Apple Turns Rotten
Apple began the month by reporting that iPhone shipments missed Wall Street expectations for the quarter. But the kicker was Apple also said that it will no longer report how many iPhones it sells.
Apple’s chief financial officer Luca Maestri announced that the company will no longer report unit sales of its main hardware divisions, including iPhone, iPad, and Mac.
The decision to stop disclosing unit sales is because that figure is “not representative of underlying strength of our business,” Maestri said. “A unit of sale is less relevant today than it was in our past.
“This is a little bit like if you go to the market and you push your cart up to the cashier and [they say] ‘How many units you have in there?’” CEO Tim Cook adds. “It doesn’t matter a lot how many units are in there in terms of the overall value of what’s in the cart.”
But the number of units sold does matter to Wall Street. This lack of transparency spooked investors as they fear Apple might be indirectly implying to expect iPhone unit growth to decelerate in the coming years. Let me just add, iPhone sales still makes up the bulk of Apple’s revenue.
As a result, Apple tipped toe into bear market territory yesterday, down more than 20% from its recent all-time high set on October 3rd. Also, Apple was downgraded by Wall Street yesterday as a result of cutting their shipments for iPhone estimates.
So is Apple a buy at these levels, lets go to the charts to find out?
Monthly Chart (Curve Time Frame) - monthly supply is at $230 and price just penetrated the monthly demand at $183.
Weekly Chart (Trend Time Frame) – although Apple dropped 20%, would you believe the weekly trend is still up.
Daily Chart (Entry Time Frame) – the chart suggests to buy price for a short term move to the daily supply at $208.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
After two decades the shine has finally worn off the apple ;-)
That change in info disclosure can in no way be determined as positive.
I'm shorting all rallies in the market remainder of the year.
I think that's a great call. I thought of you today. Nvidia announced earnings and tanking in the after hours. Don't really see any reason to be bullish these days.
Great analysis as usual. Fundamentally, Apple seems to be straying from the vision Steve Jobs had. I’m a huge MAC guy owning an iPhone, MacBook, iPad and Apple TV. That said, I’m noticing more and more they no longer run smoothly. They freeze up, take forever to load, have minor glitches, etc. None of these issue are major, but all of them are new in the last 5 years. These are the small issues that use to only happen to PC’s. I switched to Apple years ago so I didn’t have to deal with these issues. Now I’m asking my self why I stay with Apple if I’m having the same small, annoying tech issues every PC is plagued with? For these reasons, I fear for the future of the company. They’re obviously not going anywhere. Instead I think they risk transitioning from a cutting edge tech company to another mediocre as been. I hope I’m wrong.
Wow, great feedback. Yes they definitely have a cult following and think they are on the tail end of innovation left by Steve. I expect the competition to catch up in the coming years.
I really like your posts. I'm just waiting another day or two to confirm Apple's done falling before buying options.
thanks @morseke...Apple is definitely due for a bounce after a 20% decline.