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Apple shares plunge over 7% in response to lower than expected iPhone sales, tepid Q2 forecast

Posted: , by Alan F.

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Apple shares plunge over 7% in response to lower than expected iPhone sales, tepid Q2 forecast
Investors and traders are dumping shares of Apple on Tuesday morning, following the tech giant's fiscal first quarter earnings report released after the close on Monday. At 10:15am EST, the stock was trading at $510.10 a share, down $40.40 on the day. Investors were disappointed in the number of Apple iPhones sold last quarter, even though the 51 million units that were purchased was a new record. Wall Street was looking for 55 million handsets to have been rung up during the three months ended in December.

Also hurting shares was Apple's forecast of Q2 revenue in the range of $44.2 billion to $44.4 billion. With the world's largest carrier, China Mobile, now selling the iPhone, analysts are expecting Apple to report $44.6 billion in Q2 sales. But Apple is known for a little trick it employs, which is to keep future expectations down. This way, the bar isn't raised too high on Wall Street so that it can appear as though Apple has surpassed forecasts.

Over the last 52 weeks, Apple's shares have ranged from a low of $385.10, hit last April 19th when fears raged that Apple had lost its 'mojo', to as high as the $575.14 share price reached on December 5th.

source: Yahoo

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posted on 28 Jan 2014, 09:41 1

1. ArtSim98 (Posts: 2707; Member since: 21 Dec 2012)


Hey you removed the article about Nintendo.

I'm actually very curious to see what iPhone 6 and iOS 8 bring. Even though the OS changes will probably be smaller this year.

posted on 28 Jan 2014, 10:04

7. Droid_X_Doug (Posts: 5723; Member since: 22 Dec 2010)


I doubt Apple will be releasing iOS 8 any time soon. Unless iOS 7 is so f*cked up that the decision has been taken to dump it in favor of iOS 8. iOS 8 seems like more of a 2015 initiative.

posted on 28 Jan 2014, 10:23 3

9. ArtSim98 (Posts: 2707; Member since: 21 Dec 2012)


Well a new version of iOS has been coming once a year.

posted on 28 Jan 2014, 10:28

10. domfonusr (Posts: 362; Member since: 17 Jan 2014)


True.

posted on 28 Jan 2014, 10:34

11. Droid_X_Doug (Posts: 5723; Member since: 22 Dec 2010)


A September release of iOS 8 would start to see leaks by now. Timeframe for Alpha testing for a September production release is Feb - March. Apple is focused on testing iOS 7.1 at present.

Apple could still do a September release of iOS 8, but it would be a rush job, and likely would have more bugs than iOS 7 had when it was released.

posted on 28 Jan 2014, 14:36 1

26. superduper (Posts: 148; Member since: 20 Oct 2013)


In the past, Apple has announced the latest iOS at its annual WWDC developers' conference in June, in preparation for a September release. There is no reason to expect that pattern to change this year as it works quite well for them.

posted on 28 Jan 2014, 09:44 7

2. NokiaFTW (Posts: 1979; Member since: 24 Oct 2012)


Can't say that i'm surprised by this since they have lacked any real innovation in their phones since the iPhone 4

posted on 28 Jan 2014, 09:53 2

4. ihavenoname (Posts: 1375; Member since: 18 Aug 2013)


This is not even bad news. They had record sales. Company stock prices are like rollercoaster.

posted on 28 Jan 2014, 10:03 6

6. brrunopt (Posts: 501; Member since: 15 Aug 2013)


so did at least the other top 4 smartphone makers ; the difference is Apple's grow is way smaller than the market grow and they are falling behind (down to 15.3% marketshare)

posted on 28 Jan 2014, 10:42 1

12. domfonusr (Posts: 362; Member since: 17 Jan 2014)


That's the worldwide figure for marketshare. In the US, Japan, and a few other places, they are becoming more dominant.

I am not a fan of Apple. I don't like the way they do things (Foxconn labor practices, walled-garden OS, patent trolling, super-strict warranty conditions, Apple-gate tracking scandal, etc...), but I have to admit they have a solid product. The iPhone is arguably not as capable as many Android phones of the same generation, but it will likely run better than most of them, and look better, too.

