Apple Beats Earnings But Misses On iPhone Sales, Guides Sales Lower: Stock Tumbles

Tyler Durden's picture

So much for the only silver lining in Q4 and Nasdaq leadership from AAPL. Moments ago AAPL reported results which beats on the top and bottom-line, reportined revenues of $57.6 billion in line with the expected $57.5 billion, and EPS beating modestly at $14.50 vs Exp. $14.07 mostly thank to the retirement of 46 million diluted shares from a year ago. However the good news ended here, with the one thing the market was focusing on - iPhone sales - missing badly, as the company only sold 51 million iPhones in the quarter of the 5S release, compared to expectations of 54.7 million. Additionally, Apple also guided to lower revenues than the street had expected, and is now seeing $42-44 billion in the next quarter compared to consensus estimates of $46.1 billion and for all those calling for the demise of the US consumer - you may be right: AAPL Americas revenue declined by 1% from a year ago, when AAPL also had a new product launch. Is AAPL's largest market starting to say "meh"?

Putting all this together, and the stock is down about 5% in the after hours session as the market is less than happy with yet another quarter of AAPL. But nobody is less happy than Carl Icahn who is now underwater on his latest $1 billion in widely trumpeted on Twitter AAPL purchases.


Breaking down AAPL's results visually: Revenues.




And most importantly, the breakdown by component sales:


Finally the one thing Carl Icahn will be fixated on - cash and marketable securities - rose by $12 billion in the quarter.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Cult_of_Reason's picture

Ouch! Icahn's $3 billion no-brainer stake gets a margin call.

Obchelli's picture

And now i-crap is missing in this shiny economy? where is that bearded Boo Yaaa guy?

TruthInSunshine's picture

Samsung killed Sony, and U.S. prejudicial court rulings against Samsung notwithstanding, Samsung will kill Apple.

Apple is a pure commodity seller now. It might as well sell blenders & toasters.

Shit, even Microsoft Windows8 phones are beating iShit phones in many areas of Central & South America.

Apple should merge with Dell - Depple.

ParkAveFlasher's picture

Well said!  In Central and South America, they can get parts - new or used - on the cheap for non-Apple phones.  Apple minus Jobs equals Dinosaur.

TruthInSunshine's picture

Glory fukkin' days. Xerox, Kodak, Polaroid, HP, AOL, Qualcomm, Yahoo, Blackberry, Motorola, Sears, Sun Microsystems, etc., etc., etc.

Occident Mortal's picture

Great news for Carl Icahn as the iPhone 5c + China Mobile validates Tim Cooks insanely great strategy.

Oh wait.

Apple minus Jobs = a fucking disaster... Again.

Abbie Normal's picture

10 years in the tech market is like a hundred years in other times.  Try 18 months ago:  aapl down 20% (now 25%) msft up 20%

Agstacker's picture

I'd much rather have a tube of 25 Canadian Maples than 1 share of Apple.

TruthInSunshine's picture

They could merge with Gateway, too - AppleGate

*p.s. I mentioned Samsung, but there a ton of other companies like HTC that are equal to or better than the now commodity producer that is Snapple...err Apple.

johngaltfla's picture

Cue the "Price is Right" losing horns....


Crapple is finding out that there are fewer American citizens that can afford their toys. A tough reality for the applebots to suck on.

synergize's picture


Ok phew got it out of my system - yeah i'm actually going to keep on converting my cash for some physical gold and pretty much shorting the system...

Son of Loki's picture

MONKEYHAMMERED on huge volume down.

Is this the Big Kahoney?

duo's picture

We need the ObamaiPhone, then.  If it's going to be taxpayer funded, might as well be the 5s

matrix2012's picture


"*p.s. I mentioned Samsung, but there a ton of other companies like HTC that are equal to or better than the now commodity producer that is Snapple...err Apple."


not to say that an army of Chinese makers are rapidly approaching, closing the gaps -


And here's one of the latest rising stars:

ZTE Nubia Z5S LTE 64GB now supports 4G LTE (Long Term Evolution)!

Snapdragon 800; 2GB RAM;  5" FHD 1920x1080 440.6ppi; Corning Gorilla Glass (OGS); 13 MP OIS F2.0 Aperture main camera & 5.0 MP; 137.7 x 68.8 x 7.6mm; and one of the killer feature of the Nubia Z5S LTE is it’s support for various cellular network: CDMA, EVDO, GSM, WCDMA, 4G LTE...

Out now!

aVileRat's picture

Yup, said it in the other thread. Either Cook needs to go, and they need a wunderkid who can reign in Johnny Ive's unnecessary legacy building or return the cash. What are the engineers doing exactly. What are they spending 4B in R&D/year for the last 3 years ? Carl was right. The more they struggle to squeeze margins in Jobs product lines the more this company will prove to be RIM circa 2009. WWDC already is confirmed to have zero product innovation, unless the vapourware iWatch & iRing are announced. But don't bet on it as proven in the shit guidance.

