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Shares of Apple sink after supplier Cirrus warns of weak results

post #1 of 304
Thread Starter 
Shares of AAPL stock briefly dipped below $400 on Wednesday as concern about the company's impending earnings report, as well as its future, reached a fever pitch.

Apple stock hit a low of $399.75 Wednesday afternoon at 12:51 Eastern. The company's stock has traded just above $400 for most of the day, down more than 5 percent from its opening price of $420.60.

Apple

The stock is now trading at levels not seen since 2011. Its market capitalization value has lost more than $275 billion since late 2012 alone.

Market watchers believe Apple's plummeting shares on Wednesday could be attributed to a warning of weak results that was issued by supplier Cirrus Logic. The company, which makes energy and audio chips, notified investors that it would see lower shipments of a high-volume product as an unnamed customer migrates to a newer component from Cirrus.

Apple is a key customer of Cirrus, using its audio chips in its popular iPhone and iPad devices. The strong sales of iOS devices have been attributed with boosting Cirrus in recent quarters.

It's now less than a week before Apple's next quarterly earnings call, scheduled to take place on Tuesday, April 23. Concern over the company's performance continues to rise, as some on Wall Street expect Apple could miss its own guidance for the first time in recent memory.

There have been signs of slowing growth at Apple, as products like the iPhone have cooled off and the PC market continues to struggle. Apple's earnings for its previous holiday quarter were flat year over year with net profit of $13.1 billion.
post #2 of 304
Time to Buy.....Period...
post #3 of 304

Hilarious.

 

I want to see it go down even a little more... what happens? Panic and the thing has a blue screen?

post #4 of 304
Quote:
Originally Posted by sranger View Post

Time to Buy.....Period...

Many thought that too, at $600, $500, $450 and now ... :)

post #5 of 304
Is this worse than Apple's projections? They said in the last report that this quarter wouldn't be one of their best.
post #6 of 304
Quote:
Originally Posted by sranger View Post

Time to Buy.....Period...

That's what people said at $700, then $650, then $600, then $550, then $500, then $450 and now at $400.lol.gif

 

As for me, I'm not holding any AAPL at the moment. I'm just waiting patiently until the carnage is over. I'm in no rush to hold any AAPL. The stock action just gets more and more ridiculous by the day.

 

I'm actually taking a short trip to Las Vegas soon. At least there, I'll have fun while blowing some money away. 

post #7 of 304
My guess is if the quarter isn't great (even if it meets or exceeds wall streets lower expectations) there will be calls for Cook's head. I think it was a big mistake for Apple to go 6 months (or possibly longer) without any new product announcement. Now maybe that wasn't the plan and things are delayed (as we've heard rumors about). But still the silence creates a vacuum and its being filled with a lot of negativity that is driving the stock down. That also impacts the way the media reports on Apple which in turn affects the public perception of the company. Cook told Goldman Sachs that Apple "doesn't have his head in the sand" but I think there are enough out there thinking the exact opposite right now. Hence the stock being at a 52 week low.
post #8 of 304

So, Apple is dumping Cirrus and going elsewhere for their chips, Cirrus sell less chips and Apple stock falls.

 

No, I don't think this is the reason for the price drop. 

post #9 of 304
Quote:
Originally Posted by Apple ][ View Post

That's what people said at $700, then $650, then $600, then $550, then $500, then $450 and now at $400.lol.gif

 

As for me, I'm not holding any AAPL at the moment. I'm just waiting patiently until the carnage is over. I'm in no rush to hold any AAPL. The stock action just gets more and more ridiculous by the day.

 

I'm actually taking a short trip to Las Vegas soon. At least there, I'll have fun while blowing some money away. 

 

I would be laughing my ass off too if I wasn't holding any shares, unfortunately I am.  I held for this long, can't back out now!

 

The price has been driven by rumors and speculation for a while.  Now it's time for the earnings report and some product launches.  I really hope Apple is just being secretive and has something big planned for this year.

post #10 of 304
Quote:
Originally Posted by Apple ][ View Post

That's what people said at $700, then $650, then $600, then $550, then $500, then $450 and now at $400.lol.gif

 

As for me, I'm not holding any AAPL at the moment. I'm just waiting patiently until the carnage is over. I'm in no rush to hold any AAPL. The stock action just gets more and more ridiculous by the day.

 

I'm actually taking a short trip to Las Vegas soon. At least there, I'll have fun while blowing some money away. 

