More Tepper: Turning to individual ideas, he says Citigroup (C) has become one of his biggest positions. On Apple (AAPL): If the company doesn't have something "revolutionary" coming, it better do something "evolutionary" - bigger screen, cheap iPhone. If we don't see anything by September, then it's "Houston we got a problem," and Tepper hopes he's quicker on the sell button than everybody else. [View news story]
Some Apple (AAPL) commentary: 1) Horace Dediu estimates the iPhone and iPad's component costs respectively rose 29% and 65% Y/Y in FQ2, well above rev. growth of 3% and 40%. This, along with a mix shift towards iPads, is mostly responsible for Apple's gross margin drop (rather than price pressure). 2) Tero Kuittinen sees similarities between 2013 Apple and 2007 Nokia. "The strongest parallel is in the weird way both companies started fighting the consumer preference for larger displays … and then dug in as margins began eroding rapidly." Tim Cook may have just hinted a bigger iPhone will eventually arrive. But how long will it take? (yesterday) [View news story]
Ashraf,
Yes Samsung makes the majority of its components but nobody knows its real unit sales even less its real costs. They never have revealed their real true numbers. Why it will be ?
Tim Cook: The (Negative) $250,000,000,000 Man [View article]
Bill. I congratulate you for a fair and balanced article. I coincide with your statements 100%. I just would add that being a primary duty of the management any public Company to preserve stockholder value, management inaction can not be justified in front of this disproportionate lost of value. Since January, with the stock already broke, they are seated on a huge pile of 137 BILLION $, enough to fast put back on track Apple stock with some of top hits mentioned above and so far, they did deliver nothing within the most absolute silence. In my book, this is negligence but responsibility falls not only on Tim Cook but on the whole BOD.
"We think that Apple could be on the brink of driving a major leveraging up," writes JPMorgan's Mark Moskowitz in a voluminous note defending the stock. He believes the company will take on $15B-$20B in debt and bump the dividend yield to 4%. As far as operations, Moskowitz expects an earnings beat this quarter and upward pressure on estimates for 2013. AAPL +0.9% premarket. [View news story]
At this point in time, Cook and Board have failed their basic duty as a public Company to rescue the stock. It not justified at all that in more than 3 months since stock fall to low 400, with the huge resources they have at sight in Banks, they failed to deliver an aggressive buyback plan to restore the lost value to shareholders. This is a complete negligence of this management
Foxconn parent Hon Hai (HNHAF.PK), which is believed to get 60%-70% of its revenue from Apple (AAPL +1.2%), reported a 19% Y/Y drop in calendar Q1 sales to $27B. KGI Securities: "A quarterly decline was expected, but not a yearly decline ... This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected." Nonetheless, Apple is following the tech sector higher, a possible sign a weak Q1 is priced in. [View news story]
For your information, If Apple were about to miss its own guidance for March quarter, which is very close to consensus, it is legally obliged to issue a warning. The time for this, passed already. So, Apple is likely to report its results within guidance which is 41-43B$ in revenues which means some 37+ million iPhones. This Foxcomm result must be impacted by other non-Apple factors as they produce also for HP, DELL and Nokia Also, Foxcomm is not the only Apple supplier. Pegatron produces Iphone 4S and Ipad Mini. Reporters making easy wrong conclusions as usual
Foxconn parent Hon Hai (HNHAF.PK), which is believed to get 60%-70% of its revenue from Apple (AAPL +1.2%), reported a 19% Y/Y drop in calendar Q1 sales to $27B. KGI Securities: "A quarterly decline was expected, but not a yearly decline ... This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected." Nonetheless, Apple is following the tech sector higher, a possible sign a weak Q1 is priced in. [View news story]
Please be aware that if Apple was about to miss it own guidance that is very close to consensus, is obliged legally to issue a warning. The time for that already passed. So, under the new guideline rules defined by Apple, results should be at least within the range of 41-43B$ and that means something close/higher 37M iPhones
Jefferies' Peter Misek cuts his price target on Hold-rated Apple (AAPL) to $420 from $500. He's slashing his revenue numbers and seeing about a 25% chance the company misses Q1 guidance after Jefferies' recent supplier checks. "Historically when handset makers fall out of favor, they fall faster/further than expected." Shares -0.7% premarket. [View news story]
I am just going to remind to this "180 degree change Analyst" that Hai Hon (Foxconn) and TSMC are now hiring 5,000 jobs each to attend higher demand from Apple. Its seems his "checks" are not accurate at all! He joined the Ed Zabitsky (Apple 270 PT) club. That's 2 members Club only.
