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Apple attributes growth slowdown to sluggish economy, rumors of new products

post #1 of 101
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Despite posting $8.8 billion in profits and selling a record 17 million iPads, Apple's third quarter of fiscal 2012 is seen by the market as a disappointment. When asked what challenges the company faced during the quarter, a weak global economy and rumors of new products were cited by executives as two of the biggest headwinds faced by Apple.

Apple Chief Financial Officer Peter Oppenheimer said the poor economy in Europe had a particularly large impact on Apple's sales during the June quarter. In addition, resource-based economies in countries like Australia, Brazil and Canada also struggled during the three-month span.

Another issue is rumors of Apple's anticipated next-generation products, in particular regarding a sixth-generation iPhone.

"We're reading the same rumors and speculation that you are about a new iPhone," Oppenheimer said.

Apple Chief Executive Tim Cook said he has the sense that there is "incredible anticipation" for Apple's next generation of products. While he said he can't exactly quantify the effect rumors have had on sales, he said it's likely a "reasonable amount."

New product rumors also played a part in relatively flat Mac sales during the June quarter. The timing and availability of Intel's latest Ivy Bridge processors forced Apple to launch its latest MacBook Pro and MacBook Air models with just three weeks left in the third quarter, limiting sales in the three-month span.

Cook revealed that weekly Mac sales were actually down year over year before Apple's annual Worldwide Developers Conference, when the new MacBooks were announced. Sales of those new portables were so strong in the last three weeks of the quarter that it offset any reductions.

Apple also wasn't able to launch its third-generation iPad with Retina display in China until this month, as an ongoing trademark dispute with Proview stood in the way. Apple also had to wait for its new MacBooks to gain regulatory approval from China's government before they could go on sale.

Finally, Oppenheimer also cited a strengthening U.S. dollar as a factor that had a negative impact on Apple in the quarter. He said the dollar has improved against most currencies around the world, which has resulted in reduced revenue.

Though analysts may view Apple's third fiscal quarter as a disappointment based on market expectations, Apple executives insisted that they are pleased with the results they saw.

"We're very happy with how the business performing, and we're excited about the new product pipeline," Oppenheimer said.

And Cook said while rumors of new products may negatively impact sales of currently available devices, the ability of people to speculate is one of the hallmarks of free speech in the U.S., so he has no intention of attempting to stop those rumors.

"I'm glad that people want the next thing," he said. "I'm super happy about that... I'm not going to put any energy into getting people to stop speculating. I don't think that's going to amount to anything."
post #2 of 101
I suspected the crash of many European economies had something to do with the light sales. No idea why analyst would think Apple would be immune to the European situation when it's their 2nd largest market.
post #3 of 101

This is a good article on the highlights, including the last minute comments from the conference call.  It's interesting that Apple exceeded it's guidance and yet people aren't happy.  Apple had record profits for this quarter and still people aren't happy.  With the late introduction of the IvyBridge CPU, the new Macs were only available at the end of the quarter and barely made it a record quarter in Mac sales.  

 

All this tells me is that the next quarters are going to be much better with all the product lines.

post #4 of 101
Quote:
Originally Posted by gatortpk View Post

This is a good article on the highlights, including the last minute comments from the conference call.  It's interesting that Apple exceeded it's guidance and yet people aren't happy. 

 

People are accustomed to Apple blowing everyone away 7 times over. 

 

It's only 4 times over this time. 

 

That said, Apple doesn't need to give any reasons for any "slowdown." Why call attention to it?  It's APPLE. This slowdown will be a faint memory a few quarters from now, when they'll be back to posting insane results.

post #5 of 101

Every company (including Scamsung) would LOVE to have that kind of "disappointing" quarter.  All this means to me is yet another AAPL buying opportunity.

If there's only one thing I agree with is that everyone (including me) is waiting for the new stuff to come out.  Wait for this quarter to finish.  With the retina MacBooks, refreshed iMacs, and of course the new iPhone is going to please...

Of course, the analysts are going to project 1.21 gazillion devices... like they would know.

post #6 of 101
Quote:
Originally Posted by Quadra 610 View Post

 

People are accustomed to Apple blowing everyone away 7 times over. 

 

It's only 4 times over this time. 

 

That said, Apple doesn't need to give any reasons for any "slowdown." Why call attention to it?  It's APPLE. This slowdown will be a faint memory a few quarters from now, when they'll be back to posting insane results.

