Apple Blames Earnings Miss On iPhone 5 Anticipation 242
Hugh Pickens writes "Reuters reports that Apple shed more than five percent of its stock price value in after-hours trading after the company reported its second quarterly miss on results in less than a year, highlighting how the Apple brand is becoming less resistant to the economic and product cycles that have plagued rivals. 'Clearly it was a disappointment,' says Channing Smith, Co-Manager of Capital Advisors Growth Fund. 'We expected a lot of consumers will probably delay their upgrade and their purchases until the iPhone 5 comes out. We saw a similar trend occur last year with the iPhone 4S.' Executives acknowledged buyers were refraining from purchases because of 'rumors and speculation' around the iPhone 5, which sources have said will ship in September with a thinner and larger screen. 'The iPhone 5 is already the most hyped device and for it to exceed expectations is going to be really hard,' says BGC Partners analyst Colin Gillis. This is one of many reasons Apple is so notoriously secretive. With the levels of hype that Apple product launches garner, it would undoubtedly crush its own sales if it announced products even months in advance. Instead, Apple slowly and silently draws down inventory in distribution channels, and then the upgraded product is available immediately (or nearly immediately) after it's announced. According to Apple CEO Tim Cook, 'there is an incredible anticipation out there or for future products and as you would expect given what we've been able to deliver in the past.'"
Re:Absolute nonsense (Score:2, Informative)
I don't think there a lot of people activating phones by installing ROMS. Even Cyanogen, the most popular ROM has only 2.7 million total installs [cyanogenmod.com]. That's what? 3 days worth of Android activations. A drop in the bucket. The average user has no knowledge in flashing ROMS and installing even factory images.
Re:Its a miss... (Score:4, Informative)
"become slightly less profitable"
Apple's third quarter profits were up year over year from something like $7 and change per share to $9 and change.
Investors dumped the stock because profits didn't go up as much as their guesses. Apple themselves guessed a little low, as usual.
Re:Its a miss... (Score:2, Informative)
But you are wrong. They exceeded their own guidance in all categories (revenue, margin and earnings).