'Nightline' Looks at Apple's Woes as Stock Declines 20% from All-Time High

[Ryth]

Originally Posted by foxnews1

the same to dot com bust and real estate: too many to count

I guess you don't understand the fundamentals and the difference between that and Apple.

[lowbatteries]

Hope my Christmas bonus comes in time to buy some shares before the eventual upswing.

[luist3k]

$AAPL is a great company with solid numbers (amazing cash-flow, no debt, you name it) and is highly innovative (capability to generate new revenue sources).

BUT... a stock value is built in confidence. And (this is only my opinion) Tim Cook has done a very bad job at this. EDIT: Confidence on expected earnings realisation, of course.

I've been hearing the guy at the conferences calls and compared his tone to the one he uses at keynotes. You can totally tell that he is a fake. Jobs was authentic, and he had investors enchanted.

If you use Apple products, you can tell that lately they have got sloppy. And Cook "I'm sorry" letters have shattered the Jobs confidence shield. What Jobs did well was actually NOT accepting his errors. This is the investors' language, talk to any trader and he will never say he is sorry. They will come with a new convincing rationalisation.

As a trader myself, I'm looking for any of the next signals from this company:
1. Current SKUs reduction (Jobs 2x2 MBA matrix).
2. Venturing into new markets (TV's, Watches, anything that uses screens and processors).
3. Removal of Tim Cook as a CEO.
4. Winning the patent war against Samsung.
5. New breakthrough technology.

The two main problems at Apple are:
1. It's losing its differentiation (look at the margins).
2. Not creating new revenue sources.

[Ryth]

Originally Posted by D-a-a-n

Billions per year..please. Btw what would a real professional do with an iPad? That's right, nada.

Funny...most of our project/account manager staff are using iPads now as their main device. And the upper management/sales team uses them.

And we're in...wait for it...a real business.

[Krazy Bill]

The problem with iDevices is their buyers are generally young and like all young impressionable people they demand glitz and glamour more frequently. And of course they eventually grow up.

[flopticalcube]

Originally Posted by TallManNY

We aren't even close to market saturation. Tablets and smartphones will be as common to own as a home computer in a few years. Sales of them will probably be in the billions per year in the not too distant future. Tablets are still crude, heavy (if 10" size, not so much for the smaller ones) and basically a piece of crap compared to what they will be in five years. And they are already awesome. Smartphones are only now getting decent and the first iPhone was awesome and anyone who could have afforded it probably should have bought it.
The market for this stuff is basically the entire human race. It has not been scratched.

Not really. The market for products in Apple's price bracket is pretty much at saturation.

[Ryth]

Originally Posted by luist3k

2. Not creating new revenue sources.

That's funny. They only released 2 new products this year...Mac Book Retina and iPad Mini...I guess that's not enough new revenue sources. Then they released the iPad 3 & 4, the iPhone 5, the new iMac and iPod Nano.

You people are absolutely clueless about business. This company has the strongest fundamentals and product line-up of ANY company in any segment in the world.

But hey...keep bashing it. When their sales are through the roof at XMas...come on back.

[sweetbrat]

Originally Posted by D-a-a-n

Billions per year..please. Btw what would a real professional do with an iPad? That's right, nada.

Let me guess, you're one of the people that thinks the only "real professionals" in this world are the ones that need to purchase thousands of dollars worth of software to run on powerful desktop computers, right? That's a very narrow view of what constitutes a "professional." My dentist uses an iPad...doctors use them...all kinds of business professionals. You need to broaden your view of the world.

[Ryth]

Originally Posted by flopticalcube

Not really. The market for products in Apple's price bracket is pretty much at saturation.

Not really. Been hearing that for the last 5+ years. China and India aren't even involved yet.

Saturation is hardly even close.

[radio893fm]

Originally Posted by angrynstupid

The stock is being manipulated right now. The same thing happened last year at this time. Share price will rise again as January 24th draws near.

This is not a penny stock. So let's look at the projections, fundamentals, real numbers; now, factor them in, forget about the passionate blind love u feel for the company and u will find that investors are concerned by the decline on market share of some products.

As a company, it is still very healthy, but undoubtedly the iPad mini, the iOS, the PC side of the business and some other minor things need to be revised.

[mccldwll]

Originally Posted by Tiger8

Finally someone with brains! Thank you!

Brains? Aapl now has roughly $128/sh cash and equivalents, and $44+/sh TTM, so good luck finding aapl with a P/E net cash under 2.

[foxnews1]

Originally Posted by baryon

With the Retina MBP, the iPad Mini and the iPhone 5, what more could you want from Apple? I think these are the best products ever, and I've never seen any other company doing anything like that. Don't see why there would be a problem here.

the problem is future, not now. current prospect is already built in stock price early this year. apple future is not as bright as it used to be.

[pedromartins]

Originally Posted by BornAgainMac

Half the revenue is from the iPhone. Hopefully those other things will get more focus to make up for the loss revenue of the iPhone in the future.

