This page has been archived and commenting is disabled.

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.


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 01/27/2014 - 17:50 | 4372637 Cult_of_Reason
Cult_of_Reason's picture

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

Mon, 01/27/2014 - 17:52 | 4372643 zorba THE GREEK
zorba THE GREEK's picture

Apple becomes applesauce. 

Mon, 01/27/2014 - 17:53 | 4372647 Obchelli
Obchelli's picture

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

Mon, 01/27/2014 - 17:59 | 4372674 TruthInSunshine
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.

Mon, 01/27/2014 - 18:02 | 4372687 ParkAveFlasher
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.

Mon, 01/27/2014 - 18:48 | 4372824 CognacAndMencken
CognacAndMencken's picture



10Y Apple chart; ~4700% increase:


10Y Gold Chart; ~300% increase:


Mon, 01/27/2014 - 19:38 | 4372849 TruthInSunshine
TruthInSunshine's picture

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

Mon, 01/27/2014 - 20:17 | 4373090 Occident Mortal
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.

Mon, 01/27/2014 - 21:47 | 4373459 Abbie Normal
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%

Tue, 01/28/2014 - 08:48 | 4374472 Agstacker
Agstacker's picture

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

Mon, 01/27/2014 - 18:03 | 4372691 tawse57
tawse57's picture


Mon, 01/27/2014 - 18:07 | 4372698 TruthInSunshine
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.

Mon, 01/27/2014 - 18:08 | 4372714 johngaltfla
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.

Mon, 01/27/2014 - 18:14 | 4372728 synergize
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...

Mon, 01/27/2014 - 18:40 | 4372806 Son of Loki
Son of Loki's picture

MONKEYHAMMERED on huge volume down.

Is this the Big Kahoney?

Mon, 01/27/2014 - 18:57 | 4372853 duo
duo's picture

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

Mon, 01/27/2014 - 19:01 | 4372875 TruthInSunshine
TruthInSunshine's picture


Tue, 01/28/2014 - 03:32 | 4374100 matrix2012
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!

Mon, 01/27/2014 - 18:18 | 4372740 aVileRat
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.


Mon, 01/27/2014 - 18:49 | 4372834 therover
therover's picture

The iToaster ? Only $750

Mon, 01/27/2014 - 22:02 | 4373527 post turtle saver
post turtle saver's picture

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

Mon, 01/27/2014 - 17:58 | 4372681 max2205
max2205's picture

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

Teller says no iPhone for you!

Mon, 01/27/2014 - 17:52 | 4372649 negative rates
negative rates's picture

You win some, you lose some, Carl.

Mon, 01/27/2014 - 18:40 | 4372809 Leonardo Fibonacci2
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!!!

Mon, 01/27/2014 - 19:23 | 4372940 disabledvet
disabledvet's picture

more like an Appliance.

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

Mon, 01/27/2014 - 18:16 | 4372733 slaughterer
slaughterer's picture

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

Mon, 01/27/2014 - 18:24 | 4372753 TruthInSunshine
TruthInSunshine's picture

Carl iCon just tweeted:

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

Mon, 01/27/2014 - 17:54 | 4372641 SheepDog-One
SheepDog-One's picture
    1. Bite the big Apple iCahn, don't mind them maggots!
Mon, 01/27/2014 - 17:54 | 4372659 Obchelli
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...

Mon, 01/27/2014 - 18:07 | 4372680 SheepDog-One
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.

Mon, 01/27/2014 - 18:19 | 4372743 knukles
knukles's picture

That's funny
Wishing someone an aneurism.

Mon, 01/27/2014 - 19:20 | 4372930 SheepDog-One
SheepDog-One's picture

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

Mon, 01/27/2014 - 20:26 | 4373120 knukles
knukles's picture

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

Mon, 01/27/2014 - 17:52 | 4372644 kliguy38
kliguy38's picture

starting the long multi year roller coaster ride to hell

Mon, 01/27/2014 - 18:03 | 4372655 Dr. Engali
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.

Mon, 01/27/2014 - 18:51 | 4372837 Cojones
Cojones's picture

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

Mon, 01/27/2014 - 21:16 | 4373326 thecoloredsky
thecoloredsky's picture

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

Mon, 01/27/2014 - 17:56 | 4372656 Yen Cross
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:
Mon, 01/27/2014 - 17:54 | 4372661 B2u
B2u's picture

Fuck you Icahn...

