Apple reported weaker-than-expected iPhone sales during its earnings call yesterday. However, not every Apple watcher is convinced that’s bad news for the company.
In a note to clients, Mizuho Securities analysts Abhey Lamba and Parthiv Varadarajan suggest that the “pause” in sales is less likely to be about people losing interest in the iPhone — and more related to massive excitement over the forthcoming iPhone 8.
Apple will hold its quarterly earnings call next Monday, which means analysts are beginning to weigh in on how many iPhones Apple sold during the holiday quarter. Although Apple’s new sales with China Mobile didn’t make it into the quarter, Apple still had a ton of pent up demand to go along with a set of new phones, plus its was the holidays. All those conditions should make for a perfect storm of sales, and so far top analysts are predicting Apple sold a record-shattering 55.3 million iPhones.
Although since the iPhone 4S, Apple has launched new iPhones in the fourth fiscal quarter of every year, that’s not where the quarter they sell the most iPhones. It’s simple logistics: not only does Apple usually only have a couple weeks left in the fourth quarter to fit as many sales as possible into, but supplies of new iPhones tend to be constrained.
That’s not to say, though, that this won’t be a banner quarter for Apple. Thanks to the iPhone 5S and iPhone 5C, Apple will see year-over-year sales of iPhones increase by 28%, says one analyst.
For the past two years it’s seemed that the Mac was invulnerable to the sudden drop in PC sales that have plagued other OEMs, but things aren’t looking too rosy for the Mac anymore either.
A new study from NPD Group found that Mac sales were flat year-over-year during July, and if things keep going at this rate, Apple’s domestic Mac sales will be down 5% year over year for the September quarter.
Steve Cheney is a pretty smart guy, with a serious background in technology and mobile marketing, both as a former TechCrunch author and the current head of business development for iOS and Android chat app, GroupMe.
Cheney’s written a fairly strong analysis of the current Apple/Android war for supremacy and, as he sees it, there’s a clear advantage for Apple in the actual mobile device arena. Cheney calls it “bang per watt,” and he attributes Apple’s dominance here to the vise-like grip the Cupertino company has on the vertical integration of hardware and software.
Two years ago, Apple overtook Exxon as the world’s most valuable company. It was a heck of a feat for a Silicon Valley company: for the first time, the world seemed to value silicon computer chips more than the bubbling, black goo of long dead dinosaurs. The future seemed rosy, and in the following months, Apple’s share price eventually rose to over $700 a share… before cratering thanks to bizarre Wall Street pessimism.
Somehow, though, even though analysts are bleaker about Apple’s futures than they have ever been, Cupertino has once more managed to claw the title of world’s most valuable company from Exxon. How?
After refreshing its iPad lineup in the fall last year, rather than summer, Apple set itself up to go through a June quarter without a new iPad launch for the first time since it was introduced in 2010.
With Apple’s Q3 2013 quickly approaching on July 23rd, analysts have already begun to make their iPad sales estimates, and to no one’s surprise, YOY growth has slowed to a crawl in Q3 2013.
If you’re expecting another record quarter for Apple, you might be the only one. According to Fortune, most of Wall Street expects Apple to barely grow at all year-over-year in fiscal Q2.
Along with making ridiculous predictions like the impending arrival of an iTV, analysts have now taken to predicting when Apple will hold their next keynotes.
If you believe Peter Misek from Jefferies, then Apple is going to hold an Apple TV-related event in March, but there probably won’t be any new hardware on display, just software.
Apple stock opened at $457.70 this morning, down more than 10%, following its financial results on Wednesday. The Cupertino company announced $13.1 billion profit for the first quarter of 2013, a slight increase over the $13.06 billion it posted for the first quarter of 2012. But despite that increase, it’s clear Apple’s phenomenal growth has hit a stumbling block.