More on Apple: The ever-bullish Brian White reports his Apple Monitor, which tracks the sales of component suppliers that depend heavily on Apple (AAPL -1.1%), saw a 31% M/M drop in February, its worst performance on record for the month. Foxconn parent Hon Hai saw a 25% M/M drop. Baird's William Power, meanwhile, says his firm's semiconductor checks indicate iPhone/iPad orders are in-line with his estimates, but below consensus. White maintains an $888 PT, and Power a $465 PT. [View news story]
Some fresh news now said that Foxconn and TSMC are adding 5,000 jobs each in anticipation to higher demand for its services(Apple).
Who is right? White or Reuters? Tim Cook already warned everyone in January about the lack of accuracy of these "chain supply rumors" because the Apple's complexity supply chain. But Analysts don't want to listen..
More on Apple: Berenberg's Adnaan Ahmad has downgraded shares to Sell from Buy, while also cutting his rating on Samsung (SSNLF.PK). With smartphone growth now fueled by emerging markets, "Apple and Samsung margins are peaking and growth is going to be driven by the margin-dilutive mid-to-low-end segment," he argues. Also, Citi has cut its PT to $480, citing weaker iPhone 5 and regular iPad demand. Citi, which cut Apple to Neutral in December, now expects March and June quarter iPhone sales of 34M and 25M, below a consensus of 37M and 32M. AAPL -0.2%. [View news story]
"Apple Inc. (NASDAQ:AAPL)’s iPhones and iPads don’t appear to be selling as well as expected, according to Citi analysts"
More on Apple: Berenberg's Adnaan Ahmad has downgraded shares to Sell from Buy, while also cutting his rating on Samsung (SSNLF.PK). With smartphone growth now fueled by emerging markets, "Apple and Samsung margins are peaking and growth is going to be driven by the margin-dilutive mid-to-low-end segment," he argues. Also, Citi has cut its PT to $480, citing weaker iPhone 5 and regular iPad demand. Citi, which cut Apple to Neutral in December, now expects March and June quarter iPhone sales of 34M and 25M, below a consensus of 37M and 32M. AAPL -0.2%. [View news story]
Who the hell is Berenberg??? First time I hear about them.. On the other hand, it is the eight time within a year that Citi change its view about Apple... What a high quality coverage!! It is a shame! Time to buy..
3 Things Apple Must Do To Regain Its Dominance [View article]
Your article should be read by everyone and specially by Apple Management and Board. Positive, constructive and very concise about the irrational sentiment Apple have been faced in the last months and the steps Apple must execute in the very short term in order to regain the investor's confidence in the Company. Congratulations on a very well written article.
Apple's China Growth Not As Strong As It Appears [View article]
Dear Mr. Jones, I've read previous articles from you. But sorry, this time I failed to understand the content of you article. It's totally speculative and on top of that, I do not understand your speculation.
Apple (AAPL -2.3%) has tumbled below $500 following Nomura's big PT cut. Multi-Fineline's (MFLX -20.3%) warning also might not be going over well. Nomura backs up the WSJ and Nikkei's reports by stating its own checks indicate weaker-than-expected iPhone 5 sales; it now expects 48M sales in FQ1, and 39M in FQ2, but is raising its iPad forecasts. Echoing a recent CLSA note, Nomura thinks Android's Asian dominance has become a problem for Apple. Sterne Agee, meanwhile, believes all is well. [View news story]
Regarding Editor Erik Jhonsa comments: Indeed, it was a very irresponsible assumption made by the WSJ author Juro Osawa. Please, see the video posted by TheStreet yesterday where he was interviewed and said that a weak demand was a possibility but a simple seasonality correction could be another one. Why did not say that when wrote the article? Everyone can see the video in below link:
Apple's (AAPL) shares are -3.4% premarket following reports that the company has cut iPhone 5 component orders for calendar Q1 due to weaker-than-expected demand. That's possibly helping to depress sentiment on the stock-futures market, with the Nasdaq benchmark -0.4%. The Dow is flat and the S&P is +0.1%, while Europe remains mostly in the green. [View news story]
Just in case you don't know, AT 10:20 LAST NIGHT, WSJ REMOVED THE COMMENT "DUE TO WEAKER DEMAND THAN EXPECTED" from Apple article because absolute lack of evidence. But the news was already sparked everywhere and damage was done. Since when WSJ is publishing cheap rumors without reasonable support? Same happened last week with cheap iphones note. Now, Apple stock is being seriously impacted in pre-trading and also WSJ reputation. Should WSJ apologize to Apple?
