Sorry, Apple Bears. Wrong Again.

I'll admit it: I'm not actually sorry. That was just for effect and a catchy headline.

Apple (Nasdaq: AAPL  ) bears have been running amok for the past couple of weeks, with shares trading as low as $555 yesterday before earnings -- $89 below the $644 all-time high reached recently. Who granted them the freedom to gallivant unsupervised? Thankfully, Apple's second-quarter results are sending them on your way.

Back to back
Following up a first-quarter blowout, we have another blowout on our hands. Revenue jumped 59% to $39.2 billion, while net income soared 94% to $11.6 billion, or $12.30 per share. Compare those to Street estimates of $36.6 billion in sales and $10 per share in profit, and bid the bears farewell.

The Mac maker now has $110.2 billion in cash and investments on the books, but don't worry, it'll start giving some of that back to shareholders starting in the fourth fiscal quarter. Apple sold more than 4 million Macs, growing 7% and outpacing the broader PC market for the 24th consecutive quarter.

USA: No longer the land of opportunity (at least not for the iPhone)
Much of the recent pessimism has been centered on iPhone activation figures coming out of domestic carrier partners AT&T (NYSE: T  ) and Verizon (NYSE: VZ  ) . Both reported sequential drops in activations that skeptics thought spelled trouble for Apple, if their iPhone shares remained relatively stable. Unsurprisingly, this proved to be a bogus assumption.

Carrier

Q4 2011 
(iPhone activations)

Q4 2011 
(% of total)

Q1 2012 
(iPhone activations)

Q1 2012 
(% of total)

AT&T 7.6 million 20.5% 4.3 million 12.3%
Verizon 4.3 million 11.6% 3.2 million 9.1%
Sprint 1.8 million 4.9% 1.5 million 4.3%
Domestic total 13.7 million 37.0% 9 million 25.7%
International total 23.3 million 63.0% 26.1 million 74.3%

Source: Earnings press releases and conference calls. Calendar quarters shown.

Adding Sprint Nextel's (NYSE: S  ) Q4 activations of 1.8 million means that 63% of Apple's calendar-fourth-quarter iPhone sales came from outside the US. Sprint just reported this quarter's iPhone activations, and they actually declined sequentially less than its larger rivals. International iPhone sales comprised 74.3% of unit sales. Echoing this theme, 64% of total revenue this quarter was international sales.

Apple ended up selling a mind-boggling 35.06 million iPhones, easily trouncing the 30 million estimate. The iPhone average selling price, or ASP, ticked down to $647, compared to $659 last quarter and $660 a year ago.

We need more iPads posthaste!
iPad unit sales actually came in a hair shy of expectations, but the iPhone beat more than compensated for the shortfall. Apple sold 11.8 million iPads, a 151% increase, compared to the 12 million that investors were looking for.

iPad ASP dropped more meaningfully than iPhone ASP, from $604 a year ago to $559 this quarter. This was expected as the entry-level price fell to $399 for the base iPad 2 model. CEO Tim Cook conceded that the new iPads continue to face supply constraints, although they're not nearly as bad as the shortages that held back Cupertino last year with the iPad 2 launch.

The latest generation was launched with only a few weeks left in the fiscal quarter. Apple continues to "sell them as fast as [it] can make them." Even now, domestic shipping times for new models span five to seven business days.

No MacBookPads?
Some of Apple's rivals have been exploring hybrid devices, like tablet/laptops, or smartphone/tablet/laptops, and others. Cook shot down the idea of Apple pursuing this type of functionality, saying it would require trade-offs that the company isn't willing to make.

In characteristic dry humor, Cook said, "You can converge a toaster and refrigerator, but those things are probably not going to be pleasing to the user." Don't hold your breath for any MacBookPads.

Settling with Cook
Cook also provided further evidence that the iOS and Google (Nasdaq: GOOG  ) Android patent wars may be winding down. He said:

I've always hated litigation and I continue to hate it. We just want people to invent their own stuff. If we could get to some kind of arrangement where we could be assured that's the case and a fair settlement on the stuff that's occurred, I would highly prefer to settle versus battle. But the key thing is that, it's very important that Apple not become the developer for the world.

