Whether or not AAPL's reported sales are accurate or merely the latest manifestation of channel stuffing is irrelevant: what matters to the sellside is that upside momentum, at least for a few days, seems to be back in the biggest tech stock and the immediate result is quite predictable - the sellside resumes piling in and selling their axed exposure to clients. In other words, they are coming out with increased price targets on the stock, most notable this morning from Goldman which just hiked its AAPL target from $530 to $560.
"As an anecdotal aside it was interesting that Apple yesterday reported above consensus iPhone sales on the first weekend of the new launches. When I upgraded in a phone shop on Friday there was no queue, a load left in stock and a number of extra staff put on who were standing around doing nothing. They said they all arrived early to handle the queues, only to find that their first customer didn't arrive until 30mins after opening. So my experience seemed to be different from the rest of the world as Apple climbed +4.97% yesterday after the impressive sales numbers and also guidance at the top of the range from the company on revenues and gross margins." - Deutsche Bank's Jim Reid
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Dubbed as a "game-changer" despite being around on devices for years (Motorola Atrix anyone); a 'paradigm' shift in mobile payment security; and a revolution in handheld devices by any and all investors bullish of the stocks; Appl's fingerprint-scanning TouchID is everything you want it to be - apart from secure. As Der Spiegel reports, the well-respected German hacker group Chaos Computer Club (CCC) has thrown a wrench in the works by bypassing the smartphone's much-heralded fingerprint scanner just two days after launch. The CCC, as the clip below illustrates, successfully bypassed the biometric security system, called TouchID, using "easy everyday means." A CCC spokesperson noted "It is plain stupid to use something that you can't change and that you leave everywhere every day as a security token," So, the question now is - will the NYPD demand everyone downgrade their phones?
In case there was any concern that the umbilical cord between US corporations and government has never been thicker (especially in light of recent revelations that the NSA views the AAPL Borg Collective as useful "zombies", abusing their credit cards just so they can be spied upon in new and improved ways) the New York Police Department is here to remind everyone of just that.
New Revelations Are Breaking Every Day
UPDATE: AAPL +5.7% on revised guidance
Despite concerns about supply (and 'change') the lines we saw on Friday and the disappointments in the UK have been dismissed by the latest Apple press release as opening weekend iPhone sales top their record at 9 million sales (compared with the 5 million sold at iPhone 5 launch and 6-7mm units expectations).
APPLE SAYS OVER 200M IOS DEVICES RUNNING IOS 7
APPLE 9M NEW IPHONE 5S AND IPHONE 5C MODELS SOLD IN 3 DAYS
APPLE SAYS OVER 11M UNIQUE LISTENERS USED ITUNES RADIO
APPLE SEES 4Q REV. NEAR HIGH END OF $34B-$37B, EST. $36.11B
The share price was up over 4.5% from Friday's sub-50DMA close in pre-market trading; but is fading back now.
Amid the media furore over 'lines' of people outside Apple Stores in New York City, we thought this 3-minute clip was a useful reflection of just who it is that feels the need to do this. As Jim Quinn notes, it is "three minutes that will crush any illusions you might have of the masses rising up." ... "we are, like, just, like, everyone, waiting on, like, line for Apple phone 5, like."
Even if they could've hit their revenue targets (whcih they couldn't) or matched Android's tech innovations (which they didn't) they would've been eaten alive by margin compression. Ask Apple, Samsung, Nokia and HTC!
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Imagine for a second you're a terrorist intent on inflicting unimaginable harm on your enemy. Now let's further imagine that your enemy is the United States...
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Those aged 18-34 are overwhelmingly in support of the whistle-blowers and hacktivists that are exposing the corruption, illegal activities and cover ups that are rocking our perceptions of "good" and "evil" within our society.
The number whispered on Wall Street is $10 billion (or $14-$15 if you ask The Saudis), but potential investors in the micro-blogger’s IPO will need more to go on than simple valuation math and guided judgment. As ConvergEx's Nick Colas notes, Tech firms are particularly dependent on innovation and human capital for their viability. So while Twitter may come out with a double-digit billion dollar IPO, Colas points out the most important question – Is it actually worth buying there? The bottom line to the success of thriving tech companies (historically names such as Amazon, Google and Apple) is that they consistently and reliably build products that people want to purchase and use. Colas explores multiple avenues to determine whether Twitter has the engine to do this, or whether it could emerge more “Groupon” than “Google” in the public company tech arena – and the answer lies in how you weigh the pros and cons of our top 10 points related to the social network’s IPO.
It is tough to see the exact catalyst for the collapse in AAPL's share price in recent days (though it is clear that no China Mobile news is not good news) - but then aside from Carl Icahn's tweets it was hard to see what the exuberance in August was. Now a month later, AAPL has retraced all Icahn's gains and then some and is trading at 5 week lows. Today's weakness - in the face of a surging broad market - is being pinned on talk of Chinese telecoms firms cutting subsidies - not exactly strategically in line with AAPL's growth goals. Add toi that Wal_mart is already slashing prices on the iPhone 5C - considerably earlier than normal - and it suggest more of the same from AAPL is not beingmet by exuberant demand.