging from responses
    20% are folding
    80% are mimicking ostriches

     

    The stock market is about the future - not the past. Apple missed the boat with phones that were too small.
    27 Jan, 05:18 PM Reply Like
  • StepUp
    , contributor
    Comments (420) | Send Message
     
    @ Momintun they did all those things you mention in 2013 and will continue to do them in 2014
    27 Jan, 05:18 PM Reply Like
  • jebworks
    , contributor
    Comments (143) | Send Message
     
    Any other stock with this earnings beat, even with a bit weaker guidance, would go up or maybe down a percent but not AAPL it gets hammered.
    27 Jan, 05:23 PM Reply Like
  • Momintn
    , contributor
    Comments (3822) | Send Message
     
    It's down close to 8% so looking pretty interesting. Does anyone know the usual Apple volume after hours? Is this high or average?
    27 Jan, 05:24 PM Reply Like
  • gensearch2
    , contributor
    Comments (1390) | Send Message
     
    Apple was close to down 7%, before guidance even came out.

     

    There was an alpha article this am, that nailed it. Apple was being set up to miss.
    27 Jan, 05:28 PM Reply Like
  • Momintn
    , contributor
    Comments (3822) | Send Message
     
    They didn't miss.
    27 Jan, 05:37 PM Reply Like
  • shakazoid
    , contributor
    Comments (146) | Send Message
     
    Just heard AAPL is coming out with an ifool, about time.
    27 Jan, 05:37 PM Reply Like
  • a alto
    , contributor
    Comments (126) | Send Message
     
    Yawn........... I ain't selling ,no way ,value investing creates a huge snowball.
    27 Jan, 05:39 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    If Jobs were still around.
    27 Jan, 08:49 PM Reply Like
  • Warren Buffet007
    , contributor
    Comments (913) | Send Message
     
    Three weeks ago I said Sell!
    27 Jan, 05:51 PM Reply Like
  • calikym
    , contributor
    Comments (226) | Send Message
     
    First, I have full confidence in the ability of Apple to work with China Mobile to grow the business. It's in the best interest of both companies... In the call, it was made clear that currently 4G only exists in 6 Chinese cities right now and China Mobile is installing 4,000 4G base stations by year end to support 300 cities. China's largest mobile phone carrier (3/4 of 1 BILLION people) wants the commerce from Fortune 500 demographics around the world (Apple has saturated over 90% of that demographic). Apple beat all their numbers unlike so many others. So, what's the problem? Long Apple.
    27 Jan, 07:22 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    The problem is your analysis. Think about how many can actually afford iPhones then take that subset and how many care about 4g. I got my dad a iPhone not that he wanted one but it's a status thing in China good for when he deals with our vendors overseas. He never uses LTE, hardly checks emails and never texts anyone. You are going to tell me that 4g is the only thing keeping people from mass adopting the iPhone? There are plenty like my dad in China and those that are like him already have one from purchasing it overseas or got it from the other Chinese carriers. There might be a move laterally from one carrier to another based on coverage but to think 4g will all of a sudden cure the iPhone's problems is a bit naive. There are a lot of iPhone 4 and 4s that are still very popular that have been bought on the grey market. The iPhone users that are on the fence about upgrading will need a very compelling reason to part with so much percentage of their income. In the US not having LTE is a pain, in China there are many people who would like LTE but can't afford it.
    28 Jan, 12:25 AM Reply Like
  • Abescapital
    , contributor
    Comments (6) | Send Message
     
    Looks like they took someone's advice and decided to guide extremely conservatively for the earnings surprise next quarter.
    27 Jan, 07:38 PM Reply Like
  • bquartararo06
    , contributor
    Comments (12) | Send Message
     
    Icahn may have a valid point after all... Long Apple, but would like to see this innovation engine do more than idle
    27 Jan, 07:38 PM Reply Like
  • Joellevic
    , contributor
    Comments (2) | Send Message
     
    This doesn't include China Mobile sales, and growth in china came in @ over 20%. Market irrationality when it comes to this stock is unbelievable. Additionally a possible payment system as reported by WSJ, this just makes for a better buy opportunity.
    27 Jan, 07:38 PM Reply Like
  • Anthony0071
    , contributor
    Comments (4) | Send Message
     
    Time Cook has to go.
    27 Jan, 07:39 PM Reply Like
  • kristian93
    , contributor
    Comments (5) | Send Message
     
    Comon Tim. Tell these haters about all the I-things that is in the pipeline. Then let's buy back all the shares if the stock goes further down!
    27 Jan, 07:39 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    More like iGot nothin LOL
    28 Jan, 12:26 AM Reply Like
  • calikym
    , contributor
    Comments (226) | Send Message
     