That's direct confirmation that Cook's stance differs dramatically from his predecessor's.

You can't spell Apple in China without China
Surprise, surprise. China put up major growth. Greater China chalked up $7.9 billion in revenue, up more than three times relative to a year ago. For the first half of this fiscal year, Apple has garnered $12.4 billion in sales in the region, compared to the $13.3 billion it saw in all of last year.

Cook cited pent-up iPhone 4S demand as a contributor, although the new iPad still isn't shipping yet in Mainland China (it is shipping in Hong Kong, though). Mac growth within China soared 60%, which is helping to drive the 29% Mac growth that Apple saw in its broader Asia Pacific segment. It's a good thing, too, as Mac sales in the Americas are flat.

Time to hibernate for the summer
Once again, Cupertino proves the bears wrong. A little bit of profit taking is expected considering Apple's incredible rally year-to-date, but the iPhone skepticism was clearly misplaced.

I'm not entirely surprised that the iPad came in a tad light, as just two days ago I wrote, "If a large number of would-be iPad buyers were delaying purchases in anticipation of the new model and weren't able to get their hands on one due to shortages, then Apple could potentially come up short with iPad sales."

All things considered, this was a monster quarter. Again.

With international sales comprising 64% of revenue, Apple is clearly an American company set to dominate the world. However, it's not the only one. Here are three more companies born and bred stateside that are tapping into emerging-market growth in much the same way that Apple is. Get the free report now.

Fool contributor Evan Niuowns shares of Apple, Verizon Communications, and AT&T, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Google. The Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Google and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (25) | Recommend This Article (64)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 25, 2012, at 2:09 PM, TMFRhino wrote:

    Very nice summary, thanks Evan!

  • Report this Comment On April 25, 2012, at 5:55 PM, dwatson102 wrote:

    One other thing that I see rarely discussed is the stickiness of Apple owners. 88% of iPhone owners say they will upgrade to another iPhone vs under 50% for other brands. This bodes well for future upgrade cycles and future market shares.

  • Report this Comment On April 25, 2012, at 6:14 PM, COS911 wrote:

    Believe they are missing the boat by not developing the MAcBookPad. None of the pad/laptop combinations developed by other companies has worked well so far, the combination of more powerfull processor, integrated keyboard, and touch screen with iPad user interface could be a business killer. I dumped the MacBook for a PC because the MacBooks I've had just don't last, and with the cost differential it doesn't make sense to pay a premium if it doesn't have longevity. But a MacBookPad (Air) I would go back for. And that type of product could maintain Apple margins if it worked as I think it would, and could be just the thing for the next generation of business productivity improvement. And Tim Cook's toaster/refridgerator comparison is specious at best--more like toaster and oven combination--and when was the last time you saw just a toaster?

  • Report this Comment On April 25, 2012, at 7:43 PM, Vince1172 wrote:

    GREAT points COS!!!

  • Report this Comment On April 25, 2012, at 8:23 PM, bobbyk1 wrote:

    watched a guy on CNBC that said to sell AAPL before earnings.He said since China Mobile is a prepaid service how many could they sell at 5,6,or 7 hundred?Jon Najarian said 25 million.After a moment of silence they cut to a comercial.Priceless.

  • Report this Comment On April 25, 2012, at 9:18 PM, bradeoneill wrote:

    Im a microsoft guy, but i loaded up on aapl when i saw people running for the exits last week. The company produces an excellent product and has a fifth of its value in cash. not to mention the unbelievable cash flow from sales.

    but the thing that I haven't seen people talking about is the cash flow from existing customers the apple store provided a billion to earnings, I see their sales growing considerably over time, especially as people get more comfortable with streaming movies, and ebooks. Apps are like popcorn people buy them while bored at the airport. when the growth story ends we will still see steady streams of income for years to come.

  • Report this Comment On April 26, 2012, at 5:19 AM, ade61 wrote:

    Apple” s Reported Quarterly earnings appear to be Fraudulent.

