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Apple Loses Trillion Dollar Company Status Due to 10% Slide on Stock Market Since Thursday

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AAPL has dipped below the $200 mark at times today, and is down around 10 percent since Apple's earnings report last week, resulting in the company losing its trillion dollar valuation in terms of market capitalization. As of writing, Apple has a market cap of around $950 billion based on its latest share count.


Apple on Thursday reported revenue of $62.9 billion during the fourth quarter of its 2018 fiscal year, an all-time record for the July-September period, but the good news was overshadowed by Apple's revelation that it will no longer disclose iPhone, iPad, and Mac sales on a unit basis starting next quarter.

The news has sparked concerns among some analysts and investors that Apple may have something to hide, as iPhone unit sales in particular were essentially flat last quarter and could begin to decline in upcoming quarters.

Apple's financial chief Luca Maestri said unit sales are "not particularly relevant for our company at this point," as they are "not necessarily representative of the underlying strength of our business." He added that Apple may provide qualitative commentary related to unit sales if the info is valuable to investors.

AAPL is also being dragged down by a questionable report claiming Apple has informed its suppliers to halt plans for additional production lines dedicated to the iPhone XR due to "disappointing demand" for the smartphone.

Not everyone believes Apple's decision to stop reporting unit sales is a bad one. Apple bull Brian White at Monness Crespi Hardt believes the change "makes perfect sense" as Apple's success is "increasingly driven by an ecosystem of product and services on Planet Apple," including rising ASPs.

Apple analyst Gene Munster of Loup Ventures also believes the change will be "a good thing for Apple investors," as "the new reporting method will force the Street to think about Apple's business as a stable and growing service, which should yield a higher earnings multiple in the long run."

AAPL is currently hovering around $199-$201 on the intraday market, down from a closing price of $222.22 on Thursday.

Article Link: Apple Loses Trillion Dollar Company Status Due to 10% Slide on Stock Market Since Thursday
 

bluespark

macrumors 68020
Jul 11, 2009
2,107
2,367
Chicago
Disclosing unit sales is important to investors. Apple is welcome to explain why those figures are no longer "relevant," but investors aren't required to view things the way Apple prefers. I think the 10% correction on that news sounds about right (and I say that without regard for reports of weak Xr sales).
 
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mi7chy

macrumors 604
Oct 24, 2014
6,798
7,796
Apple need to shift their strategy and focus more on medical and health. iPhones and Apple Watches are great inexpensive helium leak detectors compared to specialized devices such as from Inficon that cost $20K+.

 
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redheeler

macrumors 604
Oct 17, 2014
7,663
7,513
unit sales are "not particularly relevant for our company at this point,"
A single sentence explains both the overpriced hardware and measly 4 GB of free iCloud storage.

Overpriced hardware = fewer units sold, but Apple doesn't care as the greater per-unit price makes up for it.
Measly free storage = not a good selling point for hardware, but does result in more people opting for the paid storage tiers, which strengthens services revenue.
 
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justiny

Contributor
Jul 28, 2008
622
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Bubbletucky
As an Apple shareholder, I couldn’t agree more about the company’s disgusting greed and the increasing prices on their (ever more confusing) product lines as if it’s a fashion trend.

On the other hand, I’m not panicking and have no intention to sell. Despite the negative press, this is a great time to buy Apple stock, as it probably won’t be sub $200 for very long. I might even pick up a few more shares to add to my collection.
 
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genovelle

macrumors 65816
May 8, 2008
1,103
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Disclosing unit sales is important to investors. Apple is welcome to explain why those figures are no longer "relevant," but investors aren't required to view things the way Apple prefers. I think the 10% correction on that news sounds about right (and I say that without regard for reports of weak Xr sales).
Because if it were relevant their competitors like Samsung, Google, Microsoft and others who have not provided this information for years, would be expected to report it. They stopped years ago, and there was not a word.
 
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Duane Martin

macrumors 6502
Oct 15, 2004
400
888
Calgary, Alberta
Apple analyst Gene Munster of Loup Ventures also believes the change will be "a good thing for Apple investors," as "the new reporting method will force the Street to think about Apple's business as a stable and growing service, which should yield a higher earnings multiple in the long run."
Curious why Gene Munster thinks this will make the street look at the true value of Apple when every other positive indicator has been consistently ignored over the years? It is often argued that Apple is too dependent on the iPhone for revenue but in a quarter that showed increased revenue despite the stagnation felt in the smart phone market it would seem as Apple moves away from the iPhone for increased revenue no one is noticing.

Apple valuation and rational thought don't seem to be talking, as per usual.
 
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Cosmosent

macrumors 65816
Apr 20, 2016
1,486
1,592
La Jolla, CA
RE: "Apple analyst Gene Munster of Loup Ventures"

That's NOT an Analyst ! ... that's an AAPL "Cheerleader" !!!


These three are the Best:

Toni Sacconaghi of Bernstein

Jeffrey Kvaal of Nomura's Instinet

Dan Ives of Wedbush
 
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JPack

macrumors 604
Mar 27, 2017
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Sales units are linked to the performance of Apple services and other accessories. Consumers aren't likely to buy Watch or Apple content if they don't have iPhone.
 
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