Apple shares fell about 7 percent after hours

Discussion in 'Apple, Inc and Tech Industry' started by chiefs1968, Nov 1, 2018.

  1. chiefs1968 macrumors regular

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    Feb 27, 2016
    #1
    Hello Apple are you listening...hello hello.... nobody wants to spend $1000.00 on a phone today. Watch how Apple will drag down the tech sector in the A.M. People are willing to spend tops $649.00 for a phone but $1199.00...come on now its not going to work!!!!!!!
     
  2. mikethebigo macrumors 68000

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    #2
    Didn't they increase their income from iPhone sales by like 29% though?
     
  3. C DM macrumors Sandy Bridge

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    #3
    So what shows the cause and effect relationship there?
     
  4. Packers1958 macrumors 65816

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    #4
    Apple has made a lot of people a lot of money. If you would have invested $1000 in 1980 and purchased Apple stock, that $1000 would be worth $500,000 today. I doubt you can find that rate of return elsewhere.
     
  5. ET iPhone Home macrumors 68040

    ET iPhone Home

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    #5
    I don't think OP is referring to the investment of Apple Stock. I believe, it's directed towards sales. Generally speaking, people aren't upgrading like they use to. I noticed this ever since last year's X. The X is not relatively seen compared to the iP6, 7, and 8. This $1000 mark really got people's attention.
     
  6. Packers1958, Nov 1, 2018
    Last edited: Nov 1, 2018

    Packers1958 macrumors 65816

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    #6
    True, but if Apple is thinking that phones sales are now plateauing worldwide and becoming stagnant, and not just for Apple, increased revenue is going to have to come from higher prices.

    I remember when the average cost of a car hit $10,000 years ago. That was a shock for many. But after awhile it became the norm, and then it hit $20,000, and now it's $30,000. Prices will continue to rise for everything. Heck, my house that I bought 32 years ago for $72,000 is now worth $230,000.
     
  7. doboy macrumors 68020

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    #7
    It’s not only the phone prices, look at everything they announced few days ago. Besides, even the phones released few years ago are overkill for majority of people and without clear benefits regular people are not going to upgrade frequently so sales were likely going to be flat. I’m sure some of these factors played into these price hikes to offset the slowing of sales. Also slowing of unit sales likely caused them to stop reporting the breakdown of individual units sold starting next quarterly report. So if we don’t like these moves we can stop boycott Apple or at least boycott overpriced items from them.
     
  8. The-Real-Deal82 macrumors 604

    The-Real-Deal82

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    #8
    Apple is certainly accelerating the market towards becoming more stagnant with their ever increasing prices. I don’t know many people who spend a grand on an iPhone but I know a lot of people who are holding onto old iPhones or buying last years model because they are cheaper.

    Prices should be going down to encourage sales not going up IMO.
     
  9. Lloydbm41 Suspended

    Lloydbm41

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    Central California
    #9
    This is all incorrect and not why the stock is down in after hours trading. Analysts made a prediction on the number of units Apple would sell and Apple fell slightly short of those 'expectations'. This is why from now on, Apple will not be reporting sales figures, but instead focus on profit/revenue numbers, which makes more sense. Takes away analysts ability to manipulate stocks.
     
  10. Packers1958 macrumors 65816

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    #10
    Car prices are not going down, yet they continue to sell them and the auto companies are making record profits.
    Samsung, LG, Sony, etc, lowered the price of their HDTV's and they suffered, and it put other brands out of business. They are actually still suffering with profits quite weak. The only thing saving them is the selling of 4K tv's at an inflated price, and even then, a few more manufacturers may drop out of the market.
     
  11. akash.nu macrumors 603

    akash.nu

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    #11
    That’s the same with every industry though. You pay for the Latest and greatest and if you don’t want to pay that much then there are other models available to buy at a more affordable price point.
     
  12. doboy, Nov 2, 2018
    Last edited: Nov 2, 2018

    doboy macrumors 68020

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    #13
    Dropping price will only do so much. Regular people are not going to upgrade just because of lower prices, they need some killer features making them want to upgrade. OLED and Face ID ain’t it.
     
  13. The-Real-Deal82 macrumors 604

    The-Real-Deal82

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    #14
    I agree but perhaps this is why we see so few newer iPhones now as the older cheaper ones are capable enough.
     
  14. ET iPhone Home macrumors 68040

    ET iPhone Home

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    #15
    Very true. I don't disagree. But if you've noticed, not many are driving new cars nowadays. Here in Southern California, Cars are a must and it's a market's haven. I noticed in the 80's and 90's, I'll see plentiful of new cars on the streets (like BMW, for example) with dealer plates still on them. Today, not very many people buying new cars when most decent cars are at the $40,000-$50,000 mark (like the Lexus ES, for example, a car I'm eyeing - just to have the navigation package on it is at $54,000. This where I say Goody-bye Lexus, Hello Toyota Camry).

    With homes, here in So. California, it's just not within reach. Even a married couple, a 2-household income isn't enough to acquire a home.

