.... And why would u be so naive to think that is not a real possibility?
The fact is the headline is false and puts a negative twist on facts.
Apple beat profit expectation
Apple beat margin expectations..
Apple grew double digits yoy
Apple broke All time records !
You are confusing guidance with expectations again.
IMO The rumor of a phablet coming out by the end of this year or beginning of next year is going to hurt the iPad. Some people just waiting to see what size it is and if they can get away with one device rather then paying for two.
Gotta love AppleInsider (should be renamed to WallStreetAnalsider)... Apple met or beat their own guidance, which TIME AND TIME AGAIN Tim Cook has said is what the Wall Scum anal-ysts should be following, yet the headline implies doom and gloom because Apple didn't meet the out-of-their-asses expectations of Wall Street scum.
WHAT A JOKE!
The bigger problem with the headline is that apple exceeded earning expectations and margin expectations.. Not just guidance but expectations.
Every quarter we hear the same thing when the stock drops...weak guidance. What exactly is Wall Street expecting the quarter before a huge product launch (or two)?
Well, it depends when the product ships.
Apple's Q4 ends on Saturday 27 September. If Apple ships the next-gen iPhone on Friday the 19th, that's eight days of sales from a handful of markets. If it ships on the 26th, that's about two days of sales. Analysts are likely hoping for an earlier release of the iPhone which is why street estimates of Q4 revenue at $40.6B are slightly outside of the $37-40B guidance provided at Apple.
Of course, we don't know of Apple's product development deadlines, but we do know that the new iOS release precedes the hardware release by at least a few days. From there one can make some reasonably intelligent guesses.
iOS 8 was unveiled on Monday 2 June at WWDC. If Apple has a fourteen week development schedule, that means iOS 8 Golden Master would be ready on Monday 8 September, a fifteen week cycle would place it on the 15th of the month.
The other mitigating factor would be the production ramp of the new handset by Apple's manufacturing partners. If there are supply (typically main silicon or a new display) or yield issues (from a radically new process), an extra week to accumulate more inventory for the initial launch would be advantageous to Apple, at the expense of recording revenue for the quarter in question.
I wonder about tablets. I have my iPhone all the time. My laptop for work and home. The iPad tends to be in the corner. My sister loves hers though. I wonder is it really the post-PC era.
I've been thinking the same. Personally I don't think they're the PC replacements some were thinking. I see them as a supplemental device rather than something I'd be happy using all the time. Since the category is no longer new and therefor "cool", and they may no longer be widely perceived as preferable to a typical laptop I'm not particularly surprised that sales might be slowing.
Perhaps, sell into enterprise by taking an established company as a strategic partner?
I'm not convinced that's going to be a huge driver of iPad sales. Doesn't really solve the consumer side of the equation though.
On the earnings call, Tim just said that the 100 apps that Apple and IBM are writing for enterprise are written in Swift.
I did some research into what mobile solutions IBM is currently offering to enterprise -- not much! Mostly browser access to web sites, and a few native apps (mostly iOS, but a few Android).
P.S. They announced a reduction in channel inventory in anticipation of new product announcements..
On the earnings call, Tim just said that the 100 apps that Apple and IBM are writing for enterprise are written in Swift.
I did some research into what mobile solutions IBM is currently offering to enterprise -- not much! Mostly browser access to web sites, and a few native apps (mostly iOS, but a few Android).
I thought that was interesting too. After the IBM announcement I saw a lot of "meh" comments from some quarters because they don't think IBM is good at designing apps. But with what Cook said it makes me believe Apple is very involved in the design of these apps.
Apple exceeded some street estimates (EPS, profit, gross margin) but fell short on others (unit sales for some product lines, total revenue) so really a mixed bag regarding Q3, but nothing really out of line.
It's the weak Q4 guidance that's troubling the market. Analyst consensus was for Q4 guidance of $40.6 billion in revenue, however Apple is low-balling it by saying $37-40B. That might be interpreted as Apple shipping the next-gen iPhone in late September or possibly slipping into October.
A tardy release of the iPhone could easily account for $2-3 billion in missed revenue in Q4.
Anal-ysts are the LAST people that should be trusted, and this has been proven so many times now I've lost count!
Apple has lower Q4 guidance because people know a new iPhone is coming out, and it's the natural progression of the market that sales will slow as a result of consumers holding off their purchases due to the anticipation of a newer model.
Oh my, Apple didn't meet the outside Apple market guesses on their business. Yes, that should be doom and gloom!
But I'm very happy, the iPhone, Mac and even the iPad sales surprised me at their strength. Personally I know PC users who got an iPhone, then an iPad, then recently a Mac. They've become total switchers; sorry MS, BB, SS and the others!
Now we know how off the mark the market insiders are. Avoid them and make your own investment decisions, else you will lose even worse than they do.
Can anyone explain why it has dropped for two quarters in a row?
