Apple stock posts longest losing streak in 18 years

Posted:
in AAPL Investors edited May 2016
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.
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Comments

  • Reply 1 of 37
    antonpabloantonpablo Posts: 90member
    The lame uninspired S model strategy finally caught up with Apple.. 
    bdkennedy10026Sgoldfishcnocbuijackansitallest skilkamalwatt1kermit4krazy
  • Reply 2 of 37
    rogifan_newrogifan_new Posts: 4,297member
    How many different threads do we need discussing Apple's stock?
  • Reply 3 of 37
    kevin keekevin kee Posts: 1,289member
    How many different threads do we need discussing Apple's stock?
    Beating the dead horse. In this case, a fake dead horse.
    baconstangcalipalomine
  • Reply 4 of 37
    flaneurflaneur Posts: 4,526member
    The lame uninspired S model strategy finally caught up with Apple.. 
    Your fixation on the S — simple-minded.
    baconstangRayz2016chia
  • Reply 5 of 37
    michael scripmichael scrip Posts: 1,916member
    The lame uninspired S model strategy finally caught up with Apple.. 
    I know!

    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!
    baconstangmonstrositychiacali
  • Reply 6 of 37
    anomeanome Posts: 1,531member
    flaneur said:
    The lame uninspired S model strategy finally caught up with Apple.. 
    Your fixation on the S — simple-minded.
    Well, if he keeps saying it, he has to eventually coincide with something he thinks proves his point.
    afrodri
  • Reply 7 of 37
    As the owner of an iPhone 6 Plus, I just bought an iPhone SE. I missed the classic design. The only reason I got the 6 Plus was because it was bigger, but the design is just not Apple. The antenna bands, protruding camera and boring look eventually got to me. Now I have a Steve Jobs approved classic design with the most powerful hardware. Right now my iPhone 6 Plus is sitting next to my iPhone SE and the SE makes it look like a Samsung. I thought I needed a bigger iPhone. But I'm sick of "lugging" it around. I love I'm back to a phone that fits in my front pocket and I can use with one hand.
    edited May 2016 baconstangjackansi
  • Reply 8 of 37
    Rayz2016Rayz2016 Posts: 6,957member
    How many different threads do we need discussing Apple's stock?
    I think it's a rather tired attempt to generate Sog35 clicks. 
    calisingularityjackansiafrodri
  • Reply 9 of 37
    sirlance99sirlance99 Posts: 1,293member
    bdkennedy said:
    As the owner of an iPhone 6 Plus, I just bought an iPhone SE. I missed the classic design. The only reason I got the 6 Plus was because it was bigger, but the design is just not Apple. The antenna bands, protruding camera and boring look eventually got to me. Now I have a Steve Jobs approved classic design with the most powerful hardware. Right now my iPhone 6 Plus is sitting next to my iPhone SE and the SE makes it look like a Samsung. I thought I needed a bigger iPhone. But I'm sick of "lugging" it around. I love I'm back to a phone that fits in my front pocket and I can use with one hand.
    See, choice is good. For once Apple is providing a choice of three options as opposed to just one size fits all. I prefer the plus size as I basically use it as a portable computing device. I literally use it for everything in my life. The SE and all previous 4in and smaller iPhones where always way too small for me. Now everyone can choose what fits them.
  • Reply 10 of 37
    pentaepentae Posts: 36member
    Maybe if they had given us Macbook Airs/Pros with Skylake processors 6 months ago this wouldn’t have happened - too busy putting their top people on the iPad Pro. Nobody is buying new macbooks for the last half a year because everybody is waiting for a refresh - the current lineup is simply inadequate for anyone other than a consumer.

    6Sgoldfishkermit4krazy
  • Reply 11 of 37
    fastasleepfastasleep Posts: 6,393member
    pentae said:
    Maybe if they had given us Macbook Airs/Pros with Skylake processors 6 months ago this wouldn’t have happened - too busy putting their top people on the iPad Pro. Nobody is buying new macbooks for the last half a year because everybody is waiting for a refresh - the current lineup is simply inadequate for anyone other than a consumer.

