One week before its latest earnings report, Wall Street is in "full panic mode" on Apple

One week before its latest earnings report, Wall Street is in
A week from today, Wall Street will be focused on Apple as the tech giant reports its fiscal second quarter 2018 earnings. The most important number, as usual, will be the number of Apple iPhone units sold. For its fiscal first quarter, Apple sold 77.3 million handsets, falling short of the 80.2 million that Wall Street expected. But in that report, Apple reported higher than expected average revenue per unit, which seemed to indicate that the Apple iPhone X was off to a strong start.

But no one is thinking that now. The tenth anniversary model made up 16% of iPhone sales during Apple's fiscal Q2, down from 20% in the previous quarter. It turns out that the Apple iPhone 8 and Apple iPhone 8 Plus have been showing some momentum as the pair combined for 44% of iPhone sales from January through March, up from the 41% they achieved during the three months ended in December.

With some analysts proclaiming that the iPhone X is dead, and Apple suppliers reducing their future expectations, BH Insights analyst Daniel Ives says that Wall Street is in "full panic mode" when it comes to Apple. In fact, we can even measure that panic in dollars. From Thursday's close of $177.84 to today's close of $162.94, Apple's stock has dropped $14.90 or more than 8%. With more than 5 billion shares outstanding, Apple's valuation has plunged more than $75 billion in a matter of days.

If Apple fails to report numbers on May 1st that Wall Street likes, we could the panic snowball. JP Morgan recently cut its forecast for the number of iPhone models sold by Apple in the quarter to 34 million from 40.5 million. Overall, Wall Street expects Apple to report selling 43 million handsets for its fiscal second quarter.

One technical analyst says that Apple has twice bounced off the $150 level and could be heading back there to retest that support. But Fred Hickey, editor of High Tech Strategist, says that TSMCs lowered expectations do not bode well for Apple, the chip industry and the entire stock market. With its disappointing report, TSMC mentioned that it sees weakness in demand for a high-end phone. Considering that Apple makes up 20% of the company's business, that phone is most likely the iPhone X.

source: CNBC

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13 Comments

1. sgodsell

Posts: 6588; Member since: Mar 16, 2013

It will be interesting to see what happens for Q1 2018. If Apple has rumored that that are going to make a cheaper iPhone. Then they will be cannibalize there own iPhones. Because why pay a $1000 or more for an iPhone Xx if the cheaper one can run every and all apps with a large screen.

2. iczer

Posts: 138; Member since: Oct 14, 2015

Wait for next quarter!!

3. RevolutionA

Posts: 360; Member since: Sep 30, 2017

Ups and downs are common but the king will be King as always.

4. LetThereBeLight

Posts: 109; Member since: Nov 20, 2014

Like Nokia?

5. wie155

Posts: 34; Member since: Sep 24, 2012

Yes, exactly like NOKIA, oh wait...

6. worldpeace

Posts: 3037; Member since: Apr 15, 2016

Like Nokia, Motorola, Sony Ericsson, and Blackberry. 4 kings in early 2000s phone era..

7. RevolutionA

Posts: 360; Member since: Sep 30, 2017

Apple has lot of money, and money can do a lot. A LOT!

8. tedkord

Posts: 16978; Member since: Jun 17, 2009

Only for so long.

10. rouyal

Posts: 1536; Member since: Jan 05, 2018

Tell that to Nintendo

14. tedkord

Posts: 16978; Member since: Jun 17, 2009

What exactly is Nintendo supposed to be doing?

15. Sleeplessmedal

Posts: 31; Member since: Feb 02, 2018

"Alot" so that company can end up selling phone divisions. I dont wanna explain the whole nokia story again. Get your head straight

13. madnav

Posts: 8; Member since: Jun 06, 2016

Buyers of ip8, ip8+ and ipX might have been happy about their purchase, but only until the back cracks. The repair (or rather replacement) costs significant amount of money for something as simple as a back panel (even if glass). This will only bring regret to customers just like it did with battery based throttling fiasco. The proverbial king might be able to get away with a few mistakes, but the democracy will surely prevail once its population starts voting with their money.

9. tedkord

Posts: 16978; Member since: Jun 17, 2009

This is the silliness of Wall Street - if they expect $2 per share profit, and you make $1.95, they fly into panic mode.

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