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Apple Plunges Despite EPS Beat On iPhone Sales Miss, Drop In China Sales, Weak Guidance And Strong Dollar Warning
Apple is important. Perhaps the most important company not only for the Dow Jones, but because it also happens to be the largest company by market cap, in the world. As such nobody will be happy that moments ago AAPL reported results which were in a word, lousy.
It wasn't so much the earnings, because the EPS of $1.85 was a modest beat of expectations of $1.81, while revenues also beat consensus of $49.4 billion fractionally, printing at $49.6 billion; the margin also beat slightly coming at 39.7% above the exp. 39.5%.
The problem was in the detail, with 47.5 million iPhone shipments missing expectations by 1.3 million units, even as both iPad (whose ASP came at $415 below the $426 expected), and Mac units coming in as expected.
But the biggest surprise was in China, where as we warned previously, the Apple euphoria appears to have ended with a bang, with greater China sales tumbling by 21% from $16.8 billion to $13.2 billion. And keep in mind this was in the quarter when the Composite was hitting multi year highs, and the July crash was not even on the horizon.
As for the cherry on top it was the company's guidance which now sees Q4 revenue at $49-$51 billion, or below the $51.1 bn consensus estimate, with the CFO adding that the strong USD is finally getting to the company, warning that Apple "faced a difficult foreign exchange environment."
And all this happened in a quarter in which AAPL bought back $10 billion of its own stock.
The above in charts:
Revenue:
Unit shipments:
Geographic breakdown:
Margins:
Finally, AAPL's net cash (excluding steadily rising debt) remains flat:
As expected, there was no mention of either the iWatch or Apple TV. Or a new buyback.
* * *
And here, from the WSJ, is a reminder why AAPL is so very crucial to not only the tech sector, but the entire market:
No company produces bigger profits than Apple Inc. Likewise, no company contributes more to the profit picture of the S&P 500 than Apple.
Apple is a leviathan of a company that is a major contributor of profits in corporate America. Its fortunes, also, are inextricably intertwined with two of the biggest growth markets that exist, smartphones and China. That makes it a bellwether. Because of its success, Apple is also an out-sized member of the S&P 500. We noted yesterday that the stock comprises about one percentage point of the S&P 500's 3.5% gain for this year (before Tuesday's selloff). It is also, due to its massive profits and market-cap weighting within the index, the largest single contributor to S&P 500 profits. By a long shot.
Now, there certainly isn't anything to be worried about here. Apple is expected to earn about $1.80 a share, or about $10.4 billion, on nearly $50 billion in sales, and as usual with this company, the only real question is by how far will it exceed Street estimates.
Apple is projected to single-handedly give the tech sector all of its earnings growth this quarter, just edging it up by 0.2%. Without Apple, the sector would see a contraction of 6%.
It has a big impact on the overall market as well. Since the third quarter of 2011, Apple, for every single quarter, has comprised no less than 3% of the S&P 500's operating earnings, according to data from S&P Dow Jones Indices. It accounted for 2.87% of the index's operating earnings of $25.29 in September 2011, and has ranged higher since then. In the first quarter of 2015, it comprised 5.97% of the $25.81 operating profit. In the fourth quarter of 2014, it was 7.62% of the $26.75 profit.
Think of its this way. If all 500 of the companies in the index contributed an even amount, Apple's earnings would account for about 0.2% of the overall profit. On the contrary, Apple is by far the single biggest contributor to the index's earnings. The next largest contributor is J.P. Morgan, which is contributed about half of that, at 64 cents. For comparison sake, this is what other tech names are contributing: Microsoft Inc. (estimated): 52 cents, IBM: 42 cents, Google Inc.: 38 cents; Cisco Systems Inc. (estimated): 32 cents, Intel Corp.: 32 cents.
The result, AAPL is down over 7% after hours (and Nasdaq futures down 1.2%), with the 200DMA serving as support for now, so all those hoping for the "leviathan" break out will have to wait until the next quarter, or the release of the iWatch 2.0, whichever comes first.
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everything is awesome, stop being racist
WHAT I SAID!
http://www.zerohedge.com/news/2015-07-21/are-tech-giants-new-buildings-s...