Mon, 01/27/2014 - 17:55 | 4372662 Carnegie_IB
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. 

Mon, 01/27/2014 - 17:55 | 4372664 Occams_Chainsaw
Occams_Chainsaw's picture

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

Mon, 01/27/2014 - 17:56 | 4372667 LawsofPhysics
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.

Mon, 01/27/2014 - 18:13 | 4372723 SheepDog-One
SheepDog-One's picture

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

Mon, 01/27/2014 - 18:31 | 4372778 LawsofPhysics
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.

Mon, 01/27/2014 - 18:10 | 4372668 JustObserving
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."

Mon, 01/27/2014 - 18:26 | 4372758 knukles
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

Mon, 01/27/2014 - 18:42 | 4372816 fuu
fuu's picture

And still the morons line up for new phones.

Mon, 01/27/2014 - 20:11 | 4373076 Stoploss
Stoploss's picture

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

Mon, 01/27/2014 - 17:57 | 4372669 Racer
Racer's picture

Apple: the stock pick of an amoeba

Mon, 01/27/2014 - 17:56 | 4372671 Lendo
Lendo's picture


Mon, 01/27/2014 - 17:58 | 4372675 papaswamp
papaswamp's picture

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

Mon, 01/27/2014 - 18:09 | 4372712 Racer
Racer's picture

What isn't leaked?

Mon, 01/27/2014 - 18:27 | 4372767 knukles
knukles's picture

At my age I leak all the time.
Mrs P says she can't take me anywhere anymore.
Probably has more to do with my benavior than tinkling my pants....

Mon, 01/27/2014 - 17:58 | 4372676 Rainman
Rainman's picture

Hah .....muppets will be camping out to buy Wearables I, II and III while Icon loots the cash. Screaming Bullish !!  

Mon, 01/27/2014 - 17:59 | 4372684 seek
seek's picture

Uh, he expects iPad sales to drop only 1M units from the strongest consumber quarter (Q4) to the weakest (Q1)?

The last 3 years Q1 iPad ships fell 36%, 23%, 15% respectively. There's lots of hopium in his Q1 numbers.

Mon, 01/27/2014 - 18:00 | 4372686 Rathmullan
Rathmullan's picture

Jobs' ghost. For if Steve Jobs were around to witness carly ichan't's shenanigans he would booby trap the place - absolutey torch it - scorched earth. 

Mon, 01/27/2014 - 18:03 | 4372693 ParkAveFlasher
ParkAveFlasher's picture

He didn't have to booby trap.  It is a machine that only he could pilot.  You can paint Van Gogh by numbers, but you can't call yourself a master, or even an artist for that matter.

Mon, 01/27/2014 - 19:01 | 4372869 tip e. canoe
tip e. canoe's picture

looks like the Reality Distortion Field can't cheat Death after all.

Mon, 01/27/2014 - 18:02 | 4372689 SheepDog-One
SheepDog-One's picture

Hmmm....seems its time for another iCahn lunch with the B.O.D. over at Apple! Maybe instead of the gay 'iWearables, they need actual iEdibles!

Mon, 01/27/2014 - 18:02 | 4372690 22winmag
22winmag's picture

If I never hear about iCrap again, it will be too soon.

Mon, 01/27/2014 - 18:04 | 4372694 tawse57
tawse57's picture

Tomorrow just got interesting in the global markets.

Mon, 01/27/2014 - 18:06 | 4372699 Flounder
Flounder's picture

So not a growth stock anymore?  A 3% div yld would put AAPL shares at $406.  They could always expand their product line into useful cruise ship attire.


Mon, 01/27/2014 - 18:07 | 4372708 Spungo
Spungo's picture

They should have an iDildo shaped like Steve Jobs' dick so Apple fanboys can go fuck themselves

Mon, 01/27/2014 - 22:04 | 4373531 ParkAveFlasher
ParkAveFlasher's picture

I'm sure there's an app for that.