Apple usually guide low so they can easily beat but when it is a miss means something went wrong 

"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

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"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

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post #7 of 101
Quote:
Originally Posted by sflocal View Post

Every company (including Scamsung) would LOVE to have that kind of "disappointing" quarter.  All this means to me is yet another AAPL buying opportunity.

If there's only one thing I agree with is that everyone (including me) is waiting for the new stuff to come out.  Wait for this quarter to finish.  With the retina MacBooks, refreshed iMacs, and of course the new iPhone is going to please...

Of course, the analysts are going to project 1.21 gazillion devices... like they would know.

 

I think apple will be just fine. 

 

To me, there won't be trouble till an iphone launches and fails to outsell the previous launch (i.e. fails to set a new record). That's when the alarm bells will start ringing.

 

But i do not see that happening for a LOOONG time.

 

As for the analysts. Its the way the game works, miss their estimates and the stock goes down. Its the same rule for EVERY company. 

post #8 of 101
Should have just said, "rampant unsubstantiated rumors of real or imagined future products endlessly perpetuated and regurgitated by rumor sites for ad money."

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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post #9 of 101

If you ever needed proof that the markets aren't following company profits anymore and that they are deliberately engineering a recession for profit by short selling then this is it. Apple's shares drop when they post a profit which exceeds their projections and Microsoft's shares gained last week when they posted their first ever loss.

post #10 of 101
Boo hoo hoo. Stop whining about rumors, Apple. It's been that way for over a decade now, and it's worked out fine. Any other company would kill for that kind of attention and interest.

Just figure out how to deal with it, and move on.
post #11 of 101
Quote:
Originally Posted by Quadra 610 View Post

 

People are accustomed to Apple blowing everyone away 7 times over. 

 

It's only 4 times over this time. 

 

That said, Apple doesn't need to give any reasons for any "slowdown." Why call attention to it?  It's APPLE. This slowdown will be a faint memory a few quarters from now, when they'll be back to posting insane results.

 

Actually, the odds of a Euro implosion are going up considerably, which would definitely affect European sales.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #12 of 101
Quote:
Originally Posted by GadgetCanada View Post

Samsung sells 10 million GSIII's in 2 months and everyone is blown away.

Apple sells 26 million iPhones in 3 months and it's their worst quarter in years. And let's not even discuss tablet sales.

 

Yup, Apple is sure doomed

yeah its 8.8B vs 5.9B 

post #13 of 101
Quote:
Originally Posted by GadgetCanada View Post

Samsung sells 10 million GSIII's in 2 months and everyone is blown away.

Apple sells 26 million iPhones in 3 months and it's their worst quarter in years. And let's not even discuss tablet sales.

 

Yup, Apple is sure doomed

 

If people expected Microsoft to sell 100 Windows Phones and they sold 1,000 the market would go ape. That's really how it works with these people.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #14 of 101
Quote:
Originally Posted by GadgetCanada View Post

Samsung sells 10 million GSIII's in 2 months and everyone is blown away.

Apple sells 26 million iPhones in 3 months and it's their worst quarter in years. And let's not even discuss tablet sales.

 

Yup, Apple is sure doomed

 

The difference is that the iPhone is the ONLY iOS phone whilst the Galaxy S3 is just one of a MULTITUDE of Samsung and Android devices available.

 

Do you understand the difference? Android phones outsell Apple phones by 3 to 1. It's no time to get complacent, it's really not.

 

If not suggesting one is better than the other - but most independents agree that the S3 is a genuine threat to the iPhone over time. I hope they come out fighting with the iPhone 5.

post #15 of 101
Quote:
Originally Posted by Shaun, UK View Post

 

The difference is that the iPhone is the ONLY iOS phone whilst the Galaxy S3 is just one of a MULTITUDE of Samsung and Android devices available.

 

Do you understand the difference? Android phones outsell Apple phones by 3 to 1. It's no time to get complacent, it's really not.

 

If not suggesting one is better than the other - but most independents agree that the S3 is a genuine threat to the iPhone over time. I hope they come out fighting with the iPhone 5.

but do you get that android = many many manufactures while iOS = 1 = Apple

Apple still has single most popular phone in the world

post #16 of 101
Quote:
Originally Posted by Shaun, UK View Post

The difference is that the iPhone is the ONLY iOS phone whilst the Galaxy S3 is just one of a MULTITUDE of Samsung and Android devices available.

