Apple stock posts longest losing streak in 18 years
In the aftermath of Apple's disappointing earnings report that brought news of a slowdown in worldwide iPhone sales, the company's stock price dropped for the eighth consecutive day on Monday, a losing streak not seen since 1998.
While not a precipitous decline, AAPL shares started the slide at $107.13 on April 20, ending Monday at $93.64, down 0.1 percent on the day. Apple's stock price has been in decline since April 12, but the 8-day losing streak is its longest since July 27, 1998. For reference, that's the same year Apple introduced iMac to the world.
Investors treating AAPL like a growth stock have been shedding shares over the past few weeks in preparation of what Apple warned would be the first year-over-year decline in iPhone sales since the device launched in 2007. Actual figures for the second quarter of 2016 stood at $50.6 billion in revenue buoyed by 51.2 million iPhone sales, near the upper end of Apple's guidance.
With warnings of a continued slowdown for the current quarter, especially in important growth markets like China, some pundits believe Apple hit peak iPhone with 2014's iPhone 6 and 6 Plus. And without a clear view of the road to come, combined with supposedly soft Apple Watch sales (Apple has not released Watch numbers, but says sales are exceeding internal estimates), investors banking on perpetual growth are getting cold feet.
In an attempt to stop the bleeding, Apple CEO Tim Cook made a rare appearance on CNBC's "Mad Money" earlier today, calling the Street's response to last week's earnings call a "huge overreaction." Aside from an "exciting" product pipeline -- Apple's pipeline is never not exciting to execs -- Cook reminded host Jim Cramer that iPhone is performing well amid a tumultuous smartphone market.
In China, a huge market expected to one day surpass the U.S. in terms of revenue, iPhone is bringing in switchers at rates up 40 percent for the first half of 2016. Upgrades were soft in the region, as they were globally, but Apple's business there in constant currency grew 70 percent over the past two years.
Despite a 26 percent year-over-year downturn in Greater China revenue, Cook voiced optimism about Apple's prospects in the region. In today's "Mad Money" interview, Cook pointed to the potential of China's growing middle class, an asset often referenced by the Apple chief that was somehow overlooked during last week's call.
"I think the long-term thesis is intact, there has never been anything like it in the history of the world," Cook said. "And I'm still as optimistic as I've ever been."
Beyond China, Cook made multiple mention of India as another huge growth market. The country is set to roll out LTE technology in 2016, meaning more customers will adopt iPhone and the company's sticky ecosystem. That last bit is important for Apple, especially in the face of slowing hardware churn. The company's services business, which includes iTunes, iCloud and other products, was one of few bright spots it could point to in the most recent earnings report.
As of this writing, AAPL shares are up 0.18 percent in after-hours trading.
While not a precipitous decline, AAPL shares started the slide at $107.13 on April 20, ending Monday at $93.64, down 0.1 percent on the day. Apple's stock price has been in decline since April 12, but the 8-day losing streak is its longest since July 27, 1998. For reference, that's the same year Apple introduced iMac to the world.
Investors treating AAPL like a growth stock have been shedding shares over the past few weeks in preparation of what Apple warned would be the first year-over-year decline in iPhone sales since the device launched in 2007. Actual figures for the second quarter of 2016 stood at $50.6 billion in revenue buoyed by 51.2 million iPhone sales, near the upper end of Apple's guidance.
With warnings of a continued slowdown for the current quarter, especially in important growth markets like China, some pundits believe Apple hit peak iPhone with 2014's iPhone 6 and 6 Plus. And without a clear view of the road to come, combined with supposedly soft Apple Watch sales (Apple has not released Watch numbers, but says sales are exceeding internal estimates), investors banking on perpetual growth are getting cold feet.
In an attempt to stop the bleeding, Apple CEO Tim Cook made a rare appearance on CNBC's "Mad Money" earlier today, calling the Street's response to last week's earnings call a "huge overreaction." Aside from an "exciting" product pipeline -- Apple's pipeline is never not exciting to execs -- Cook reminded host Jim Cramer that iPhone is performing well amid a tumultuous smartphone market.
In China, a huge market expected to one day surpass the U.S. in terms of revenue, iPhone is bringing in switchers at rates up 40 percent for the first half of 2016. Upgrades were soft in the region, as they were globally, but Apple's business there in constant currency grew 70 percent over the past two years.