Those S&Pee futures no like it mon..
http://www.investing.com/indices/us-spx-500-futures-streaming-chart
called this one, tyler ignoring all the positive earnings but would definitely write a big article about aapl slamming the tech giant as usual. And sure enough… it’s over for aapl!! this time for definite double sure, china cratering (again)
“In the third quarter our year-over-year growth rate accelerated from the first half of fiscal 2015, with revenue up 33 percent and earnings per share up 45 percent,” said Luca Maestri, Apple’s CFO. “We generated very strong operating cash flow of $15 billion, and we returned over $13 billion to shareholders through our capital return program.”
AAPLOCALYPSE!
I think the most interesting part of all this is them blaming the "strong dollar". We haven't devalued our currency to apple's satisfaction yet, so we'd better get to printing again. No doubt some of that fresh money will wind up purchasing APPL shares. Despite all the BS talk to the contrary, serial money printing doesn't help the common man, but it sure as shit helps apple's stock price. And since apple's stock price is one of the main things holding up the clownshow we call the stock market, I wonder who the central planners will listen to...
For the record, i submit..
http://www.zerohedge.com/news/2014-10-20/apple-beats-top-and-bottom-line...
http://www.zerohedge.com/news/2014-09-04/why-apple-falling
http://www.zerohedge.com/news/apple-falls
http://www.zerohedge.com/news/2012-10-25/apple-investor-anxiety-its-high...
http://www.zerohedge.com/news/applesoft-it-different-time
http://www.zerohedge.com/news/apple-misses
Fair enough James but what about this?
http://www.zerohedge.com/news/2015-07-21/take-cover-wall-street-breaking...
Relax guys, it's only a flesh wound;)
hear ye hear ye..
From hence to forth all ye hedge funds, mutual funds and pension fund are to cease the sell of any APPL stock until further permission is granted.
thank you,
Chairman Yellen
Fair enough James but what about this?
Is your point they don't like goog either? Tyler loves immediately banging out a goog miss almost as much as aapl.
http://www.zerohedge.com/news/2013-07-18/google-microsoft-miss-top-and-b...
http://www.zerohedge.com/news/2012-10-18/here-why-goog-has-plunged-10-so...
Didn't jump at the chance to post googs q2 last week (earnings beat, rev miss).
There's never been a better time then now to by stawks ... before they plunge. Don't miss out on feeling like a total sucka ... so buy buy buy!
Statistically and simple common sense suggest market is getting close to a crash, sure. For people who've been calling a crash every week since 2009, congrats!! On a long enough timeline everyone is right.
Come on dude...nothing has been the same since 2009. There are no fucking markets anymore.
It is all an illusion and farce (ZIRP, NIRP, QE4ever, FED buying equities, against a blown out $4T+ balance sheet, suppression of PM's, etc...).
+1000
Hear Here!!
Politicians work for the presses...long guillotines!!!
Rips
It is all an illusion and farce (ZIRP, NIRP, QE4ever, FED buying equities, against a blown out $4T+ balance sheet, suppression of PM's, etc...)
That may be true, but this is the world we exist in. People talk similarly about various things and I always think, what am I going to do about that? Fire off angry letters to government officials? I'm small fries out here and i just try to work with things as they are. Have I been burned multiple times shorting NFLX out of spite? Sure.
Today it is absolutely not fair, the world you are being dealt. There are many ways to deal with an unfair world, one may tune out, drop out, run away. One may get angry, one might fight. One might do what ultimately I did, accept the world for what it is, work hard to exploit the opportunities it presents and try to do so in as just a manner as possible.
-Michael Burry (UCLA commencement)
Things went screwy way before 2009 - more like 1995. Everything that has happened since has been an aftershock of either the dot com crash or 9/11.
Man, you're weird. Do you roll-around in bed with your i-phone and pretend, well, you know...? You're worse than my 13 year old daughter. Apple is a FAD. Grow up and get some INTELLIGENCE, fool....
i know, they hit apple a lot on here. But I think it goes with the theme of the site : on a long enough timeline...
apple is a case study in irrational exuberance, and its worth pointing out how just this stock alone can cause the entire market to rise and fall. and how the entire ediface rests on just a handful of tech stocks. I think they also point it out due to the comparison between now and the tech bubble popping.
The company lost $66 billion in value in 8 minutes. Who's ignoring what here!
True. But only in dollars. The Fed will fix that shortly.
Two weeks ago aapl was the same price it is now.
I LOVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVVEEEEEEEEEEEEEEEEEEEEE IT... Time to bring this bitch down and the fucking "market" with it.
