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It's more of the same. Apple meets estimates but doesn't "beat" estimates. As a result, Apple stock drops after earnings.

I think the Apple Watch is a major reason for the drop.

It is easy to conclude that a company saying little about a new product is an indication that the product is not selling well. This is not always true but in Apple's case, it serves to feed the narrative that the Watch is not doing well.

The more likely explanation for the drop is that the forecast for next quarter ($49-$51 billion of revenue) was less than the median analyst estimate ($50.8 billion). The iPhone sales last quarter were in line with mostly heightened expectations.
 
Missed iPhone sales estimates. Only $2.64B in "other" category = weaker than expected watch sales. Lower than expected Q4 guidance, even after taking into account that Apple sandbags their guidance.
Apple used to sandbag their guidance, they don't anymore under Cook.
 
They were rather brave in forecasting "mother of all upgrade cycles" or something like that with the iPhone 6 and 6+. Obviously they were right, it's been an outstanding fiscal year for AAPL.

Your absolutely right about the risk though. If sales start dropping on the iPhone it really pulls the rug from underneath the stock. That being said, it's still the best phone on the market with the most satisfied customers and most valuable brand so doom may not yet be upon it.

The sales, now that the 6 has a proper screen will ease maybe, there is no big upgrade no matter what now as its alongside the other brands. Best phone on the market? No, its just another very good top end phone. They need to push the OS, the android catchups over recent times has been good, the proper screen has been good, features like Continuity are good. Keep that up, its less about the phone hardware these days.
 
I'm afraid that the double whammy of the Apple Watch flop and the Apple Music flop has taken its toll on the stock price.

Tim Cook is veritably sullying the name of Apple, which Steve Jobs did so well to cultivate. All his good work is become unravelled with Cook's political pandering and lack of focus or vision.

Shares down 8% after hours.
 
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Down 7% already after hours. Wall Street sees the future growth slowing down for iPhones. Their stock will be a function of iPhone and nothing more. I've said before that as soon as iPhone growth slows due to global saturation, and potential upgrade cycles slow as well, the stock will get crucified. That day is nearing.
EDIT: Will be interesting to see if the earnings call can bounce it back if Tim gives any confidence towards timing of iPhone cycles and what type of cycle they expect with the 6s.
You have zero idea what Apple has in the pipeline. And neither does anyone else outside the Inner Circle. Sell your shares of you like. Apple value will be juuuuuust fine.

EDIT: Oh, and instead of listening to all these gut-wrenchingly hilarious predictions of nuclear bombs going off in Palo Alto, I'm going to listen to the likes of Warren Buffett and literally capitalize on the price drop by buy more shares.
 
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Apple missed iphone sales estimates by quite a lot.

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And what were these estimates based on?
 
I can't wait for the transcript of this call... the MR person doing the play-by-play is jamming statements together to paint a super-rosy picture for some things... (i'm listening to the call and reading it, yes)
 
These financials are horrible. The iPhone is a flop. The AW is a flop. The iPad is a flop. Apple Music is a flop. Why Apple hasn't gone belly-up is beyond me.
 
You have and I haven't. I'm just speaking from my point of view. I have an AW and no one I encounter cares about it. People have always been curious about every Apple product I own. I never said its a failure, I just don't think it's performing as well as they expect it to, that's all.

I agree about lack of care. I am on another Apple forum, and some who got the watch, who are fanboys, don't rave, they justify. Some do rave. Maybe for some its a great Apple product but in real use, its not the be all and end all. Maybe for some its a great idea but becomes a new gadget thats not used much. Product looking for a solution? I feel its very niche, and the hype is overstated.
 
Down 7% already after hours. Wall Street sees the future growth slowing down for iPhones. Their stock will be a function of iPhone and nothing more. I've said before that as soon as iPhone growth slows due to global saturation, and potential upgrade cycles slow as well, the stock will get crucified. That day is nearing.
EDIT: Will be interesting to see if the earnings call can bounce it back if Tim gives any confidence towards timing of iPhone cycles and what type of cycle they expect with the 6s.
Cool story bro. People have been saying that since the iPhone 3GS.
There is no "saturation" yet. Over half the world is still using mediocre cheap android phones and with the large screen size apple now offers, a large number of them are switching to iPhones.
 
Looks like iPods have been moved into 'other' this quarter, so you can't look at how much 'other' has risen to work out watch sales.

They had already been moved into the Other category. And, at any rate, the prior comparisons are adjusted to reflect such accounting changes. So, e.g., the Q3 2014 number for Other includes iPods.
 
Hah. 1/2 hr after the tumble the price is back up. What a bunch of suckers that sold. My chart looks like 1 million idiots sold right after the close during the slide. The same crooks that scared them probably bought the shares when they were -8%. It went back up as fast as it went down.
 
Hah. 1/2 hr after the tumble the price is back up. What a bunch of suckers that sold. My chart looks like 1 million idiots sold right after the close during the slide. The same crooks that scared them probably bought the shares when they were -8%. It went back up as fast as it went down.
It's still 7.4% down a minute ago, where are you getting your numbers?
 
conference call said:
2:23 pm $202.8 billion in cash, 89% of the total is offshore.
This is why we will continue to see bond issues to capitalize domestic expansion, buildings, servers, and supply chain.

Foreign funds can be leveraged to help fund some of these issues yet we do not hear a lot of foreign subsidiary finance deals publicized. One wonders if foreign subsidiaries have been hoarding AAPL stock. Hmmm.
 
I'm afraid that the double whammy of the Apple Watch flop and the Apple Music flop has taken its toll on the stock price.

Tim Cook is veritably sullying the name of Apple, which Steve Jobs did so well to cultivate. All his good work is become unravelled with Cook's political pandering and lack of focus or vision.

Shares down 8% after hours.
How many times has the stock went down right after good news, or just randomly did this or that? It's the stock market, one of the biggest gambles out there. Tons of people have theories as to work out the meaning and predict everything, but the simple reality is it's still all a gamble and things still happen one way or another even if logic and common sense might imply something else.
 
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People have smartened up over the years. They know that Apple releases new iPhones in September and at this point, many are holding off on their iPhone purchases.
Funny how people panic when Apple is still taking 92% of the profits in the smartphone industry.
 
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