Apple iPhones NOT selling DEJA VU 2017 REDUX Ping!
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Posted on 11/19/2018 11:21:14 AM PST by Red Badger
New York (CNN Business)Stocks fell sharply Monday, dragged down by reports that Apple's newest line of phones may not be selling as well as Apple or its investors had hoped. The Dow fell more than 500 points and the Nasdaq tumbled 2.8%. Apple's stock fell once more after the Wall Street Journal reported that Apple has cut orders for its iPhone XR, iPhone XS and iPhone XS Max. The new iPhones, which Apple unveiled in September, cost more than previous versions. The $749 iPhone XR is the least expensive new iPhone, but it costs $50 more than last year's cheapest model, the iPhone 8.
The iPhone XS Max can cost up to $1,449. The higher prices -- without many more features -- could be driving customers to keep their current phones longer or buy last year's models. Apple declined to comment about the Journal story or broader concerns about iPhone demand. Shares of Apple fell 4% and have now plunged about 20% from the all-time high it hit a few months ago, when Apple (AAPL) was worth more than $1 trillion. The stock ended a 5-day losing skid on Friday after an analyst at Morgan Stanley suggested that the supplier concerns are overdone. Apple, which is a member of the Dow, was hurting the blue chips too. Several makers of chips and other components used in iPhones have warned of soft sales and profit in recent weeks, citing sluggish demand for higher-end smartphones. To that end, shares of Apple suppliers, such as Qorvo (QRVO), Broadcom (AVGO), Cirrus Logic (CRUS) and even Apple's key Anrdoid phone rival Samsung were all lower Monday too. Samsung also makes chips for iPhones.
(Excerpt) Read more at cnn.com ...
I love that description. Excellent.
My LG Cosmos3 is just right!! LOL
From a financial standpoint I simply do not understand Apple’s decision to cut production before cutting cost. Why doesn’t Apple trim the price of its phones rather than cutting production.
At $1,000 to $1,500 very few outside of the USA can afford those phones, even the XRs at $800 a pop. The farm kid in the Hunan province or some poor kid in Mumbai cannot afford these and that’s why Huawei is cleaning Apple’s clock right now.
Limit the supply, up the price..................
Those Black Friday sales though...
No longer report units sold?!
Wow.
“BUY BUY BUY”..., I’ve done it every sell off.
Very well put. Makes no sense does it?
This implies Apple told the investor personally and privately that Apple would no longer be reporting units sold and it further implies that Apple’s non-reporting of units sold is an unusual and contrarian act. That is not the case. First of all, Apple was the ONLY consumer electronics company that ever provided unit sales numbers for its products. All of the others in consumer electronics never provided units sold or even shipped. Instead companies such as IDC and Gartner estimate the number of units sold (and have done so for Apple as well in advance of Apple releasing accurate real numbers at their Financial Conference Call each quarter, often to the embarrassment of the estimating groups who consistently have had to adjust their Apple guesstimates upward). So, it is NOT an industry standard to report unit sales and in fact for Apple’s competitors the sales of their smartphones and computers in units are considered trade secrets. Secondly, Apple announced the discontinuation of unit sales to ALL investors in the fourth quarter 2018 Financial conference call and discussed doing so in the two previous financial conference calls because, with the rapid growth of the services sector, Apple’s earnings were less and less anchored to unit sales and there is no way to count services rendered.
The higher per unit price is not the cause of profits rising as Apple has iPhones for sale in retail price brackets from $349 to over $1250 and iPads from $279 to over $1000 per unit and the ASP did not rise sufficiently to account for the increased profits even though consumers showed a preference for higher end iPhones. Instead profits are being bolstered by the extraordinary double digit rise in very high margin service sector profits.
This is patently untrue. . . Apple has used "just in time inventory" model since the late 1990s and they dynamically manage parts orders throughout the year. Apple sells every unit they make and NEVER has "unsold later on" but, in fact has a tendency and a reputation to start running low on soon to be replaced models just before product announcements. It is one of the ways the press punditry has of detecting the discontinuation and/or announcement of a replacement is coming up, given Apple’s policy of never making pre-announcements. Sudden shortages in the on-line Apple store ore lengthening delivery times is a sure sign of a product refresh.
Stock buybacks are considered PART of equity return for any company. . . and Apple has returned more than $240 BILLION to investors by that means since 2012 in addition to dividends. However, even just looking at dividends, according to CNBC in August 2017, Apple now pays the biggest dividend in the world, surpassing Exxon's payout, surpassing Exxon Mobile, and Apple’s board increased their dividend three times since then.
Not the MacBook. . . that was updated several product updates back. , . And the MacBook Air was already updated with the Mac mini and the iPad Pro announcement on October 30th.
This same "Apple has cut production of iPhone parts/orders" ploy was pulled by the same reporters last year at the same time frame and using the same unnamed sources. . . and is based on the same things. Apple ALWAYS pulls back orders for the second fiscal quarter of 2019 (the first calendar quarter of 2019, because SALES of those products in that quarter is always about 50%-60% of the sales of the previous quarter and manufacturing of the products to be sold during that quarter MUST be done in the preceding quarter! Ignorant investors hearing that Apple has cut orders by 40% over LAST quarter’s orders assume it is somehow related to soft sales in THIS quarter, which is the intent the writers of these articles want to imply to readers so they can (1) depress sales and (2) depress AAPL stock prices, and (3) please their competing advertisers, and (4) please AAPL shorters and (5) please investors who want to buy more AAPL shares at bargain prices.
In other words, they are reporting the normal course of quarterly business ordering to prepare for the expected iPhone demand for the January through March quarter, not the orders for iPhones being made for sales in the current October through December quarter. . . which independent reports are showing are selling like hot cakes at a lumberjack convention.
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“Very well put. Makes no sense does it?”
I am paraphrasing something that one of the Fox Business host (Charles Payne?) said a few months ago.
Apple is not a member of FANG. Those are:
Facebook
Amazon
Netflix
Google.
There were proposals to expand to FAANG, including Apple, but Apple is, or was, primarily a hardware maker, very unlike the others and had a much lower P/E.
Same reason people feel they need to buy a new car every 3-5 years.
I had limited cash available today so I bought a 195 February call option instead of outright stock. I expect to see it back above 200 by mid January.
They will take my removable battery LG V20 from my cold dead hands. How is having a fixed battery that will not handle heavy use an upgrade? I cycle 3 batteries every day.
The I Phone is a computer with a phone ap
The Samsung Galaxy S9 on release had a manufacturers suggested retail price of $889.99. The Galaxy Note 10 was $1079. . .
The iPhone XR has the exact same A12 processor and Neural Engine capable of five trillion decisions per second, and FaceID, as the much more expensive XS and XSmax. . . All of which are much faster than the FASTER than the fastest Samsung or any Android offering:
Primate Lab’s Geekbench 4 has clocked in the iPhone XR’s performance with a 10,980 multi-core score and a single core score of 4795. Compare it to Samsung’s two most powerful devices and the results will shock you.
The Samsung Galaxy Note 9 nabbed a multi-core score of 8765 and single core score of 2442 while the Galaxy S9 Plus nabbed a multi-core score of 8661 and single core score of 3273.
Apple has brand new older model iPhones available from $399 up. . . .
I have an 8 month old IPhone X, and I don’t need a new one. I had a 6, for 3 years, and skipped the 7 and 8, and went to the X.
LOL. That’s probably true. I VERY RARELY use my IPhone X for calling. Most of the time, I am on FR with it, like right now. 👍
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