But the iPhone is only making more and more money, gaining market share (handsets) especially when markets are saturating (samsung floods markets until they saturate..)

So why are you saying that the iPhone is going to lose market share? based on what?

[Krazy Bill]

Originally Posted by Ryth

Funny...most of our project/account manager staff are using iPads now as their main device. And the upper management/sales team uses them.

My company dumped them. iPads were in everyone's hands until around June - people gleefully pecking away. Then all of a sudden... everyone started showing up with their Lenovo's because they figured out they couldn't collaborate with the rest of the world in an MS-Office environment. Plus, it was a pain in the arse to develop and deploy internal company apps.

I said, "duh".

[Popeye206]

Lot's of talk about the devices, iOS and technology. Hardly what Wall Street is looking at.

I see it in two ways... one, is they want to see the new Apple chief's "wow" us so they can prove they are worthy. The other I believe is plain and simple profit taking. Sales last quarter should not have caused a $100 drop.

Either way... for Wall Street it's all about sales and if Apple can produce this Christmas, the stock will rise again.

[Ryth]

Originally Posted by radio893fm

This is not a penny stock. So let's look at the projections, fundamentals, real numbers; now, factor them in, forget about the passionate blind love u feel for the company and u will find that investors are concerned by the decline on market share of some products.

As a company, it is still very healthy, but undoubtedly the iPad mini, the iOS, the PC side of the business and some other minor things need to be revised.

PC side of business is in decline...tablets are the future for the majority of individuals and businesses out there. iOS will be 'tweaked' by Ive to be more unique and Apple like.

Companies like Dell and HP will be dinosaurs and possibly out of business in 5 years.

All the iPad mini needs is the Retina screen (and for most that doesn't even matter) and it will destroy the remaining Kindle HD/Google market.

[radio893fm]

Originally Posted by mccldwll

Funny, but not surprising from someone who posted this last year:

"Jobs was an ass. Arrogant. A buffoon. Boorish. Greedy. Yet the minions celebrate him like a god."

Why exactly are you here? Are you related to Mike Daisy?

Do we need to be fanboys/sheeps to be here? Do we have to have the same opinion.

I love my Macbook Pro Retina, I love my iPhone, I love my freedom of speech and I hate the kool-aid.

The fact that he doesn't have ur same opinion on whoever or whatever doesn't mean you have to disqualified his opinion or mine.

[Ryth]

Originally Posted by Krazy Bill

My company dumped them. iPads were in everyone's hands until around June - people gleefully pecking away. Then all of a sudden... everyone started showing up with their Lenovo's because they figured out they couldn't collaborate with the rest of the world in an MS-Office environment. Plus, it was a pain in the arse to develop and deploy internal company apps.

I said, "duh".

Can't help it you and your company and it's clients are behind the times. Who uses MS Office anymore. Open office, google doc, etc.

And you can do things on the iPad that transfer to those other docs...can't help it your company can't figure that out.

[Optheduim]

did anyone else see the rest of the stock market. Obama is anti wall st.... stocks plummeted yesterday because the country is in serious trouble with this man. its not apples fault...

[Will do good]

Originally Posted by rdstoll

Apple will be a $400 stock by year-end heading lower still. All the classic signs of a stock that has boomed and seen its best days: earnings disappointments (3 in a row), lame product launches, operational issues (maps, siri), blame-casting by throwing some management under the bus, building a grotesque new HQ, not to mention the fact that everyone and their mom already owns a iphone/ipad and/or owns the stock.

With 56 analyst recommendations to buy AAPL vs. only 5 "holds" and 2 "sells" there is a long way to go for this stock to wring out excesses. Based on the chart, etc I will start to nibble at $200.

Do you know how to read P/E? What a bunch of BS you spill.

[Ryth]

Originally Posted by Optheduim

did anyone else see the rest of the stock market. Obama is anti wall st.... stocks plummeted yesterday because the country is in serious trouble with this man. its not apples fault...

It's that and the capital gains tax increase that comes at the end of the year. They are selling, and then freaking out the little stock market day traders. After Xmas the hedge funds will buy Apple up in bulk.

[Ramchi]

Originally Posted by Ryth

Not really. Been hearing that for the last 5+ years. China and India aren't even involved yet.

Saturation is hardly even close.

You are right but supply seems to be bigger problem! You can't launch a product with 15000 iPhones in India.

[miniroll32]

Originally Posted by Mactendo

Doom.

Yep, doomed. How will Apple cope with just $70+ billion dollars?

You can't just peak and stay there forever, or at least continue to post "record profits". The only other direction to go is down, even if just marginally. The way the media will play it out is as if Apple are on the brink of bankruptcy.

[jessica.]

Apple's woes? Oh please.

[flopticalcube]

Originally Posted by Ryth

Not really. Been hearing that for the last 5+ years. China and India aren't even involved yet.

Saturation is hardly even close.

The markets in China and India for $800 phones and $300 iPods is not that big. With Apple's share of the smartphone market shrinking, they need to broaden their appeal.