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Despite record earnings and iPhone sales that broadly surpassed analyst efforts, optimism about Apple's quarterly report was dampered by poorer-than-expected iPad sales.  (Source: Tablet Tutor)
IPad sales showed some signs of weakness, though

Another quarter has passed and Apple has yet again blown away analyst earnings predictions.  You'd think that the tired Wall Street gurus would have learned by now.

Leading the way was an incredible 14.1 million iPhones shipped.  Analysts predicted that Apple, beleaguered by fierce competition from Google's Android army and fallout from the iPhone 4's faulty antenna, would only ship 11 million iPhones during the quarter.  As usual, Apple's customers unquestioning loyalty and willingness to overlook the company's quality slip-ups proved a valuable asset.

Macs sales also looked promising, with 3.89 million units shipped, versus an analyst prediction of 3.7 million units.  The strong iPhone and Mac sales propelled quarterly revenue soaring to $20.34B USD (versus a consensus estimate of $18.9B USD).  Similarly, profits were up to $4.31B USD, handsomely surpassing estimates.

Apple's earnings did showcase some troublesome signs, though.  Particularly worrisome for Apple, its brand-new iPad. I twas forecast to move 4.7 million units, but only moved 4.19 million units, a sign of slowing sales.  And sales of iPods came in a 9.05 million units, falling short of the predicted 10 million units.

Its prediction of $4.80 (USD) earnings per share for its quarter in December also fell short of the bullish analyst consensus of $5.04.

These results led to an unusual trading pattern in Apple's stock after hours.  Despite reporting what seems a blowout quarter, these telltale signs of weakness sent Apple stock approximately $21/share, approximately a 6.6 percent drop.  This drop returned the stock to beneath $300, a mark that the stock just passed for the first time early this month. 

Perhaps such is the fate of an unusual company like Apple whose customers are fiercely loyal, whose actions are over scrutinized, and who continues to deliver plenty of surprises come earnings day.



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Or a missed prediction?
By sdsdv10 on 10/18/2010 6:07:02 PM , Rating: 2
quote:
It was forecast to move 4.7 million units, but only moved 4.19 million units, a sign of slowing sales.


LOL, maybe it was a crappy forecast instead. Not defending Apple here, but this type of comment is just stupid. And how often has the "Analyst's predictions" been correct. For crying out loud, the thing has only been on sale for less than two quarters.




RE: Or a missed prediction?
By Gio6518 on 10/18/2010 6:36:48 PM , Rating: 1
quote:
Apple's earnings did showcase some troublesome signs, though. Particularly worrisome for Apple, its brand-new iPad. I twas forecast to move 4.7 million units, but only moved 4.19 million units, a sign of slowing sales. And sales of iPods came in a 9.05 million units, falling short of the predicted 10 million units.


shows how fast desirability has dropped off, Apple originally claimed around 3 million in the first month. With 600k to 700k the first day. Now all these months later, sold only slightly more than 1 million more.

http://www.usatoday.com/money/industries/technolog...


RE: Or a missed prediction?
By bruce24 on 10/19/2010 8:37:29 AM , Rating: 2
quote:
Gi06518: shows how fast desirability has dropped off, Apple originally claimed around 3 million in the first month. With 600k to 700k the first day. Now all these months later, sold only slightly more than 1 million more.


Huh? Apple sold 3.3M iPads in their Q3 quarter and 4.2M this quarter, for a total of 7.5M in the first two quarters.


RE: Or a missed prediction?
By jonmcc33 on 10/19/2010 11:19:32 AM , Rating: 2
People like getting ripped off and throwing their money.


RE: Or a missed prediction?
By jonmcc33 on 10/19/2010 11:21:06 AM , Rating: 2
Oooops...

*throwing their money away.


RE: Or a missed prediction?
By paydirt on 10/21/2010 10:18:31 AM , Rating: 2
Couple things: (1) a great company does not make a great investment. Apple's stock had a huge run-up prior to earnings, so the selloff was a way for the stock to let off some steam. (2) The projection for the iPad was idiotic since Apple was only making 1.4M a month, so they sold 4.2M for 3 months... which is a sellout.