Despite a 26 percent year-over-year downturn in Greater China revenue, Cook voiced optimism about Apple's prospects in the region. In today's "Mad Money" interview, Cook pointed to the potential of China's growing middle class, an asset often referenced by the Apple chief that was somehow overlooked during last week's call.
"I think the long-term thesis is intact, there has never been anything like it in the history of the world," Cook said. "And I'm still as optimistic as I've ever been."
Beyond China, Cook made multiple mention of India as another huge growth market. The country is set to roll out LTE technology in 2016, meaning more customers will adopt iPhone and the company's sticky ecosystem. That last bit is important for Apple, especially in the face of slowing hardware churn. The company's services business, which includes iTunes, iCloud and other products, was one of few bright spots it could point to in the most recent earnings report.
As of this writing, AAPL shares are up 0.18 percent in after-hours trading.
Comments
After 3GS, 4S, 5S, 6S... and 7 years... it finally caught up!
They might have kept the same case design for two years... but they always upgraded the internals (which are the most important parts of the phone)
So what now... Apple needs to change the case design every year simply for change's sake?
Hooray!
The MacBook Air is a dead man walking, it's not getting any significant updates ever again and I suspect the RAM bump this year was its last.
The most number of Macs ever sold in a quarter was 5.5 million... and 4 million were sold this quarter. Yeah... an extra million or so Macs would have boosted their Mac revenue this quarter... but the serious dump in iPhones revenue would still be on everyone's minds.
But yeah... updated Macs will help. Hopefully this summer (and then you'll see the October and January quarters' Mac sales improve)
Well, I'm not ashamed to say I bought at $127.00. This is because I own the company. I'm not a day trader of Apple stocks. And every time I walk into an Apple Store I'm glad I'm an owner of the company. I see young adults getting their first smart phone with their parents at their side. I see Grandparents being treated with kindness as they buy their first iPad to FaceTime with their Grandkids. I see young kids sitting near the kids section playing Angry Birds (or something like that)...with smile on their faces. Yes, this is what I own...it doesn't matter I paid as much as I did. Apple has things their pipeline. We think we know all that goes on behind closed doors but we don't. At this point, it would hard for any other company to come in and simply overtake Apple. Sure, they can come out with a cooler (and cheaper) phones but what about the infrastructure to support it? Yea, that part no one talks about...just Apple products are so expensive and not innovative.
Anyway, no need to have sympathy for me. As a matter of fact you should congratulate me for being an owner of one of the best companies on the planet!!
a) iPhone SE should have looked similar to iPhone 6 series and be named iPhone 6s mini. It does not matter if iPhone 6 version is more or less beautiful that 4-5 series, but if you want someone to get a new phone, he has to feel it is new. Faster is not enough.
b) MacBook should have more than one port and at least one usb 3.5 port. And it's price should have been around 600 and not 1500. They made the same mistake with MacBook Air and they lost a year and a half until they understood MacBook Air should be cheapper than MacBooks and not the other way around.
c) iPad Pro/IOS 9 multitasking is unusable for real work. It simply does not deliver real multitasking. You cannot even put a video or audio and change to another app (a game, for example). Worthless.
d) MacBooks need desperately a re stiling. They all look the same. It never minds if that is "the best" look. It minds that you are going to pay 2500 for a machine that looks exactly like all others and looks exactly like the one you bought 8 years ago. Slimmer, yes. Slightly faster. But the same.
e) iWatch should be independent from the phone. Most of the info they need could be obtained through normal connection with the cloud through Wifi or TCP over Bluetooth. An API should be made public for programers to make iPhone/Android apps.
f) 17 inches MacBooks should have never disappeared. In fact I'd bet 18-19 inches macbooks would have a market too. Some people don't move their machines around too often or don't wanna use a second screen to do professional stuff. And there is people that simply wanna feel their machine looks like the 4000 they spent on it.
g) Mac Pro prices are ridiculously high. When people spent that huge amount of money on Mac Pros on the past, they knew they would be able to upgrade them. Put 4 HDD, a new graphics card, a USB 5 card, audio or video cards, midi,... That is why they bought so huge machines. Mac Pro will not upgrade easily.
h) There should definitely be something between Mac minis and Mac Pros. Again, it does not matter if Mac Mini is good enough as a workstation or if you can buy an iMac. In lots of professional scenarios you cannot through away your expensive monitors and you cannot afford spending 4000 in a Mac Pro. In fact what would make more sense is that actual Mac Pros were around 1200 and real big box ventilated old Mac Pros were again the ones with little car prices.