How can you possibly know when carnage is over (looking forward, not back)?  You can't.  And by the time you have convinced yourself, it will likely only be because you left a lot of gains on the table.  Then guess what?  You may buy in and then watch it get hammered some more.

 

The best question one can ask when buying a stock is whether they have reason to believe that the stock will eventually be higher, and if that "eventually" and "higher" satisfy their own time horizons and ROI expectations.  It can always still go down in the near term, because there is a lot of randomness built in to the month-by-month (let alone week-by-week or day-by-day).  Not saying that the reason you come up with will be correct, but it has a better chance of working than trying to avoid some subsequent dips.

post #11 of 304
Internal restructuring takes time. Wait until Jony Ive's influence starts pouring out of everything. they will be just fine.
post #12 of 304

If I hear Tim say one more time "we are in very active discussions about use of our cash", I am going to puke.  Take your time Tim.  Just take your time.  It is a huge lost opportunity not to have a $50+ billion stock buy back program in place right now  

 

Also, I was moved by Tim "the product pipeline is chock-full" comments last quarter.   It never thought Apple would go 8+ months without any meaningful product releases

 

I still have faith. This company has the capability to blow the doors of in the 2H of the year.  But they have to execute like mad 

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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post #13 of 304
What Apple needs are Amazon-like results to turn the stock around¡

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #14 of 304
Quote:
Originally Posted by thompr View Post

How can you possibly know when carnage is over (looking forward, not back)?  You can't.  And by the time you have convinced yourself, it will likely only be because you left a lot of gains on the table.  Then guess what?  You may buy in and then watch it get hammered some more.

 

I'm not looking to capture the absolute bottom. I need confirmation of an uptrend and there is definitely no signs of that yet. The only trend on AAPL's chart is down. I'm not a chart statistician, and I don't even play one on the internet, but there are various signs to look for. 

post #15 of 304
Quote:
Originally Posted by Red Oak View Post

Also, I was moved by Tim "the product pipeline is chock-full" comments last quarter.   It never thought Apple would go 8+ months without any meaningful product releases

This is quite unusual for Apple. Mindshare needs to massaged from time to time if you want it to grow. Nothing new since last Autumn is far too long, especially with a new CEO at the helm. Now, Tim and Co. might have some really major things in place so this short-term lull will turn out to revolutionize the tech world yet again and show that Apple hasn't lost it and that Tim is the right man for the job but that's a big gamble for them to take... but at this point it's the only one that makes sense for this unattended time span.

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

 

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post #16 of 304
Quote:
Originally Posted by sranger View Post

Time to Buy.....Period...

 

Yep, the Warren Buffet rule. When others get pessimistic, you get greedy. Asshats not with standing.

post #17 of 304

Quarter after a holiday quarter, of course sales are going down.

 

It's a seasonal thing that happens every year, regular as clockwork.

 

Looks like Wall Street is going to fool all of the people, all of the time.

 

America should just give up, watch TV and eat themselves to death on fast food.

 

Let Asian companies win.

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post #18 of 304

Dont know if there is a relation, but all this shit started to happen shortly after Apple started to issue dividends.

Maybe it's the reason why Jobs didnt want any dividends.

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post #19 of 304

Question: What drives a stock price? 

 

Answer: Growth

 

Apple's days of explosive growth are over. None of us 'need' another screen and while an iPad or iPhone might be a must have, adding another TV screen to the house is not going to happen anytime soon. And if so, people will not be buying 5 of them. Apple is now trading like Microsoft - as a mature stock. 

 

Remember there are 4 stages to a company:

  1. Think it up
  2. Scale it
  3. Milk it
  4. Think it up

 

Apple is now at Step 4. When it thinks it up and then scales it the stock will respond. Until then there are better bets for making money versus saying 'i'm holding a stock that is going down'. Smart investors don't do that until it hits the bottom and it hasn't hit it yet.

post #20 of 304

If Apple does indeed have a pipeline choke-full of wonderful products, we need to see something now. Apple product updates were once spread out through the year: iMac in January, iPad in March, MacBook Pros in June, iPhone in July/September. That always gives you something to buy, that the media will mention Apple has released such and such. Now, all we hear is rumors about order cuts, suppliers’ problems, iPhone Giga / Micro / Nano / Cheapo is being delayed.

 

The media needs to invent a reason for Apple’s spectacular drop. Well they came up it “no innovation”. And what’s better to reinforce that idea than a company that has nothing new to offer? The more Apple remains silent, the more that made-up fact seems real. And the share drops further, which must mean “no innovation” is the real problem. Repeat anything often enough and people start to think that it is real.