So, I expect Apple to kill it in the US. Even if they take a 7% hit now, they will bounce back as soon as their next announcement arrives. They are on track to pass 50% marketshare in the US in the next nine months. I'm not dumb enough to think that their success is in any way tied to my opinion of them.

posted on 28 Jan 2014, 10:58 4

14. brrunopt (Posts: 501; Member since: 15 Aug 2013)


They got upper in the US last quarter because is was the launch of the new divices , but their marketshare is droping yoy (last year they were at 49.7% in december vs 43.9% this year)

They have a surge when the new devices are released and start going down, not keep going up....

Also besides US and Japan where did they went up ?

posted on 28 Jan 2014, 11:28

16. domfonusr (Posts: 362; Member since: 17 Jan 2014)


I did not know that the iPhone got anywhere near 50% in the US already. Do you have a link or source for the 49.7% mark last year?

I know that the iPhone is doing well in the UK as well, though it is not dominant. Then again, it isn't dominant in the US, yet, either. I know that the iPhone had as much as 23% market share in South Korea some time ago, though that has dropped off in recent years. Australia has the iPhone at about 28% market share, so solidly in second place, but they seem to have levelled out there. I said "a few other places" mostly to cover myself in case anyone called me out for not naming any more, and not because I knew specific ones. I'll bet there are a couple I haven't thought of. Maybe some other small but wealthy places, like Monaco or Lichtenstein? I'll have to go look.

posted on 28 Jan 2014, 11:37

17. brrunopt (Posts: 501; Member since: 15 Aug 2013)


http://www.phonearena.com/news/Kantars-data-shows-worldwide-decline-in-iOS-market-share-during-Q4-Android-and-Windows-Phone-gain_id51822

its also slowing going down in the UK too , with WP getting that marketshare...

posted on 28 Jan 2014, 13:55

24. domfonusr (Posts: 362; Member since: 17 Jan 2014)


Alright, I do see that. However, this is simply a return to July 2013 marketshare in the US for the iPhone;

http://www.theregister.co.uk/2013/09/03/iphone_rises_android_slips_in_us_uk/

The cited survey is from the same group: Kantar. Apple had a great holiday season, and thus December 2013 was a big month for them. I am noticing that this is not a year-over-year comparison, so I will be interested to see the YoY data for January/February 2014 vs 2013 when it comes out.

I'll have to keep an eye on the UK data. I don't really expect the iPhone to take over in the UK, since they will likely fall in line with the rest of Europe where Android reigns supreme and will not be dislodged anytime soon. At some point they will hit a ceiling there, and then start to decline again. In the US, this is a different story, at least until the next market-shaking idea comes along. I will be interested to see what new software replaces iOS and Android some day.

posted on 28 Jan 2014, 14:00

25. Caralho (Posts: 119; Member since: 18 Jun 2012)


Blackberry, all over again...

posted on 28 Jan 2014, 14:46 1

28. Scott93274 (Posts: 832; Member since: 06 Aug 2013)


They did have record sales, and they made a lot of money but they failed to meet expectations, and it's when a company fails to meet goals that scares investors. When Google made 30% more revenue than it had anticipated, its stocks shop up right away. Not sure why they dropped $50 in the past two days… and now they're going up again, stock market is such a fickle thing.

posted on 28 Jan 2014, 10:00 3

5. Droid_X_Doug (Posts: 5723; Member since: 22 Dec 2010)


Apple shouldn't have dropped the iP5 for the iP5Cheap (or, Crap). Just because Tim got greedy and wanted to improve margins on the mid-tier iToy, oesn't ean that consumers have to go along.