RE: Or a missed prediction?
By Tony Swash on 10/19/10, Rating: 0
RE: Or a missed prediction?
By Pirks on 10/19/2010 10:08:03 AM , Rating: 2
Nah, it's all another Jobs's BS PR, check this out:

http://www.dailytech.com/article.aspx?newsid=19925

"The iPad was the weakest part of the company's earnings report falling short of analyst predictions and only moving 4.19 million units. Apple, though claims that this is due to supply issues. It claims that Apple is selling every unit it can produce. Apple executives in the earnings call failed to explain discrepancies between this statement with past reports that Apple was producing up to 2.3 million units a month ( and thus should have had 6.9 million available units for the quarter )."

http://www.dailytech.com/Apple+is+Now+Producing+23...

Well, so if Jobs lied about his company being "restricted by supply", what do you expect from these new lies? Do you still believe it? After Jobs's lies about 6.9 mil iPads produced being "constrained by supply"? Are you really THAT naive Tony?

How many more times should Jobs lie to you before you notice, eh? ;) Poor blind Tony.


RE: Or a missed prediction?
By The Raven on 10/19/2010 11:34:02 AM , Rating: 2
RE: opportunities in education

The day that any school in today's economic climate falls for some "The iPad is a great idea for schools" scam, is the day that I will personally take a golf club to said schools board members' cars.

If someone wants to buy an iPad for personal use; more power to them. But the schools can't afford to subscribe to the continuous hardware replacement routine that your typical Macphile can. If they can, then we'll have to pull funding from them.

There is no need for any portable computing device other than a calculator, even in today's modern schools.


RE: Or a missed prediction?
By L1011 on 10/18/2010 11:25:44 PM , Rating: 3
No, it means they had supply issues. They're selling all they can make. iPad sales are hardly slowing.


RE: Or a missed prediction?
By MrBlastman on 10/19/2010 10:42:16 AM , Rating: 2
quote:
but this type of comment is just stupid


Really? It's stupid? Are you a master of how the game is played and worth billions?

I will call your bluff and say you aren't.

Learn how the game is played before you call it stupid. Once you understand the game, you might have a chance at winning it.

These forecasts are an average figure based on forecast estimates from a large number of analysts following the company on the street. It doesn't matter if it is a crappy forecast or not, what matters is if you beat the estimate. The company playing in the game doesn't get to make the rules, the analysts do, no matter how good or bad they are. In this case, it is taking an average of all of their guesses. If the company beats it, they win, if they don't, they lose.

This is just how these things work. You are right about one thing though--these analysts aren't right all the time. Heck, you'd be foolish to listen to just one of them. However, in the end, the market is ultimately efficient.


Hit the nail on the head
By Motoman on 10/18/2010 6:20:08 PM , Rating: 3
quote:
As usual, Apple's customers unquestioning loyalty and willingness to overlook the company's quality slip-ups proved a valuable asset.


@ Tony Swash et al:

There is no shortage of gullible consumers eager to become cool by purchasing an Apple product, regardless of any consideration whatsoever...including price, features, or quality. And, as P.T. Barnum has shown, there is a sucker born every minute...

It is therefore my estimation that Apple will never die. No need to ever fear that it's going to go away...an infinite number of braindead zombies with credit cards guarantees it's immortality.




RE: Hit the nail on the head
By Tony Swash on 10/18/10, Rating: 0
RE: Hit the nail on the head
By Pirks on 10/18/10, Rating: -1
RE: Hit the nail on the head
By xti on 10/19/2010 9:31:32 AM , Rating: 2
its not just him, its pretty much every other person on here, for some reason its "cool" to bash whoever is in the limelight...


RE: Hit the nail on the head
By xpax on 10/19/2010 12:35:25 PM , Rating: 3
quote:
I guess the whole world is out of step, every one else is stupid, anyone buying stuff you don't like cannot be doing so for rational reasons ..... you know when you put it like that it sounds sooo plausible.