How much AAPL and all the component suppliers are sitting in margin accounts in the US and China!
If 20% of China is halted.... then you sell what you can sell, not what you should sell! See Gold....
Uh oh :O
no mention of how many gay apple watches they sold either
If they had strong sales in watches they would have released the numbers, this is indication of atrocious numbers.
Cook says it's already a $1Bn business, estimates are in the 2m units range. Comparable to the debut of the iPad. To put into perspetive, watch has been on sale 64 days, last year ALL "smart wearable bands" sold 4.6m globally.
That said I'm skeptical on it.
Bullish !
APPL run buy a fool too stupid to know where hi dick was supposed to go.
Strong dollar needs to fucking die already.
All that cash it keeps overseas is also worth a lot less in USD than a year ago
The "overseas" cash is actually in the US, and stored in US dollar denominated assets.
Apple doesn't matter.
No rate increases even by September 2016. Fuck you, liar, Hilsenrath
ya that was what i got out of that "strong dollar" nonsense too. Just another excuse for the fed to delay a little longer
..... ' all glory is fleeting '... sayeth Gen. Patton
The NASDAQ opening down a THOUSAND POINTS OF LIGHT tomorrow would MAKE MY FUCKING DAY.
Poor Tim Cook, the chosenites are trying mightily to throw him under the bus to make way for an Ivy League crook. Besides, the Gates are Bilderbergers. Doubt if you choose, but hide and watch.
iOwnnotasingleappleproduct.
I want to buy an iEye. I wish Apple would make it. Then, I could go in to an Apple store and say to the clerk, "I'd like an iEye, captain!" Oh, the hilarity!
Perhaps an Ianus, Apples new line of replacement assholes.
How much RAM ?
Upgrades available on Ram and Hardrives.
Nah, dude. We'll never be in short supply of assholes in this world. Bankers, politicians, para-mili-police, lawyers - always an asshole to be found, whether you want one or not.
You forgot doctors.
How many doctors dare to be anti-corporate and thus risk their paycheck for your health? How many doctors question the pseudo-science behind vaccines or chemo-therapy? They all know where the red lines are, for their job security, hence they never cross any of the ones labeled 'conspiracy theory'.
Mainstream doctors are pathetic, preening, holier-than-thou assholes.
+100
look into how mainstream medicine treats Lyme disease, the largest growing epidemic in this country and it'll tell you all you need to know about them.
The pseudo-science of vaccines - really?! Chemotherapy is hit&miss because all cancers are different, but vaccines are unquestionably a huge net benefit. The people on this site... damn.
Vaccines are a perfect example of how doctors are total assholes.
A significant number of people and children get HUGE adverse reactions from the mercury and other poisons in those vaccines. Their lives are RUINED: in some cases they are crippled for life.
And doctors don't care. They don't stop. They don't question what they are doing.
Nope! The orders came from up-top that everyone needed to be sterilized - oops - vaccinated, and no one is going to pay you a six-figure salary just to sit on your ass, so doctor better get out there and SELL THOSE VACCINES!
Cops are on a ticket-quota, while doctors are on a poison-injection-quota. Any of them who balk at this get harshly punished, only doctors start off in huge debt (and sleep deprived), so it is particularly hard for them not to become huge assholes.
Only one solution for Janet and the Fed bros, crush the dollar, i.e., MOAR QE!
ctrl-P, bitchez.
No iWatch in my life.
BS Bernanke
What is Facebook contributing with since they are valued almost 1/3 of Apple?
I'm not an AAPL stooge but come on, the street hammering AAPL while pumping up GOOG over their results?
If a company doesn't make much (or any) money but promises that they will someday, there's still hope. But for a company that does make money, just not as much as expected, there is no longer any hope when they miss the (already lowered) targets.
Cook recently said of the iwatch, there is now sufficient supply to meet demand. But what if the demand was far less than the projection?
Nah, don't think I'll sell just yet.
http://finance.yahoo.com/q?s=AAPL
not buying the watch, though.
stupid.
The chinese can't margin their iphones to buy stawks?
Strong Dollar Warning?
Apple manufactures its products in China and does not patriate its overseas profits. So how possibly could a strong dollar impact sales? Since Apple does not source materials or labor for its products in the USA, the the US dollar has no impact on its manufacturing costs. I presume its the case of "Blame" someone else syndrome.