I wonder if Apple is going to release te iP6 in July to make up the lost sales?

posted on 28 Jan 2014, 10:09 2

8. Droid_X_Doug (Posts: 5723; Member since: 22 Dec 2010)


Edit: Doesn't mean (instead of oesn't ean)

And: the (instead of te) Sorry for typos. PA should allow longer editing time.

posted on 28 Jan 2014, 11:40 1

19. darkkjedii (Posts: 10977; Member since: 05 Feb 2011)


That or you shouldn't be in so much of a hurry to dis apple, that you type before thinking.

posted on 28 Jan 2014, 18:48

31. Droid_X_Doug (Posts: 5723; Member since: 22 Dec 2010)


Oh waaa! Don't be so sensitive when your hero company makes a misstep. Facts are facts. Sales and profits were off from the guidance provided by team Apple.

I used an iPad to enter the OG post (and there seems to be problems with the screen sensitivity to touch input). This answer is being entered with my Maxx and there are no problems with touch response.

posted on 28 Jan 2014, 09:49 2

3. chunk1x (Posts: 248; Member since: 25 Jun 2011)


I think that people are getting tired buying new phones every year. Samsung, LG, Nokia, HTC and etc sales are slower than expected.

posted on 28 Jan 2014, 10:46

13. domfonusr (Posts: 362; Member since: 17 Jan 2014)


I don't know about anyone else, but I stopped the yearly phone buying when I bought my last device in 2010. I haven't 'bought' a phone ever since.

posted on 28 Jan 2014, 14:42

27. Scott93274 (Posts: 832; Member since: 06 Aug 2013)


I bought the original Droid, then Galaxy Nexus, and I'm thinking about the Moto X next.... Every two years works just fine for me. In that time frame, there's usually enough of a leap in tech that justifies the purchase. But a new phone every year is a bit excessive.

posted on 28 Jan 2014, 11:11 1

15. kindlefireowner (Posts: 345; Member since: 05 Dec 2011)


Fandroids can you read. Apple sold a record 51 million iPhones in 3 months. The sky is not falling. They made a profit for the quarter. Apple is sitting on 158 billion dollars in cash. Give it a rest.

posted on 28 Jan 2014, 11:39 2

18. darkkjedii (Posts: 10977; Member since: 05 Feb 2011)


They see that, and that infuriates them. Apples stock fell from $700+ to $385, the rebounded to $575. Google and Samsung have been down too lately, but they don't see that. Stocks rise and fall...

posted on 28 Jan 2014, 12:10 5

20. EclipseGSX (Posts: 1583; Member since: 18 Oct 2011)


Oh we see it, its just fun to watch you die hard iFans rage. Just let it go bro, all that negative energy isn't good for you.

posted on 28 Jan 2014, 16:31

30. kevkyle (Posts: 63; Member since: 21 Oct 2012)


+1 ", )

posted on 28 Jan 2014, 19:20

33. Dastrix (Posts: 587; Member since: 23 Nov 2012)


Fandroids never bothered me anyway.

posted on 28 Jan 2014, 12:27 2

21. NexusPhan (Posts: 463; Member since: 11 Jul 2013)


And that record 51 million iPhones resulted in a lower net income than last year. That's a very bad indicator for a stocks performance. Hence the 7%+ drop.

posted on 28 Jan 2014, 12:52

22. AfterShock (Posts: 2798; Member since: 02 Nov 2012)


If only they sold 50 million of the 5c.
As popular as the entire generation of pet rock owners.
Oh well, is only money, not like they share with anyone.

posted on 28 Jan 2014, 13:26

23. NexusPhan (Posts: 463; Member since: 11 Jul 2013)


They shared a lot with me actually. I shorted the hell out of AAPL Monday afternoon.

posted on 28 Jan 2014, 14:55

29. AfterShock (Posts: 2798; Member since: 02 Nov 2012)


I was thinking I should add unless you buy and sell it.
Kudos to you on that.

posted on 28 Jan 2014, 19:19

32. Dastrix (Posts: 587; Member since: 23 Nov 2012)


Fandroids are laggy and buggy, just like that crappy OS. No wonder they can't process information without hiccups.

posted on 28 Jan 2014, 20:06 1

34. jroc74 (Posts: 4720; Member since: 30 Dec 2010)


In other news...Google stock is at an all time high of 1100+

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