    The Intel chipsets and AMD GPUs appropriate for the MBP are not even available yet. So how exactly would they have released them six months ago?

    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. 
    ration aljasenj1
  • Reply 12 of 37
    michael scripmichael scrip Posts: 1,916member
    pentae said:

    Maybe if they had given us Macbook Airs/Pros with Skylake processors 6 months ago this wouldn’t have happened - too busy putting their top people on the iPad Pro. Nobody is buying new macbooks for the last half a year because everybody is waiting for a refresh - the current lineup is simply inadequate for anyone other than a consumer.

    IF they had given us updated Macs 6 months ago... they would have boosted those two quarters. It probably wouldn't have done much for this April quarter.

    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)
    6Sgoldfishafrodrikermit4krazy
  • Reply 13 of 37
    cnocbuicnocbui Posts: 3,613member
    How many different threads do we need discussing Apple's stock?
    At least as many as we've had articles from DED hailing the SE as the best thing since sliced bread and the most innovative phone since the dawn of time, so we need at least another four.
    singularity
  • Reply 14 of 37
    sensisensi Posts: 346member
    Who was the guy again claiming to have bought hundreds of share at $100 the other day? You have all my sympathy.
  • Reply 15 of 37
    amarkapamarkap Posts: 69member
    sensi said:
    Who was the guy again claiming to have bought hundreds of share at $100 the other day? You have all my sympathy.

    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!!  :)
    latifbpration albbh
  • Reply 16 of 37
    sensisensi Posts: 346member
    amarkap said:
    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!!  :)
    I can both congratulate you for being an Apple shareholder and extend my sympathy over any hypothetical loss that would occur if you had to sale your share as of today. ;)
    amarkapkermit4krazy
  • Reply 17 of 37
    Apple have made huge mistakes lately. Just to name a few:
    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.
    jackansikermit4krazy
  • Reply 18 of 37
    rogifan_newrogifan_new Posts: 4,297member
    bdkennedy said:
    As the owner of an iPhone 6 Plus, I just bought an iPhone SE. I missed the classic design. The only reason I got the 6 Plus was because it was bigger, but the design is just not Apple. The antenna bands, protruding camera and boring look eventually got to me. Now I have a Steve Jobs approved classic design with the most powerful hardware. Right now my iPhone 6 Plus is sitting next to my iPhone SE and the SE makes it look like a Samsung. I thought I needed a bigger iPhone. But I'm sick of "lugging" it around. I love I'm back to a phone that fits in my front pocket and I can use with one hand.
    How do you know the iPhone 5 was "Steve Jobs approved" and the iPhone 6 wasn't? Because you like one  and not the other? And people seriously buy things because they think they were "Steve Jobs approved"??
  • Reply 19 of 37
    macxpressmacxpress Posts: 5,777member
    Who really cares about the god damn stock...I'm so sick of hearing about Apple's stock price. Apple couldn't care less about what its stock price and I guess unless you're a shareholder you shouldn't either. It means nothing to me. Just because its down, doesn't mean Apple is crashing and burning. Please...STOP with these ridiculous articles about Apple's stock price. 

    edited May 2016
  • Reply 20 of 37
    macxpressmacxpress Posts: 5,777member
    bdkennedy said:
    As the owner of an iPhone 6 Plus, I just bought an iPhone SE. I missed the classic design. The only reason I got the 6 Plus was because it was bigger, but the design is just not Apple. The antenna bands, protruding camera and boring look eventually got to me. Now I have a Steve Jobs approved classic design with the most powerful hardware. Right now my iPhone 6 Plus is sitting next to my iPhone SE and the SE makes it look like a Samsung. I thought I needed a bigger iPhone. But I'm sick of "lugging" it around. I love I'm back to a phone that fits in my front pocket and I can use with one hand.
    What a load of crap! Nobody knows what Steve did, or didn't approve. You have no clue (nor do I) how far in advance Apple is designing its products. I don't know a single person who buys Apple products (and I do know a lot) who buy them because they're "Steve Jobs Approved". For all we know, they may have had the iPhone 4/5 design finalized (after is major design issues were resolved BTW), and the iPhone 6 design started before Steve even left. Who knows!
    edited May 2016
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