Apple (AAPL) -3.4% to $392.50 as the Street continues digesting the light FQ3 guidance provided...

Apple (AAPL) -3.4% to $392.50 as the Street continues digesting the light FQ3 guidance provided with its FQ2 beat. BMO's Keith Bachman has cut shares to Market Perform after recently expressing concerns about iPhone mix. "We think the challenges of 1) increased competitiveness in the smartphone market, which we believe will pressure ASPs and margins – will largely offset 2) improved capital allocation." In a set of charts analyzing Apple's results, Dan Frommer points out the iPad is now 20% of sales, and iTunes/Software/Services 9% (the iPhone is 53%). (previous) (transcript)

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Comments (19)
  • Michael Blair
    , contributor
    Comments (5097) | Send Message
    Guidance is for $35 billion in Q3 - flat to 2012. With markets growing 25 to 50% for smartphones and tablets respectively, Apple is forecasting sharp drops in market share. Time to get out or get short.
    24 Apr 2013, 08:26 AM Reply Like
  • rheimerl
    , contributor
    Comments (488) | Send Message
    mike...why dont you get short!...while i will not be fighting the tape in the short run ... aapl has a $50 bil cannon aimed at the offer
    24 Apr 2013, 09:18 AM Reply Like
  • GRJ
    , contributor
    Comments (323) | Send Message
    Short in he face of a gigantic buy-back. Be my guest and check back with us in December.
    24 Apr 2013, 09:38 AM Reply Like
  • IncomeYield
    , contributor
    Comments (3700) | Send Message
    You are already down $20 on that short in only 20 minutes . :)
    24 Apr 2013, 09:50 AM Reply Like
  • Jack Baker
    , contributor
    Comments (1284) | Send Message
    AAPL makes 72% of all global smartphone profits with only 19% market share. What makes you think they need market share to own the market?


    AAPL makes 91% of all global tablet profits as well.
    24 Apr 2013, 09:52 AM Reply Like
  • Davidoff
    , contributor
    Comments (409) | Send Message
    Jack Baker,


    Could you remind me Nokia's share in the nineties/early 2000 and Blackeberry's share during 2004-2007, please? You offer a very weak and desperate argument here. It's not because Apple had a good decade that it's going to continue indefinitely.
    24 Apr 2013, 10:37 AM Reply Like
  • Autarch
    , contributor
    Comments (54) | Send Message
    If you do short Apple, would you be so kind as to pen an article here about it? Or at the least, consider letting people know the details of that position when you open it?


    If you're right you'll have the ability to later say so and a reference for it. If it ends badly, others will know by how much. It's a way for people to see you're not all talk, you could say.


    Personally I doubt Apple is in any kind of trouble and I also doubt they're not going to release new products anymore, including later this year.


    In any event, if you could just let us know either way if it was all words or an actual position that'd be great.
    24 Apr 2013, 12:03 PM Reply Like
  • Sam Liu
    , contributor
    Comments (3711) | Send Message
    "Nokia's share in the nineties/early 2000 and Blackeberry's share during 2004-2007"


    but the IPhone is still a superior device, as opposed to those mentioned during those time frames.


    Since 2003, I have been using various Nokia's because they are cheap and decently made.


    In fact, yesterday as I was putting away mt ipod touch, the Nokia slipped out again from the case and crashed on the floor.


    I swore and put it back together and then set the time.
    24 Apr 2013, 12:46 PM Reply Like
  • SP5524
    , contributor
    Comments (86) | Send Message
    David, actually, why don't you provide a reason why AAPL will follow Nokia and BBRY?
    24 Apr 2013, 01:04 PM Reply Like
  • Tack
    , contributor
    Comments (16274) | Send Message
    "Futures gains erased as Apple turns tail"


    Nobody's figured out that Apple's mess is of their own doing?
    24 Apr 2013, 08:48 AM Reply Like
  • Brian Barbour
    , contributor
    Comments (1306) | Send Message
    apple's mess? Its the unreasonable assumptions of analysts.
    24 Apr 2013, 08:52 AM Reply Like
  • positivethoughts
    , contributor
    Comments (2064) | Send Message
    How is amazon trading at its level when you compare it to Apple? Apple might not be growing like it was before, but compared to Amazon, it is a MUCH BETTER investment.
    24 Apr 2013, 08:55 AM Reply Like
  • Guardian3981
    , contributor
    Comments (2495) | Send Message


    It all comes down to growth potential, the market likely feels amazon has room to grow while it fears apple has room to shrink. I wouldn't invest in either myself.
    24 Apr 2013, 08:58 AM Reply Like
  • Mike Spelman
    , contributor
    Comments (84) | Send Message
    Market perform means it should be going up 2% a week
    24 Apr 2013, 09:00 AM Reply Like
  • bbro
    , contributor
    Comments (11217) | Send Message
    How many shares on the offer?? Does Apple take the offer??
    24 Apr 2013, 09:07 AM Reply Like
  • Peterscollectors
    , contributor
    Comments (4) | Send Message
    Sentiment is different to understanding a great business
    Sentiment is short run -
    Apple is Mercedes: Samsung is Toyota
    Room for both in the market
    Dividend now over 3%
    Growth to come with new products and new markets - Indonesia, Brazil, India Russia
    24 Apr 2013, 09:09 AM Reply Like
  • chrome188
    , contributor
    Comments (79) | Send Message
    @Peterscollector The components used by Samsung in it flagship are generally of a much higher specification that the apple..... This is why Samsung has taken share. Many investors have also reasoned that Samsung tech will continue to outpace Apple and continue to loose share.
    24 Apr 2013, 09:52 AM Reply Like
  • Snowden
    , contributor
    Comments (35) | Send Message
    Patience grasshopper. Apple's future is clear.
    1. 3Q guidance is right. No new product til the "fall" means the next 2 quarters will suck as people await new phone.
    2. Apple will produce major new innovative products that everyone will want in the fall and revenues will jump big time. You must be in the stock before then.
    3. Apple will be buying $60B of its stock. At this AM's price, that is about 17% of shares, which will increase EPS 20% with no increase in net income. And they still will have $100B.
    In other words, long term as in 12 months this will reward patience.
    24 Apr 2013, 10:07 AM Reply Like
  • Sting71
    , contributor
    Comments (75) | Send Message
    There are several firms that have reaffirmed their guidance and continue with an outperform rating. They do not get the press that others get but 3% dividend that will continue to grow along with an additional $50 Billion buyback is good enough for long term holding in my portfolio. JMO
    24 Apr 2013, 10:38 AM Reply Like
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