Do you understand the difference? Android phones outsell Apple phones by 3 to 1. It's no time to get complacent, it's really not.

If not suggesting one is better than the other - but most independents agree that the S3 is a genuine threat to the iPhone over time. I hope they come out fighting with the iPhone 5.
Apple and Samsung are on different product cycles. The flagship device for each is probably always going to be 3-6 months newer/older. So Apple is a bit down when Samsung is up, and in Q4 Apple will probably post huge numbers and Samsung might be soft.
post #17 of 101
Quote:
Originally Posted by Rogifan View Post

Apple and Samsung are on different product cycles. The flagship device for each is probably always going to be 3-6 months newer/older. So Apple is a bit down when Samsung is up, and in Q4 Apple will probably post huge numbers and Samsung might be soft.

 

Well yes and no.  Apple only has 1 cycle for phones while Samsung has many 

post #18 of 101
I think the current quarter will be around 20% more than the same quarter last year, but the dec quarter might be 35 to 40% of last dec quarter. Unless they have production issues.
post #19 of 101
Quote:
Originally Posted by anantksundaram View Post

Boo hoo hoo. Stop whining about rumors, Apple. It's been that way for over a decade now, and it's worked out fine. Any other company would kill for that kind of attention and interest.
Just figure out how to deal with it, and move on.

 

I would agree with you. I know - don't laugh lol.

 

It's a bit lame to blame the rumours. We've had the same rumour mill around Apple products for many years.

 

I do have one criticism of Apple though. What I've noticed is that once one iOS device comes out the rumour mill shifts to the next likely upgrade. So in Jan/Feb it was all iPad rumours and then the March/April launch before things quietened down and the rumour mill moved on to the iPhone. If Apple had maintained it's annual update in June instead of Sept/Oct we would only have had one month's worth of rumours in May to put people off. But now we have May/June/July/Aug to stoke up all the rumours and put people off buying the current model. Four months instead of one. It's just a thought. 

post #20 of 101
Quote:
Originally Posted by daylove22 View Post

Apple usually guide low so they can easily beat but when it is a miss means something went wrong 

What "miss": They didn't "miss" THIER guidance.

post #21 of 101
Quote:
Originally Posted by Just_Me View Post

but do you get that android = many many manufactures while iOS = 1 = Apple

Apple still has single most popular phone in the world

 

Does that really matter. If all the Android manufacturers collectively sell 100 million phones and Apple sells 26 million but is number one because the Android market is fragmented across many manufacturers does that make a difference.

post #22 of 101
Quote:
Originally Posted by Quadra 610 View Post

 

People are accustomed to Apple blowing everyone away 7 times over. 

 

It's only 4 times over this time. 

 

That said, Apple doesn't need to give any reasons for any "slowdown." Why call attention to it?  It's APPLE. This slowdown will be a faint memory a few quarters from now, when they'll be back to posting insane results.

 

Most economists expect the global economic crisis to get worse before it gets better and continue on towards the end of this decade. Europe is on the verge of meltdown. The US national debt is at startling levels and continues to rise, even the BRIC economies such as China are starting to slow down considerably with thousands of Chinese workers being laid off every day believe it or not.

 

I would be amazed if those insane results came back anytime soon.

post #23 of 101

Hate to be naysayer, but after owning the original, the 3G, the 3GS, and the 4, I think the iPhone is getting a little stale. More and more people are starting to look for something different, which is why phones like the Galaxy S series are becoming more and more successful. Especially since the recent leaked designs showing that it looks basically the same except with a longer screen are pretty underwhelming imho.

LOL people should just enjoy whatever phone they prefer and stop being d-bags about other phones they don't use. Fanboys are pathetic, regardless of whether they are Android or Apple ones.
Reply
LOL people should just enjoy whatever phone they prefer and stop being d-bags about other phones they don't use. Fanboys are pathetic, regardless of whether they are Android or Apple ones.
Reply
post #24 of 101
Quote:
Originally Posted by BuddyRevell View Post

Hate to be naysayer, but after owning the original, the 3G, the 3GS, and the 4, I think the iPhone is getting a little stale. More and more people are starting to look for something different, which is why phones like the Galaxy S series are becoming more and more successful. Especially since the recent leaked designs showing that it looks basically the same except with a longer screen are pretty underwhelming imho.
What does the way a phone looks have to do with how you're going to use it? Seems to me the issue is iOS. And I didn't see anything at WWDC that really impressed me related to iOS. I think it's fair to say the retina MBP stole the show.
post #25 of 101
Quote:
Originally Posted by BuddyRevell View Post
Hate to be naysayer, but after owning the original, the 3G, the 3GS, and the 4, I think the iPhone is getting a little stale.