People buy Apple products because they like them, they like them because the way Apple designs and makes them. Until you accept that simple unpalatable truth you will be forever forced to rely on juvenile non-sequiters in order to explain reality.


Your response appears to contain a logic failure. Everyone else is stupid? No. From what I can tell, it's at best about 10-20%. That's hardly everyone.

I've been in this game for 30 years. Apple was a great company right up to the point when it released the first Mac. That was the beginning of the end. No longer were their products ideal for hobbyists and those with an actual interest in computing. Instead, they were targeted specifically at people who were too stupid to use any other computer. Apple decided these people were so mentally challenged that they couldn't handle more than a single mouse button.

Don't get me wrong -- from a business perspective, it was obviously the right move. The customers were happy as they ended up with a computer that was basic enough for them to actually use. Most of them were too oblivious to notice that Apple was basically treating them like students in a special ed class -- and the others didn't care.

Nobody ever went broke catering to the lowest common denominator. Apple is proof.


RE: Hit the nail on the head
By Gungel on 10/18/2010 6:50:25 PM , Rating: 2
I'm not so sure about that. Apple products are like fashion. Once the novelty and coolness wears off sales will slow faster than it ever grew. History tells us that products like that never last. In the 80's it was the Sony Walkman and Swatch watches in the 90's we had Super Nintendo and PS1/PS2 in the 00's it was the GPS handheld's and MP3 players. Now we have all that in one unit, so whats next?


RE: Hit the nail on the head
By Tony Swash on 10/19/10, Rating: -1
RE: Hit the nail on the head
By Anoxanmore on 10/19/2010 8:34:16 AM , Rating: 2
The Iphone sales counted the Ipod Touch sales as well.

So you might want to adjust those numbers of yours. ;)


RE: Hit the nail on the head
By bruce24 on 10/19/2010 8:43:21 AM , Rating: 2
quote:
Anoxanmore : The Iphone sales counted the Ipod Touch sales as well.


No they don't Apple lists iPhone and iPod numbers separately in their earnings report.


RE: Hit the nail on the head
By Anoxanmore on 10/19/2010 1:14:58 PM , Rating: 2
Actually they do, there was an article on here about it just a few months ago. ;)

Just like they list the ipad as an iOS activiation since clearly the iPad competes against Android. :facepalm:


RE: Hit the nail on the head
By The Raven on 10/19/2010 10:55:46 AM , Rating: 2
quote:
Macintosh sales have grown strongly in recent years and at a faster rate than the overall PC market growth rate.


A wise man once told me:
quote:
You can't fall off the floor.


Apple growth speaks more to the fact that we can see the days of MS dominance waning. There are more options out there now (including but not limited to 'choosing not to upgrade' or switching to Apple.


The Dark Lord Rises!
By ie5x on 10/19/2010 3:48:42 AM , Rating: 2
Bone of the father, unknowingly given
Flesh of the servant willingly given
Blood of the enemy forcibly taken

Dark times ahead...




RE: The Dark Lord Rises!
By Aloonatic on 10/19/2010 4:06:02 AM , Rating: 4
I'm all for a fun movie/TV show quote, but a Harry Potter quote is just going too far, for me.

Sorry.


The day is nearly here...
By damianrobertjones on 10/19/2010 4:07:35 AM , Rating: 2
...Where I buy an Apple product.

WHen people ask why I'll say something along the lines of, "I had no chocie, the majority are like sheep and I have to now support said sheep".

Then again, Apple products shouldn't need support as they're magical. Supposedly. I'm not writing this to provoke, I'm actually being seriious.




Apple is doomed!
By Tony Swash on 10/18/10, Rating: -1
RE: Apple is doomed!
By spread on 10/18/2010 5:56:21 PM , Rating: 2
This entire article is nonsense. The iPad is the fastest selling electronic device in history, and it's still not good enough...

o_O


RE: Apple is doomed!
By gstrickler on 10/19/2010 1:30:54 AM , Rating: 2
quote:
This entire article is nonsense.


