Apple iPhone 5 disappointment

[rpm]

iPhone 5 disappointment

Apple Inc missed Wall Street’s revenue forecast for the third straight quarter after iPhone sales came in below expectations, fanning fears that its dominance of consumer electronics is slipping.

 

[icyrus]

Never mind that the most profitable company in the world just announced the 4th biggest quarter ever, they missed analysts predictions who haven't gotten a single quarter correct in almost over 5 years. Doom.

 

[cerebus]

iPhone sales themselves came in well at the level of expectation. The factor that appears to have driven the post-announcement selloffs is the narrowed profit margin on the revenues, as well as the lack of Q2 profit guidance. But iPhone combined sales were at what, 47.8 million globally? And Tim Cook refuted the part cut rumours quite strongly.

 

[sand_man]

I especially enjoyed this...

Shares of several of Apple’s suppliers crumbled. Chip suppliers Skyworks and Cirrus Logic both fell more than 6 percent. Qualcomm Inc slipped 1.8 percent.

Sounds like just another day of trading to me.

EDIT: Oh look it's not crumbling anymore...

http://www.nasdaq.com/symbol/qcom

http://www.nasdaq.com/symbol/crus

http://investing.money.msn.com/investments/stock-price/?symbol=swks

 

[HBee]

I guess I don't have to appologise for any of my predictions. This however is only the start of what is to be the worst year apple has ever had.

 

[icyrus]

I guess I don't have to appologise for any of my predictions. This however is only the start of what is to be the worst year apple has ever had.

How incredibly surprising that you would be such a coward and still not admit you were utterly wrong. Even less surprising is you doubling down on your stupidity.

 

[sox63]

Never mind that the most profitable company in the world just announced the 4th biggest quarter ever, they missed analysts predictions who haven't gotten a single quarter correct in almost over 5 years. Doom.

The concern is not the revenue, but the flat profits in a traditionally strong quarter for Apple and when you add that there were two major product introductions imagine the numbers if there was no iPad Mini to boost numbers!

No surprise Apple is down almost 10% in after hours trading.

 

[icyrus]

The concern is not the revenue, but the flat profits in a traditionally strong quarter for Apple and when you add that there were two major product introductions imagine the numbers if there was no iPad Mini to boost numbers!

No surprise Apple is down almost 10% in after hours trading.

Apple achieved (small) profit growth in increasingly competitive markets where most of their competitors sell at a loss, despite the quarter being a week shorter than the year before's and despite introducing lower margin products.

To try and claim that this anything other than success for Apple is beyond stupid.

 

[cerebus]

The concern is not the revenue, but the flat profits in a traditionally strong quarter for Apple

And yet when Google and Amazon post results calls with flat or negative profit vs good revenue, their stock goes up comfortably even as their P/E gets stressed to ridiculous levels. Factors of Apple's profit softening are a bit obscure, but could be related to significant amount of R&D and production ramp-up in their expansion. What they probably aren't related to, is a slowing of consumer demand except in the iPod/iMac division where consumer sentiment is pretty much inevitably moving towards tablet and smartphone type devices.

and when you add that there were two major product introductions imagine the numbers if there was no iPad Mini to boost numbers!

All of their product introductions and revamps were supply constrained in a pretty big way, and will be for the near future. Try and find a 13' Macbook Pro Retina or a New iMac anywhere.

No surprise Apple is down almost 10% in after hours trading.

Nothing surprises me wrt Apple stock any more I think.

 

[R13...]

The concern is not the revenue, but the flat profits in a traditionally strong quarter for Apple and when you add that there were two major product introductions imagine the numbers if there was no iPad Mini to boost numbers!

No surprise Apple is down almost 10% in after hours trading.

They're back up to $514 now. I would like to see a breakdown of those phone sales.

 

[cerebus]

They're back up to $514 now. I would like to see a breakdown of those phone sales.

