The bigger iPhone is cannibalizing the iPad. Intel tablets are cannibalizing the iPad. It's going to take more than a keyboard to pump energy into the iPad line.
ARM plunges below $40 upon announcement of a revenue miss.
We're just waiting on Twink Lil' KIm Pinhead to weigh in telling us it doesn't matter because Humpty has had a good run.
Humpty now down 16 bucks (29 percent) below its 52-week high. Sympathy cards for AE would be appropriate.
(Reuters) - British chipmaker ARM Holdings' predictions of improving smartphone demand and strengthening royalty growth met with a cool stock market response after it fell short of third-quarter revenue expectations on Tuesday.
The company that provides the technology that powers the iPhone 6 pointed to Apple's booming sales, but investors will take more convincing over long-term prospects in the face of slowing demand for high-end smartphones from the likes of Samsung Electronics.
The strongest part of the market is in cheaper mobile handsets from Chinese manufacturers, containing older ARM technology that commands lower royalty rates.
ARM's shares, which had fallen 14 percent since the launch of the iPhone 6 on Sept. 9, rose as much as 4 percent in early trading but by 1013 GMT (0613 EDT) were down 4.7 percent at 811 pence.
[Now down 6 percent in pre-market.]
Analysts at Liberum said they remained cautious on the stock, expecting royalty growth to be weaker than current market expectations.
But weakness in processor royalties, which it receives on every chip shipped by its partners, remains a concern as the consumer electronics industry works through a backlog of inventory amid the faltering economic recovery in many markets.
While an improvement on the third quarter, the predicted recovery is still short of the 19 percent or so royalty growth it had forecast at the start of the year.
The third-quarter royalty income contributed to a miss on top-line revenue measured in dollars, which was up 12 percent to $320.2 million against market expectations of $326.3 million.
Not all is rosy in the land of Apple.
Despite beating expectations in its fourth quarter and impressive iPhones sales, the company is still struggling to sell iPads.
Apple sold a whopping 39.3 million iPhones during the quarter—a 16 percent increase year-over-year—but it saw a 13 percent drop in iPad sales from the previous year selling just 12.32 million units.
Despite the decline in tablet sales, CEO Tim Cook told CNBC he is still bullish on the iPad and pointed to Apple's new tablets, the iPad Air 2 and the iPad Mini 3, as potential growth drivers for the category.
Read More Apple unveils another new tablet, iPad Mini 3, starting at $399
But this negative trend in iPad sales has become a reoccuring theme that likely won't get better anytime soon, said Scott Kessler, senior equity analyst at S&P Capital IQ.
"Strong iPhone sales and weak iPad sales, this is a repeat of previous quarters," Kessler, who has a price target of $103 for the stock with a 'hold' rating, said.
"When people think back to the event last week, people were impressed, but are those products really going to change the trajectory of the iPad franchise? We don't necessarily think so. It's great that the company is able to deliver thinner, faster, more beautiful iPads, but we think people upgrade on their own cycle and not just because of the introduction of a great new product," Kessler said.
Apple's iPad revenue has been weak for the past several quarters. Year-over-year, Apple's iPad revenue dropped 14 percent in the fourth quarter to $5.32 billion. Some of this decline may be attributed to iPhone sales cannibalizing iPad sales, analysts said.
"I am a little bit disappointed, but not surprised, on the year-to-year drop in iPad units," Paul Meeks, a senior analyst at Saturna Capital, said on CNBC's "Closing Bell" Monday. "What is happening is the iPhone is cannibalizing the iPad."
Tablets were being cheered as replacements for the PC. As iPhones have only been proven to be replacements for the iPods or alternatives to other smartphones. So the cannibalization analysts talk about is iPhones taking share away from iPods and competitor smartphones using ARM processors. In the end, ARMH doesn't win much or at all.
The Mac growth was 27% year over year by the way.
Apple's to apple's comparison, Apple's own iPad (tablet) sales are going down while their much more useful Mac sales are going up with record sales and the best growth in quite a long time.
And better news is coming for Intel based products as the Core M series of Intel chips will make new mac books along with other competitors laptops and 2 in 1's fanless or much thinner. Making the need for expensive standalone tablets a thing of the past.