Mon, 01/27/2014 - 18:07 | 4372710 shutdown
shutdown's picture


Mon, 01/27/2014 - 18:08 | 4372713 q99x2
q99x2's picture

If Apple starts manufacturing in the US I don't see how they will find enough Chinese laborers here.

Mon, 01/27/2014 - 18:12 | 4372721 zorba THE GREEK
zorba THE GREEK's picture

99x2... yuk yuk

Mon, 01/27/2014 - 18:29 | 4372737 knukles
knukles's picture

Just sprinkle a small trail of MSG, Hansel and Gretal style

Mon, 01/27/2014 - 18:13 | 4372722 I am Jobe
I am Jobe's picture

Dammit, APPLE Sheeples go help the company , buy more crap till you are fucking broke

Mon, 01/27/2014 - 18:12 | 4372724 Bangin7GramRocks
Bangin7GramRocks's picture

Not trying to be a dick, but isn't $12 billion in profit for 3 months a good thing? That's 800 quarters of profit for Amazon and Neflix!

Mon, 01/27/2014 - 18:43 | 4372774 Rainman
Rainman's picture

It cool alright < but I still have no idea what any of these momo honey stawks should be properly priced at going foarward  > High command has ordered that GAAP is accounting kryptonite now be avoided at all costs. 

Mon, 01/27/2014 - 19:23 | 4372941 SheepDog-One
SheepDog-One's picture

What, you seriously thought the MOMO's are built upon fundamentals and honest accounting?

Mon, 01/27/2014 - 18:14 | 4372725 pragmatic hobo
pragmatic hobo's picture

looks like icahn is dumping.

Mon, 01/27/2014 - 18:16 | 4372732 Yikes
Yikes's picture

Doesn't look like the earnings call is going much better.  Down another 3% after the call started.

Mon, 01/27/2014 - 18:17 | 4372738 syntaxterror
syntaxterror's picture

But, but, but AAPL is gonna have a 4.5" iPhone screen this year! Only 3 years behind Samsung!

Mon, 01/27/2014 - 18:17 | 4372739 esum
esum's picture

can give yo 158.8 billion reasons to like .. supply chain issues can be resolved 

Mon, 01/27/2014 - 18:19 | 4372744 syntaxterror
syntaxterror's picture

Time for new colors! Chrome? Sepia? Faux Stainless? Make it happen iCahn and call the CEO. It's a no brainer!

Mon, 01/27/2014 - 18:26 | 4372748 CitizenPete
CitizenPete's picture

Tomorrow I should receive a free iPad Air complete with the Verizon monitoring system and NSA backdoor.  My eyes are too old to read ZH on my iPod4 anymore.  Never went into my pocket for either, both freebies plus another iPad for a relative last year.  Their falling off the United Mileage awards tree.


I wish I would have bought the stock back when Forest Gump and Lt. Dan did.

Mon, 01/27/2014 - 18:24 | 4372751 syntaxterror
syntaxterror's picture

How are iPad AIR sales? That's the product that should have fared the best.

Mon, 01/27/2014 - 18:24 | 4372754 Nana
Nana's picture

I-Cahn c**t

Mon, 01/27/2014 - 18:25 | 4372755 Nana
Nana's picture

I-Cahn c**t

Mon, 01/27/2014 - 19:08 | 4372760 themadhur
themadhur's picture

You can forget India.... smuggling 3,000 kg gold a month (3 tonnes) according to Finance Minister (I'll take the over please, Alex)... no money to buy apples.

Mon, 01/27/2014 - 18:37 | 4372781 ebworthen
ebworthen's picture

Smartphones are a pain in the ass but Android and the Samsung Galaxy line are potentially forming a "Word vs. WordPerfect" tag-team smack down.

(Part of a very interresting article  "A Short History of the GUI and the Microsoft vs Apple Debate".)

Links open in new window/tab.

Mon, 01/27/2014 - 18:40 | 4372810 Blano
Blano's picture

My maff skills say almost 10% down now.

Mon, 01/27/2014 - 18:40 | 4372811 Agent P
Agent P's picture

"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"?"

Math question: How long does it take for a one year product launch cycle + a two year product contract cycle model to disappoint?  Throw in the fact that the launch cycle this time around was essentially "Look, new colors!" and recalculate.  

