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Apple (AAPL -2.6%) is now seeing a decent post-earnings selloff. Aside from the margin issues,...

Apple (AAPL -2.6%) is now seeing a decent post-earnings selloff. Aside from the margin issues, the Street is likely concerned about Apple's relatively soft European and Asia-Pac performance. Europe and China's macro problems are one reason, but in light of Samsung's Q3 smartphone sales and recent market share data (I, II), Android competition could be another. U.S. and Japanese sales grew much faster thanks to iPhone share gains - could the Japanese gains finally lead to a deal with NTT DoCoMo? (more) (transcript)
Comments (45)
  • please, please, please hold the 200ma...panties soiling, running out of toilet paper
    26 Oct 2012, 12:53 PM Reply Like
  • So, your investment strategy... Buy high sell low? Doesn't sound like a good strategy to me, here's a thought, buy when things are low, and sell them when they are high. Now this may sound both patronising and blindingly obvious statement, that's mostly because it is.


    People however don't seem to understand what it means. It means you buy what nobody wants, what everybody (Tack especially) says is crap and you sell what everybody loves what they insist is "going to da moon". Another name might be contrarian investing. Or put another way, "the market is always wrong".
    26 Oct 2012, 03:02 PM Reply Like
  • css1971: when stocks are low, people assume they'll go to zero... I try to see it differently and looking first at what the companies are doing.
    I like Nokia, for example. At $2.57 it means there are only 256 other possibilities for NOK to be cheaper. How about AAPL? There are 60850 other possibilities for AAPL to be cheaper. Interesting.
    26 Oct 2012, 03:30 PM Reply Like
  • if the objective is to buy what nobody wants you can take AAPL out of your universe of things to consider
    26 Oct 2012, 03:31 PM Reply Like
  • Personally I don't think that is the problem. The problem is fundamentals are out the window. Apple's numbers were fine. Certainly no need for panic. We can all argue about the future but that company makes money. I dare, double dare someone to explain FUNDAMENTALLY why Amazon is sky high today after it proved AGAIN that it makes NO MONEY while Apple was trashed most of the day.


    Stop it with fundamental arguments. Fundamentals left the building a long time ago.
    26 Oct 2012, 03:40 PM Reply Like
  • Good point. There's an article in Barrons today regarding this observation. These two stocks are trading on perception and not fundamentals.
    27 Oct 2012, 11:48 AM Reply Like
  • While Apple has been being worshipped in the U.S., Android has been eating global market share in prodigious chunks. Android takes four new cutsomers for every one landed by Apple.

    26 Oct 2012, 12:54 PM Reply Like
  • Shhhhh.... you'll awaken the AAPL pollyannas who perpetually post on this site.
    26 Oct 2012, 12:59 PM Reply Like
  • But not where Apple has chosen to compete. Not only does it beat Android in apps which is why people use these things anyway, but Androids freeze up on you. For example, I much prefer the I phone 5. Siri is much better than Galaxy 3 S-voice. I own both and the I pnone downloads much faster than the Galaxy 3. Android apps freeze sometimes taking over the interface. I phones dont. The Galaxy S III feels cheaper with a plastic back vs the aluminum back of the I phone. The panorama version of the I phone camera works better and is more user friendly that the S 111. And the new Apple lightning charging and connector cable is better on the 5 because its easier to slide into the phone than a micro-USB cable, which the Galaxy S 111 uses. You are comparing a Ferrari to a volkswagen.
    26 Oct 2012, 01:19 PM Reply Like
  • roc:


    Your preferences don't change the statistics. Every customer that Android lands is one less available for Apple, and that doesn't auger well for Apple's future growth rate.
    26 Oct 2012, 01:26 PM Reply Like
  • I guess Consumer Reports prefers VW's over Ferraris....
    26 Oct 2012, 01:58 PM Reply Like
  • How about this.... I hate the fact that AAPL tries to rape your wallet when it comes to having more memory in your phone. A simple thing like a microSD card slot would go a long way. What about a micro-HDMI port on the IPad? Nope, they have to make money on the adapter so you can do that.