 

On top of that a troubling new trend has shown up: production issues in nearly every product. Retina displays too hard to make, iPhone case too hard to polish, in-cell touch screen yields too low. Cook was supposedly the master of the supply chain. He should have been able to solve those problems, or go to a different design. Samsung doesn’t have problem making millions of Galaxy phones, cheap-feeling and plastic as they may be.

 

And if I hear Cook says “we are seriously considering the user of cash” once more time, I’m going to throw up. I’m sick of Cook saying things and not doing them. The stock tumbled for 6 months, losing near 50% of its value, and management couldn’t say anything better than “trust us, we’ve got a great pipeline” and “we are thinking about it”. Secrecy is too frustrating for investors right now, that’s why you see the stock going down the toilet.


Edited by zoffdino - 4/17/13 at 11:26am
post #21 of 304
I will be quicker to lock in a profit after this and I don't think I am alone on this sentiment. This has been a painful 8 months. Apple is getting hammered because they can't change their plans in 6 months. They are producing what they predicted the market would need 2-3 years ago. The ramp up to 6 month refresh cycles has not been easy and it won't get easier if Apple continues to grow.
This may well be the rumor that starts the next run up for Apple because it does not say Apple is not selling phones. It says Apple is updating and changing it's phones. You can expect Apple to switch from making 3 models that are 6-30 months out of date to 3 new models that are directed to 3 different segments of the market, just like they did with the iPod. Most of us who have been watching Apple over the years know the playbook from the iPod introductions. The problem is doubt. The market hates risk and Apple is in the most competitive market in the whole world. They also have what Wall Street sees as a "new" leader.
Patience is painful when you look back and realize you could have doubled the number of shares in your portfolio by timing the market. That is the key to getting this investment right. Timing the market is a losing proposition since the market is a predictive system. It doesn't predict accurately over the short term. It prices correctly over the long term. Investing in a company that is well run with a great product is not the same as betting which direction a stock will take on the market even if both actions are done with the same vehicle.
post #22 of 304

I think that iOS7 should have come out last year, with the iPhone 5 and that a lack of any big iOS update is the reason some people may feel the iPhone has lost its lead.  Everyone else has caught up and other phones are really nice and have many of the same features or more.  Apple supporters always said it was the software that made their hardware so great.   

 

So, Jony Ive, where's the iOS update?

post #23 of 304
Quote:
Originally Posted by gwmac View Post

 I don't see the stock breaking $500 again anytime soon. 

 

Wait, what about $2000 some of the "respectable" analysts were projecting?

 

http://appleinsider.com/articles/12/05/09/apple_stock_seen_hitting_2000_by_the_end_of_2015

post #24 of 304
Quote:
Originally Posted by Evilution View Post

So, Apple is dumping Cirrus and going elsewhere for their chips, Cirrus sell less chips and Apple stock falls.

 

No, I don't think this is the reason for the price drop. 

 

That is not what the article says.  It stated the following:

 

The company, which makes energy and audio chips, notified investors that it would see lower shipments of a high-volume product as an unnamed customer migrates to a newer component from Cirrus.

 

This says the Customer, presumably Apple, is switching from one audio chip to a newer one. That is it. Shipping volume may decrease due to Apple purchasing a high volume initially to make all of their devices up to the point of a refresh. I can't see the direct link to lower sales at Cirrus, with reason cited, to Apple's numbers being down. 

 

This also could be a result of a cheaper iPhone, if the rumors to that prove true, using a cheaper audio product as well and thus the volume is for a normally high-volume shipment is down. 

post #25 of 304
Quote:
Originally Posted by spacerays View Post

Dont know if there is a relation, but all this shit started to happen shortly after Apple started to issue dividends.

Maybe it's the reason why Jobs didnt want any dividends.

Yep, I did mention the same thing in the past. 

 

All of these talking heads, douchebag analysts and others were calling for a dividend, and then when Apple capitulated and gave in, all of a sudden that could be seen a sign of weakness, that Apple was stabilizing and the super growth days were over. I'd rather that the stock keeps rising in value, instead of getting a lousy dividend, while the share price is almost half down from it's high, but that's just me.

