Guidance is down for one obvious reason.
They're not shipping PowerBooks with Intel Core next quarter!
That means even the most ardent Mac fan isn't going to buy a laptop from them next quarter - and that's where the margins are.
If you were going to buy a Corvette, and found that GM was going to change the body style dramatically for next year's model, which would be released in four months, would you wait?
Of course you would. If you were a huge 'Vette fan, you might even place an order to get one early at full price.
Apple can't book sales for orders placed on the new Core laptops, but they will take a hit this quarter as a result. The following quarter will be a blowout, and when the big boys go home and think about this, they'll buy on the open and make these 2k-block daytraders wish they didn't jump.
Am I right?
Hint: What happened last time Apple announced earnings? Look - they "missed" on lower-than-expected sales of iPods, but within a couple days people realized it was because no one was buying minis, and sales on the shuffle slowed as well because everyone was waiting for the nanos.
The stock tanked several dollars after hours, and made a full recovery the next trading day. Soon after that, Jons announced the video iPod, which, at first was not too well-received, until Apple announced the ABC coup.
Since then other networks signed on board, download sales hit all-time highs, Apple officially announced the migration to Intel core chips, and Apple got around to selling those 14 million iPods around Christmastime.
Of course this quarter is going to suck. This is more cyclical than people realize - people have become so enamored with Apple's innovative pipeline that new products cannabalize existing products' sales (in the long run, a VERY good thing if...) - if Apple can keep this up in the long run...
People shouldn't be concerned about guidance because of the cyclicality. Nor should they be concerned about margins - those are cyclical as well, and they generally improve.
When Apple fails to innovate and capture people's imagination, that's when you cut and run. Not now - in two days, you'll regret it.
Wish this type of post was the norm and not the exception. You may be wrong but at least your points are well thought out and intelligent. 90 per cent of this board should quit posting and pay attention to this concept. Childlike idiots for the most part.
I hope you are a short-joker, because AAPL does this after every earnings. If not, I feel bad that you will have to pay more to buy back in. I'm up several hundred percent and expect to fill a few more bags in the coming years. Just negative spin on stellar results, as usual.
i sold before close because I felt a little afraid due to all the other stocks falling after earnings also. I can truly say I'm shocked at what just happened a little traumatizing and I didn't even lose money in that drop..just disappointing, I guess steve was trying to get us some profits early..