SAN FRANCISCO—Apple Inc.'s stock price declined nearly 10 percent in after hours trading Wednesday (Jan. 23) after the firm projected sales would decline by more than 20 percent sequentially in the current quarter.
Apple (Cupertino, Calif.) reported its highest ever quarterly sales, $54.5 billion, for the quarter ended Dec. 29. Even so, sales were slightly below consensus analysts' expectations.
"No technology company has ever reported these kind of results," said Tim Cook, Apple's CEO, in a conference call with analysts following the financial report. "Apple is in one of the most prolific periods of innovation in new products in its history."
But Apple's stock price sank to $463.49 in after hours trading after closing at $514.01 earlier in the day, prior to the quarterly report.
Apple sold a record 47.8 million iPhones in the quarter, up 78 percent from the previous quarter and up 30 percent from the year-ago quarter. The company sold 22.9 million iPads, up from 15.4 million in the year-ago quarter. Mac sales declined to 4.1 million, down from 5.2 million in the year ago quarter, while iPod sales declined to 12.7 million compared to 15.4 million in the year-ago quarter, Apple said.
Paul McWilliams, editor of technology investment newsletter Next Inning Technology Research, was disappointed by Apple's quarterly report and the presentation by executives that followed. In a report circulated late Wednesday, McWilliams said he planned to sell his Apple shares in the near future after being "an Apple bull" for nearly 10 years.
"Apple was built on vision, innovation and a near perfect execution of design that delivered products that redefined some markets, and in other cases (many other cases) created entirely new markets," McWilliams wrote. "Today I view Apple as a huge ship that lacks not only a rudder, but also the forward vision needed to set the direction of the rudder."
so where are the analysts talking the stock to $1000. Apple have run the ideas well but they are lacking new ones at the end of the day they make a phone, a tablet, a music player and a pc, 4 products we all have. To buy you need incentive, thats whats lacking with the globel paralysis of no new must have. In electronics people are used to more for less every year which is why yo innovate and cost reduce, Last two years , Apple did neither
"Today I view Apple as a huge ship that lacks not only a rudder, but also the forward vision needed to set the direction of the rudder."
And who is "Paul McWilliams"? Did he ever had any vision of building any product and bring it to market? apart from talking ?
"Apple Inc.'s stock price declined nearly 10 percent in after hours trading Wednesday (Jan. 23) after the firm projected sales would decline by more than 20 percent sequentially in the current quarter."
Apple sales had always been cyclic with huge numbers in the holiday quarter and smaller numbers in the quarter after. Same happened last year!!
"Even so, sales were slightly below consensus analysts' expectations."
Have the analysts ever got it right? The analysts forgot to adjust the ,slope, of the linear interpolation curve, ie their main tool of prediction, properly. haha. In the last 10 Qs, the first 7 Qs, the slope was too low.. So Apple beat all their expectations. And the last 3 Qs, they overcorrected the slope and missed it again.
"To say that investors are idiots, really is an unfair dig at idiots."
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.