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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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Apple is doomed!
By Tony Swash on 10/18/2010 5:43:30 PM , Rating: -1
Apple is doomed!

Thought i would get that in first so we could get it out of the way.

I note that the 14.1 million iPhone's, outselling RIM's Blackberries, show that Antennagate either had little of no impact or the iPhone without that set back would have been even more insanely popular. The total of 7 million plus iPads sold since the launch in the spring is easily bigger already than the total sales forecast for the whole of 2010 made by almost all commentators and pundits.

I can't wait for the Mac event on Wednesday. It's a good time to be an Apple fan.




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.


"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard














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