    It's great as a stockholder, not so great as a consumer. I own some AAPL but I use Android and Windows.
    26 Oct 2012, 02:00 PM Reply Like
  • 6 of my friends who had verizon android phones switched over to iphone 4s. all of them said they'll never use android phones again.
    26 Oct 2012, 04:55 PM Reply Like
  • where's the guy with the $1,001 price target today?
    26 Oct 2012, 01:05 PM Reply Like
  • Poor guy :)
    26 Oct 2012, 01:24 PM Reply Like
  • Just take, let's say $250,000, and buy yourself some Apple shares today...just think of what you would have after next quarter...
    26 Oct 2012, 02:01 PM Reply Like
  • Well since EPS keeps falling and they just revised down, probably not a lot.
    26 Oct 2012, 03:08 PM Reply Like
  • Still here. But only down slightly to 960. Forward earnings at a S&P average multiple gets you there
    26 Oct 2012, 03:50 PM Reply Like
  • let me think, um 200,000. Is that too high? maybe, 150,000?
    26 Oct 2012, 08:34 PM Reply Like
  • Apple season is over.
    26 Oct 2012, 01:10 PM Reply Like
  • I don't think the season nor the story is over, many of their fans are quite loyal and that's putting it mildly. However, I do think we are at a turning point, and it has little to do with the recent drop from the highs, it has more to do with the CEO's vision and what their new device will be. You can't hang your hat on a hot tech device, add to it a little bit, and expect the company to continue break-neck speed growth.


    AAPL got to where it is with unprecedented products, not rehashed devices with a few new bells and whistles.


    On top of all this is the fact that AAPL has every investor using an electron microscope analyzing every little detail allowing for either perfection, Ohhs and Ahhs, and something unepectedly brilliant or disappointment leading to whys, what ifs, and uh oh. How can a company keep this up? And the answer isn't iTV.
    26 Oct 2012, 01:21 PM Reply Like
  • I keep hearing this "rehashed devices" argument. It isn't true. AAPL got to where it is with 4 products: the imac, ipod, iphone, and ipad. there were at least 3 full years between those. between the ipod and iphone there were 6. Between those there were many many rehashes (ipod mini. ipod nano. ipod touch, mac updates, etc. . .) Not asking you to belive me, these are verifiable facts.


    So I think it is more accurate to say that we will be at a turning point by the end of 2013 at the earliest, which will be 3 years since ipad was launched. If AAPL doesn't have any new product by then, then maybe time to worry, and to keep in line with the average it should be 4 years. People have short memories and are acting like AAPL under Steve Jobs issued a revolutionary product once a year. it didn't, it was once every 3-4 years minimum, and it has not been 3 years since the last one.
    26 Oct 2012, 03:07 PM Reply Like
  • I'm going to have a bake sale this weekend.


    I should be able to buy a share of AAPL on monday.
    26 Oct 2012, 01:16 PM Reply Like
  • 598. If I had extra cash I would buy more.
    26 Oct 2012, 01:19 PM Reply Like
  • Sduris...Me and you both..I am pretty heavily invested already and almost bought a little more but, on margin, that doesn't leave me much extra to play with.....and it's already up to $602. I will regret missing this chance but will refrain for now..
    26 Oct 2012, 01:41 PM Reply Like
  • Me too.
    26 Oct 2012, 01:44 PM Reply Like
  • Do I sense an AAPL investment club in the works?! Let's pool our money. Ha!!
    26 Oct 2012, 02:01 PM Reply Like
  • um, if its a lock to go higher, as you imply, what the hell is the difference btwn 602 and current mkt price


    losers average losers
    26 Oct 2012, 03:28 PM Reply Like
  • what about serving 100 countries by the end of the year - unheard of!
    26 Oct 2012, 01:40 PM Reply Like
  • ...meanwhile Amazon is up 3.6%....I am puzzled.
    If this stock breaks the 200 ma longs are in trouble but undoubtedly even if Apple s days are over, wouldnt it be wise for longs to just wait and sell the stock around January?
    26 Oct 2012, 02:09 PM Reply Like
  • Every day I become more and more baffled by Wall Street. Amazon actually posts significant losses and the stock jumps. Apple posts a massive 24% gain and the stock crumbles. You could argue until you're blue in the face, but the stock game is just crazy. I'm quickly moving to long term dividends with 90% of my portfolio once Apple straightens out and gives me a good sell opportunity. I'll play with 10%.