Apple (AAPL) has cut iPhone 5 component orders for calendar Q1 due to weaker-than-expected demand, sources tell the WSJ; display orders are said to be cut by ~50%. The Nikkeialso claims display orders have been halved, albeit from an elevated level of 65M. The articles back up analyst reports of iPhone production and component order cuts, and raise the question of whether Apple needs a cheaper iPhone and/or one with a larger display to bolster its international share. Suppliers on watch: LPL, CRUS, OVTI, QCOM, BRCM, SWKS, TQNT, AVGO. [View news story]
Who says than cuts are due "weaker than expected demand". Sources are not cited.. What sources? are they accurate? Why not are they cited? Can we trust that just because WSJ published this info is accurate? Just remember last week report about cheap iphone.. If those cuts are true, have all of you have thought that can be due because simply seasonality between Q1 and and Q2? That Production Plants were at max cap during last Q1 to catch strong iphone 5 demand and now they just adjusting production levels to their best view about traditional lower demand in Q2? I read that article in full few hours ago and 50% was NOT mentioned at all. Cited % cuts were in the order of 20-30%. I hope the moderator publish my comment this time!
More Tepper: Turning to individual ideas, he says Citigroup (C) has become one of his biggest positions. On Apple (AAPL): If the company doesn't have something "revolutionary" coming, it better do something "evolutionary" - bigger screen, cheap iPhone. If we don't see anything by September, then it's "Houston we got a problem," and Tepper hopes he's quicker on the sell button than everybody else. [View news story]
Some Apple (AAPL) commentary: 1) Horace Dediu estimates the iPhone and iPad's component costs respectively rose 29% and 65% Y/Y in FQ2, well above rev. growth of 3% and 40%. This, along with a mix shift towards iPads, is mostly responsible for Apple's gross margin drop (rather than price pressure). 2) Tero Kuittinen sees similarities between 2013 Apple and 2007 Nokia. "The strongest parallel is in the weird way both companies started fighting the consumer preference for larger displays … and then dug in as margins began eroding rapidly." Tim Cook may have just hinted a bigger iPhone will eventually arrive. But how long will it take? (yesterday) [View news story]
Yes Samsung makes the majority of its components but nobody knows its real unit sales even less its real costs. They never have revealed their real true numbers. Why it will be ?
Tim Cook: The (Negative) $250,000,000,000 Man [View article]
"We think that Apple could be on the brink of driving a major leveraging up," writes JPMorgan's Mark Moskowitz in a voluminous note defending the stock. He believes the company will take on $15B-$20B in debt and bump the dividend yield to 4%. As far as operations, Moskowitz expects an earnings beat this quarter and upward pressure on estimates for 2013. AAPL +0.9% premarket. [View news story]
Foxconn parent Hon Hai (HNHAF.PK), which is believed to get 60%-70% of its revenue from Apple (AAPL +1.2%), reported a 19% Y/Y drop in calendar Q1 sales to $27B. KGI Securities: "A quarterly decline was expected, but not a yearly decline ... This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected." Nonetheless, Apple is following the tech sector higher, a possible sign a weak Q1 is priced in. [View news story]
This Foxcomm result must be impacted by other non-Apple factors as they produce also for HP, DELL and Nokia
Also, Foxcomm is not the only Apple supplier. Pegatron produces Iphone 4S and Ipad Mini.
Reporters making easy wrong conclusions as usual
Foxconn parent Hon Hai (HNHAF.PK), which is believed to get 60%-70% of its revenue from Apple (AAPL +1.2%), reported a 19% Y/Y drop in calendar Q1 sales to $27B. KGI Securities: "A quarterly decline was expected, but not a yearly decline ... This shows that Hon Hai's revenue depends too much on Apple, and iPhone orders corrected more than expected." Nonetheless, Apple is following the tech sector higher, a possible sign a weak Q1 is priced in. [View news story]
Jefferies' Peter Misek cuts his price target on Hold-rated Apple (AAPL) to $420 from $500. He's slashing his revenue numbers and seeing about a 25% chance the company misses Q1 guidance after Jefferies' recent supplier checks. "Historically when handset makers fall out of favor, they fall faster/further than expected." Shares -0.7% premarket. [View news story]
Its seems his "checks" are not accurate at all!
He joined the Ed Zabitsky (Apple 270 PT) club. That's 2 members Club only.