Disingenuous, give me a break.
Longs are not pumping the stock because Intel is doing a great job creating great value on their own.
Sentiment: Strong Buy
ARMH grew revenues by $19 million or 6.3% year over year.
Intel grew revenues by $1.1 Billion or 8% year over year.
Looks like ARMH's 15 minutes of fame is coming to an end so to speak.
If ARM deserves a PE of 76 with 6.3% revenue growth, then what does
Intel deserve with 8% revenue growth.
With Intel PE at 15, looks like Intel stock has plenty of upside left while
ARMH stock has plenty of downside left.
Sentiment: Strong Buy
ARM -3.5% following weak Q3, underwhelming guidance
Oct 21 2014, 05:57 ET | About: ARM Holdings, plc (ARMH) | By: Eli Hoffmann, SA News Editor
ARM Holding's (NASDAQ:ARMH) Q4 guidance is "underwhelming," SocGen says, given previous expectations of a strong H2.
The drop in value per new license sold implies that most of ARM's larger deals have been completed, firm says.
Any positive aura from Apple's iPhone strength is "more than offset" by ARM's weakness in the broader smartphone market.
SocGen maintains Sell rating with implied 18% downside.
ARM Holdings Net Income of £64.8M, misses on revenue
Oct 21 2014, 05:48 ET | About: ARM Holdings, plc (ARMH) | By: Gaurav Batavia, SA News Editor
ARM Holdings (NASDAQ:ARMH): Q3 Net Income of £64.8M
Revenue of $320.2M (+11.7% Y/Y) misses by $8.86M.
Shares -2.5% premarket.
Gee Mr Ottelini, You missed out the best part
Apple said it sold 39.3 million iPhones in the period ended Sept. 27, a 16% increase from 33.8 million units in the year ago period. Analysts had predicted that Apple would sell 37.8 million iPhones in the period.
Last time I checked, Apple still uses ARM based processors for iPhones.
I am happy for Intel benefiting from the increased mac sales, but your statement regarding ARM is downright disingenuous. The deceit by the pumpers on this board knows no bounds.
I know I can't get 1000x the speed of an i7, but, if you could parallel a number of Intel chips-say 256-who do you know anybody who could engineer it, and what would it cost. A 256x increase won't get me to ELO 3,000, but, it will get me to 2,700, which is the minimum IGT will consider.
marco the genius : - ) Are you a EE?
yes IBM Vermont used to be the largest fab - been there.
Back than they still used aluminum and CMP was emerging - IBM made both logic and DRAM.
IBM was leader in copper but had huge problems with the dielectric layers (SiLK) - also TSMC and UMC had the same problems.
I still remember CC when analysts asked Hill what's holding up proliferation of copper...remember Banzai from NVLS board (I think he was very much involved in this problem)
IBM got out of DRAM and focused on foundry work which turned into a disaster.
I believe GF is asking $2 billions from IBM to take over IBM's foundry business ...
IBM''s chip business was run into the toilet
when she learned about Monica on the Drudge Report.
marco the genius : - ) Bend over folks, looking like another 3,000 point drop on the DOW tomorrow. If it weren't for BAD luck, Yinz wouldn't have any luck.
"futures were red in the am doofus, so was you're beloved intc which underperformed again today, just like they did on the way down"
[Only because of IBM's bad results and even those were shaken off and Intel and the Nasdaq finished in the green, Twink Lil' Kim Pinhead. But if you're looking for the underperformer, try ARMH. Finished in the red, down 42 cents.
Briefly you were right but for the wrong reason. And then you were just plain wrong. Something we've learned to expect. He who laughs last, laughs best. At the end of the day we were all laughing at you. ]
and totally blew being in the smart phone, the must have device way back when apple was 50 on the way to 500 pre split
Very good post Mr otellini,it's very gratifying to own a company like INTC that wants to be & is going to be in everything.
Sentiment: Strong Buy
And it needs to come up only $3 to get back to where it was ten years ago.
Don't get the impression that Weaver is desperate for people to buy while this alias guy thinks that he can talk the stock down and is mostly likely short with a hidden agenda. Also, alias guy enjoys giving out false info. Example, look back at his posts during the recent earnings release after hours. If joking, don't find him funny in the least.