    The reported earnings claimed by Apple are frankly unbelievable. They want the investors to believe that 35.1 million Iphones were sold in the last Quarter and of course the majority of the iphones were not sold in the United States but overseas. I wonder who is verifying all the millions of Iphone sales that Apple’s is alleging occurred during the last quarter. Definitely not The Security Exchange Commission. It amazes me the short term memory of the public. Less than 4 years ago Wall Street was tanking due to mass corruption. Its apparent nothing has changed. Fortunately, the Government intervened along with the Fed Reserve and bailout though WHITE COLLAR THEIEFS.

    To give you an idea, why I think the reported earnings are fraudulent it would required that four Iphones were sold every second in every day or approximately 358,163 each day of the quarter which is 98 days. The last available information on iphone production was in September of 2010 when Apple was producing a 137,000 iphone per day. Not only does Apples Sales jump by 88% a year it can miraculously increase its production by 210% in a year and half and have not any cost associated with the new production as its net earnings increased by 11% to 31% in its last astonishing Quarterly report. That is interesting as 2011 net income was 20%, I guest Apple has already paid for all recently built factories in China. It is unbelievable you could said it’s a miracle are possible even lies.

    Apple’s alleged Iphone sales are almost greater than the population of California. I am sure Apples next Quarter sales will be greater than the population of California and possible the United States which has a population of 311,591,917, considering its past phenomenal growth rate.

    Who knows in ten years every single person in the whole wide world will have a Iphone, and guess what the price will never be lowered as the demand will never cease, especially when all though extraterrestrial aliens start purchasing though high tech iphones. The Universe is a Big place Brother, Apple will be able to sell Iphones forever. Hey, I just realized the Apple corporation maybe God, it certainly has had many miracles in the last couple years.

    You just have to believe. Keep the faith brethren, Apple stock is going to $1000 per share for sure, maybe by next month. What does Cramer say: Buy-Buy-Buy Buy-Buy-Buy!!!! I know his name is Jim but I think he should change it to Richard so I could call him by the nick name which better describes him which would be Dick.

    I am back; I think that’s what ET said. Sorry, but I haven’t finish my comments, that is if you are still with me and not getting mad, I recently received malicious remarks regarding my other commentary on Apple Capitalization and Stock Price. It kind of makes me feel unappreciated.

    So let’s now investigate where the majority of the Iphones were sold in the last Quarter and why Apple’s Next Quarter guidance is ultra-conservative. The second part of the investigation can be easily discovered as Apple’s recent earnings and profit are definitely fabrications. Its likely Apple’s prior earnings reports are also inaccurate due to the astonishing growth rate. I don’t want to offend anybody and call them lies but when it looks like a Duck and quacks like a duck it’s a Duck, my Friends.

    I did a little research since the analysts say the majority Apple’s expanding earnings will be achieved in third world countries that are economically rising with the help of Wall Street and the Apple Corporation of course. As I recall Apple does not manufacture any devices in the United States anymore. Ultimately, who has control of the tremendous factories which were built by American corporations in China which is a Communist Nation? Do you actually think apple has full control of its factories in China? I think Apple's Manufacture is called Falcon. That Discussion is for another day.

    The manufacturing capabilities of the United States has been diminishing for the last 30 years and we are left with an economy which produces bubble after bubble to provide an illusion of prosperity to all the masses or may just a few, if you are in the right circles that is. However, I think the geniuses on Wall Street say we think they work. We will see how that turns out in coming years.

    Back to the third world and the per captia income which is published by Wikipedia. You can check to make sure I did not misrepresent or make any errors.

