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Apple Stock Down 10% in After Hours Trading Amidst Concerns of Flat Growth

jlc1978 said:
The basic concept is as revenue grows profits will follow since many costs do not grow at the same rate as revenue; unless you have an unusual way of accounting for costs. For example, sales and marketing costs should grow at a much slower rate; unless of course you include shipping costs as part of sales and marketing, which they should not be but doing so would mask your true cost structure.
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Explain then how Amazon gets away with little to no profit every quarter even though their top line is growing.

Apple introduced a lot of products towards the end of 2012. Newer products will have higher costs in the beginning won't they? In the same period in 2011 what did Apple release besides the 4S?
 
alent1234 said:
The rate of increase of profit every year is growth, apple had almost none

In hard core alpple fan language it means apple is peddling harder to make the same profit. Like dell
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Yet Wall Street wants them to become Samsung AND maintain insanely high margins and profits. How do you square that? If Apple goes down a path of iPhone and iPad at all these different price points what does that do to margins and profit?

Honestly I don't think Wall Street knows what it wants. They kept banging on about how Apple needs a smaller tablet to compete with all these 7" iPad killers. Then when Apple releases the mini they all shrug and ask when Apple TV and iPhone 6 are coming. Apple prices the mini at $329. Wall Street says its too high, but at the same time are all D&G about what it will do to margins. And Wall Street is adamant Apple needs a low cost phone for China but yet still is worrierd about compressed margins.

I'm actually glad Cook said they're not going after revenue for revenue's sake. I think he needs to do more of giving a vision of where he sees Apple going (without detailing specific product roadmaps of course). We need more from him than the standard 'our goal is to make the best products in the world' line.
 
The idea that the contemporary stock market is an accurate indicator of much of anything beyond people's interest in short-term cash grabs is laughable.
 
Tim Cook and co. are facing the most difficult task of all the executives out there. They are taking on an enormous legacy left by Steve Jobs. Jobs was introducing new products like it's a magical thing, even if the product failed, Jobs tried, however, we have not seen anything like that with Tim Cook. Cook has not released anything that represents Tim Cook. iPhone 4S and 5, retina MacBook Pro, new iMac, iPad mini. All of them I am sure were all that's left of Jobs portfolio. The soon-to-be-TV has Jobs' touch to it too.
Cook and co. effort doing something out of the ordinary was leaving Google Maps in iOS6 and it received heavy backlash from consumers and critics.
I do believe Tim Cook is a genius in Operations, and Jony Ive a genius simplicity designer. And I hope iOS7 is the start of something truly Cook and Ive.
 
A single occurrence doesn't indicate a trend.

There are a lot of new/updated products early in their cycles.
 
Rogifan said:
Yet Wall Street wants them to become Samsung AND maintain insanely high margins and profits. How do you square that? If Apple goes down a path of iPhone and iPad at all these different price points what does that do to margins and profit?

Honestly I don't think Wall Street knows what it wants. They kept banging on about how Apple needs a smaller tablet to compete with all these 7" iPad killers. Then when Apple releases the mini they all shrug and ask when Apple TV and iPhone 6 are coming. Apple prices the mini at $329. Wall Street says its too high, but at the same time are all D&G about what it will do to margins. And Wall Street is adamant Apple needs a low cost phone for China but yet still is worrierd about compressed margins.

I'm actually glad Cook said they're not going after revenue for revenue's sake. I think he needs to do more of giving a vision of where he sees Apple going (without detailing specific product roadmaps of course). We need more from him than the standard 'our goal is to make the best products in the world' line.
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Well Apple is publicly traded company and whatever Wall Street wants, Wall Street will get. Apple is falling short of higher standards it has set for itself in past, wall street is simply reflecting upon what it sees in the results. Wall Street is not happy at Apple simply meeting its targets, they wants Apple to blow past those targets and Apple have done it in past and was handsomely rewarded for the same. If Apple comes out next quarter with higher than expected results, price of stock will go up. It is simply managing the perception and keep beating your competition phenomena. Apple is no exception to it. I own Apple stocks and Apple products and have seen this ups and downs in past too. Either you or me defending on forum is not going to make any difference in Apple stock price or product line.
 
gnipgnop said:
The idea that the contemporary stock market is an accurate indicator of much of anything beyond people's interest in short-term cash grabs is laughable.
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To be fair, arguably that was more the case last year than this, with respect to Apple's stock price. Perhaps today the euphoria has moved on to Google. Over time, these things sort themselves out. Apple is settling into a more realistic valuation, though I do think the reaction was a bit extreme yesterday.