    @kristian93 - Tim addressed that in the call. He said that people like surprises. :) but I'm sure he doesn't want the copy cats to take market share from Apple by revealing secrets/products. Don't worry. Apple just BEAT all their numbers. Chill.
    27 Jan, 07:47 PM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    AAPL share holders are going to be surprised by the lack of market disruptive products coming down the pipeline.
    28 Jan, 12:27 AM Reply Like
  • marklihsu
    , contributor
    Comments (264) | Send Message
     
    AAPL share holders are going to be surprised by the lack of market disrupting products coming down the pipeline.
    28 Jan, 12:29 AM Reply Like
  • Waldobond
    , contributor
    Comments (16) | Send Message
     
    One who expects a so called "sure thing" get disappointed every time. I am disappointed, but not surprised. I will continue the plan of holding and selling cover calls since I think Apple will be dead money for while. Still a great company and is the Rodney Dangerfield of the market. "It gets NO respect".
    27 Jan, 07:47 PM Reply Like
  • axelking11
    , contributor
    Comment (1) | Send Message
     
    Billions of value stripped based on an estimate even when the hard numbers beat across the board...Internet momentum stocks "might" make a profit in three years and experience a 15% pop overnight. This is insane....
    27 Jan, 08:01 PM Reply Like
  • banmate6
    , contributor
    Comments (677) | Send Message
     
    It is what it is. I feel bad because it's hard working retail investors that ultimately pay the price. Their wealth is essentially transferred to smart money: ibanks, private equity, mutual fund managers, boutique investors, hedge funds, & the media ecosystem of pundits and analysts.
    But try to be a crusader. They don't call it "the irrationality of the herd" for nothing. Most retail investors will shout you down as ignorant or arrogant if you expose how they wind up buying higher and selling lower. It doesn't register with many that even dollar cost averaging into index funds means a Facebook might be in the S&P500.
    All a man can do in these circumstances is apply value investing to the nth degree. I am riding AAPL from $300, having accumulated at relatively low PEs. I will continue to hold. I will continue buying other quality companies that are cheap. Relatively recently I bought DE, CAT, IBM, and AFL.
    I'd rather people took a more active role with investing in value. Business cycles would be smoother. More aggregate wealth would be generated. Returns would be more evenly distributed. Like I said, all a man can unfortunately do is take advantage and invest rationally, on value, over time, defying the market manipulators and the irrationality of the herd.
    27 Jan, 08:21 PM Reply Like
  • PhineasFreak
    , contributor
    Comments (2) | Send Message
     
    Should have sold when I had the chance. When will I learn?
    27 Jan, 08:02 PM Reply Like
  • thorr52
    , contributor
    Comments (2) | Send Message
     
    Hay que mirar las cosas desde diferentes perspectivas , hoy mucha gente ha perdido dinero, pero mañana habrá gente que ganara mucho más atentos al movimiento ATENTOS
    27 Jan, 08:10 PM Reply Like
  • Kahokfan67
    , contributor
    Comments (48) | Send Message
     
    MEMO to Cook, Take Apple private. Any LLC owner would be jumping for joy with those results. Thinking even Ican would be singing in the street if he and a few others were the sole owners of Apple. I know the EPS was manipulated but adding 10 plus
    billion to cash is not easily fudged by the accountants.
    27 Jan, 08:52 PM Reply Like
  • David RG
    , contributor
    Comments (1039) | Send Message
     
    No private owner would allow the cash to just sit there. They would take it or invest it. Sort of like what Icahn is suggesting.
    28 Jan, 04:08 PM Reply Like
  • Kapitalist
    , contributor
    Comments (11) | Send Message
     
    It's odd to me that as the "cone of uncertainty" around earnings and market share/growth etc is diminished with earnings data, Apple loses market value instead of gaining it, presumably because the speculative fervor of unfounded expectations dissipates. An extreme version of the Wall St axiom of "buy the rumor and sell the news"? It's an interesting contrast to peers (GOOG, AMZN, others) with very high P/E multiples (speculation/hopes/dre... but negligible earnings - all "potential") whose prices go up without earnings. Hope is just put off a little longer - keeping the fiction alive...partying like 1999? while poor dull Apple (the company) makes beautiful products that work well together, change the way we live, and don't require a Help!!! desk to manage for us. Very long AAPL (long since Oct 2000 at $26.63 (in 2000$US)), and long or formerly long some of the peer companies.
    28 Jan, 01:04 AM Reply Like
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