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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 Reclaimer77 on 4/18/2013 1:57:57 AM , Rating: 0
Are you even aware of what a rabbid fanboi you're sounding like?

quote:
Your making excuses for Chromebooks and Google TV


NObody's making excuses. Chromebooks and Google TV weren't even part of the discussion until YOU threw them into the mix to deflect from whatever got you butthurt. Your argument is basically "you cannot criticize product X, if product Y is also doing poorly". Which is not only asinine, but it's so divisive and trollish only a fanboi would come up with it. Because it automatically assumes that there's camp/product X who must also be against camp/product Y. Is this getting through to you?

quote:
Windows is not the only product Microsoft makes


No it's just the only one that makes them real money /shrug

quote:
Windows 8.1 allows you to boot into the desktop nearly eliminating the Metro GUI so Windows 8 will redeem itself in the end


Although that's only a rumor at this point. However if this is true, it actually proves you've been wrong the entire time about Windows 8. You've defended it and the Metro UI for months here against all criticisms. If Microsoft is forced to do a 180 and reverse their entire game-plan for Windows 8, it just proves you don't know what you're talking about when it comes to what people want.

quote:
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.


Another panicky fanboi knee-jerk comment. Was I even talking about Windows 8 here on this article? Ummm NO. So why are you shrieking in from left field to go there? And where did I say it would be the "downfall" of Microsoft or whatever? God you're channeling Pirks tonight I swear. Lay off the stupid pills!!!

So because I have an Android smartphone and like it, I have to hate Windows AND love Chromebooks or something? Are you retarded? There's NO LOGIC in this!

quote:
Sorry your not aware Windows Phone is gaining ground


Yeah I AM aware of this. So? Why do you act like I'm afraid of Windows Phone or something? Or their success is striking fear into my heart and keeping me up at night? Why are you being so goddamned defensive!?

quote:
Sorry if you wont acknowledge that either it wont be until Microsoft is number one that you acknowledge it


Well they have a LONG way to go before they can boast that. But whatever keeps you warm and fuzzy feeling.

Let me 'splain something to you, shortstack. I'm NOT an iPhone zealot. If Windows Phone became the best mobile solution that fit all my needs, guess what? I would switch to Windows Phone!

quote:
Sorry there are Millions of us Windows Phone users and soon you might be a generation of hardware behind us.


Why do you keep saying "sorry" so much? If you're that sorry maybe you should use something else :)

And how Windows Phone hardware is magically going to leap a "generation" ahead of everyone else... okay, sure. Let's wait for that to happen.

I sincerely hope if you respond you can cut down on all the imaginary arguments that I'm NOT making, and slim down the discussion to a few main points. Not the 10 or so straw men and moving goalposts you seem to be throwing in my face.

*Typed on a Windows PC*
Not a Chromebook, you flaming troll.


RE: Poor, poor Tony
By Weeblie on 4/18/2013 10:55:11 AM , Rating: 2
quote:
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.


"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA














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