While not a direct comparison to iPhone, here is a link to how Huawei phone compares to Samsung and LG:
http://www.androidauthority.com/best-4g-galaxy-s6-v-huawei-p8-v-lg-g4-61...
its like Bad weather and the GDP miss
You got that right !
Apple is a US based company so it reports in US dollars. Therefore when calculating the balance sheet, all assets are reported in US dollars, regardless of where in the world they are. A stronger dollar makes those assets look less valuable. Besides, those currency exchange "losses" help reduce the tax liability.
Did the cult following Apple Watch serfs receive the devastating alert?
ifuckingdontcare
iPhone channel stuffing?
Inventory dropped 1 million units vs last quarter, that is the opposite of channel stuffing.
anyone who didn't buy an iPhone last quarter, raise your hand
I bought a new BlackBerry Passport for my Christmas gift and gave my wife the BlackBerry Z10 candy bar styling. She loves the productivity of phone. She often uses my phone to see the bigger email viewing experience.
WORK WIDE stories with BlackBerry Passport - YouTube
When Blackberry wouldnt share all info from users like APPLE....their membership to the printing press club expired. I like my z10.
Why cant you take a battery out of an i product...cause it listens to you all the time.
RIPS
Rumor has it, iPhone can determine Tim Cooks anal sperm count during anal sex.
Nah...APPL will come out some new half assed trinket, and it's devotees will sleep on the piss covered sidewalks for weeks to buy it.
Their sales will skyrocket and all will be right with the world again!
So simple even a moron could do it.
A 'must-have' wearable is at lesat 3 years away.
Apple was Steve Jobs. He will be missed dearly!
Tim Cook - CEO of Apple says HIS Apple watch has 5000 apps. LOL...must be the gayness of the whole thing.
And with as low as 3 hours run time, the iwatch battery will last almost long enough to cycle through those apps.
Only a matter of time before Apple's gross profit margins are trashed by competition
Only a matter of time before Apple's gross profit margins are trashed
China sales doubled. Apple has seasonal sales - you have to compare vs a year ago not vs last quarter.
And whoever just downvoted me is even worse at math than the guy who wrote the article.
Just told to "stop living in the past" actually.
Of course in the future....
WERE ALL DEAD!
Roll-arounder! Does the i-phone swallow? Fool!
Please no negative articles and comments or you will be labeled a RACIST !
At one point in after hours AAPL lost more than 63 billion dollars in market cap
That's enough to buy 'Lockheed Martin'
Huawei revenue up 30% on smartphone, equipment growth
CNET - 1 day ago The NSA and war mongers pushed the Icult into a RIMM NOK position remember Tim Cook is from IBM been dead money for years AAPL and all the TECH have FX problems aka Irish with double dutch.... not just apple but Brenton woods and incompetent FED issue.. AAPL is so yesterday.... The CMGI of this NASDAQ bubble.Android oems make nothing on their phones. Profit margins are completely crushed. AAPL makes literally 90%+ of the overal phone profit pie worldwide. That is stunning.
And people who buy them are IDIOTS. Your point?
Great! Buy the fuckin dip!
They'll find Bin Laden again and Spoos will close plus 30.
Since jobs untimely demise I had a hunch Apple would start to go downhill. Especially since Tim Cook had to announce to the world that he is gay and that was god's biggest gift to him (what? getting it up the pooper is god's gift?!).
I say fuck you (not really) and the Apple Watch is a dud. Apple pay is a dud. Better shape it up or Apple will go the way of Nokia!
Anyone wanna bet Apple recovers all this loss within 15 days?
days or hours? Lol
I will bet the central banks will try there best.
By Friday.
zh has a real bug up its arse about apple for some reason {I own samsungs now fwiw} and while the fanboys are irritating... software and hardware wise - apple is very solid.
Anyone who switches from apple to android will note the browser crashes and excess of settings to tweak.
anyone going android to apple will find it refreshingly user friendly and stable.
that's just how it is - apple's software is still better.
Samsung will likely overtake them at some point, but not sure why anyone here would be rooting for that.
shrug.
Some good points. But I would argue that Apple will take down Apple. Watch.
My iPad is a pain. I think I'd buy a normal laptop next time round. They never used to crash. This does and it's double the price.
Die hard MORON...
They introduce a new 'I Phone' every 8 months to a year and each time they change it slightly and the idiot Cult Members that want to sniff a pair of the CEO's underwear will sleep on garbage and piss soaked sidewalks overnight just so they can get one.