    Country POPULATION World Per Captia income

    US Currency

    China 1,347,350,000 19.22% 5,414

    India 1,210,193,422 17.27% 1,389

    Indonesia 237,641,326 3.39% 3,509

    Brazil 192,376,496 2.74% 12,789

    Pakistan 179,381,000 2.56% 1,201

    Nigeria 162,471,000 2.32% 1,490

    Bangladesh 142,319,000 2.03% 678

    Mexico 112,336,538 1.60% 10,153

    Philippines 92,337,852 1.32% 2,223

    3,676,406,634 52.45% 4,316 Average

    According to the various internet sites the iphone 4 is more expensive in these third world countries than in the United States. These countries general population do not have the income to buy a 8G Iphone selling for $788.00 which would take the typical person in China almost two months of income to buy. I don’t think the typical person in China is going to buy the Iphone, especially when there are cheaper alternative smart phones with similar capabilities. Forget about India’s general population buying an Iphone. Possibly, Brazil and Mexico, but in the millions, I don’t think so unless the Iphone price is significantly lowered. The other nation are a no sell, the population cannot afford the cost of the overprice iphone, which it has to be if Apple is producing 350,000 or more units daily. According to Apple‘s recent financial statement, this amount of Iphone is being manufactured.

    This leaves the more affluent people of these nations to buy all the millions of iphones which Apple is manufacturing every quarter. Just as the wealth in the United States has been polarized so has the World's wealth with 2% of the World population owning more than half of global household wealth.

    Considering 64% of Apple’s earnings came from international sales or about 24.5 million iphones, How many people are left in these third world countries that can afford to buy an Iphone? Just look at the annual per capita income of these countries. Hopefully, you will get the picture that Apple has to lower the cost of its product to significantly capture more market share and grow its sales. The market base has to be shrinking considering the unbelievable quantity of iphone sold this last quarter. Who is going to buy the millions of iphone coming into the market without a price cut? Maybe you can tell me.

    Which brings be to my last thought, which I am sure you are glad. When is an audit going to be conducted on Apple to verify their Quarterly reports are not just smoke and mirrors? Don’t be surprised if Apple earnings for this quarter get revised downward. I wouldn’t be.

  • Report this Comment On April 26, 2012, at 6:12 PM, dwatson102 wrote:

    What keeps Apple numbers believable is that every third person I see in the US is holding an iPhone. Most of them iPhone 4's ans 4s's which are distinguished in external appearance from prior models.One of Apple's big manufacturing advantages is that unlike android they make one model. They make it in multiple plants in multiple countries but the total parts they need to manage in the supply chain is miniscule compared to any other manufacturing venture I am aware of. Pretty smart. Then, to leverag even further they leverage components across categories. Ipad 2...A5 processor. Iphone 4S...A5 processor. Memory chips, same. Audio chips the same, Wireless chips, the same. The power they have over suppliers is huge. As are the economies of scale at the suppliers. As a long term participant in this electronics world I have never seen anything even closely related to the efficiencies that Apple has created.

    I have also been in China many times. They have a youth culture with rising income that covets Apple products. A market largely untapped. And yes they can afford it because unlike the US they will buy an iPad before they will buy a car or a TV. BTW iPad is not even released in mainland China yet. it is being smuggled in from HongKong and selling for over $1000. At least for the next couple of years Apples fortunes are up and to the right and very very real.

    Doug

  • Report this Comment On April 26, 2012, at 6:25 PM, jonesscr wrote:

    ade61: Are you trolling? From the looks of it you're remark is also smoke and mirrors. I don't own any AAPL shares and don't plan too anytime soon. I think it's a revolutionary company but to say they are acting fraudulently is all hearsay at the present. If you could provide better statistics than just population figures, which don't say anything at all, then maybe we could have this discussion. However, at this time your many AAPL remarks appear at best confrontational.

  • Report this Comment On April 26, 2012, at 11:15 PM, ade61 wrote:

    To clarify I wrote Apple’s earnings APEARS to be fraudulent. What don't you remember Lehman Brothers, Enron and all the corporate bankruptcies which happen over the last 10 years or so?

    These companies were regulated by the same people that are overseeing companies today. One day they are making tremendous earnings and the next they were bankrupt, all under the watch full eye of the SEC. I sure the SEC is like a hawk watching the herd’s favorite company Apple. How, can 35 million sales in one quarter with the majority of them occurring in foreign lands ever be verified? I guess it is solely by faith. Maybe I need to pray, or maybe you should because Apple’s volume of Sales certainly appears suspicious, considering it published manufacturing rates which are considerably lower than the amount of sales which just occurred. Sorry I am a skeptic, I guess they had all though Iphone which recently sold warehouse somewhere in China.