 

There are also a lot of talking heads and douchebag analysts calling for Apple to do other kinds of things today, and we'll see what happens when and if Apple capitulates and gives in to them also.

post #26 of 304

"...notified investors that it would see lower shipments of a high-volume product as an unnamed customer migrates to a newer component from Cirrus..." (Emphasis mine.)

This is basically saying that "unnamed customer is buying less of our "(high volume) product X" and more of our "(newer) product Y..."

It says nothing about the absolute volume of either product X or Y.

 

This looks like everyone read everything up to "unnamed customer" and ignored everything after that ("migrates to a newer component from Cirrus." -- It's the same company, folks.)


Edited by smackdown - 4/17/13 at 11:33am
post #27 of 304
Quote:
Originally Posted by Eriamjh View Post

I think that iOS7 should have come out last year, with the iPhone 5 and that a lack of any big iOS update is the reason some people may feel the iPhone has lost its lead.  Everyone else has caught up and other phones are really nice and have many of the same features or more.  Apple supporters always said it was the software that made their hardware so great.   

So, Jony Ive, where's the iOS update?
Craig Federighi is responsible for iOS, Jony Ive is responsible for UI across all of Apple's software. Neither of those two had responsibility for iOS last year when iPhone 5 was released.
post #28 of 304
Originally Posted by zoffdino View Post
Now, all we hear is rumors about order cuts, suppliers’ problems, iPhone Giga / Micro / Nano / Cheapo is being delayed.

 

Except you always heard that before.


On top of that a troubling new trend has shown up: production issues in nearly every product.


Report anything enough and people start to believe it… 


Cook was supposedly the master of the supply chain.

 

What part of "supply chain" is confusing? What does that have to do with manufacturing?!


Samsung doesn’t have problem making millions of Galaxy phones, cheap-feeling and plastic as they may be.

 

Someone doesn't have any problems NOT innovating and NOT doing any new designs and sticking to EXISTING methods of production of componentry by NOT so much as trying anything different?

 

Color me frigging shocked¡

 

I’m sick of Cook saying things and not doing them.

 

Prove he isn't considering what to do with it. Prove it.

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post #29 of 304
Quote:
Originally Posted by techguy911 View Post

 

Now it's time for the earnings report and some product launches.  I really hope Apple is just being secretive and has something big planned for this year.

 

I have the same hope. Enough time has passed with only incremental updates to existing products to make the next significant product launch, or lack of one, a make or break event. Minor updates like a second iPhone model and retina iPad mini are probably not even enough to tread water.

post #30 of 304

This just reeks of someone manipulating the market.

post #31 of 304

"Cirrus Logic notified investors that it would see lower shipments of a high-volume product as an unnamed customer migrates to a newer component from Cirrus."

 

So let me see if I understand the premise here......  new product cycle for Cirrus = disaster for Apple?    Sounds more like Serious illogic 

 

 

"Apple's earnings for its previous holiday quarter were flat year over year with net profit of $13.1 billion."

 

Sales flat YOY-   Huh?

The Company posted record quarterly revenue of $54.5 billion, and 13.1 b in profit.  The prior Holiday Q they posted $46.3 billion and net profit of $13.1   

The prior year also had 14 weeks,  an additional week in the Q-   so Apple generated 1.007 billion per week this period in profits verses   .9357 B in the year last.

On a weekly basis,  profits would fall to  $12.1 B in 2011 if we assume 13 weeks in 2011.       Thats a  $1 Billion differential Vs profits 2012  on  $8.2 billion revenue increase.      Help me understand how a Billion dollars,  in PROFIT  has become a rounding error.  

 

post #32 of 304
Unreal. Just unreal. I don't even know what to say anymore. Just mind-blowing how a blip of a rumor makes Apple sock plummet. Why the **** does this not happen to any other company?
post #33 of 304
Quote:
Originally Posted by theCore View Post

"Cirrus Logic notified investors that it would see lower shipments of a high-volume product as an unnamed customer migrates to a newer component from Cirrus."

 

So let me see if I understand the premise here......  new product cycle for Cirrus = disaster for Apple?    Sounds more like Serious illogic 

 

 

"Apple's earnings for its previous holiday quarter were flat year over year with net profit of $13.1 billion."

 

Sales flat YOY-   Huh?

The Company posted record quarterly revenue of $54.5 billion, and 13.1 b in profit.  The prior Holiday Q they posted $46.3 billion and net profit of $13.1   

The prior year also had 14 weeks,  an additional week in the Q-   so Apple generated 1.007 billion per week this period in profits verses   .9357 B in the year last.