Tech needs about another 10% down leg. The premiums media and software companies are being paid for growth imply the go-go days are long overdue & done without a new transistor revolution. But to do that, one requres better battery tech, which is impossible given our current factor costs/IRR & physics.

A sony/apple merger is best at this point, or a Nintendo white knight; but Quatrone prob, has pitched all this already.

Come to think of it, if the IMF were to ask Apple & Google to "donate" their cash to the EU it would greatly help out the Obama economy.

4Q airlines & video game makers should be illuminating tomorrow.


post turtle saver's picture

to add to matters... Google and Samsung just announced a partnership on patent licensing...

max2205's picture

What'd you expect...Chinese go to bank to get money to buy iPhone.

Teller says no iPhone for you!

Leonardo Fibonacci2's picture

Just like Fat Tony in the Simpsons, Icahn says to Tim Cook:  "I don't get mad, i get stabby".  Tim Cook should make a run for it!!!

disabledvet's picture

more like an Appliance.

Carl should demand a "Harley Davidson Edition" I-phone.

slaughterer's picture

Nice to see I-Con get it stuck to him.  

TruthInSunshine's picture

Carl iCon just tweeted:

- Had lunch with Tim Cook today. He's on board w/a trillion $ buyback.

SheepDog-One's picture
    1. Bite the big Apple iCahn, don't mind them maggots!
Obchelli's picture

Love it where Satan like Icahn is loosing i-money. He can i-tweet all he wants right now from his i-crap...

SheepDog-One's picture

I'd hope the old scumbag is having an aneurism right now, but was probly selling hand over fist the whole time anyway.

knukles's picture

That's funny
Wishing someone an aneurism.

SheepDog-One's picture

Do you think any of them think any differently about you or me?

knukles's picture

Probably not; but betcha they can't spell aneurism.

kliguy38's picture

starting the long multi year roller coaster ride to hell

Dr. Engali's picture

Okay here's a clue Apple and this one's on me....... Bigger fucking screen, not just more of the same. Oh and tell iCan't to bugger off.

Cojones's picture

How about an iPhone Air? Bigger screen, the iPhone has the biggest screen-to-volume ratio since the Nokia 3210.

thecoloredsky's picture

Yeah but then the kids won't be able to fit the bigger phone in their skinny jeans 

Yen Cross's picture

     The iRoaches are scrambling<>



  S&P 500 1,778.40  1,781.56  1,781.9 0 1,777.20  [-3.16 ]-0.18%   21:53:
B2u's picture

Fuck you Icahn...

Carnegie_IB's picture

what confirms that Icahn is net long? i speculate he is net short. who puts on a $1b trade and tells everyone. 

what everyone else knows, is not worth knowing. 

trade your own ideas, not someone elses. 

Occams_Chainsaw's picture

My i-Phone just stopped dispensing magic skittles.  What gives?

LawsofPhysics's picture

Wake me when it "tumbles" back to $100 a share.  This is simply more profit taking.  We can do that, at least until "selling" is outlawed.

SheepDog-One's picture

So who are all the greater fools sucking up the wises 'profit taking' here after hours? Doesn't add up.

LawsofPhysics's picture

Fund/pension managers who can't trade during the day, but rather place orders during the day and excute the order at the close.

Pensions still need "returns", or so I have been told.  What I want to know is what they will buy next.

JustObserving's picture

Assist the NSA in spying on your customers and pay the price:

The NSA Reportedly Has Total Access To The Apple iPhone

“DROPOUT JEEP is a software implant for the Apple iPhone that utilizes modular mission applications to provide specific SIGINT functionality. This functionality includes the ability to remotely push/pull files from the device. SMS retrieval, contact list retrieval, voicemail, geolocation, hot mic, camera capture, cell tower location, etc. Command, control and data exfiltration can occur over SMS messaging or a GPRS data connection. All communications with the implant will be covert and encrypted.”

“Do you think Apple helped them build that?” Appelbaum asks at one point in his talk. “I don’t know. I hope Apple will clarify that… Here’s a problem: I don’t really believe that Apple didn’t help them."

knukles's picture

Those fucks have the same for everybody and everything.
Quit speculating upon the breadth of their information collection capabilities.

If it's connected even peripherally to the ether-space, they own it.
Lock, stock and barrel.

Pre and post encryption, typed but not sent...
Viewed securely even via TOR, etc.
They Own It


Now here's the sad part.
That means they already know about every last cent of money laundering, financial malfeasance, cyber crime, wire fraud, you name it
Every last event on the fucking planet Earth.
And they will come get you, peasant, not the real malefactors.

Sometimes Paranoia is Correct
They hate you because you exist is a great starting point

fuu's picture

And still the morons line up for new phones.

Stoploss's picture

If somebody hates you for no reason, you give that motherfucker a reason...........

Racer's picture

Apple: the stock pick of an amoeba

papaswamp's picture

By the way Nasdaq was acting all day, the report was already leaked.