Apple (AAPL) devotees are generally quick to blame some combination of Wall Street and the press for the 30% decline in AAPL shares since September. The grim reality is that Apple burned the Street long before analysts started the downgrade parade and the press just reported the story.
After not missing estimates a single time for more than five years, Apple, under current CEO Tim Cook, has missed analyst estimates 3 out of 5 quarters. Since the most recent miss last October, shares have lost more than 25%. If Apple wants to get its groove back the first step is going to be coming in somewhere north of $14.20 EPS on about $56 billion in revenues.
But hitting estimates is less than half the story for Apple at this point. Far more concerning is the company's uninspired business model. Last year at this time rumors were everywhere that Apple was on the verge of "solving" television. According to Jeff Kilburg, founder & CEO at KKM Financial, rumors out of China this year involve seven or eight new products including low-end smartphones, a larger screen for the iPhone and, yes, Apple television.
"A lot of folks have actually talked about how they're not innovating anywhere," Kilburg asserts in the attached video. "Seven products in 2013; it's going to be a big year for Apple."Read More »from Apple Earnings Need to Come in BIG