 

So go buy a Samsung product. They become outdated in three months, but the new one is out in three months anyway, so you can keep up with your fixation on having a new case with no reason.

 

 More and more people are starting to look for something different, which is why phones like the Galaxy S series are becoming more and more successful. 

 

They want something different from an iPhone, so they go buy the phone whose design was stolen directly from the iPhone. I see.

post #26 of 101

Apple needs 4.5 inch phones and 7 inch tablets. As of now they are giving the competition the chance to make big money.

Macbook needs to be discounted just to improve slowing sales.

post #27 of 101
Quote:
Originally Posted by Shaun, UK View Post

Most economists expect the global economic crisis to get worse before it gets better and continue on towards the end of this decade. Europe is on the verge of meltdown. The US national debt is at startling levels and continues to rise, even the BRIC economies such as China are starting to slow down considerably with thousands of Chinese workers being laid off every day believe it or not.

I would be amazed if those insane results came back anytime soon.
Yep I think broader economic issues caused the bad quarter moreso than people fleeing iPhone for Samsung. Dow was down over 100 points today, there's talk about another recession coming. Maybe some on wall street thought Apple was immune to all of that. They're finding out now it's not.
post #28 of 101
Quote:
Originally Posted by Rogifan View Post


What does the way a phone looks have to do with how you're going to use it? Seems to me the issue is iOS. And I didn't see anything at WWDC that really impressed me related to iOS. I think it's fair to say the retina MBP stole the show.

I think you're right about iOS also being stagnant in some ways. That's definitely also a factor. However, don't underestimate the importance of aesthetics. Jobs emphasized the importance of aesthetics in his products from day one. 

LOL people should just enjoy whatever phone they prefer and stop being d-bags about other phones they don't use. Fanboys are pathetic, regardless of whether they are Android or Apple ones.
Reply
LOL people should just enjoy whatever phone they prefer and stop being d-bags about other phones they don't use. Fanboys are pathetic, regardless of whether they are Android or Apple ones.
Reply
post #29 of 101
Quote:
Originally Posted by Shaun, UK View Post

 

I would agree with you. I know - don't laugh lol.

 

It's a bit lame to blame the rumours. We've had the same rumour mill around Apple products for many years.

 

I do have one criticism of Apple though. What I've noticed is that once one iOS device comes out the rumour mill shifts to the next likely upgrade. So in Jan/Feb it was all iPad rumours and then the March/April launch before things quietened down and the rumour mill moved on to the iPhone. If Apple had maintained it's annual update in June instead of Sept/Oct we would only have had one month's worth of rumours in May to put people off. But now we have May/June/July/Aug to stoke up all the rumours and put people off buying the current model. Four months instead of one. It's just a thought. 

well, take it in stride. sales always boom in the Holidays, and always drop before in the months before the new model launch. both are skewed stats. just average it out - that is the true demand.

post #30 of 101

Apple should move forward the release date of the iPhone 5 with 4 inch screen. Does that mean Apple will be stuck with iPhone 5 and 5s with 4 inch screens for 2 years, during which the competition's 4.5 and 4.8 inches phones will be taking market share?

 

As of today, the competition's 7 inch tablets are selling like crazy while Apple's 7 inch tablet is still 3 months away, if they do indeed produce it.

post #31 of 101
Quote:
Originally Posted by AppleInsider View Post

... and rumors of new products were cited by executives as two of the biggest headwinds faced by Apple.
 

 

I waited almost a year to finally pick up a new MacBook this July. I'd imagine I'm not the only person. And, with new models and the school year looming, I would expect third quarter Mac sales to be much, much higher. But I'm no analyst :)

post #32 of 101
Quote:
Originally Posted by SpamSandwich View Post

 

Actually, the odds of a Euro implosion are going up considerably, which would definitely affect European sales.

yes, there is a very real chance of a European "great recession" next year. that would definitely impact Apple - and everyone else too (for Nokia it could be fatal).

