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.

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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 - 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.

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