Apple bit by Apple TV setback
Shares of Apple Inc. slipped more than 2 percent in morning trading on the Nasdaq stock market one day after the consumer electronics maker said it would delay its foray into the living room by several weeks.
"Wrapping up Apple TV is taking a few weeks longer than we projected, and we now expect to begin shipments in mid-March, not in February as originally anticipated," Apple wrote in an email to its online customers on Monday evening.
The delay almost assures that the Cupertino-based firm will be unlikely to benefit from more than a week's worth of sales of the $299 wireless media hub during its second fiscal quarter, which ends late next month.
While Apple has a long-standing history of not commenting on its product roll-out woes, earlier reports have singled out the device's embedded software as the likely source of the delay. It's also possible that the device has yet to receive the necessary go-ahead from the Federal Communications Commission, as no such approval documents have surfaced.
Like iPhone, those people familiar with the Apple TV device claim it runs a derivative of the Mac OS X operating system. Apple is expected to leverage the underlying technology in upcoming software releases such as Mac OS X 10.5 Leopard and iLife '07.
"We wouldn’t be surprised if Leopard contained a function that allows the iTunes application to be bi-passed to stream digital media to the TV," said Ingrid Ebeling, an analyst with JMP Securities.
Ebeling is among a handful of Wall Street figures who believe Apple TV, largely overshadowed as of late by all things iPhone, could be a "sleeper hit" in Apple's product offerings. She's forecasting the company to sell just over 1 million of the set-top boxes through 2008 but says that number could turn out to be "very conservative."
"We have spoken with Apple representatives on several occasions and our checks indicate that initial demand has been quite strong," the analyst told clients in a research note distributed just prior to this past weekend. She said every additional million units the company sells through 2008 will deliver approximately 6 cents of per-share earnings upside to her estimates for the year.
Thus far, Apple has said the Apple TV will utilize emerging 802.1n wireless technology to stream movies, music and photos from computers running iTunes to wide screen HDTVs located in living rooms and other leisure locations throughout the home. However, a slip of the lip by one of the company's iPod game developers recently offered hints that Apple TV will also play a significant role in Apple's bid for a piece of the casual gaming market.
Shares of Apple dropped $1.96 or 2.2 percent to $86.69 on Monday following word of the delay and admid reports of slumping stocks in China and Europe.
"Wrapping up Apple TV is taking a few weeks longer than we projected, and we now expect to begin shipments in mid-March, not in February as originally anticipated," Apple wrote in an email to its online customers on Monday evening.
The delay almost assures that the Cupertino-based firm will be unlikely to benefit from more than a week's worth of sales of the $299 wireless media hub during its second fiscal quarter, which ends late next month.
While Apple has a long-standing history of not commenting on its product roll-out woes, earlier reports have singled out the device's embedded software as the likely source of the delay. It's also possible that the device has yet to receive the necessary go-ahead from the Federal Communications Commission, as no such approval documents have surfaced.
Like iPhone, those people familiar with the Apple TV device claim it runs a derivative of the Mac OS X operating system. Apple is expected to leverage the underlying technology in upcoming software releases such as Mac OS X 10.5 Leopard and iLife '07.
"We wouldn’t be surprised if Leopard contained a function that allows the iTunes application to be bi-passed to stream digital media to the TV," said Ingrid Ebeling, an analyst with JMP Securities.
Ebeling is among a handful of Wall Street figures who believe Apple TV, largely overshadowed as of late by all things iPhone, could be a "sleeper hit" in Apple's product offerings. She's forecasting the company to sell just over 1 million of the set-top boxes through 2008 but says that number could turn out to be "very conservative."
"We have spoken with Apple representatives on several occasions and our checks indicate that initial demand has been quite strong," the analyst told clients in a research note distributed just prior to this past weekend. She said every additional million units the company sells through 2008 will deliver approximately 6 cents of per-share earnings upside to her estimates for the year.
Thus far, Apple has said the Apple TV will utilize emerging 802.1n wireless technology to stream movies, music and photos from computers running iTunes to wide screen HDTVs located in living rooms and other leisure locations throughout the home. However, a slip of the lip by one of the company's iPod game developers recently offered hints that Apple TV will also play a significant role in Apple's bid for a piece of the casual gaming market.
Shares of Apple dropped $1.96 or 2.2 percent to $86.69 on Monday following word of the delay and admid reports of slumping stocks in China and Europe.