If I were to guess then I'd say that more and more people tried the two screen experience and then decided that their phone was enough. More reason for Apple to get a larger screen phone in the market place.
Those that want a large screen tablet are becoming fewer and quite a few consumers are choosing things like the cheaper Kindle Fire which is taking away from sales that are dwindling in the first place.
The iPad figures are worrying however. ( iPhone did well).
Projections look like they may not release the new phones this quarter or very late in it.
You must be a real hoot at parties. Can you say Debbie Downer. Great quarter and YOU find something to worried about. What, exactly, is worrying you about tablet sales when the entire tablet market has slowed? I just don’t get people like yourself. And what ‘projections’ are you babbling about? There have been no projections of anything other than hearsay and rumors.
Comments
So Apple didn't beat the analysts predictions, but how did it do relative to it's own guidance from the previous quarterly report?
You are confusing guidance with expectations again.
Spot on.
The rumor of a phablet coming out by the end of this year or beginning of next year is going to hurt the iPad. Some people just waiting to see what size it is and if they can get away with one device rather then paying for two.
Apple beat profit Expectation
And apple beat margin expectations!
Every quarter we hear the same thing when the stock drops...weak guidance. What exactly is Wall Street expecting the quarter before a huge product launch (or two)?
Well, it depends when the product ships.
Apple's Q4 ends on Saturday 27 September. If Apple ships the next-gen iPhone on Friday the 19th, that's eight days of sales from a handful of markets. If it ships on the 26th, that's about two days of sales. Analysts are likely hoping for an earlier release of the iPhone which is why street estimates of Q4 revenue at $40.6B are slightly outside of the $37-40B guidance provided at Apple.
Of course, we don't know of Apple's product development deadlines, but we do know that the new iOS release precedes the hardware release by at least a few days. From there one can make some reasonably intelligent guesses.
iOS 8 was unveiled on Monday 2 June at WWDC. If Apple has a fourteen week development schedule, that means iOS 8 Golden Master would be ready on Monday 8 September, a fifteen week cycle would place it on the 15th of the month.
The other mitigating factor would be the production ramp of the new handset by Apple's manufacturing partners. If there are supply (typically main silicon or a new display) or yield issues (from a radically new process), an extra week to accumulate more inventory for the initial launch would be advantageous to Apple, at the expense of recording revenue for the quarter in question.
I've been thinking the same. Personally I don't think they're the PC replacements some were thinking. I see them as a supplemental device rather than something I'd be happy using all the time. Since the category is no longer new and therefor "cool", and they may no longer be widely perceived as preferable to a typical laptop I'm not particularly surprised that sales might be slowing.
On the earnings call, Tim just said that the 100 apps that Apple and IBM are writing for enterprise are written in Swift.
I did some research into what mobile solutions IBM is currently offering to enterprise -- not much! Mostly browser access to web sites, and a few native apps (mostly iOS, but a few Android).
P.S. They announced a reduction in channel inventory in anticipation of new product announcements..
Apple has lower Q4 guidance because people know a new iPhone is coming out, and it's the natural progression of the market that sales will slow as a result of consumers holding off their purchases due to the anticipation of a newer model.
THIS HAPPENS EVER YEAR PEOPLE!!!
That is a lot. Do Apple actually pay that much? Compared to other tech company which only pays a single digit.
Hmmm.....
NYT: "Apple Tops Analyst Forecasts"
WSJ: "Apple Reports Strong iPhone Sales"
Bloomberg: "Apple Posts Second Straight Profit Gain as iPhone Sales Jump"
CNBC: "Apple Profit Beats Estimates, Revenue Slightly Short"
AI? "Apple Falls Short of Expectations".
I suspect that this year's new iPad will be significantly improved -- and that will start a new cycle -- removing the iPad 2 from the product line.
Yes, that should be doom and gloom!
But I'm very happy, the iPhone, Mac and even the iPad sales surprised me at their strength.
Personally I know PC users who got an iPhone, then an iPad, then recently a Mac. They've become total switchers; sorry MS, BB, SS and the others!
Now we know how off the mark the market insiders are.
Avoid them and make your own investment decisions, else you will lose even worse than they do.
Can anyone explain why it has dropped for two quarters in a row?
If I were to guess then I'd say that more and more people tried the two screen experience and then decided that their phone was enough. More reason for Apple to get a larger screen phone in the market place.
Those that want a large screen tablet are becoming fewer and quite a few consumers are choosing things like the cheaper Kindle Fire which is taking away from sales that are dwindling in the first place.
The iPad figures are worrying however. ( iPhone did well).
Projections look like they may not release the new phones this quarter or very late in it.
You must be a real hoot at parties. Can you say Debbie Downer. Great quarter and YOU find something to worried about. What, exactly, is worrying you about tablet sales when the entire tablet market has slowed? I just don’t get people like yourself. And what ‘projections’ are you babbling about? There have been no projections of anything other than hearsay and rumors.