    So Doug, I guess Apple is the New Wal-Mart of Cellular Phone and Electronic products and the poor Chinese will starve themselves just so they can buy an overprice Iphone, seems reasonable to me. Maybe, I should call you Richard Instead. An for all the Iphones that you are keeping track of, do you ever come across any other type of smart-phone, like android ? I understand they have a bigger market share than Apple. I surprised you never have seen one.

    I apologize for the statistical information it did not post well from the table format. The last column is per captia annual income and the percentage is the world’s population of these countries which is 52.54%. This gives you the realization of how poor other populations are in comparison to the western nations.

    As I wrote in other commentaries:

    If Apple wishes to capture more market share of sales it will require developing additional products with lower prices due to competition and the fact the more affluent markets have been saturated, leaving the less capable markets the task of buying all though millions products which are forecast to be manufactured and sold by apple in the coming years.

    Just as computers, big screen TVs and many other electronic devices have been commoditized, so will apple products if they wish to generate more sales. This directly relates to Apple’s value as a company and its allege income growth potential. Guess what else is affected by a lower sale price? That’s right earnings and net income will be lower, which is another reason Apple income will stagnate.

    My reasoning can be reviewed at http://adelaw61.blogspot.com/2012/04/apple-s-earnings-appear....

  • Report this Comment On April 27, 2012, at 11:29 AM, steltek wrote:

    It depends how you define Apple "bears." Bears on the stock or bears on the company's growth? The former may be right, the latter are obviously wrong. I, for one, don't see last quarter's enthusiasm for the stock. I see real softening of interest and longer runs of days sliding downward. Days 2 and 3 after earnings were slides, whereas last quarter, Apple had entire weeks where every day resulted in a gain. The summer season is going to be a mixed bag at best, for everything, not just Apple.

  • Report this Comment On April 27, 2012, at 11:59 AM, 48ozhalfgallons wrote:

    We'll be printing Ipads for about ten bucks in a couple years.

  • Report this Comment On April 27, 2012, at 12:01 PM, jeffdaley1946 wrote:

    The popularity of the IPhone staggers my mind. Not only people here in the states but people overseas. I have three employees in the Phillipines and each makes less than $13K in salary. (loaded cost not included) From this they achieve their net disposable income. Each person has purchased an iPhone. I don't know what they paid for it but related to their disposable income why would they purchase such an expensive unit? No - I have not or will I ask them why.

  • Report this Comment On April 27, 2012, at 12:05 PM, JD1969 wrote:

    Abe61..

    Check out these interesting stats on china from a PC world article. The bottom line is there are enough ppl in china earning well above the lowly quoted Per capita stats to purchase 60+ million smart phones in 2010. In a country populated by 1.3billion ppl that's not a large proportion, but no doubt with more than 13million new 3G subscribers in Q1 2011, smart phone purchases are likely well in advance of 2010.

    BTW there are reportedly now around 200 billionaires in china.

    http://www.pcworld.com/businesscenter/article/226159/china_a...

    "China's 3G networks, which launched in 2009, added 13.5 million new subscribers over the first three months of 2011. This puts China on track to surpass it's 2010 3G network growth rate, which added 34.7 million users over the course of that year."

    "Analysts have said China's smartphone sales have helped fuel the increase in 3G subscribers in the country. While only 21 million smartphones were sold in 2009, that number almost tripled to 62 million in 2010, according to Beijing-based research firm Analysys International. Smartphone sales in China are expected to reach 95 million for this year."

    "At the end of 2010, China had 303 million users who used mobile handsets to go online, an increase from 230 million the year before, according to the China Internet Network Information Center."

  • Report this Comment On April 27, 2012, at 12:11 PM, JD1969 wrote:

    Oh I forgot.... With more than $100b cash sitting on their balance sheet, I doubt the apple white collar thieves will need a US govt bailout. Maybe if you ask nicely though Apple will chip in to help out the US govt - it needs it right now!