So would everyone; from what I can gather iPhone5 appears to represent about 50% of total iPhone sales.

Your question on iPhone mix, let me bring up three points: One, the [average selling price] for iPhone was essentially the same year-over-year in the quarter that we just finished. Underneath that, if you looked at the mix of iPhone 5 to total iPhone, and then in the previous year you look at [iPhone] 4S to total iPhone, those mixes are similar. And then thirdly, I think you asked about capacities; in Q1, we saw similar results as we saw in Q1 of the previous year.

 

[HBee]

How incredibly surprising that you would be such a coward and still not admit you were utterly wrong. Even less surprising is you doubling down on your stupidity.

If you were not a huge ignoramus, I might have felt the sting in your words.

 

[Hush9300]

Never mind that the most profitable company in the world just announced the 4th biggest quarter ever, they missed analysts predictions who haven't gotten a single quarter correct in almost over 5 years. Doom.

The concern is not the revenue, but the flat profits in a traditionally strong quarter for Apple and when you add that there were two major product introductions imagine the numbers if there was no iPad Mini to boost numbers!

No surprise Apple is down almost 10% in after hours trading.

You have to consider that Apple has overhauled their entire product lineup and as such production costs have gone up. This, together with supply constraints on certain models, explain the flat profits on the back of record revenues.

In any event. The share is just correcting itself. Continuing to meet analysts lofty expectations is simply unsustainable, especially since competition in the sector is stronger than ever.

 

[sox63]

Apple achieved (small) profit growth in increasingly competitive markets where most of their competitors sell at a loss, despite the quarter being a week shorter than the year before's and despite introducing lower margin products.

To try and claim that this anything other than success for Apple is beyond stupid.

I did not say its not a success, just that there is reason to be concerned. To raise revenues by 17-odd percent and yet profit remains flat means the days of 44% gross margin are over...

Gross margins consequently slid to 38.6 percent, from 44.7 percent previously

 

[sox63]

They're back up to $514 now. I would like to see a breakdown of those phone sales.

$514 was last night's closing price, its currently $463.49 in after hours trading

 

[cerebus]

I did not say its not a success, just that there is reason to be concerned. To raise revenues by 17-odd percent and yet profit remains flat means the days of 44% gross margin are over...

It is a concern, particularly when you don't have a clear picture of what caused the softening; did they narrow the margin on their products, or what was it? If it's purely because of the costs associated with bringing a huge number of new/refreshed products on line though, then it's no concern at all - because once the initial ramp-up is done, you have a product line that can run for a long time without the same initial liability.

 

[icyrus]

If you were not a huge ignoramus, I might have felt the sting in your words.

No sting needed, merely stating the facts. Your proclamations are here for all to see and run contrary to the facts as always.

A man would admit that they had been wrong and look for knowledge it that, but what are you?

 

[HBee]

They're back up to $514 now. I would like to see a breakdown of those phone sales.

The fell by 6% in after hour trading, after closing on $514. The price will be adjusted when trading opens again.

 

[Crowley]

I would also love to see the hard numbers on the 5 compared to the 4s.

“The mini? What is that all about? It is a slightly smaller iPad — so what? So that is our new definition of innovation?”

Cutting straight to the heart of the issue at hand. Apple has built up an enviable fan base over the years but if they don't do something innovative they will lose their fans.

Personally I have seen one of my friends get a iPhone 5 (he is a developer and needs one, he has a S3 as well) and about eight of them move from iPhone to Android. It seems like the only people who still buy iPhones are the people who invested heavily in third party peripherals or apps and the people who don't want to move out of their comfort zones.

 

[HBee]

No sting needed, merely stating the facts. Your proclamations are here for all to see and run contrary to the facts as always.

What facts are these ? the ones you fabricate from pro-apple sites to make yourself feel better. Re-read the title of this tread slowly and familiarise yourself with what we are talking about. Lashing out at me just shows how pathetic your arguments are.