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Stock briefly dips below $400 USD, analyst predicts earnings miss

After quarters of confounding Wall Street "expert" analysts with better-than-expected earnings, could Apple, Inc. (AAPL) be on the verge of a highly uncharacteristic miss of its own earnings target?  That's what Citigroup Inc. (C) analyst Glen Yeung predicted in his research note, citing supplier information as pointing to weaker-than-expected iPhone and iPad sales.

That prediction has been boosted by Cirrus Logic Inc. (CRUS), which provides audio chips for the iPhone and iPad.  Cirrus warned investors Wednesday in its fiscal fourth quarter earnings results that its margins had weakened and that it was taking a large charge on unsold inventory of audio chips.

Cirrus's chip stock fluctuates primarily with the sales of its largest customer Apple's devices.  Thus the large stock of unsold chips indicates weak sales of Apple's flagship devices.

Vernon Essi Jr., an analyst at Needham & Comp. told The Wall Street Journal, "[The warning] indicates that the recent fears of Apple's lackluster iPhone demand...are warranted."

Since the passing of iconic leader and late CEO Steven P. Jobs, Apple has continued to grow steadily under the quiet leadership of new CEO Tim Cook, but some fear the company is losing its marketing luster.  Apple's faces tough competition from Android rivals -- particularly Samsung Electronics Comp., Ltd. (KSC:005930) and Google Inc. (GOOG) -- who have been more aggressive in updating their products' hardware and software.

Tim Cook
Apple CEO Tim Cook has voiced concern about his company's plunging share prices.
[Image Source: Bloomberg]

Apple, which last year bumped the screen size of its iPhone to 4-inches, has largely been coasting on a "if-it-isn't-broken-don't-fix-it" approach to its operating system.  While sales were strong last quarter, investors hammered the company's stock, concerned about weakening margins (profitability).

For a while it looked like $420 was a solid floor that the stock would resist breaking through.  But amid the supplier warning Apple's stock plunged briefly below $400 USD.  It is currently trading around $403 USD.  Apple has lost over a quarter trillion dollars in market capitalization over the last half year, since hitting a record $700 USD per share last September.

Overall, the tech sector was down on Wednesday, but Apple's stock sunk more than most, dipping over 5 percent on the bad news.  Rival Google Inc.'s (GOOG) stock is trading around $780 USD, down ~1.5 percent.  Google's market capitalization is currently around two-thirds that of Apple, as its stock hovers around record highs of $800 USD per share.

Source: Cirrus Logic [press release]

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RE: Poor, poor Tony
By Mitch101 on 4/17/2013 9:47:31 PM , Rating: 1
Everything google does is BETA or a lark its a poor excuse for we didn't fail because we didn't take it seriously excuse. Your making excuses for Chromebooks and Google TV and everyone knows Google wanted Google TV to work its like Apple saying Apple TV was a hobby but realistically both would die to own a major piece of that Market and neither will admit they have failed to capture the market.

Windows is not the only product Microsoft makes so what if they don't win in one category who cares heck you can say Microsoft failed at MS Money beating out Quicken. Rarely can you say Microsoft got beat in a category. Even when Android Wins so does Microsoft because they own the patents and before someone cries about that Google would do the same so quit fooling yourself that google would play fair with Patents heck just look up Motorola which is Google Patent trolls for mobile.

Windows 8.1 allows you to boot into the desktop nearly eliminating the Metro GUI so Windows 8 will redeem itself in the end just like they redeemed themselves over Vista with Windows 7 if Microsoft lost actual major market share in the desktop then its a disaster but they didnt so please dont act like Windows 8 is the downfall of Microsoft because there is nobody taking up more marketshare in the PC market space.

Sorry your not aware Windows Phone is gaining ground very small in the US but oversees its getting bigger and in several markets outselling iPhone and taking marketshare from Android. Sorry if you wont acknowledge that either it wont be until Microsoft is number one that you acknowledge it even then you will be in denial and yes Nokia is Windows Phone because just like Samsung the figured out how to make devices right if the rest of the manufacturers took the high road instead of the cheap poor quality road looking for dollars they would reap similar rewards. You might be surprised by how much Samsung has to pay Nokia as well as Microsoft.

Sorry there are Millions of us Windows Phone users and soon you might be a generation of hardware behind us. Im looking forward to when Verizon launches a high end Windows Phone and what you will be claiming then?

RE: Poor, poor Tony
By Spuke on 4/18/2013 12:34:32 AM , Rating: 2
You did sound like Pirks there for a minute Mitch. :)

RE: Poor, poor Tony
By Pirks on 4/18/2013 4:06:38 PM , Rating: 2
And that's a gooood thing ;)

RE: Poor, poor Tony
By Reclaimer77 on 4/18/13, Rating: 0
RE: Poor, poor Tony
By Weeblie on 4/18/2013 10:55:11 AM , Rating: 2
No it's just the only one that makes them real money /shrug

Windows isn't even the product that makes Microsoft the most money. The company would still be profitable without a single license of it being sold.

"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs

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