It's The-Rest-Of-The-World here. Y'know us foreigners who make up half of your market & who's dollars are stronger than ever. We all want to look after our own first but Apple's US-centricity is choking itself.
Get the iPhones & full iTunes services out there and stop dipping toes. Not that it'll solve any financial issues but AppleTV could still be the first HiDef set top box in NZ!
MS & Amazon have got it - where's Apple?
Heh heh... Right on, my Kiwi friend on the edge of the world.
Singapore just invested something like 15 biliion US dollars into major banks to "rescue"? them. Read about Sovereign Wealth Funds and such stuff in WSJ, Economics, etc. etc.
Singapore has 4 million+ people only, but the government has about 150 billion USD in foreign reserves. Hell, they could even buy the whole of teh Apple if they could (regulatory issues etc. notwithstanding...). Major Middle Eastern countries are buying shareholdings all over the world, for example into AMD because AMD-ATI is honestly suffering financially.
More on Singapore, Apple US has of one of several direct reports: Apple China.
Apple South Asia is based in Singapore. Apple South Asia reports to Apple China.
Apple South Asia is responsible for all of India, all of South East Asia...
Malaysia has a larger (though on average poorer, but remember Asian countries have
massive wealth imbalance) population than Australia.
I am not singing the Apocalypse Of Western Civilisation here, nor saying Apple USA is teh doomed. Just mentioning that Apple China and Apple South Asia are very, very important markets. Remember too that shipping out of China/Taiwan assemblies should be easier right to Asia.
Many, many wealthy Middle Easterners, moderate, liberal or serious Muslims, come to Asia to spend their money. Sometimes, because they feel more comfortable in Asian countries, particularly those with some Muslim majority or minority. They do buy Apple stuff.
By the end of this post I am clearly rambling.
However, I think a lot of us, inside and outside of the USA, are starting to come to grips with the new face of the global economy.
This wealthy individual from Malaysia, recently passed away.
I'm with the previous poster on the state of the American economy. Our government is being extremely irresponsible with its (our) money and we are paying every day. I don't like other countries owning massive chunks of our debt and our dollar devaluing every day. We are in a position to be looking at serious economic problems in the future and it does scare me quite a bit. But hey I suppose we do need to police the world and go broke doing it
Bill Gates quit college too. In fact a lot of the most brilliant businesspeople in the world simply do not have anything to learn from institutionalized education.
Sorry to change the subject, but I had some thoughts on recently announced Apple production cuts.
I would personally place a great deal more weight on the news and predictions from this analysis if it was from Piper Jaffrey. They have been following Apple for a long time and Gene Munster has a pretty good track record of solid research and reasonably accurate interpretation of research data.
With the recent release of a new notebook sku, the MBA, which by appearances so far seems to be in demand, as well as rumored (and I think likely) updates to Macbook Pro, cuts in "Macbook" production is not a surprise imo.
With the release of new iPod Touch models, it is difficult to determine exactly what the data from this report means. Certainly there is going to be a decline in this quarter from the last wrt to iPod sales. Perhaps more of a decline than Apple had initially predicted? Sure, very possible, especially considering all the blathering about the coming recession everywhere you turn. Sales of gadgets will be soft when people are concerned about a recession. That's the way it goes.
Speaking of that situation, I'm glad Apple has broadened their scope, thereby lessening their exposure to a soft economy. People are less likely to go without a cell phone during a recession than digital audio players. And while on this subject, how about a 35% production increase in iMacs. Maybe iMacs are recession resistant, good thing they have nice fat margins.
Hey, I heard there's a fire sale on AAPL right now.
Apple is one of the best companies in controlling their supply & sales chain inventories and any adjustment necessary will be made - either for changes in sales rates or preparation for new products.
In terms of successfully working through an economic downturn, Apple is far better prepared than most companies because, first of their very strong cash position and, secondly, because of their ability to innovate. They have the people (and financial resources) to design and deliver products to the market that people lust after.
2008 will probably be a difficult year, with the uncertainty of the elections simply adding to concerns & confusions for a lot of people. That doesn't mean that Apple cannot operate at a profitable level during tough times.
The problem that you aren't taking into account is that all the manufacturing you're referencing is out of country. We are losing jobs faster than we are replacing them, that is an economic disaster in the making.
well, all manufacturing has not left the US, granted, we've lost a lot, but we haven't lost it all, and I daresay we've retained a decent enough amount to avoid disaster...but I honestly dont know how many actual Jobs have left permanently. Curious to see.