 

but then there is China to offset that. especially if Apple every makes that long-rumored deal with China Mobile.

post #33 of 101
Quote:
Originally Posted by BuddyRevell View Post

I think you're right about iOS also being stagnant in some ways. That's definitely also a factor. However, don't underestimate the importance of aesthetics. Jobs emphasized the importance of aesthetics in his products from day one. 
I agree, but I don't think Apple changes design just for the sake of it. I think we need to wait and see what the new phone will look like, All we have so far are rumors and photos of unfinished cases (that may or may not be legit). We know what iOS 6 looks like. I'm sure they're saving a few things for the iPhone launch but what we've seen so far is underwhelming.
post #34 of 101

Oh how large institutional investors like to manipulate APPL stock. Consensus is still over $900/share but even with such high profits it's not absurdly great so we'll tank the stock and then let the smaller twaddle buy it back up.

post #35 of 101
Quote:
Originally Posted by BuddyRevell View Post

Hate to be naysayer, but after owning the original, the 3G, the 3GS, and the 4, I think the iPhone is getting a little stale. More and more people are starting to look for something different, which is why phones like the Galaxy S series are becoming more and more successful. Especially since the recent leaked designs showing that it looks basically the same except with a longer screen are pretty underwhelming imho.

well, IMHO i expect the wider/longer screen plus 4G for #5 will generate a lot of consumer enthusiasm. what do you want, iPod colors too?

post #36 of 101
Quote:
Originally Posted by peter236 View Post

Apple should move forward the release date of the iPhone 5 with 4 inch screen. Does that mean Apple will be stuck with iPhone 5 and 5s with 4 inch screens for 2 years, during which the competition's 4.5 and 4.8 inches phones will be taking market share?

As of today, the competition's 7 inch tablets are selling like crazy while Apple's 7 inch tablet is still 3 months away, if they do indeed produce it.
Can you supply some sales data that proves 7 inch tablets are "selling like crazy"? Like actual sales figures?
post #37 of 101
Quote:
Originally Posted by peter236 View Post

Apple should move forward the release date of the iPhone 5 with 4 inch screen. Does that mean Apple will be stuck with iPhone 5 and 5s with 4 inch screens for 2 years, during which the competition's 4.5 and 4.8 inches phones will be taking market share?

 

As of today, the competition's 7 inch tablets are selling like crazy while Apple's 7 inch tablet is still 3 months away, if they do indeed produce it.

 

Stick to not envisioning what Apple should or should not do. If you're an investor the stock will be humming right along during and after next quarters.

post #38 of 101
Quote:
Originally Posted by mdriftmeyer View Post

Oh how large institutional investors like to manipulate APPL stock. Consensus is still over $900/share but even with such high profits it's not absurdly great so we'll tank the stock and then let the smaller twaddle buy it back up.

 

I very much doubt the "smaller twaddle" have the collective strength to move the markets that much. I assume you're ignoring all the doubters and plowing all your savings into AAPL ready for that push to $900. When exactly was that due to happen - by the end of this year I believe many of the analysts predicted. Good luck with that.

 

Funny how so many people on here slate the analysts when they make product predictions but believe their share price predictions. 

post #39 of 101
Quote:
Originally Posted by Quadra 610 View Post

 

People are accustomed to Apple blowing everyone away 7 times over. 

 

It's only 4 times over this time. 

 

That said, Apple doesn't need to give any reasons for any "slowdown." Why call attention to it?  It's APPLE. This slowdown will be a faint memory a few quarters from now, when they'll be back to posting insane results.

Lets not forget that apple beat there own guidance again, the only disappointment here is the pundits are upset there stupid forecasts did not pan out so they immediately call it a miss.  The miss was not on apples part they did what they promised and more, it was on the stupid pundits part who cant forecast anything about apple right.

post #40 of 101

I think a lot of people who have an iPhone 4 do not feel the need to upgrade since the 4S looks the same. I personally am in the market for a new laptop but just because the current generation Macbook Pro looks the same as my 2009 Macbook Pro, I refuse to upgrade until the design changes. Maybe a 13 inch Macbook Pro with Retina display will do it for me.

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