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Print 19 comment(s) - last by retrospooty.. on Jul 26 at 5:08 PM


Artist's rendering of the next generation iPhone  (Source: gottabemobile.com)
Consumers are waiting to upgrade since the new iPhone and iOS 6 will be released this fall

Apple's recent financial earnings report for the second quarter failed to impress Wall Street, but Apple says consumer anticipation for new products/software and a slow economy are to blame. 
 
Apple recently posted $35 billion in sales and a net profit of $8.8 billion ($9.32 per share) for Q2 2012, which missed Wall Street estimates of $37 billion in sales and a net profit of $10.36 per share.

This isn't terrible by any means, considering the company reported $28.6 billion in revenue and a net profit of $7.3 billion ($7.79 per share) during the same quarter last year. It also managed to sell 26 million iPhones and 17 million iPads in the quarter ended June 30, 2012. However, the tech giant still missed the bar set by analysts. 
 
Apple CEO Tim Cook and Chief Financial Officer Peter Oppenheimer said economies in Europe and countries like Brazil, Australia and Canada have put a damper on Apple earnings in the three-month span to June 30, 2012. China's economy also grew at its slowest pace in three years during the second quarter, according to Reuters
 
In addition to slow economies, Apple blamed rumors of upcoming devices for Apple's financial shortfalls. The next-generation iPhone is just around the corner, meaning many Apple users are waiting to upgrade until the fall release. 
 
The new iPhone, which is expected to have a September launch, is to offer new features like a smaller 19-pin dock connector (as opposed to the usual 30-pin), a longer screen size of 3.999 inches diagonally, a relocated headphone jack, centered camera, and a unibody casing with metal backplates. 
 
Along with the new iPhone will come Apple's upcoming mobile operating system, iOS 6. 

Source: Reuters





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Not buying it.
By futrtrubl on 7/25/2012 2:25:24 PM , Rating: 2
The slow economy would have already been factored in, unless they are saying it is slower than analysts predicted, in which case it would affect others too. Customers waiting for the next iPhone would also have been factored in, it happens every year after all.




RE: Not buying it.
By elleehswon on 7/25/2012 2:27:38 PM , Rating: 5
quote:
The new iPhone, which is expected to have a September launch, is to offer new features like a smaller 19-pin dock connector (as opposed to the usual 30-pin)


5 pins at one end of the USB cable, 19 pins at the other. LOL.


RE: Not buying it.
By Dr. Kenneth Noisewater on 7/25/2012 2:45:20 PM , Rating: 2
You do know that audio, video (composite, S-video and component) and control/display signals are also sent over the dock connector, right? Along with USB data and power. Presumably the smaller connector will no longer need Firewire power and data, so those pins can go. Lots of dock devices (if not most) don't have USB controllers, they just pass thru the A/V pins and/or do serial I/O to display track info or control playback.


RE: Not buying it.
By aurareturn on 7/25/2012 2:54:31 PM , Rating: 2
I Buy it. I was using an iPhone 3G for 2 years. I've been waiting since February of this year for the iPhone 5. I thought it might come out in May/June but since it hasn't, I purchased a Galaxy Nexus 2 weeks ago.

I didn't purchase the 4S because I wanted a bigger screen. So count me as one of the customers that anticipated the iPhone 5 but got nothing.

Now rumors are saying that it'll come out in October. Come on Apple. Seriously? I want the iPhone 5 but this delay is frustrating. By the way, I like the Nexus and does everything I want it to so I don't think I will upgrade.


RE: Not buying it.
By retrospooty on 7/25/2012 3:12:03 PM , Rating: 3
Exactly... The iPhone is nice, but there are so many other otpions out there that are better. Some a bit better, and some, are far better. Now with Jelly Bean out and coming on a ton of models, the iPhone looks even less appealing.


RE: Not buying it.
By aurareturn on 7/25/2012 3:56:56 PM , Rating: 2
The iPhone 5 is still appealing to me. I might upgrade to that and sell my Nexus. Depends on what kind of features it will have and battery life.

Coming from a 4 year old iPhone 3G(not 3GS), my Galaxy Nexus' battery life is only a little better.

Battery life is important to me.


RE: Not buying it.
By retrospooty on 7/25/2012 4:27:17 PM , Rating: 2
The NExus is the older chipset that had a strong current draw with 4g, The newer chips like in the SGS3 dont have that issue. The SGS3 battery outlasts the iPhone 4s in most tests. That and its a 4.8 inch screen vs. puny 3.5. But with that said, I am sure hte iPhone 5 will be decent if you like smaller screens.


RE: Not buying it.
By Ammohunt on 7/26/2012 2:40:26 PM , Rating: 2
I have an older android phone that i will be dumping for an IOS device i feel the iOS platform is cleaner than Android. e.g. i shouldn't have to root my phone in order to get a vpn client to work...


RE: Not buying it.
By Cheesew1z69 on 7/26/2012 3:49:58 PM , Rating: 2
And you don't....


RE: Not buying it.
By retrospooty on 7/26/2012 5:08:52 PM , Rating: 2
"I have an older android phone that i will be dumping for an IOS device i feel the iOS platform is cleaner than Android."

It is cleaner than an old Android, but there was a TON of growth from 2.x to 4.1. 2.3 was sluggish buggy unstable and IOS was far better. Now 4.1 has turned the tables and is far better than IOS. Buy what you like, but dont judge current Android on the old, they really have come a long way in a short time.