I'm waiting for their next model - 'I Phone 27 - or - "I Phone" meets the 'Wolf Man'.
Go to China to their factories and be careful you dont get hit by the slave workers jumping off the roofs committing suicide
Apple the biggest slave labor company on the face of the earth and the biggest HYPE company in history
They suck
Apple tent cities will spring up to stage Obama's Apple migration from China manufacturing slaves to United States of America by means of TPP.
Such comedy.
This is all because of that gold watch. Should have made 'em out of paper.
Maybe if the CEO wasnt so preoccupied with stuffing gerbils up his ass he would do a better job running the frigging company
Goes to show - Homos cant run major corporations
Or Countries, look at how bad Obama has fucked up.
Might have to put a buy order in for Icahn Enterprises actually.
Nice company actually.
DEATH to the APPLE TOY COMPANY!
DIE APPLE DIE!
Despite all the CEO's troubles -
'No One knows what its like to be 'Gay' !
The AMI automobile auction is just an hour and a half from now. Yes, I am going. I do not want to buy anything per se that I know of... I just want to see the free market work the way it should. I have cash though just in case. Everyone swings a big dick at these auctions but ZHers swing bigger dicks where ever they go.
I need a flip and the only who can do that for me IS me. I might buy some junk and piss off the Russian wife again.
Peace my friends.
Buy a Ferrari FF. Best bang for the buck.
Prices went retail. I would buy anything I think I can flip but people are full retard. A Cadillac CTS went for $9100 and it was pussy galore all the way. I know because my WIFE was there and blocking my view.:-/ I even managed to set off the alarm on the fucking thing when I opened the door. That car was cool but I already have a woman(who thinks she needs a Cadillac) so I can only have one other secret woman.
The females were all over that car from every age. I will leave that potential experience to some of our young ZHer males. Spanish fly? Yep.
Sales is a good indicator for growth.
Duh!
They will print!
Dude that gross leg click-bait advert makes me sick.. I know it's not real, its' just ugh. I can't even look at the comments without passing by it. Most probably block hostnames of adverts.. I should probably do this too. To keep things on topic, this is one of the rare occasions in which AAPL's BV has declined QoQ - literally not creating value there... A chart of debt to equity would also be funny to see..
Free Iphones in Ferguson! Bamm!
Buy a Blackberry and help support me. I got 5 kids to feed.
It's the only secure phone left out there, from what I've read.
Blackberry is almost done and the other phones are probably secure enoough but the users don't really care enough to take security steps. The scam where iPhones are locked up and held for ransom is funny.
I have a blackberry...
You cant take the battery out of an I anything..cuase its a subsidised NSA lifeline..for your safety.
RIPS
"Apple Plunges Despite EPS Beat On iPhone Sales Miss".....all the way to where the stock was a week or so ago!!!!
BUY MOAR iSHIT!!!! I NEED MOAR iSTUFF!!!!
Tim Cook forecasts a new iBoner in a new stock buyback program.
The Chinese bought and like the iPhone. Now that they've made their choice, and they like it, they don't need to buy anymore, because they'll duplicate it closely with other high quality phones that US buyers will eventually become interested in. Can't say they'll be cheap junk, either. After all, who builds the iPhone?
"Lousy" <= the dumbest description of Apple's earnings in the history of mankind. Tyler, this is so fucking biased. Is there another company in the mother fucking world that made this much money? They made 10.7 billion fucking dollars in the past 3 fucking months!!!!!!!!
How does a stronger dollar negatively impact anything about Apple's operations? All of their employees and manufacturing are outside of the US.
A U$600 iphone costs AU$780 in Australia. Drop the AUS/US exchange rate from 1.3 to 1.5 and now the iphone should cost $900 in Oz. But because nobody will pay that much, it still sells for AU$780, or U$520 -- that's $80 less profit for the fruit.
All of the input costs in non-U$ don't mean anything because it's converted and reported in U$.
Apple has CNBC as their marketing department, how could they possibly fail?
The half bitten Apple represents the the creator of microprocessor : Alan Turing the homosexual
Who died of shame biting the apple laced with poison.
----
Apple represents sin & now perversion
I will never buy any Apple product
Frankly, the only two tech companies I think are worth investing in right now are Apple and Google, since they both are monopolies. In the next market correction, Apple and Google's cash hoards will come in very handy.
Only a moron would invest in those phony companies on Wall Street.