Comments
How about: global stock markets collapsed after the Chinese market fell 9% last night. Apple traded down with the rest of the market after fears a global slowdown could impact stocks.
Sometimes there is no news. Apple's fall today had nothing to do with the aTV delay, and everything to do with a meltdown in the markets.
Katie might want to remember that next time she tries to link cause-and-effect
"Shares of Apple Inc. slipped more than 2 percent in morning trading on the Nasdaq stock market after the consumer electronics maker said it would delay its foray into the living room by several weeks."
How about: global stock markets collapsed after the Chinese market fell 9% last night. Apple traded down with the rest of the market after fears a global slowdown could impact stocks.
Sometimes there is no news. Apple's fall today had nothing to do with the aTV delay, and everything to do with a meltdown in the markets.
Katie might want to remember that next time she tries to link cause-and-effect
That's what I thought when I saw this story. News of the delay hit yesterday while the market was open didn't it? The market reacts very quickly, not the next day. This is just a pullback because of the chinese market.
(Analysis Not Worth A Rats Ass)
Aw man. Now I'll have to wait longer to not buy an Apple TV.
Maybe its been delayed so they could add some useful features. PVR is a must.
Maybe its been delayed so they could add some useful features. PVR is a must.
I'm sorry, but that just doesn't make any sense. The devices have already been sent into mass production--without a TV tuner or even any sort of video-in ports. Besides that primary issue, there is the secondary issue that Apple has no interest in creating a PVR--they want to become the new form of content distribution: over the iTunes store. I doubt they'll succeed, but they'll make a lot of money on the way, and that's the strategy they've chosen.
I'm sorry, but that just doesn't make any sense. The devices have already been sent into mass production--without a TV tuner or even any sort of video-in ports. Besides that primary issue, there is the secondary issue that Apple has no interest in creating a PVR--they want to become the new form of content distribution: over the iTunes store. I doubt they'll succeed, but they'll make a lot of money on the way, and that's the strategy they've chosen.
Just wait for Apple TV, version 2. I think it'll be a more interesting product once the consumer gives Steve some solid feedback.
"Shares of Apple Inc. slipped more than 2 percent in morning trading on the Nasdaq stock market after the consumer electronics maker said it would delay its foray into the living room by several weeks."
How about: global stock markets collapsed after the Chinese market fell 9% last night. Apple traded down with the rest of the market after fears a global slowdown could impact stocks.
Sometimes there is no news. Apple's fall today had nothing to do with the aTV delay, and everything to do with a meltdown in the markets.
Katie might want to remember that next time she tries to link cause-and-effect
You are 100% correct.
If this stock slip happend a day after Steve Jobs birthday they would have blamed the drop on that too
"We wouldn?t be surprised if Leopard contained a function that allows the iTunes application to be bi-passed to stream digital media to the TV," said Ingrid Ebeling, an analyst with JMP Securities.
"bi-passed?" WTF?
Post hoc, ergo propter hoc. This is a fallacy, that's all I have to say.
I think it helps to have an alternative explaination as to why the stock dropped. Unfortunately, I can't think of anything else that changed in the last two days, certainly not one that would result in a $2.50 drop overnight.
Unfortunately, I can't think of anything else that changed in the last two days, certainly not one that would result in a $2.50 drop overnight.
I think news must have leaked that Jobs had another meeting with his personal lawyer...
You are 100% correct.
If this stock slip happend a day after Steve Jobs birthday they would have blamed the drop on that too
Um, excuse me, but he would be a year older. A year closer to death/retirement. Its the perfect reason to see the price drop in half.
In after hours trading all tech stocks went down, of 200 well known tech companies, the average down was 2.8%, this morning most were down 2.7-4.2% along with the NASDAQ.
I guess checking Apple's stock and reporting that it's down because of AppleTV is much easier than checking other tech stocks and reporting the facts. It also means that analysts can justify their existence to their bosses, "Good work on that Apple story!"
Analysts get your head out of your ass.
P.S. In interest of full disclosure I've been an analyst for 8 years, and have heavy investments in tech stocks including Apple.
http://www.businessweek.com/technolo...227_932458.htm
Um, excuse me, but he would be a year older. A year closer to death/retirement. Its the perfect reason to see the price drop in half.
Well it didnt happen