I don't particularly believe the report-there could be several reasons why they could be cutting back on orders from particular suppliers. But the share price of Apple stock has been wildly overinflated the past year or so and is finally coming back down to earth. Not a bad thing at all unless you're one of the people who bought in at $190 thinking it was going to go to $250 after this years MacWorld Keynote. Even a blind squirrel would have sense enough to skip that rotten nut.
Oh come on. Seriously. Your expectations are beyond unreasonable. Apple has nearly 20BIL in cash, no debt, posts 60% profit increases, smashes all records, and you still would say "inflated" with a straight face. Apple will be 250 or more by the end of 2008.
Show me one single other company with similar performance. Please. Try to find one.
..and this person thinks Steve Jobs is an uneducated loser.
Now THAT is a reality distortion field.
Quote:
Originally Posted by ouragan
Apple is run by a tyrannical, irrational CEO who doesn't have what it takes to study beyond high school.
What else did you expect with overpriced products, outdated parts, a demented obsession for thinness in iMacs, MacBook Airs and iPods, and a looming recession?
Really, did you expect anything else?
You should have sold your shares when the price was high or better, do like most investors, not touch a company which is so badly mismanaged. You'll know better next time.
Not hard to understand why the stock is down. Sales of the Airbook cannot compete with products like the iPhone and iPod. How many people actually want to buy an Airbook with a 80GB. Half my life is on my Macbook and its more than 80GB. I don't mind carrying the extra lbs and prefer the larger screen.
Disappointing to think that with so many past innovations they cannot come up with anything better. And for heavens sake, unlock the iPhone and sell it worldwide. Either that or buy an interest in AT&T.
Quote:
Originally Posted by AppleInsider
Shares of Apple Inc. slumped further south on Wednesday amid a weakening macroeconomic outlook and reports of additional production cuts affecting not only the company's handhelds, but also its red-hot notebook business.
Craig Berger, an analyst with FBR Research, told clients in a research note this week that the Cupertino-based company has reduced orders for its handheld devices for the second time in as many months, likely reflecting less-than-expected sell-through in the fourth [calendar] quarter of 2007, or thus far in the first [calendar] quarter of 2008.
"For both iPods and iPhones, we believe Apple was previously targeting a roughly 50 percent quarter-over-quarter decline for first quarter units, whereas, we now think the firm is targeting a 60 percent quarter-over-quarter unit decline for first quarter units," he wrote.
According to Berger, the iPod Touch has seen the largest cuts when compared to his checks last month, suggesting demand for higher cost players has fallen off from the company's prior expectations.
"With Broadcom selling the touchscreen controller into the iPhones and iPod touches, and with Marvell selling WiFi chips into the iPhone, both of these chip firms should see slight negative revenue impacts in their March quarter, though we believe the magnitude of this bad news is relatively small," he explained.
With respect to Apple's computer business, the FBR analyst said his checks indicate the company has cut its first quarter MacBook build forecast by about 50 percent compared to the prior quarter, down from 35 percent upon his last check.
Meanwhile, iMacs appear to be bucking the trend, he said, with orders for the desktop systems expected to increases 35 percent sequentially compared to previous checks, which suggested demand for the all-in-one systems would remain relatively flat.
It should be noted that Apple on Tuesday introduced new versions of both the iPod touch and the iPhone, offering double the storage of the previous high-end models for a $100 premium. It's unclear whether any said production cutbacks may have been a precursor to these new models. Similarly, it's unclear whether reductions in MacBook build orders will be offset by demand for company's new MacBook Air.
Nevertheless, shares of the electronics maker closed down $7.36 or 5.69 percent to $122.00 on the Nasdaq stock market.
Oh come on. Seriously. Your expectations are beyond unreasonable. Apple has nearly 20BIL in cash, no debt, posts 60% profit increases, smashes all records, and you still would say "inflated" with a straight face. Apple will be 250 or more by the end of 2008.
Show me one single other company with similar performance. Please. Try to find one.
All those things are great, but that doesn't mean that any price is reasonable. What you just said sounds very much like what many investors were saying in 1999.
Apple stock was up more than 4x over the course of what, 18 months? The fundamentals didn't support such an increase, no matter if Apple was the greatest company ever. Now that it has corrected back to a reasonable level, hopefully you have some cash and you can buy more, in hopes of a resumed upward trend.
Comments
hello!!
knock knock!
