The Anchor on Apple's Earnings

In the following video, Eric Bleeker and Andrew Tonner look at supply constraints at Apple  (NASDAQ: AAPL  ) and how they've become an anchor on Apple's results. Last quarter, Apple not only cited supply constraints with the iPhone 5 but also noted an inability to catch up with demand in the iPad Mini. Those are the more notable examples that could be leading to missed sales opportunities. However, Apple also noted shortages in new Macs and even older iPhone 4s. 

As Eric notes, this shortage is partially the result of Apple's major launches and its size. However, he and Andrew also discuss how major changes like the long-rumored switch to Taiwan Semiconductor  (NYSE: TSM  ) for either part or all of Apple's processer manufacturing shows the continuing challenges ahead in future launches that could lead to further constraints. 

Part of Apple's DNA is not compromising on design, which can lead to manufacturing difficulties on newer products. All the same, the trend toward supply constraints is proving to be an anchor on Apple's growth ability at its current size. To see Eric and Andrew's full thoughts, watch the video. 

There's no doubt that Apple is at the center of technology's largest revolution ever and that longtime shareholders have been handsomely rewarded, with more than 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. Eric is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and, more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

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  • Report this Comment On January 23, 2013, at 10:31 PM, TimKnows wrote:

    These two idiots should be in hiding after pumping Apple into the toilet. They aren't just fools, they're idiots.

  • Report this Comment On January 23, 2013, at 11:16 PM, babushnik wrote:

    so now it's "bad" to have such huge demand for your products that you sell them faster than you can make them?

    apple sold over 100 million items (estimate based on 85 million products plus all the accessories) in 13 weeks.

    that is amazing!

    what is even more amazing is that they could have sold EVEN more than that if there were fewer supply constraints...

    apple took in $900 million MORE EACH WEEK this quarter compared with last year's quarter!!!!

    AND they could have taken in EVEN more with fewer supply constraints....

    so... with the stock selloff people are saying...." we don't want a machine that prints more money faster than any other machine on the planet because the machine is capable of printing money faster than we can load it....


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