  • Report this Comment On April 27, 2012, at 1:33 PM, Potein wrote:

    Stock price multiples are driven by earnings growth and sustainability. Apple has had the growth, but the multiple has failed to expand, until recently, due to many investors believing that the EPS levels are unsustainable.

    I've been wrong on this stock, because the company has been able to innovate just enough to get consumers to step up quickly to buy the next version of the iPhone. iPad is a great product and we are still in the early days of its ramp but it just doesn't carry the same profitability as iPhone.

    - I believe that iPhone will have trouble maintaining its average selling price in the face of greater competition from Android. To date this has not happened despite Android’s phenomenal success. (The Android manufacturers and the carriers would greatly help themselves by allowing similar phone models across all carriers)

    I view the US carriers’ subsidies for iPhone as unsustainable but don’t see how they can compete without iPhone at this point.

    Let's examine iPhone profitability

    Example:

    iPhone 4S vs Samsung Galaxy II at AT&T

    iPhone 4S Samsung

    Price No Committment 650 450

    with 2 year 200 100

    SUBSIDY 450 350

    memory 16GB 16GB

    expandable memory None +32

    OS iOS Android

    Network 3G 4G (HSPA+)

    The iPhone subsidy vs Android phone is higher by 30% currently but I think this spread starts to widen more as the Android phones continue down the cost curve. (I also admit that I don't know what a carrier pays for an iPhone, I know that it is less than a no contract price but probably not that much less)

    The prices for iPhone 4S at 16,32,64 GB are as follows $650,$750, and $850

    Tear downs of the phone put the cost to build at $200 for the low end and $250 at the high end.

    So Apple makes $450 per phone low end and $600 high end.

    THESE 60-70% GROSS MARGINS ARE UNPRECEDENTED IN THE CONSUMER ELECTRONICS INDUSTRY WHERE 20-40% MARGINS ARE MORE TYPICAL

    Also as a consumer moves to higher memory levels, say from 16GB to 32GB, Apple charges them $100 more despite the incremental memory only costing them about $16 more. That’s another $86 straight to the bottom line for Apple each time a consumer moves up from 16 to 32. Incredible.

    So Apple must maintain these sky high ASP's to continue growing EPS at this rate. If they can't continue to innovate at this rapid rate, the prices of the iPhone will have to come down. Also the innovations have to be great enough to get the consumer to move. I believe ASP declines will be faster than incremental new units and therefore gross margin DOLLARS will decline, and from there the slope is steep.

    As a side comment, Abe 61, your comments are mere rantings. Thanks, I own an iPad, my wife an iPhone and Mac, my kids an iTouch. I am not short Apple stock but I can no longer own it either. iPhone 5 will be the last major upgrade because having 4G will great, but the roadmap of innovation looks longer after that.

  • Report this Comment On April 27, 2012, at 3:18 PM, PeterDylan wrote:

    Well said Steltek. Stock trader know there is currently no support for Apple at these prices. Maybe long term that will change but certainly there is no volume buying to justify the headline to this article... short interest is making money in Apple this week. Maybe next week that will change, we'll see.

  • Report this Comment On April 27, 2012, at 8:12 PM, JD1969 wrote:

    Just Reported Samsung sold substantially more smartphones first qtr than apple by 45 to 35million, but on thinner margins. Doubt apple will want to be drawn into discounting unless either their market share or sales growth is substantially eroded. But it's a good point that their margins will at some point come under pressure.

    Television manufacturing is a good analogy. Development to flat screens, plasma, then LCD, now LED - amazing product development but with low diferentiation and a highly competitive market, prices and margins have been squeezed. Apples key to ongoing success is differentiation - if they can maintain that, and keep innovating ahead of the other manufacturers, they will continue to attract product loyalty and command a premium. At some stage though they will be caught.

    On another topic, can someone explain how amazon represents value at $226/share on a P/E multiple around 180x, operating cf's about $2b net of WC movements? Mkt cap of $100b for this company!