It's The-Rest-Of-The-World here. Y'know us foreigners who make up half of your market & who's dollars are stronger than ever. We all want to look after our own first but Apple's US-centricity is choking itself.
Get the iPhones & full iTunes services out there and stop dipping toes. Not that it'll solve any financial issues but AppleTV could still be the first HiDef set top box in NZ!
MS & Amazon have got it - where's Apple?
Heh heh... Right on, my Kiwi friend on the edge of the world.
Singapore just invested something like 15 biliion US dollars into major banks to "rescue"? them. Read about Sovereign Wealth Funds and such stuff in WSJ, Economics, etc. etc.
Singapore has 4 million+ people only, but the government has about 150 billion USD in foreign reserves. Hell, they could even buy the whole of teh Apple if they could (regulatory issues etc. notwithstanding...). Major Middle Eastern countries are buying shareholdings all over the world, for example into AMD because AMD-ATI is honestly suffering financially.
More on Singapore, Apple US has of one of several direct reports: Apple China.
Apple South Asia is based in Singapore. Apple South Asia reports to Apple China.
Apple South Asia is responsible for all of India, all of South East Asia...
Malaysia has a larger (though on average poorer, but remember Asian countries have
massive wealth imbalance) population than Australia.
I am not singing the Apocalypse Of Western Civilisation here, nor saying Apple USA is teh doomed. Just mentioning that Apple China and Apple South Asia are very, very important markets. Remember too that shipping out of China/Taiwan assemblies should be easier right to Asia.
Many, many wealthy Middle Easterners, moderate, liberal or serious Muslims, come to Asia to spend their money. Sometimes, because they feel more comfortable in Asian countries, particularly those with some Muslim majority or minority. They do buy Apple stuff.
By the end of this post I am clearly rambling.
However, I think a lot of us, inside and outside of the USA, are starting to come to grips with the new face of the global economy.
This wealthy individual from Malaysia, recently passed away.
http://en.wikipedia.org/wiki/Lim_Goh_Tong
His estimated net worth is about 4 billion USD.
There are many individuals in Asia with several billion USD floating around.
Not to mention companies. Forget Japan.
By the way, anyone that has lived in Equatorial or Monsoon climates, you could
imagine the desirability of air-conditioning that also uses the waste heat to boil water and for cooking,
such a device would be extremely successful. If it costs about USD 200 including installation,
for a small house of four. Maybe USD 300 for a house of eight, including installation.
10 or 20 years ago the US, Japan, Europe or Australia would be the ones to invent it.
They may still do it. But China will do it, cheaper. For better or worse.
On reflection, I do urge everyone that cares enough, to continue to work through to
encourage China to be more responsible with its workers and the environment, etc.
It may be our last, best hope, outside of Africa maybe, to actually implement improving
standards of living in a sustainable, responsible and (make the group hug jokes here)
harmonious.
Bill Gates quit college too. In fact a lot of the most brilliant businesspeople in the world simply do not have anything to learn from institutionalized education.
No executive left behind.
I would personally place a great deal more weight on the news and predictions from this analysis if it was from Piper Jaffrey. They have been following Apple for a long time and Gene Munster has a pretty good track record of solid research and reasonably accurate interpretation of research data.
With the recent release of a new notebook sku, the MBA, which by appearances so far seems to be in demand, as well as rumored (and I think likely) updates to Macbook Pro, cuts in "Macbook" production is not a surprise imo.
With the release of new iPod Touch models, it is difficult to determine exactly what the data from this report means. Certainly there is going to be a decline in this quarter from the last wrt to iPod sales. Perhaps more of a decline than Apple had initially predicted? Sure, very possible, especially considering all the blathering about the coming recession everywhere you turn. Sales of gadgets will be soft when people are concerned about a recession. That's the way it goes.
Speaking of that situation, I'm glad Apple has broadened their scope, thereby lessening their exposure to a soft economy. People are less likely to go without a cell phone during a recession than digital audio players. And while on this subject, how about a 35% production increase in iMacs. Maybe iMacs are recession resistant, good thing they have nice fat margins.
Hey, I heard there's a fire sale on AAPL right now.
In terms of successfully working through an economic downturn, Apple is far better prepared than most companies because, first of their very strong cash position and, secondly, because of their ability to innovate. They have the people (and financial resources) to design and deliver products to the market that people lust after.