    I guess I'm part of the problem.
    26 Oct 2012, 03:46 PM Reply Like
  • Stay honest to yourself. What can't be sustained, won't be.
    26 Oct 2012, 03:47 PM Reply Like
  • @Danny.... nothing says safety like JNJ. It's so rangebound and safe, you could set your clock to it. I hold a lot of that and WMT.
    26 Oct 2012, 03:52 PM Reply Like
  • Apple is out executing all of their competition combined by a wide margin, however Santos is right about Amazon there something going on in the background I joke about it but I'm starting to think there might be something to what Santos has said in the past about Amazon.
    26 Oct 2012, 02:35 PM Reply Like
  • I think SA authors should refrain from including intraday stock prices / swings and pass judgement on why its happening.
    26 Oct 2012, 03:04 PM Reply Like
  • Apple will see 800. Crunch the numbers my friends. This company will be the 1st Trillion dollar company within 2 years. It is a bargain at this price.
    26 Oct 2012, 03:27 PM Reply Like
  • Ramzi - trust me. Hold your apple stock. The company is still growing. Look at the year over year percentage. They are growing and have barely tapped into China. I was just there and every young person had an iPhone. The ones that didnt want one. That market alone is much larger that the U.S. The naysayes are always wrong. I've been buying Apple since it was in the 70's. It's not going anywhere and it really has no competition.
    26 Oct 2012, 03:35 PM Reply Like
  • Rome was neither built nor fell in a day. Get the Apple parallel? Year-to-year growth of nearly 30% or with awesome margins. Calm down. It's still the role model for many companies and for good reason
    26 Oct 2012, 03:41 PM Reply Like
  • I agree with Frank..this market doesn't make any sense with all the negativity about aapl and giving stocks like AMZN, pcln and many more credit for loosing money. I just don't get it. But oh we'll I'm just a little fish in a sea of sharks. I do know however that once aapl hits 586"if it ever gets there" will bounce back to higher 600's before Xmas. It did it last year and by god it will do it again this year also. That's how computers operate, sell in October and buy back in November.
    26 Oct 2012, 05:29 PM Reply Like
  • Meanwhile while this election is causing the markets to dip down more possible 1385 on s&p I would buy protection on your aapl stock. Buy some puts or sell some calls!
    26 Oct 2012, 05:30 PM Reply Like
  • If you took away Steve Jobs from apple, it wouldn't be what it is today.
    Today he is dead, thus apple's future will not be what he invisions.
    Let's take another example, if Warren Buffett dies, its over for Berkshire. His expectations will not be met and cash will be pissed away on bad acquisitions that will turn into money losers.


    Everybody owns apple. This comment section looks like the Oprah Winfrey show; a moronic fan club. If you like apple, buy their products and enjoy them. Don't buy the stock. If it looks obvious, its a trap.
    26 Oct 2012, 08:43 PM Reply Like
  • It's not always about quantity. I remember when IBM sold expensive typewriters, while the less expensive competition killed the quantity sold, we all know who was the last company standing and still is now they have evolved over the years. I imagine APPLE will still keep evolving just like IBM.
    26 Oct 2012, 10:28 PM Reply Like
  • I think why Amazon is such a favorite stock is because it is basically the "online Walmart". Amazon even sells iPads...I just checked! So, Apple only sells Apple, and Amazon sells Apple plus anything else that is worth selling. So even though the profit margin is small, the volume of sales is big. Walmart is the world's largest brick and mortar retailer, and Amazon is the world's largest online retailer. And Christmas shopping season is great for retailers! Diversification is a great hedge just in case the iSheep suddenly decide to follow a new shepherd...I'm just saying...and they make their own tablets...and Amazon is a much more exciting name than Apple...and I'm just getting ridiculous...but you get my point!!!!!!
    27 Oct 2012, 09:40 AM Reply Like
  • If it's a favorite stock then explain to me why would anyone pay for 180x P/E ratio v. 17 for goog and 14 for aapl. That just doesn't make any sense..
    27 Oct 2012, 10:53 PM Reply Like
  • zenad77, pure and simple speculation. Fact is Amazon dominates the market and it's growing larger every day. Another fact is they do it all almost for free. Amazon's margins are almost inexistent.


    Chances are this will not last forever. Once Amazon has nowhere to grow, they'll surely increase prices. DHL, Fedex and everyone else will have to pay those prices and that can bring PE of AMZN down, down, down. Of course, it's all speculation. Things might go in a different way. Only the future will tell but Amazon is gaining a very strong position.
    27 Oct 2012, 11:17 PM Reply Like
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