Of course it is. That's exactly what you should expect when you see a Jason Mick article, to expect anything else would be foolish.


RE: Apple is doomed!
By The Raven on 10/19/2010 10:47:11 AM , Rating: 2
quote:
Who's the more foolish: The fool, or the fool who follows him? - Obi-Wan Kenobi


You seriously follow his blog, read all the resulting comments, take the time to register, log in and then complain about it?

I think it is clear who the fool is...


RE: Apple is doomed!
By gstrickler on 10/20/2010 6:37:33 PM , Rating: 2
quote:
You seriously follow his blog, read all the resulting comments, take the time to register, log in and then complain about it?

No, I don't follow Jason Mick's blog, I make a point of ignoring his articles. And when it's an article about Apple, you can expect his disdain for all things Apple to come through along with his poor writing and incorrect information.

I started reading the article, realized about 2 paragraphs in that it had to be another lousy JM article, and stopped reading the article. I glanced at the comments and noticed the one I commented on. Didn't even bother to read the remaining comments.

quote:
I think it is clear who the fool is...

Yes, that would be the person making assumptions about facts that aren't in evidence.


RE: Apple is doomed!
By The Raven on 10/19/2010 11:22:28 AM , Rating: 2
I know this is the story, but I still find this difficult to believe. I didn't read anything on it, but considering that I have only ever seen one person use one (a friend) other than Natalie Morales on "The Marriage Ref" I just find it hard to believe.

I know I live in the STL, MO metro area (affuent part BTW) and not Cupertino, but there are just as many tech heads around here as there are in Fullerton or Sacramento, CA. I see plenty of iPhones (read: people who might be intersted in MORE Apple products) but I can't say the same for the iPad.

I know this is just one man's point of view but the "fastest selling electronic device in history" story seems unbelievable to me. It makes it sound like just as many people who saw a James Cameron movie have iPads. I'm not trying to crap on your comment, but just wanted to toss that out there because I don't know if I'm in some sort of iPad twilight zone. I'll have a look into it and see what I might be missing.


RE: Apple is doomed!
By FATCamaro on 10/18/2010 5:56:34 PM , Rating: 3
Boy you're going to be at -1 so fast.....


RE: Apple is doomed!
By Tony Swash on 10/18/2010 5:57:16 PM , Rating: 2
Looking at the Apple results in more detail and particularly the information in the conference call it seems clear that the iPad sales are almost wholly constrained by supply rather than demand.

In the conference call Apple CFO Peter Oppenheimer noted that they had increased iPad channel inventory by 500K to keep up with demand, but that there was still a 2-3 weeks waiting time for customers.

The CFO also noted that the iPhone was also constrained by supply for the whole quarter and could have sold more. Apple noted that 270,000 iOS devices were sold per day on average in the past 30 days, with peaks of 300,000.

Enterprise results were particularly interesting given Apple's focus on the consumer market with adoption of the iPhone in 60% to 80% of Fortune companies and 65% of Fortune 100 trying or deploying iPad.


RE: Apple is doomed!
By Pirks on 10/18/2010 6:24:43 PM , Rating: 2
Well, I still wonder who in their right mind would switch from a nice 20"-22" big screen and wide ergonomic keyboard to some microscopic device where you should learn to touch-type with a pin, use microscope to read its retina display and... run what instead of enterprise standard MS Office? I don't get it, Tony, please explain.

All in all, why would an enterprise go from one well managed platform to another given that the new platform is much much slower CPU speed wise and hence can't run any modern enterprise software, while costing approximately the same money? (I'd say typical office PC is about $600 these days which is exactly iPad and iPhone price range)

Looks like they gonna pay same money to get way worse hardware... for their typical office tasks. A contradiction, no?