RE: Not buying it.
By xti on 7/25/2012 4:24:50 PM , Rating: 2
same here, sort of, i am waitin on iphone5 to see if i want that or galaxy 59768 to replace the aging iphone4 (which will still get me $200 on ebay im hoping)


RE: Not buying it.
By Shadowself on 7/25/2012 4:00:40 PM , Rating: 2
Not necessarily. In general when it comes to oddball companies like Apple the analysts are complete fools.

Apple beat their expectations for about 24 or so straight quarters. Then the analysts started projecting so high -- and way, way above Apple's own guidance, which it is legally required to make as accurate as it can -- that Apple couldn't make it, all so the analysts won't look like complete idiots being beat by Apple again.

There is a website out there (I visited it once many months ago and don't recall where I found it) that compares amateur/blogger predictions versus the professional analysts' predictions over the course of several years. Guess what? The amateurs were most often significantly closer to Apple's real performance than those who are paid large salaries to make those predictions.

Apple is a very closed system -- and not just when it comes to their hardware and software. Their business procedures and methods are closely held too. This makes it a real guessing game on behalf of those analysts. Apple not meeting or beating those GUESSES -- yes, GUESSES -- (or even blowing past them) should be pretty much irrelevant to everyone deciding to invest in Apple or not.

The simple facts are in what most consider a "bad quarter" Apple had 22% year-over-year growth in revenues and 21% year-over-year growth in net profits. For almost any other company this would have been viewed -- financially -- as an exceptional quarter.

And, this is based on already large revenues and profits! It's one thing for a $100M a year company to post such growth. It is an entirely different story for a $100+ Billion a year company to do it.

Say what you will about hating or loving Apple or Apple's products (there are always haters and fanbois no matter which company), they had a great quarter financially.


apples to apples anyone
By Nortel on 7/25/2012 3:03:11 PM , Rating: 2
Apple posted a 20% gain over last years quarter. If the no nothing analysts weren't spouting off at the mouth with numbers pulled out of the air this would have been considered a blowout quarter.




RE: apples to apples anyone
By Solandri on 7/25/2012 5:13:40 PM , Rating: 1
Stocks are priced by the market with an expectation for a certain amount of future earnings. This has nothing to do with Apple having a good or bad quarter, or a lot or a little year-over-year growth. This is just their earnings (and thus their growth) falling slightly short of market expectations, and thus the stock being slightly overvalued.

Nobody made a big deal of it when Apple's earnings came in above expectations. Why is it a big deal now and the analysts know-nothing when they estimate high instead of low? This happens all the time. It's exceedingly rare for analysts to correctly predict exactly what a company's earnings will be. It's almost always slightly high or slightly low, and the stock makes a correction afterward.

There's nothing to see here. The analyst estimates were off by 5%, which while a bit larger error than normal is still pretty small. You have to be pretty biased in favor of Apple to become defensive about it. Or pretty biased against Apple to see it as a reason to point and say "ha ha!"


RE: apples to apples anyone
By WalksTheWalk on 7/25/2012 5:36:50 PM , Rating: 2
This just points out how foolish it is to follow "analysts expectations" like a large contingent of investors do. Large analyst firms frequently influence large quantities of buying and selling behavior based on their recommendations which therefore influences the price of a given stock. It allows the analysts to cash in since they know what their reports will be before anyone else. It blurs the line between insider trading and just providing recommendations. The analysts are stock traders after all.


RE: apples to apples anyone
By TakinYourPoints on 7/26/2012 3:41:37 AM , Rating: 2
Context and time are important with stock prices.

Apple ran up into earnings. If a stock runs up into earnings, high profit is probably being baked into the price already. If a stock goes down into earnings, it is potentially being undervalued.

This is why you often see companies go down on "good news" and companies go up on "bad news". It is also why you hear amateurs talking about how the market makes no sense, and its why amateur bloggers like the DTers post what they do.

In this case, Apple posted a 20% YoY gain but the stock had already made its run before the announcement.

The result... Apple is now priced exactly where it was one month ago. Great for me since I sold August call option spreads on Friday, options that are going to expire worthless while I pocket all the premium. :)


Excuses Excuses
By karndog on 7/26/2012 11:40:39 AM , Rating: 3
Errr i don't know what Tim Cook is on about, the economy in Australia is fine (well much better off than most). It's just no one here is buying iphones anymore.
Most people are well informed enough (either from word of mouth from friends/relatives/sales people) to know that iphones are an inferior product compared to Samsungs.

I know just in my workplace and my circle of friends, Galaxy S2/S3 owners far outnumber Iphone owners, and my friends say the same about their workplaces.
I even have 50+ year old ladies who have purchased Galaxys as their first smartphones, asking for tips on how to use it. Two years ago it different.
Apple is slipping, and these long production cycles aren't helping. They need to start getting their latest and greatest out sooner, as more and more people are wising up to Apples clever marketing gimmicks and researching actual hardware specs for themselves and getting recommendations through social media, they wont be able to rely on 18 month old hardware to compete with Samsungs start of the art offerings in the future.




Patents
By JoeOnRoute66 on 7/26/2012 8:35:37 AM , Rating: 2
I wonder if Apple also patented a 3.999 inch diagonal screen.




Hmm?
By Cheesew1z69 on 7/26/2012 12:30:41 PM , Rating: 2
quote:
Android is the platform of choice for these new users, according to ComScore's numbers: 61.5 percent of new smartphone users in April chose Android, while a significant but still much smaller 25.2 percent picked up an iPhone. Meanwhile, 7.1 percent went with Microsoft and just 4.8 percent with BlackBerry.


http://www.gadgetbox.msnbc.msn.com/technology/gadg...




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