Anyway, the bigger concern for the Street was not so much the earnings (which were in line), but the forecast of $41-43 billion revenue for this quarter. That's only $2-4 billion more than the comparable quarter in 2012. Analysts were looking for $45 billion. If you notice, the bigger drop in Apple's price after hours came when Peter Oppenheimer stated they were not longer going to give conservative guidance.
 
I sold my entire Apple stockportfolio @ 691 USD.

I bought it @ 6 USD back in mars 2003 for total 500.000 USD.


Will I buy it back?

No.

Instead I bought Nokia and im already up 60%.


Cheers.
 
Flat growth? Didn't the last article say 67% growth in China? That seems pretty good for me.

Yes, Apple is saturating the market with iPhones and iPads. In the next 3-5 years, it's going to be exactly like the iPods.

But what else is there really there to do in the mobile world? The only things you can really do is improve what's already out there at the moment.

I would say most of what Apple is limited to is based on the technology out there to make things last longer (battery life) while adding more features (power consumption).

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leo.andres.21 said:
Tim Cook and co. are facing the most difficult task of all the executives out there. They are taking on an enormous legacy left by Steve Jobs. Jobs was introducing new products like it's a magical thing, even if the product failed, Jobs tried, however, we have not seen anything like that with Tim Cook. Cook has not released anything that represents Tim Cook. iPhone 4S and 5, retina MacBook Pro, new iMac, iPad mini. All of them I am sure were all that's left of Jobs portfolio. The soon-to-be-TV has Jobs' touch to it too.
Cook and co. effort doing something out of the ordinary was leaving Google Maps in iOS6 and it received heavy backlash from consumers and critics.
I do believe Tim Cook is a genius in Operations, and Jony Ive a genius simplicity designer. And I hope iOS7 is the start of something truly Cook and Ive.
Click to expand...

Somehow I feel a lot of the ideas of iOS 7 were Jobs as well. iOS 8 will truely be what the current staff has.
 
NAG said:
Uh, what does the stock price have to do with Artie Macstrawman?
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The point he was trying to make is that the stock market is going to experience a huge correction in the next 1-3 years and Apple will not be immune to this crash, just like it wasn't in 2008.

This will be due to the horrific rate out country is printing money in order to pay for things it cannot afford. We saw the same thing with the real estate bubble. The increase housing prices were far outstripping any increases of income people were getting (which was flat btw). When our country is spending to much, without increasing income (taxes), it prints it. Money is being printed at alarming rates right now to pay for our meteoric nation debt. In 1-3 years, this is going to lead to gross inflation. To counter this, Feds will have to jack up interest rates. Due to these 2 factors, the stock market will experience a huge correction. And, as of today, Apple is part of this stock market and will experience this correction too.

Plus, Apple's business model is married to consumer spending. If consumer spending plummets, so will Apple.

This will be completely fine if people are willing to weather the storm. The stock will rebound eventually, as will the whole market. But, if people are scared of their Apple stock falling below $100-200, they should probably get out now.
 
Karma*Police said:
Sounds like a typical over-reaction by the street due to their myopia. I think the thing to look at is: T-Mobile/Metro PCS will come on baord this quarter which will help Apple take a commanding lead in the US, and iMac/iPad mini constraints should loosen. And it's only a matter of time before China's and Japan's largest carriers start selling the iPhone. That, in itself, would be a huge catalyst. That will keep the iPhone momentum going through 2014 and maybe even through 2015, during which point Apple may release their TV.
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People use metro and t mobile mainly because of low income and they want to save money. That market wont help apple unless they want to give free phones.
 