RE: Apple is doomed!
By Tony Swash on 10/18/2010 6:38:23 PM , Rating: 2
quote:
Well, I still wonder who in their right mind would switch from a nice 20"-22" big screen and wide ergonomic keyboard to some microscopic device where you should learn to touch-type with a pin, use microscope to read its retina display and... run what instead of enterprise standard MS Office? I don't get it, Tony, please explain.


I don't know - why don't you ask them.

Ask the Fortune 500 companies buying the iPads and iPhones. Maybe they are all being fooled by Apple marketing.

In the conference call today with leading financial analysts Steve Jobs had this to say:
quote:
"We haven't pushed it (the iPad) real hard in business, and it's being grabbed out of our hands," Jobs said.

"We've got a tiger by the tail here, and this is a new model of computing which we've already got tens of millions of people trained on with the iPhone, and that lends itself to lots of different aspects of life, both personal and business," he said.

On the competition, Jobs said he isn't worried. "We're not done. We're working on a lot of things for the future." He added: "We're out to win this one."


RE: Apple is doomed!
By Pirks on 10/18/2010 6:52:06 PM , Rating: 3
quote:
Maybe they are all being fooled by Apple marketing.
Or maybe they are buying them just for testing and once they realize how horrible they are ergonomically wise for business/office stuff the iFad will go away in the enterprise market.


RE: Apple is doomed!
By themaster08 on 10/19/2010 1:35:12 AM , Rating: 2
Tony still fails to realise that Apple's products are next to useless in the enterprise market.


RE: Apple is doomed!
By Pirks on 10/19/2010 9:10:09 AM , Rating: 2
Why this then?

"adoption of the iPhone in 60% to 80% of Fortune companies and 65% of Fortune 100 trying or deploying iPad"

Why are enterprises buying next to useless products? Any idea, themaster08?


RE: Apple is doomed!
By sdsdv10 on 10/19/2010 11:14:45 AM , Rating: 2
That's not my experience. Our company has a consultant who bought an iPad right after they launched. He uses it as his only traveling laptop/tablet computer. Not to imply this is universal, but he certainly doesn't find it "useless".


RE: Apple is doomed!
By Gio6518 on 10/18/2010 6:44:06 PM , Rating: 2
quote:
Well, I still wonder who in their right mind would switch from a nice 20"-22" big screen and wide ergonomic keyboard to some microscopic device where you should learn to touch-type with a pin, use microscope to read its retina display and... run what instead of enterprise standard MS Office? I don't get it, Tony, please explain.


Though i do agree with you, on a personal level. There are definetely some fields that it would be useful for.


RE: Apple is doomed!
By mellomonk on 10/19/2010 3:44:41 PM , Rating: 2
quote:
Well, I still wonder who in their right mind would switch from a nice 20"-22" big screen and wide ergonomic keyboard to some microscopic device where you should learn to touch-type with a pin, use microscope to read its retina display and... run what instead of enterprise standard MS Office? I don't get it, Tony, please explain.


The days of a typical seat of PC + MSoffice have been on the wane for some time. I work in IT in a relatively conservative industry and most of our current efforts are all focused on mobility, web apps, and network services. In fact the PC+office combo is classed as a 'legacy' seat.


RE: Apple is doomed!
By Gio6518 on 10/18/2010 6:41:18 PM , Rating: 4
Best way to describe how Apple claims shortages @ minute 1:35

http://www.youtube.com/watch?v=cyY_Yt4bp84


RE: Apple is doomed!
By Donkey2008 on 10/18/2010 6:07:04 PM , Rating: 2
Don't worry, the Android fanboys will be along shortly to tell us how stupid we are.


RE: Apple is doomed!
By mlambert on 10/18/2010 9:10:40 PM , Rating: 1
I think the market already did that for everyone. AAPL got shit on hard A/H.


RE: Apple is doomed!
By roadhog1974 on 10/18/2010 10:03:53 PM , Rating: 2
iirc not an uncommon event after an announcement by apple.

I assume they are still worth B$250+,
not that I care much.


"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer














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