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Apple: $50bn Wiped From Value drop more than 12%


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Old 24-01-2013, 15:44
mondeo123
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The share price in the world's biggest firm drop more than 12% as iPhones lose their shine amid fears of a Samsung 'screen war'.

http://news.sky.com/story/1042426/ap...-in-screen-war
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Old 24-01-2013, 15:47
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someone else posted on here that if the iphone was the one with the 4.8-5" screen and the galaxy S3 had a 4" screen it might not drastically affect sales. I tend to agree. I think its a rather simplistic way of looking at the relative attractiveness of the two; though, I do think Apple were slow to move up from 3.5".
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Old 24-01-2013, 15:52
neo_wales
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Apple has lost ground to android and will continue to do so. Apple have no 'range' of phones, android have dozens of different models at prices to suit all pockets; throw in a global economic recession and Apple's sky high prices and sales have to fall off.
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Old 24-01-2013, 15:54
Legacy o9
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Didn't Apple just announce yesterday that they sold more iPhones than ever before in their last quarter? Yeah they are doing so bad.
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Old 24-01-2013, 15:56
paulbrock
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Didn't Apple just announce yesterday that they sold more iPhones than ever before in their last quarter? Yeah they are doing so bad.
but they're not making any more profit. Also being cagey about how many iphone5s they sold versus iphone 4s's isn't helping investor confidence.
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Old 24-01-2013, 16:25
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Well at least Tim Cook is 'thrilled'.

But chief executive Tim Cook said he was "thrilled" with the figures and insisted the company continued to focus on innovation.
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Old 24-01-2013, 17:06
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Whilst i genuinely feel sorry for small (individual) investors who bought at the peak i do recall some a thread with some very smug Apple fans claiming that despite the lack of innovations their share investments were making them rich .... oh i do hope those particular individuals havent managed to sell yet

To be fair the share price was way too high and im sure it will settle at a more suitable level.
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Old 24-01-2013, 17:11
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Well at least Tim Cook is 'thrilled'.
Of course he is pleased. Apple have just posted their best quarter results ever. Why wouldn't he be pleased
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Old 24-01-2013, 17:15
IvanIV
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Of course he is pleased. Apple have just posted their best quarter results ever. Why wouldn't he be pleased
People may panic, start selling their shares which would push the price further down.
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Old 24-01-2013, 17:23
kidspud
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People may panic, start selling their shares which would push the price further down.
Really
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Old 24-01-2013, 17:32
kidspud
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People may panic, start selling their shares which would push the price further down.
Duplicate post.
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Old 24-01-2013, 17:36
Stuart_h
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Of course he is pleased. Apple have just posted their best quarter results ever. Why wouldn't he be pleased
Well it was less than what was 'expected' so i think 'pleased' is a political answer.

People who thought Apple shares would only ever go up were just daft. If it was that easy everyone would be millionaires .....

Im sure Tim Cook is rather more pleased than those who have seen their stock value plummet (although to be fair Im sure Tim also has a fair amount of stock !)

Its all just silly money anyway .... ive seen a figure quoted of $200bn being knocked off Apples value .... which is basically saying that they have lost the entire value of Microsoft in 4 months !!
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Old 24-01-2013, 18:26
Mystic Eddy
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Well it was less than what was 'expected' so i think 'pleased' is a political answer.

People who thought Apple shares would only ever go up were just daft. If it was that easy everyone would be millionaires .....

Im sure Tim Cook is rather more pleased than those who have seen their stock value plummet (although to be fair Im sure Tim also has a fair amount of stock !)

Its all just silly money anyway .... ive seen a figure quoted of $200bn being knocked off Apples value .... which is basically saying that they have lost the entire value of Microsoft in 4 months !!
If you read articles on the 'net, you'll see that the general consensus is that as a company, they're significantly undervalued. They need to bring out the next big thing or the stock price will continue to slide. Says a lot when other companies can post losses yet their share price goes up, Apple beats their guidance and makes (marginally) more profit than last year, and their stock tanks. Some investors are weird!
Oh and you're point on missing expectations is silly - that's just some guys that get paid to dream up theoretical numbers that a company could bring in, more weight needs to be placed on the fact they beat their guidance.
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Old 24-01-2013, 18:55
kidspud
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If you read articles on the 'net, you'll see that the general consensus is that as a company, they're significantly undervalued. They need to bring out the next big thing or the stock price will continue to slide. Says a lot when other companies can post losses yet their share price goes up, Apple beats their guidance and makes (marginally) more profit than last year, and their stock tanks. Some investors are weird!
Oh and you're point on missing expectations is silly - that's just some guys that get paid to dream up theoretical numbers that a company could bring in, more weight needs to be placed on the fact they beat their guidance.
Indeed. They did not miss their own projections, or those of some of the bigger institutions.
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Old 24-01-2013, 19:02
paulbrock
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Indeed. They did not miss their own projections, or those of some of the bigger institutions.
but their own projections are widely regarded (and now acknowledged) as conservative. Beating them surprised no-one.

http://live.theverge.com/apple-q1-20...ngs-live-blog/
Originally Posted by The Verge
Apple is changing how it provides guidance probably in reaction to the craziness around predictions this quarter. Apple will now provide a range of numbers that it reasonably expects to hit, instead of just one traditionally low number.