2008 will probably be a difficult year, with the uncertainty of the elections simply adding to concerns & confusions for a lot of people. That doesn't mean that Apple cannot operate at a profitable level during tough times.
The problem that you aren't taking into account is that all the manufacturing you're referencing is out of country. We are losing jobs faster than we are replacing them, that is an economic disaster in the making.
well, all manufacturing has not left the US, granted, we've lost a lot, but we haven't lost it all, and I daresay we've retained a decent enough amount to avoid disaster...but I honestly dont know how many actual Jobs have left permanently. Curious to see.
I don't particularly believe the report-there could be several reasons why they could be cutting back on orders from particular suppliers. But the share price of Apple stock has been wildly overinflated the past year or so and is finally coming back down to earth. Not a bad thing at all unless you're one of the people who bought in at $190 thinking it was going to go to $250 after this years MacWorld Keynote. Even a blind squirrel would have sense enough to skip that rotten nut.
Oh come on. Seriously. Your expectations are beyond unreasonable. Apple has nearly 20BIL in cash, no debt, posts 60% profit increases, smashes all records, and you still would say "inflated" with a straight face. Apple will be 250 or more by the end of 2008.
Show me one single other company with similar performance. Please. Try to find one.
Now THAT is a reality distortion field.
Apple is run by a tyrannical, irrational CEO who doesn't have what it takes to study beyond high school.
What else did you expect with overpriced products, outdated parts, a demented obsession for thinness in iMacs, MacBook Airs and iPods, and a looming recession?
Really, did you expect anything else?
You should have sold your shares when the price was high or better, do like most investors, not touch a company which is so badly mismanaged. You'll know better next time.
Disappointing to think that with so many past innovations they cannot come up with anything better. And for heavens sake, unlock the iPhone and sell it worldwide. Either that or buy an interest in AT&T.
Shares of Apple Inc. slumped further south on Wednesday amid a weakening macroeconomic outlook and reports of additional production cuts affecting not only the company's handhelds, but also its red-hot notebook business.
Craig Berger, an analyst with FBR Research, told clients in a research note this week that the Cupertino-based company has reduced orders for its handheld devices for the second time in as many months, likely reflecting less-than-expected sell-through in the fourth [calendar] quarter of 2007, or thus far in the first [calendar] quarter of 2008.
"For both iPods and iPhones, we believe Apple was previously targeting a roughly 50 percent quarter-over-quarter decline for first quarter units, whereas, we now think the firm is targeting a 60 percent quarter-over-quarter unit decline for first quarter units," he wrote.
According to Berger, the iPod Touch has seen the largest cuts when compared to his checks last month, suggesting demand for higher cost players has fallen off from the company's prior expectations.
"With Broadcom selling the touchscreen controller into the iPhones and iPod touches, and with Marvell selling WiFi chips into the iPhone, both of these chip firms should see slight negative revenue impacts in their March quarter, though we believe the magnitude of this bad news is relatively small," he explained.
With respect to Apple's computer business, the FBR analyst said his checks indicate the company has cut its first quarter MacBook build forecast by about 50 percent compared to the prior quarter, down from 35 percent upon his last check.
Meanwhile, iMacs appear to be bucking the trend, he said, with orders for the desktop systems expected to increases 35 percent sequentially compared to previous checks, which suggested demand for the all-in-one systems would remain relatively flat.
It should be noted that Apple on Tuesday introduced new versions of both the iPod touch and the iPhone, offering double the storage of the previous high-end models for a $100 premium. It's unclear whether any said production cutbacks may have been a precursor to these new models. Similarly, it's unclear whether reductions in MacBook build orders will be offset by demand for company's new MacBook Air.
Nevertheless, shares of the electronics maker closed down $7.36 or 5.69 percent to $122.00 on the Nasdaq stock market.
[ View this article at AppleInsider.com ]
Oh come on. Seriously. Your expectations are beyond unreasonable. Apple has nearly 20BIL in cash, no debt, posts 60% profit increases, smashes all records, and you still would say "inflated" with a straight face. Apple will be 250 or more by the end of 2008.
Show me one single other company with similar performance. Please. Try to find one.
All those things are great, but that doesn't mean that any price is reasonable. What you just said sounds very much like what many investors were saying in 1999.
Apple stock was up more than 4x over the course of what, 18 months? The fundamentals didn't support such an increase, no matter if Apple was the greatest company ever. Now that it has corrected back to a reasonable level, hopefully you have some cash and you can buy more, in hopes of a resumed upward trend.