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Apple (AAPL -0.4%) is down just slightly in spite of Citi's downgrade: iPhone order cuts and...

Apple (AAPL -0.4%) is down just slightly in spite of Citi's downgrade: iPhone order cuts and soft regular iPad sales seem priced in with multiples soundly in value territory, and many analysts are making it clear they're still fans. Canaccord's Milke Walkley is the latest to slash estimates (though reiterating a Buy), citing "softer sales expectations in international markets, primarily in Europe." Included in the Citi downgrade is U.S./U.K. survey data noting a growing consumer preference for bigger displays: 47% of iPhone owners said their preferred screen size is 4.1"-4.5".
Comments (14)
  • mogando
    , contributor
    Comments (313) | Send Message
     
    Consumer preference surveys are meaningless because consumers always think bigger / more powerful doesn't come with compromises.

     

    If you take those surveys at face value, consumers want 5.5" phablet with 3 day web surfing battery life and less than 100oz that can fit into jeans pockets.

     

    Actually I see Samsung setting themselves for eventual disappointment. Since they've constantly proclaimed "bigger screen is better" in their marketing message, they have no choice but to increase screen size with every new revision of the Galaxy S line. From 4.3 to 4.8 to the rumored 5" of the GS4. They've run themselves into a wall.
    17 Dec 2012, 10:20 AM Reply Like
  • rperson
    , contributor
    Comments (367) | Send Message
     
    As of 11:10 AM EST, Google is selling for more than $200 a share than Apple and Priceline more than $100 a share. Insanely, insane. Truly.
    17 Dec 2012, 10:59 AM Reply Like
  • Keep It Simple
    , contributor
    Comments (470) | Send Message
     
    Share price has nothing to do with what the market thinks the overall company is worth, aka Market Cap. (outstanding shares x share price)

     

    GOOG is $716/share with 328 million shares outstanding. Giving you a Market Cap of approx $235 Billion.

     

    On the other hand, AAPL is $515/share with 940 million shares outstanding. Giving you a Market Cap of approx $484 Billion.

     

    AAPL share price on a market cap valuation is more than twice that of GOOG.
    17 Dec 2012, 01:01 PM Reply Like
  • Piero A.
    , contributor
    Comments (336) | Send Message
     
    If Apple (the company) would support it's own stock this significant fall wouldn't be happening. I still have to believe we are going to get an announcement either this week or next. At what point does the company say surprise we just bought back an additional 10 billion dollars in our stock. What better time then now. Otherwise they must have some big plans for the cash down the road. Tim Cook if your reading this I want a big xmas gift from you!
    17 Dec 2012, 11:07 AM Reply Like
  • tom434
    , contributor
    Comments (21) | Send Message
     
    Correct. Tim Cook seems not to be very interested in his stockholders and public relations. His crisis management is lousy...
    17 Dec 2012, 11:25 AM Reply Like
  • Dean Scarpinato
    , contributor
    Comments (372) | Send Message
     
    Exactly. This is irresponsible. The shareholders that have the most to lose are the small ones like me, a loyal customer. How about showing us a little more respect. We're getting hammered and we're rallying to your defense daily. How about a little of the same?
    17 Dec 2012, 11:11 AM Reply Like
  • Humble Eagles
    , contributor
    Comments (1451) | Send Message
     
    This press release directly refutes Friday's rumors of production cuts and weak Chinese sales. They came from the same company, and Apple just totally obliterated the credibility of the analysts making these incorrect calls. They are defending the stock. Think about it. If iPhone 5 sales were not very strong, they would not have made the press release in the first place; Apple would be setting up investors going into the quarterly call. It is hard for me to imagine anything other than a huge blowout after this release. China was just one of 32 new countries! I ordered several iP5s at VZ today and the clerk told me VZ won't allow their employees to get them because the demand from customers is huge. I was told to expect them prior to Christmas.
    17 Dec 2012, 11:22 AM Reply Like
  • slaughterer
    , contributor
    Comments (40) | Send Message
     
    Mizuho just joined the downgrade seagull fest.
    17 Dec 2012, 11:25 AM Reply Like
  • rperson
    , contributor
    Comments (367) | Send Message
     
    "The iPhone is nothing more than a luxury bauble that will appeal to a few gadget freaks. In terms of its impact on the industry, the iPhone is less relevant. [...] Apple will sell a few to its fans, but the iPhone won't make a long-term mark on the industry."

     

    Mathew Lynn, Bloomberg. Published in 2007
    17 Dec 2012, 11:28 AM Reply Like
  • 100XT
    , contributor
    Comments (72) | Send Message
     
    Yep. So was the horseless carriage, the flying machine, the personal computer. I like being able to carry a powerful computer with me everywhere I go.
    17 Dec 2012, 11:49 AM Reply Like
  • 2MuchDebt
    , contributor
    Comments (218) | Send Message
     
    I wonder if Matthew Lynn and Charles Golvin still have a job. Nice post rperson.
    17 Dec 2012, 12:58 PM Reply Like
  • 100XT
    , contributor
    Comments (72) | Send Message
     
    I have been watching the 1 minute price action. For now, it seems like the buyers will not let the price go below $500. (I'm not sure pre-market action is very relevant). I think we all realize how important this support level represents. Honestly, I just think I'm going to dump my shares if we go below $500. I do not have any option protection.
    But, I AGREE, APPL management should be more pro active. However, things have gotten so bad, I bet that anything APPL does would be seen as a sign of weakness and have reverse effect. They should have done something to PUSH the price above the 200 day MA a few weeks ago. The support level WOULD have been much higher. I know, I know, APPL does not care about share price. Well, they should! Then again, if they can buy back shares at $300 - $400 or whatever, guess they will be better off and therefore shareholders will be better off? Kind of ironic, eh?
    Long AAPL, but just hanging by a thread. Good luck to all.
    17 Dec 2012, 11:48 AM Reply Like
  • rrosey2
    , contributor
    Comments (689) | Send Message
     
    I am sure top management has something better to do than sit and watch the hourly market price of their stock.

     

    Those of us who have faith in Apple leadership have put the shares away for a couple years, and are busy looking for other future "Apples" in other markets.
    17 Dec 2012, 05:07 PM Reply Like
  • OldWarrior
    , contributor
    Comments (2385) | Send Message
     
    @100XT
    Unless you are a Trader as opposed to a long term investor, I see no reason to sell in a panic unless you are heavily margined or still at a profit. Mike Walkley still has a 12 month PT of what? $750? The more "analysts" bash a stock, the better it looks. JP had NOK a SELL while they added 200-300% to their in-house position. It doubled.
    If you are a LT investor, Forget the noise. Just hang onto the Dividend and reinvest it at these prices. It could hit 450 before the 1Q announcement, but that doesn't mean the company is broken.
    If, however, you are convinced that it is a bad company, and you still have a profit, by all means sell before the Tax Hit. I am not a fan of any one stock, I just try to find good companies with broken stocks. I don't have any more room in my tech portion, or I would be buying with both hands. I just hope it is still under 600 when I get money freed up after Jan 1.
    17 Dec 2012, 05:59 PM Reply Like
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