On a weekly basis,  profits would fall to  $12.1 B in 2011 if we assume 13 weeks in 2011.       Thats a  $1 Billion differential Vs profits 2012  on  $8.2 billion revenue increase.      Help me understand how a Billion dollars,  in PROFIT  has become a rounding error.  

 

^THIS!^

 

Criticism based on reality I'd appreciate. But when basic FACTS are wrong, irritating clickbait junk.

post #34 of 304
Quote:
Originally Posted by jakeb View Post

Is this worse than Apple's projections? They said in the last report that this quarter wouldn't be one of their best.

 

Is what worse? These are rumors.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #35 of 304
Quote:
Originally Posted by Peter Cranstone View Post

Question: What drives a stock price? 

 

Answer: Growth

 

Apple's days of explosive growth are over. None of us 'need' another screen and while an iPad or iPhone might be a must have, adding another TV screen to the house is not going to happen anytime soon. And if so, people will not be buying 5 of them. Apple is now trading like Microsoft - as a mature stock. 

 

Remember there are 4 stages to a company:

  1. Think it up
  2. Scale it
  3. Milk it
  4. Think it up

 

Apple is now at Step 4. When it thinks it up and then scales it the stock will respond. Until then there are better bets for making money versus saying 'i'm holding a stock that is going down'. Smart investors don't do that until it hits the bottom and it hasn't hit it yet.

So where is Google?  Android is Growing but $ are not.  Is it just about market share and damn profit?

post #36 of 304
Quote:
Originally Posted by SolipsismX View Post


This is quite unusual for Apple. Mindshare needs to massaged from time to time if you want it to grow. Nothing new since last Autumn is far too long, especially with a new CEO at the helm. Now, Tim and Co. might have some really major things in place so this short-term lull will turn out to revolutionize the tech world yet again and show that Apple hasn't lost it and that Tim is the right man for the job but that's a big gamble for them to take... but at this point it's the only one that makes sense for this unattended time span.

 

That's where Jobs excelled. If all the stories are to be believed, Jobs was constantly on the phone harassing and haranguing reporters and others who either misreported or denigrated Apple in any way, shape or form. Does Tim doe this? You have to view your company as more than just a company. Jobs treated Apple like it was his very life.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #37 of 304
Quote:
Originally Posted by TeaEarleGreyHot View Post

This just reeks of someone manipulating the market.

 

Opportune time for Apple to buy back their stock though.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #38 of 304
It appears everyone is missing this statement, "The company, which makes energy and audio chips, notified investors that it would see lower shipments of a high-volume product as an unnamed customer migrates to a newer component from Cirrus." The emphasis should be on "migrates to a newer component," not reducing orders for existing component because of poor sales. I guess analysts don't read.
post #39 of 304
Quote:
Originally Posted by TeaEarleGreyHot View Post

This just reeks of someone manipulating the market.

It's hard to manipulate a market for 6 straight months.

Quote:
Originally Posted by Rogifan View Post

My guess is if the quarter isn't great (even if it meets or exceeds wall streets lower expectations) there will be calls for Cook's head. I think it was a big mistake for Apple to go 6 months (or possibly longer) without any new product announcement. Now maybe that wasn't the plan and things are delayed (as we've heard rumors about). But still the silence creates a vacuum and its being filled with a lot of negativity that is driving the stock down. That also impacts the way the media reports on Apple which in turn affects the public perception of the company. Cook told Goldman Sachs that Apple "doesn't have his head in the sand" but I think there are enough out there thinking the exact opposite right now. Hence the stock being at a 52 week low.

 

Doesn’t actually matter if Cook has his head in the sand or not, their perception is your reality. The market takes the void Cook creates, and drums it up as if everything is wrong with Apple. Besides, the consensus estimate has it that Apple will report below guidance this quarter, and issue terrible guidance for next. For a company where analysts have to outbid themselves on raising price targets, to this! Cook fails Investor Expectation Management 101.

post #40 of 304
Originally Posted by Eriamjh View Post
I think that iOS7 should have come out last year…

 

And how could that magically have been achieved, eh? How do you release the 7th version of something before the 6th comes out?

 

That's such a good joke setup, but please try to stick to something sane when replying.


…a lack of any big iOS update…

 

WHAT "lack"?!


Everyone else has caught up…

 

Shut up.


Originally Posted by SpamSandwich View Post
Opportune time for Apple to buy back their stock though.

 

Yep. All of it.

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