More on Apple: The ever-bullish Brian White reports his Apple Monitor, which tracks the sales of component suppliers that depend heavily on Apple (AAPL -1.1%), saw a 31% M/M drop in February, its worst performance on record for the month. Foxconn parent Hon Hai saw a 25% M/M drop. Baird's William Power, meanwhile, says his firm's semiconductor checks indicate iPhone/iPad orders are in-line with his estimates, but below consensus. White maintains an $888 PT, and Power a $465 PT. [View news story]
http://bit.ly/ZBOgnx
Who is right? White or Reuters?
Tim Cook already warned everyone in January about the lack of accuracy of these "chain supply rumors" because the Apple's complexity supply chain. But Analysts don't want to listen..
More on Apple: Berenberg's Adnaan Ahmad has downgraded shares to Sell from Buy, while also cutting his rating on Samsung (SSNLF.PK). With smartphone growth now fueled by emerging markets, "Apple and Samsung margins are peaking and growth is going to be driven by the margin-dilutive mid-to-low-end segment," he argues. Also, Citi has cut its PT to $480, citing weaker iPhone 5 and regular iPad demand. Citi, which cut Apple to Neutral in December, now expects March and June quarter iPhone sales of 34M and 25M, below a consensus of 37M and 32M. AAPL -0.2%. [View news story]
Wow what a hard facts!
More on Apple: Berenberg's Adnaan Ahmad has downgraded shares to Sell from Buy, while also cutting his rating on Samsung (SSNLF.PK). With smartphone growth now fueled by emerging markets, "Apple and Samsung margins are peaking and growth is going to be driven by the margin-dilutive mid-to-low-end segment," he argues. Also, Citi has cut its PT to $480, citing weaker iPhone 5 and regular iPad demand. Citi, which cut Apple to Neutral in December, now expects March and June quarter iPhone sales of 34M and 25M, below a consensus of 37M and 32M. AAPL -0.2%. [View news story]
On the other hand, it is the eight time within a year that Citi change its view about Apple... What a high quality coverage!! It is a shame!
Time to buy..
3 Things Apple Must Do To Regain Its Dominance [View article]
Congratulations on a very well written article.
Apple's China Growth Not As Strong As It Appears [View article]
I've read previous articles from you.
But sorry, this time I failed to understand the content of you article.
It's totally speculative and on top of that, I do not understand your speculation.
Apple (AAPL -2.3%) has tumbled below $500 following Nomura's big PT cut. Multi-Fineline's (MFLX -20.3%) warning also might not be going over well. Nomura backs up the WSJ and Nikkei's reports by stating its own checks indicate weaker-than-expected iPhone 5 sales; it now expects 48M sales in FQ1, and 39M in FQ2, but is raising its iPad forecasts. Echoing a recent CLSA note, Nomura thinks Android's Asian dominance has become a problem for Apple. Sterne Agee, meanwhile, believes all is well. [View news story]
Everyone can see the video in below link:
http://bit.ly/107xxdo
Once again, Apple stock price is very low but WSJ credibility and reputation is pretty low as well.
Apple's (AAPL) shares are -3.4% premarket following reports that the company has cut iPhone 5 component orders for calendar Q1 due to weaker-than-expected demand. That's possibly helping to depress sentiment on the stock-futures market, with the Nasdaq benchmark -0.4%. The Dow is flat and the S&P is +0.1%, while Europe remains mostly in the green. [View news story]
AT 10:20 LAST NIGHT, WSJ REMOVED THE COMMENT "DUE TO WEAKER DEMAND THAN EXPECTED" from Apple article because absolute lack of evidence. But the news was already sparked everywhere and damage was done. Since when WSJ is publishing cheap rumors without reasonable support? Same happened last week with cheap iphones note.
Now, Apple stock is being seriously impacted in pre-trading and also WSJ reputation.
Should WSJ apologize to Apple?
Apple (AAPL) has cut iPhone 5 component orders for calendar Q1 due to weaker-than-expected demand, sources tell the WSJ; display orders are said to be cut by ~50%. The Nikkei also claims display orders have been halved, albeit from an elevated level of 65M. The articles back up analyst reports of iPhone production and component order cuts, and raise the question of whether Apple needs a cheaper iPhone and/or one with a larger display to bolster its international share. Suppliers on watch: LPL, CRUS, OVTI, QCOM, BRCM, SWKS, TQNT, AVGO. [View news story]
If those cuts are true, have all of you have thought that can be due because simply seasonality between Q1 and and Q2? That Production Plants were at max cap during last Q1 to catch strong iphone 5 demand and now they just adjusting production levels to their best view about traditional lower demand in Q2?
I read that article in full few hours ago and 50% was NOT mentioned at all. Cited % cuts were in the order of 20-30%.
I hope the moderator publish my comment this time!