Basically, Apple's historically low guidance was being ignored by investors, and now it wants to temper the craziness around its stock.
Q: Talk about this new guidance are you saying that when you provided guidance before it was uniquely conservative and now we're getting the real planning range for Apple?

CFO Peter Oppenheimer: In the past we provided a single point of guidance that was conservative, and now we're providing a range that we believe we're likely to report within.
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Old 24-01-2013, 19:05
Zack06
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Things just aren't going right for Apple. Samsung outselling them in Q3 last year completely overshadowed the iPhone 5 launch, and now their shares are dropping and dropping and huge amounts of value are being slashed off the company.

They need to go back to the drawing board and focus on what can make the iPhone a great device again, as clearly lacklustre and underwhelming launches are having an effect on the company, and they will never be able to gain ground from Android like this. The company is in crisis with key employees jumping ship left right and centre.

It looks like Google may have won the smartphone wars for the time being, Apple is in too much turmoil to be a viable competitor.
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Old 24-01-2013, 19:09
kidspud
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but their own projections are widely regarded (and now acknowledged) as conservative. Beating them surprised no-one.

http://live.theverge.com/apple-q1-20...ngs-live-blog/
And they beat their own projections, so they were conservative.

I can see no reason why apple would not be happy with these financial results. The only minor issue is the reduced profit, however, they had already warned this would happen.
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Old 24-01-2013, 19:18
whoever,hey
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If you read articles on the 'net, you'll see that the general consensus is that as a company, they're significantly undervalued. They need to bring out the next big thing or the stock price will continue to slide. Says a lot when other companies can post losses yet their share price goes up, Apple beats their guidance and makes (marginally) more profit than last year, and their stock tanks. Some investors are weird!
Oh and you're point on missing expectations is silly - that's just some guys that get paid to dream up theoretical numbers that a company could bring in, more weight needs to be placed on the fact they beat their guidance.
Undervalued?!?!?
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Old 24-01-2013, 19:19
IvanIV
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And they beat their own projections, so they were conservative.

I can see no reason why apple would not be happy with these financial results. The only minor issue is the reduced profit, however, they had already warned this would happen.
They do not exist in vacuum, it's more important how things look than how they are. They know that better than anybody else. By giving very conservative estimates and always ending up with much better results they had achieved that nobody believes their estimates and expects much much better. And when they do not deliver, it has an impact.
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Old 24-01-2013, 19:21
wavejockglw
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Problem for Apple is that the market for 500 smartphones is limited as is their innovation to justify that premium price.

Competition from China and from Korea looks likely to make them a niche smartphone company within a few years, just like they have become with computers and that is what the stock market is concerned about.
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Old 24-01-2013, 19:33
paulbrock
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Microsoft's turn to report tonight.

http://www.washingtonpost.com/busine...d5b_story.html

Is there a reason why 3 massive tech companies all report in the same week?
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Old 24-01-2013, 20:19
kidspud
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Microsoft's turn to report tonight.

http://www.washingtonpost.com/busine...d5b_story.html

Is there a reason why 3 massive tech companies all report in the same week?
They do try an group reporting by sector. You will notice in the uk that most supermarkets and banks report in the same week.
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Old 24-01-2013, 20:22
Stuart_h
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If you read articles on the 'net, you'll see that the general consensus is that as a company, they're significantly undervalued. They need to bring out the next big thing or the stock price will continue to slide. Says a lot when other companies can post losses yet their share price goes up, Apple beats their guidance and makes (marginally) more profit than last year, and their stock tanks. Some investors are weird!
Oh and you're point on missing expectations is silly - that's just some guys that get paid to dream up theoretical numbers that a company could bring in, more weight needs to be placed on the fact they beat their guidance.
erm .... not 'my' point on missing expectations ..... the point was made by many analysts .....
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Old 24-01-2013, 20:26
Stuart_h
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And they beat their own projections, so they were conservative.

I can see no reason why apple would not be happy with these financial results. The only minor issue is the reduced profit, however, they had already warned this would happen.
Gosh you are right ! Everyone must be very happy and thats certainly what is being reflected in todays share value

This isnt about what you or I think ..... the MARKET opinion is suggesting that they havent met what analysts expected.....

If only they all had the business insight of DS posters
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Old 24-01-2013, 21:00
konebyvax
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Problem for Apple is that the market for 500 smartphones is limited as is their innovation to justify that premium price.

Competition from China and from Korea looks likely to make them a niche smartphone company within a few years, just like they have become with computers and that is what the stock market is concerned about.

This is pretty much how I see things panning out. It's hardly rocket science, it's basically like Mac v PC all over again. And there's only going to be one winner. Again.
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