I'm not sure what you're talking about. This is the most negative immediate market reaction to an Apple announcement in history.
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Apple stock sinks 5% / AAPL Downgraded After iPhone Release [MERGED]
- Thread starter cymolia
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I'm not sure what you're talking about. This is the most negative immediate market reaction to an Apple announcement in history.
The iPhone is a pretty well mature product. It's not going to get radical changes every year. It's going to get spec bumps and slight physical changes most every year from now on. Everyone who is surprised every single year should stop being surprised.
All these surprised people must be very uninformed because (A) we got exactly what's been leaked for a long time now and (B) it's an "S" year, where Apple historically hasn't changed much anyway.
Speaking for myself, as an investor, the only surprising disappointment was the iPhone C price. The expectation was that there would be a low price iPhone to capture market share in emerging markets. Combined with the new deal to finally have phones compatible with and sold directly by China Telecom, I had some pretty big expectations about new customers. Instead I see a gaudy and plasticky phone that would have been fine at a low price, but it's only discounted $100 off the flagship model. Just like that, visions of huge numbers of new customers in emerging markets vanished.
Right, it's not good; it's quite bad. But it really does fall after almost every keynote. IIRC, there was only one where it didn't. I have a friend who shorts Apple around every Keynote and he makes money every time.
All these surprised people must be very uninformed because (A) we got exactly what's been leaked for a long time now and (B) it's an "S" year, where Apple historically hasn't changed much anyway.
Speaking for myself, as an investor, the only surprising disappointment was the iPhone C price. The expectation was that there would be a low price iPhone to capture market share in emerging markets. Combined with the new deal to finally have phones compatible with and sold directly by China Telecom, I had some pretty big expectations about new customers. Instead I see a gaudy and plasticky phone that would have been fine at a low price, but it's only discounted $100 off the flagship model. Just like that, visions of huge numbers of new customers in emerging markets vanished.
Right, it's not good; it's quite bad. But it really does fall after almost every keynote. IIRC, there was only one where it didn't. I have a friend who shorts Apple around every Keynote and he makes money every time.
Their market capitalization dropped, that's not the same things as losing money. As long as they're buying back stock, drops help them, not hurt them.
I would really like Apple to succeed, as I don't want to switch to Android.
However, the release of the 5C was underwhelming at most mostly because everyone knew what to expect. Apple didn't do good in managing leaks this time.
This seems like a recount of what happened to Motorola on the peak of their RAZR release back in 2006, they started coloring the RAZRs in different hues, but at that point they were already out of ideas and didn't have anything new coming out.
I hope this is not true.
However, the release of the 5C was underwhelming at most mostly because everyone knew what to expect. Apple didn't do good in managing leaks this time.
This seems like a recount of what happened to Motorola on the peak of their RAZR release back in 2006, they started coloring the RAZRs in different hues, but at that point they were already out of ideas and didn't have anything new coming out.
I hope this is not true.
stock going down after announcement?
http://money.cnn.com/2013/09/11/investing/apple-stock-downgrades/?hpt=hp_t3
Looks like there is some reaction (or over-reaction) in apple stocks.
http://money.cnn.com/2013/09/11/investing/apple-stock-downgrades/?hpt=hp_t3
Looks like there is some reaction (or over-reaction) in apple stocks.
Quite often, yes. Which is why I'm proud of myself for selling off 20 shares at $507 the day before
I had a feeling this would happen. Probably should have sold more and then bought it back after the drop, oh well.I'm also a bit disappointed, the new phones look pretty nice and I actually think the fingerprint ID will be a big deal eventually, but they kind of botched some things too. For perhaps the fist time ever I have to agree with the analysts, that the 5C's pricing is a big miss. For sure they will sell tens of millions of them and make a profit, but Apple is already ridiculously profitable and how has that helped them lately?
They had an opportunity here to go for the jugular and expand market share, but this is not going to achieve that goal. As a developer, I don't care much about Apple's profit margins, I'm more concerned with market share, because I want my apps to be available to as many people as possible. I would prefer to stay iOS only because it speeds and simplifies my work, but that decision is becoming increasingly difficult to justify.
Not saying I was worried. Was merely pointing out to the poster that there is a difference between a stock price drop and 4 downgrades by rating agencies. And while I don't necessarily think rating agencies serve their intended purposes, I do think they have slightly more insight than us common folks who just "believe" that Apple is/isn't trouble with the recent happenings. Not saying they are right.
These aren't "rating agencies," they are analysts. Since when do we trust Bank of America's opinions about Apple?
Apples shares dropped today because it didnt announce a low-priced iPhone that would lower its margins and cause its share price to drop.
Investor nervousness is to be expected in an industry where customers replace devices every 2 years. In two short years, an unknown phone manufacture with a hit product can completely take over the market. Conversely, in two years a giant can be felled.
Think Nokia (rapidly down from unassailable heights), Motorola (up with the razr, then down again), Blackberry (same trajectory as Nokia) and Apple (up meteorically, for now).
Think Nokia (rapidly down from unassailable heights), Motorola (up with the razr, then down again), Blackberry (same trajectory as Nokia) and Apple (up meteorically, for now).
Pretty much
I think the 5C will only be good news for investors with margin pushing above 50% again and Apple marketing it aggressively with their partners. It's the cheaper phone but the most profitable model for Apple to sell.
My thinking exactly. These were probably the most accurately predicted Apple products in recent memory. We've known almost exactly what was coming for weeks. The only aspect that wasn't known before the announcement was whether the 5c would be $99 on contract or free. (Not that the carriers couldn't offer it for free if they wanted to.) But, that's the markets for you. Don't expect to find rationality there on a short-run basis.
You'd think investors would ignore these analysts as they are so consistently wrong about Apple. Let's remember, only Apple and Samsung make profits in the phone industry. If low cost phones were in such demand, why is HTC, LG and the rest fighting over maybe 10% of the profits for the industry? They all have cheap phones. It's like selling phones for profits is frowned upon by these douche bags.
These same analysts were all but pronouncing Apple dead because they didn't enter the netbook market. Remember those?
Apple makes premium products at the high end of the market. They make premium profits. With my long time held AAPL stock up 4102%, I think I'll trust Apple to price their products.
These same analysts were all but pronouncing Apple dead because they didn't enter the netbook market. Remember those?
Apple makes premium products at the high end of the market. They make premium profits. With my long time held AAPL stock up 4102%, I think I'll trust Apple to price their products.
Yes, It of course didn't release something that Apple never promised nor gave any indication that they were going to. The idea that Apple was going to release a cheap iPhone was a invention of whole cloth that had no basis in fact ever. Apple has very, very rarely released products with the intention of selling them at prices that are intended to sacrifice margin to gain massive market share.
Rdowns is 100% correct. Analysts expected Apple to release a product that would lower margins for marketshare. That's the opposite of what Apple want's to do which is to make money - something they are very good at by selling expensive stuff.
Apple is only a company like the rest of them. Buy the product you like and don't worry what the label says.