Frankly, I'm surprised the sales were as good as they were.  Just sayin'.

Mon, 01/27/2014 - 18:54 | 4372844 Rainman
Rainman's picture

An advanced level human accounting dweeb might have figured out how to channelstuff on future orders knowing future guidance is negative. But I seriously doubt it. 

Mon, 01/27/2014 - 18:43 | 4372817 Son of Loki
Son of Loki's picture

"if you want your Apple, you can keep your Apple."

Mon, 01/27/2014 - 18:46 | 4372833 syntaxterror
syntaxterror's picture

"if you like your iOS 6 colors, you can keep your iOS 6 colors."

Mon, 01/27/2014 - 21:53 | 4373495 Abbie Normal
Abbie Normal's picture

Actually, you can't.  Once you upgrade to ios7, there's no way to go back, which pretty much rendered our 4S useless.

Mon, 01/27/2014 - 18:56 | 4372846 syntaxterror
syntaxterror's picture

Apple has more cash reserves than all of the TBTF banks combined. And Tim Cook? Warren Buffett will hire him if Apple don't want him.

Mon, 01/27/2014 - 19:03 | 4372879 Racer
Racer's picture

"Analyst asks about stock buy backs. Cook reiterates he's a big believer in buying back stock, whether it goes up or down"

Mon, 01/27/2014 - 19:14 | 4372908 franzpick
franzpick's picture

Samsung gives good phone.

Apple gives good phone.

Mon, 01/27/2014 - 19:36 | 4372983 rajenk
rajenk's picture

More unhappy customers. This is just the start, hey days for AAPL are gone.

Mon, 01/27/2014 - 19:58 | 4373042 devo
devo's picture


Mon, 01/27/2014 - 20:31 | 4373149 NEOSERF
NEOSERF's picture

buy Crox...Crapple

Mon, 01/27/2014 - 20:51 | 4373219 GK
GK's picture

AAPL support levels for tomorrow

Mon, 01/27/2014 - 21:30 | 4373394 TheBird
TheBird's picture

Furthering Apple's trouble is that iPhone and iPad launches in fall 2013 were nearly simultaneous around the globe, unlike 2012 and 2011 where roll out was much more staggered.  I expect the next two quarters are going to also underperform.

Mon, 01/27/2014 - 21:55 | 4373504 Abbie Normal
Abbie Normal's picture

I guess those 12 people that stood in line for a new iphone in Beijing weren't counted.

Tue, 01/28/2014 - 00:21 | 4373931 ms8172
ms8172's picture

Oh Carl....cry me a river baby!!! LOL

Tue, 01/28/2014 - 06:17 | 4374319 Disenchanted
Disenchanted's picture

Carl sez: "Thanks muppets, for buying my dump. Smell me later."

Tue, 01/28/2014 - 08:51 | 4374478 Watchingtheweasels
Watchingtheweasels's picture

Apple is in real trouble. Since Jobs' death they have been focused on defending margins and losing market share in the process. They have done nothing revolutionary. Recent revelations have the platform being as compromised as the Android platform in terms of security (which still, even after all this time leaves Blackberry and their Q/Z series phones as the only really secure option for corporate or personal mobile communications).

Eventually all this is going to put them back in the same position they were in in the early 90s where the Mac represented such a small space in the marketplace the company nearly died. The improvement in the capabilities of Windows with the release of 98 and XP had a lot to do with that. The improvement in the capabilities of Android along with better hardware has a lot to do with the present situation.

The Microsoft / Windows 8.1 / Surface platform with its detachable keyboard/tablet combination has already taken the next step that the iPad / Macbook platforms should have taken a long time ago. Heck, even Ubuntu/Unity is better positioned than Apple for the next 5 years (if they could just actually get people to manufacture and release tablets with that OS on them...)

Tue, 01/28/2014 - 11:59 | 4375280 realitybiter
realitybiter's picture

"Bail ins are immoral.  WE CAN'T DO THIS!!"

"it is our only is either us or them."

"It is wrong, I'd rather fail this bank then take that measure."

"Come here.  Gaze upon this fine city, which WE created....(push).......................distant splat....

mumbles..."SOB.  never was much of a banker anyway....."

Do NOT follow this link or you will be banned from the site!