    The average people's salary isn't conducive to the cost of new cars and home prices. And even a splurge on a new Apple iPhone makes people pause if $1000 is worth spending.
     
  15. DevNull0 macrumors 68000

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    #16
    If true, that's an annual rate of return of 17%. While not too shabby it's really not all that awesome either.

    If you invested $1000 in Microsoft in 1986, you'd have over $1 million today. Not counting dividends.

    Amazon in 2001 would be $280,000 today. An average return of about 40% per year.

    Intel in 1978 would be about $250,000 today.

    I can find any number of companies that no longer exist after sustaining double digit return on investment for 10-30 years. RIM of course. Nortel (a neighbour of RIM than when from $100billion+ to zero 10 years ago). Yahoo, Digital Equipment, etc. Why do you think past performance has anything at all to do with the future?

    Not sure what that has to do with the thread topic anyway. Today's story is that Apple is no longer a Trillion dollar company, and given that the Era of $2000 iPads and iPhones, $4000 Mac Minis, and no Mac Pros is here, their future is looking pretty bleak. It's been clear for years Apple is burning their future to make huge short term profits. It seems like you're only bragging about the short term profit while ignoring the fact that it will cost them the company sooner rather than later.
    --- Post Merged, Nov 2, 2018 ---
    $30,000 today equals $9,800 in 1980. That increase from $10k to 30k is nothing but inflation. If the trend continues the same way, the car will cost $90,000 in 2056 (another 38 years from now). The car did not get more expensive, your dollars got less valuable.

    Cars are also commodities at this point that are engineered to a point where they don't really drop in real dollars.

    Apple has more than doubled their product prices since Timmy took over. While at the same time innovations across the tech world have led to massive price drops everywhere except Apple. Look at the minuscule storage in Macs at absurd prices and compare it to the industry normal prices for storage. Apple has become a ripoff, pure and simple. And the market is rapidly waking up to that.
     
  16. C DM macrumors Sandy Bridge

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    #17
    I guess at least some of that, if not quite a bit of it can be more anecdotal in nature given that in various parts of Northern California I definitely see quite a few new cars around, and often of the more expensive variety, like Tesla, Lexus, Acura, BMW, Mercedes. etc. (Housing is a whole different type of craziness though.)
     
  17. maflynn Moderator

    maflynn

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    #18
    Price hikes will not stop until people stop buying the products. People were flocking to the iPhone X, so why should apple change course? I'm not happy about it, and the odds are high that I'll be looking at a PC other then a mac in the future. The iPhone is a different matter, I suspect I'm locked in on that, but the time between purchases will grow.
     
  18. I7guy macrumors P6

    I7guy

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    #19
    There is this:
    https://www.amazon.com/Cell-Phones-...TF8&page=1&rh=n:2811119011,p_36:100000-199900

    Then there is this:
    https://bgr.com/2018/11/02/iphone-xr-vs-xs-max-vs-galaxy-note-9-nah-100-phone/
     
  19. ryanwarsaw macrumors 68020

    ryanwarsaw

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    Apr 7, 2007
    #20
    Apple is in line to pass the trillion dollar cap maybe today even. Does that mean they suddenly did something really terrific if the opposite is true when the stock goes down? That was some sweet sweet easy money the past couple of days. i even used margins to leverage a bit extra which I don't do as a standard procedure.

    To the naysayers go on youtube and learn how to open a margin account so you can short. I can't believe anybody panicked and sold off. I understand some people had goals and took profits though.

    I am hopeful that all the negativity now has been priced in and nobody will be surprised after Christmas when AAPL easily surpasses their guidance. Apple has announced that capital expenditures are also going to be down by a couple billion so seems they are done paying for the new campus.

    AAPL at near or below $200 was a no brainer. It is just shy of $208 now and market cap is $985 billion as i write this. We were all beginning to sweat that AAPL might stay under a trillion more than a week.
     
  20. satchmo macrumors 68000

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    Canada
    #21
    Is now a buying opportunity or has Apple finally run out of steam?
    With iPhone upgrade fatigue, where is revenue going to come from? There is services, but what’s the next big thing in terms of hardware?
     
  21. AidenShaw macrumors P6

    AidenShaw

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    #22
    https://finance.yahoo.com/quote/AAPL?p=AAPL&.tsrc=fin-srch-v1

    aapl-2018.11.23.jpg

    Market cap down to $818B.

    More unpleasant news:

     
  22. AidenShaw, Nov 30, 2018
    Last edited: Nov 30, 2018

    AidenShaw macrumors P6

    AidenShaw

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    #23
    Oh well, it was fun while it lasted.

    Also see Microsoft Passes Apple to Become Most Valuable U.S. Company
     
  23. smoledman macrumors 68000

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  24. akash.nu macrumors 603

    akash.nu

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    #25
    I’m actually really happy that Microsoft is back in the game. They’ve been working on some really solid innovations and I hope this will propel the industry forward in the next few years.
     

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