Rogifan said:
What have others invented? Is bigger screened phones an invention?
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Who cares what others invented, company like apple cant come out with a statement "well, we havent really invented anything BUT so didn't the others"
Apple has set some "standards" in the last years of Steve Jobs regarding inovations and new products. Since Tim Cook's been CEO the only new thing that Apple has invented is "worldwide patents lawsuit war" and nothing more. Its kinda sad when you think about it.
 
I have to note that as an Apple consumer I'm not as excited about the current product line as I was a few years ago when I got my MP, MBP and mini.

Sure the current products are much faster than mine are but the MP is way out of date, the mini has lost features that I like and only the soon to be discontinued regular MBP has a feature set I want.

When I'm fiddling around on the Net, answering email or writing this forum reply the new products' speed increase is not a factor. The reduction in connections, the lack of an optical drive and the locking out of consumer upgrading all for the sake of the disease called "thinness" is keeping my money in my pocket.

I'm only one consumer but I am one that did not buy an Apple computer or iToy in 2012.
 
Smartass said:
Who cares what others invented, company like apple cant come out with a statement "well, we havent really invented anything BUT so didn't the others"
Apple has set some "standards" in the last years of Steve Jobs regarding inovations and new products. Since Tim Cook's been CEO the only new thing that Apple has invented is "worldwide patents lawsuit war" and nothing more. Its kinda sad when you think about it.
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From this discussion it seems you don't know the difference between an invention and innovation. An invention is the lightbulb or the first transistor. An innovation is the use of fingerprint sensors in the home button of a cellphone or the retina screen in a laptop. Also the Fusion drive is an innovation by R&D definitions.

So, Apple has introduced many innovations over the years (as did other companies), and they probably made a few small inventions too, but we would only get to know these once they are ready to be patented and implemented into a product.
 
mjoshi123 said:
Well Apple is publicly traded company and whatever Wall Street wants, Wall Street will get.
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You are assuming that Apple gives a damn about what Wall Street wants. There has been evidence again and again and again that Apple doesn't care about Wall Street.
 
Smartass said:
Since Tim Cook's been CEO the only new thing that Apple has invented is "worldwide patents lawsuit war" and nothing more. Its kinda sad when you think about it.
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That's not a new thing. Apple vs. Digital Research, Apple vs. Microsoft + HP, Apple vs. eMachines, Apple vs. HTC, Apple vs. Amazon....
 
gnipgnop said:
The idea that the contemporary stock market is an accurate indicator of much of anything beyond people's interest in short-term cash grabs is laughable.
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Is that what everybody was complaining about when Apple went from 100 to 700 in three years? :rolleyes:
I don't recall that. :confused:
Bad stock market. Bad, bad, bad. :mad:
 
gnasher729 said:
You are assuming that Apple gives a damn about what Wall Street wants. There has been evidence again and again and again that Apple doesn't care about Wall Street.
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The why do they bother telling Wall St. how well they are doing every quarter
if "they don't care'? :rolleyes:

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Rogifan said:
Explain then how Amazon gets away with little to no profit every quarter even though their top line is growing.

Apple introduced a lot of products towards the end of 2012. Newer products will have higher costs in the beginning won't they? In the same period in 2011 what did Apple release besides the 4S?
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New color, different size and a few adapters...

http://finance.yahoo.com/blogs/breakout/apple-fix-itself-3-steps-122134336.html
 
iGrip said:
The rate of growth is negative. That was my point. The absolute number is (damn near) flat.
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That's nonsense. If the absolute number were flat, rate of growth would be zero, not negative. However, profit isn't flat. Apple made more profit this quarter (13 weeks) than in the same quarter last year (14 weeks). Last year Apple explained over and over again why people needed to adjust the numbers for the quarter down because that quarter was one week longer. This year it's the opposite.
 
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