    Gotta love "blue sky" - it means the sun is shining!

  • Report this Comment On April 27, 2012, at 11:09 PM, cramberry wrote:

    to ade61 ---- You don't think Apple can increase production 210%?? Easy --- hire a second shift to ramp up production 200%, hire a third shift to go to 300%.

  • Report this Comment On April 27, 2012, at 11:28 PM, dargentn wrote:

    ade61, on your blog you say you do not own any AAPL stock. That is an insufficient disclaimer. Do you deny being short on Apple? I see your comments all over as being as effort to extricate yourself from the self-inflicted pain of a short squeeze. Do you deny it?

  • Report this Comment On April 27, 2012, at 11:32 PM, dargentn wrote:

    An appropriate disclaimer would have been that you do not hold any "position" in AAPL, not merely that you don't hold any "stock" in the company!

  • Report this Comment On April 28, 2012, at 10:09 AM, TMFNewCow wrote:

    Ade61,

    You just made my week. Well done.

    -- Evan

  • Report this Comment On April 28, 2012, at 8:39 PM, Reynoso520 wrote:

    To Ade61 comments, I think that you're shooting from the hip without any concrete evidence to the contrary. Listen, I taught math to 8th grade students that came from poverty stricken families. Believe it or not, some of them had iPhones and I know their parent(s) didn't make a lot of money. That didn't make financial sense to me but then many people have financial priorities that aren't financially sensible. Sometimes you wonder whether a smart phone is more important that a roof over your head.

  • Report this Comment On April 29, 2012, at 6:30 PM, ade61 wrote:

    Is Apple’s fashion trend nearing the end?

    The reported earnings claimed by Apple are frankly unbelievable. Apple reported 35.1 million Iphones were sold in the last Quarter with the majority of the iphones not sold in the United States but overseas. Is it possible Iphone sales are declining in the United States? Its apparently appears to be if 64% of Apple’s sales occurred overseas. Its common knowledge American set many fashion trends which are emulated throughout the rest of the World. Think of the many fashion trends which are here today and gone tomorrow.

    Could it be that Apple’s tremendous production rates are causing their products to become commonplace and less trendy. What will happen in though foreign lands when they find out their not as chic owning an Apple iphone or Ipad, could that possibably affect sales? Or heaven forbid a competitor develops the latest greatest thing and the herd must have one. Honestly, who can actually use all the functionality built-in to the current smartphones, for that matter needs all the apps. How much better is the Iphone 5 going to be, is everyone going to rush out and buy one?

    Its apparent Apple products are becoming less fashionable at least in America are more sales would have occurred in the United States. I don’t want to offend other countries, but America is definately the best at marketing and other countries typically follow. Look how Apple convinced the herd they absolutely needed to buy an iphone and started a stampede, with hundred standing in line just to buy the latest gadget. Unfortunately, like most love affairs they end and I believe end of the herd love affair with Apple is just around the corner. So before you listen to though deceptive analysts telling you Apple's share price is going to 1000 per share consider my comments as its current sales and growth rate are not sustainable and likely will start declining as the herd is an adulterous animal.

    For more of my comments on Why Apple Stock Price is a bubble

    http://adelaw61.blogspot.com

  • Report this Comment On April 30, 2012, at 1:39 PM, dj555 wrote:

    AAPL on May19 will close under $600.

    Bull and Bear warfare.

    Are you longs truly foolish?

    Until buying pressure exceeds the

    current selling pressure AAPL will go and

    stay down FULLSTOP

    Company related arguments are irrelevant.

    Unlike ade61 I see the LongTerm case for

    AAPL as a bet yes on 1.Quality but more on human 2.Stupidity 3.Laziness - yep its a buy - however big forces are pushing it down.

    and other than the cynical aftermarket

    run up to 614$ until BUYing moves in

    even bigger its down possibly even to $450

    if the SPY shorters win the larger battle

    look at it today 587$

    Study some market dynamics not just your product: the market can wrong a lot longer than

    you can be right.

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