If inspite of selling 51 million I-phones (expectation 54-55 million), Apple was able to beat revenue and earnings, that means that margins must be good or better than before. The logic should be that if you sold 4-5 million less I-phones last quarter, then revenue and eps should miss instead of beat,
Thing about AMZN is that they are forward thinking with drone tech. Where are the aapl drones? Why not? Why the repeat of colored iphones, retina displays, same old at lower prices.
Augmented reality, virtual reality (Oculus Rift), Drone tech....where is aapl in all this, oh yes new glass for the iphone...
Tim Cook's strategy was to go for higher margin and fewer units. Most of the sales growth came from China and Japan, but suffering in the US. Problem is, AAPL already gets 75% of the phone sales in Japan, that growth cannot be sustainable. The estimates for Q2 basically show the iPhone sales are completely stagnant, and that accounts for over 50% of Apple's sales.
Any future promises of a phone/ipad refresh are no longer considered growth stories. Apple now needs a new cash cow to return to growth and there's nothing in the immediate future to do that. All Apple can do now is buy back shares and increase dividends, but the stock is dead money for the foreseeable future.
WS should be more careful, the world markets are watching and will take away that earnings and profit are no longer valid yardsticks in the valuation of US Stocks. The rest of the US market may come under extreme pressure to have a uniform PE for all WS stocks of 12 or be deemed overpriced. WS may have started something that causes the loss of control with this type reaction to a rock solid performance.
Setting up the market for a serious problem, maybe that is desired by WS.
Sentiment: Strong Buy
Smartest post of the day, but it doesn't seem to matter unfortunately. In fact I think the forward guidance killed them most and not so much the iPhone numbers. They guided $2-$4 billion less for Q2 and that was the knife in the heart.
Holding my shares, I've got a long time horizon and this will be much higher once the dust settles. Company is a cash generating machine and new product categories will drive this higher in 2014!
I noticed that too on margins. AAPL's average selling price climber from $577 to $600. The reason is the 5S sold much better than the 5C. AAPL messed things up early by overproducing the 5C. They should have just stuck to their guns and not tried to appease Wall Street with a cheaper phone.
i disagree that they should not come out with products at multiple price points. the problem was that the 5C was basically just the 5 wrapped in cheap plastic. you cant fool people with a phone that is cheap AND overpriced. for such a large company, they sure do come out with very few new products.