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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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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.


"It looks like the iPhone 4 might be their Vista, and I'm okay with that." -- Microsoft COO Kevin Turner














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