I've bought all the way down as it's fallen; I bought 15 more shares today. Today was the first time I've had any sort of hesitation in doing so, which tells me it was probably the right thing to do. I don't know where the bottom is going to be - no one does. But I simply can't ignore a stock that is trading at less than 10x earnings, providing a 2.6% dividend that will likely increase, and whose shares are being bought back by the company. Right now, it is priced for a fairly substantial drop in earnings. If they miss their own earnings estimates, that would be cause for concern; however, that hasn't happened since I believe prior to introduction of the iPod. We shall see on Tuesday.
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Apple Stock Price Hits Lowest Levels Since 2011, Falls Below $400
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No, that is not the problem. The market IS rational - you purchase stock betting on increased future earnings. Right now the market is not seeing the Apple of the past vis a vis new, "magical" offerings. It has been too long a period with little new launched. Cook's blathering about the pipeline has no traction.
Deliver the goods or the stock goes down.
Wow if only Cook and Ive were smart enough to change the aesthetic of the iPhone we'd have $270B back market value.
Lets see...the Galaxy S4 looks just like the S3 which looks just like the Note 2.
And then of course we have the Nokia N9, Lumia 800 and 920....all so radically different, aren't they?
The way I look at it is when a company thinks they have a good design they don't go changing it just for the sake of changing it. One of Dieter Rams principles of good design is that its long lasting:
Good Design Is Long-lasting : It avoids being fashionable and therefore never appears antiquated. Unlike fashionable design, it lasts many years even in todays throwaway society.
I doubt it was your intention but all I got out of your post was, compared to the latest competition, how boring the iPhone has been for the last few years.
That wasn't your intention, right?
Michael
I'll never understand why someone like you bothers to waste their precious time in a forum dedicated to something you seem to hate
Yeah that sucks, but there were "analyst" that projected it would go over $1,000.
If I was in your shoes, I would hold it but then again I was the one who lost almost $7,000 in the year or so I played in the market.
This:
http://money.cnn.com/2013/04/18/technology/mobile/verizon-iphone/index.html?iid=Lead
The bad news just keeps coming.
And just wait until the 23rd, it'll go down even further.
I'm not up to speed as to how far a CEO can go in commenting and still be in compliance.
Perhaps the bigger point is that Cook's approach to communicating to the markets is not working. Steve lead the secrecy approach but had the performance to pull it off. Cook, on the other hand....
I've got a lot of confidence in Tim & company. I think the market is bit a bit irrational at this point - I could be wrong, but it could pay off for people who hold steady. It seems like you'd have to be insane to be selling at this point... I've been buying from 580 on down, mot recently last week. Each time, it's seemed like a bargain... It's got my guts in a knot, but I'm hoping it'll pay off.
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iPhone sales at Verizon actually grew over this period last year. Only an idiot expects Q1 sales to be as high as Q4.
You know, innovation, like beauty, is in the eye of the beholder. Jobs got us all to believe that what he was doing was innovative. And enough of us believed him and sent the stock soaring.
Regardless of what you believe about huge screens, Samsung has convinced the markets that it is innovative and people have bought into it. By that measure, Apple is falling behind.
Perception becomes reality. I don't see Cook ever recreating that RDF that Jobs did. IMO, Samsung is doing that now.
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Thanks for the explanation. Not seen it presented in this way so far.
So the big fear is the rate at which the first quarter decline happened? (33% over 24% YOY?)
This is a serious request. Would you please outline in some detail WHY you have a lot of confidence in Tim Cook in light of what has been happening since September?
He's comparing this past qtr to the holiday qtr and saying the rate of decline is worse?
We could look at it another way: apple grew 84% year over year at Verizon and sold more phones at Verizon in the qtr than they ever have since being available there all the while selling more than all the android phones at vzw combined!
Definitely so many ways to manipulate stats to say what you want!
Because he hasn't done anything wrong. He's a smart guy, and he doesn't bend over and give the more idiotic investors whatever they want. It would take a complete idiot to think that Apple isn't working on some new products. It's behind closed doors as always, but Tim isn't stupid. Certain investors just want him to bend over and kiss their asses, turn Apple into Samsung and pump out a new, steaming pile of crap on a monthly basis. If Apple did what these people wanted, I would be screaming to get out.
Wow - I made a sincere request as to why you are so confident and your confidence is based on Tim not being stupid and not kissing investor ass?
Well, I did ask.
Well, I did ask.
Hehe, I didn't mean anything personal. I'm just saying, I haven't seen any reason not to be confident. A lot of investors seem to have unrealistic expectations. Tim is leading Apple with some great products, and it's foolish to think that they're not working on some more great stuff behind closed doors. There's really nothing truly 'bad' happening to Apple, that's all.
Explain exactly what makes these other phones look less boring? Screen size? UI? Coming in colors?
Anyway my point was they've kept basically the same design over multiple generations. Yet I don't hear people complaining about the S4 looking just like the S3.
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I won't completely disagree with you on Cook and communications (and I'd throw in Oppenheimer and Schiller as well). But it seems pretty fishy to me that most of these doom and gloom rumors happen to surface right before an earnings call when everybody knows Apple isn't going to say squat.
You're misinterpretting the data. YOY is not between 33% and 24%. iPhone activations actually increased for Verizon by 25% compared to last year Q2 iPhone activations.
Those results shouldn't really surprise anyone since Q1 is their peak quarter and they set records in the past quarter.
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I think Apple is still putting out the best hardware on the market, and they are doing a good job. Tim is not Steve, and I think it scares investors but I am with you. I think he's the right person to be CEO right now.
If you really need that explained I doubt you would understand. You think Apple is best. I get that. I used to think that too. Now I don't.
When I look at those pics I see other companies pushing the envelope--like Apple did with the iPhone 4 and original iPad back in 2010. When I see the iPhone 5 I see a slightly stretched iPhone 4.
Michael
I think he was asking a genuine question. Why'd you avoid it? Everyone is screaming that all other companies are innovating but they can't name one innovation?
I have a Note 2 and can name a boatload of things it does that my iPhone can't. But why? That information is freely available in any number of Note 2 reviews.
Looking at those pics the first thing that pops out is how nice looking the Nokias are. The next thing I noticed was the weather shown on the home screen of the Samsung--with its big beautiful screen. Then I look down at my iPhone and shake my head at the "always sunny and 73 degrees" weather icon since 2007. Yay!
Michael