two Tier 1 downgrades already this morning on failed 5C pricing issues - as expected
above $700 is also above $500 I guess... but yes, it is even more expensive that first thought
third Tier 1 downgrade of the day out
investors still need to realize that outside of the US Apple has been heavily on the retreat for some time now. While the new IPhones might still attract the very loyal US customer base there's almost no market for these phones in foreign countries. Selling outdated hardware at premium prices won't work for long anymore. With continued market share losses developers will abandon the Apple ecosystem and turn their sole focus on Android soon. Apple needs to stop this developments but management obviously is too short sighted to get the point here and instead is focusing on preserving margins for the short term which is plain wrong.
down $20 already from yesterday's close and very well deserved - management is slowly killing the iconic brand by being fainthearted in bringing innovative products to market.
who needs another 2 IPhones with the same outdated miniscule 4" display which is inferior two the 30 months old Galaxy S2 ? Who cares about fingerprint ? People want great smartphones with huge displays at great prices - Apple chose to deliver on neither of that.
they want to protect gross margins and the brand image - but I guess in this regard it would have been better to NOT pursue the IPhone 5C AT ALL
the 5C is actually the worst the company could do - the nice looking and somewhat cheaper Phone will be extremely appealing to female users who usually don't care about the latest cutting edge technology. As most of the IPhone users are already women this will lead to a giant cannibalization of the high end IPhone.
So the 5C won't do much (if any) for the top line but instead will but heavy pressure on the bottom line.
nobody cares about the US pricing of the 5C - investors were thinking that the device was designed to attract a broader customer base but with a price point only 15% below the 5S in the all important China market the 5C won't attract new customers but instead cannibalize the 5S heavily
sure - it works very well for Samsung and all other Android vendors - only HTC has been sticking to a premium price strategy. Same with NOK and BBRY. All lost big time.
no - the margin is still lower than the 5S (around 35% vs. 45% for the 5S) but given the brutal price point the margin should indeed be much higher for the 5C
Lazard and Wells Fargo also think yesterday's announcement was a s step in the right direction and are raising targets accordingly but the street clearly is divided on this issue as BofA, UBS and CS all issued downgrades.
I guess the bearish analysts are absolutely right here as the move is a complete disaster. The 5C won't attract many new buyers neither in the US nor in emerging markets but instead will HEAVILY cannibalize the high end 5S with most female IPhone users moving to the 5C in short time.
actually I am from Germany where the outdated subscription against subsidy policy gets rapidly abandoned by providers and most consumers already use prepaid services. In some emerging countries like India there are no subsidies at all. So nobody should care about how the 5C does in mature economies or the last Apple stronghold USA - it is all about emerging countries and the 5C is destined to fail there big time - or let me put it another way: if the 5C becomes a success in emerging markets this will come solely at the expense of the 5S
like I said many times before Apple has lost the smartphone war to Android about two years ago and will fall back to a niche player over time. There's nothing they can do about it. The shares are in a lose / lose situation - getting back market share will hurt margins badly. Protecting margins will hurt market share badly and put in danger the whole Apple ecosystem which is much worse than smaller profits. So out of two bad choices the company as picked the worst.
brutal dilution - that's the kind of financing a company on the verge of bankruptcy might be able to get and not a huge Chinese solar company facing improving business conditions - this will outright kill the stock for some time
frankly I don't see why they chose to dilute shareholders by almost 20% for just a tiny $70 mln at a time when the business conditions are vastly improving and the company should be able to finance itself out of positive cash flows. Even if they needed some extra cash they should have utilized their Chinese bank lines.
That's a real kick in the b*tt for all shareholders - don't understand this move AT ALL
shorted 30k at $4.39 - fully expect this to test $4 later this day - stop buy at $4.56
obviously there's absolutely nothing in the works as they wouldn't have done the buyback announcement with negotiations underway - company is taking on debt, SEC investigation
would expect the stock to come back to the $10 level later this afternoon - short