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AAPL Stock: 98.15 ( -0.23 )

Printed from http://www.macnn.com

Apple shares fall on reports of lower Jan. sales

updated 09:45 am EST, Fri February 20, 2009

AAPL slides 4 percent

Apple shares fell approximately 4 percent in Thursday trading as a result of a report originally released on Tuesday, observes Needham analyst Charlie Wolf. The report noted that retail Mac sales in the US fell 6 percent in January, at the same time as iPod sales dropped 14 percent. The situation is not nearly as bad as investors appear to have decided though, according to Wolf.

The numbers fail to account for several factors, primarily international sales, which should represent approximately 45 percent of total sales for the March quarter. Also crucial is the iPhone, which accrues its revenue over the course of eight quarters in keeping with GAAP accounting rules. While Apple reported iPhone revenue of $365 million a year ago, Needham is said to be predicting over $1.5 billion in revenue for the March 2009 quarter.

Apple is currently guiding to total revenue between $7.6 and $8 billion for the quarter, an increase from $7.5 billion last year. Wolf comments that if iPhone revenue were to be absent, as it is from the Tuesday report, Apple would instead be guiding to a 12 percent decline. By comparison, a 6 percent drop in Mac sales is believed to be irrelevant. The analyst thus continues to give Apple stock a "strong buy" rating, with a 12-month price target of $200.




by MacNN Staff

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Comments

  1. wymer100

    Joined: Dec 1969

    +4

    Relative performance...

    It's not really whether Apple grows or falls but rather what happens compared to the industry as a whole. If Apple falls 4% but the industry contracts 10%, that's actually better than if Apple grows 4% but the industry grows 10%. In the former case, Apple is still gaining marketshare.

  1. Guest

    Joined: Dec 1969

    +4

    Headline is misleading

    This article is about the fact that the earlier report is flawed and misleading. Headline should have reflected that fact.

  1. VinitaBoy

    Joined: Dec 1969

    +3

    It Really Doesn't Matter

    The undeniable truth is that the US stock market is a rigged game right now. The fix is in on AAPL, and individual investors are grist for the mill. The SEC is astonishingly corrupt AND incompetent, hedge funds/pension funds are in collusion, and short sellers control the price of any stock in their sights.

    I am one of the victims of these criminals right now, and if I could sell without losing a ton of money I most certainly would. However, that is not possible at this time. But just wait until this mess turns around (if it ever does). I'll be so far out of my country's financial system it'll make Mr. Bernanke's head spin.

    I weep for my beloved USA and its lack of honor and trustworthiness in all things financial. We cannot be trusted in any respect. Gold is certainly no answer, but neither is any US equity.

  1. andrewbw

    Joined: Dec 1969

    -8

    troll

    VinitaBoy is a known form troll and a blasphemer. Please pray for him.

  1. MeandmyMac

    Joined: Dec 1969

    0

    within 12 mo. / $200.00..

    Good luck with that price per share estimate this time next year!

    Was VinitaBoy weeping when the markets were up and his investments were making money from these "criminals" and this criminal operation that is the stock market?

    "The SEC is astonishingly corrupt AND incompetent", AND it is also an independent Federal Government agency. The same Federal Government that created TARP and requested $700 Billion dollars, then gave some to the automakers bailout, AIG bailout, Obama's so called "stimulus" bill costing $787 Billion, now on to the housing market and the billions to be paid out there and there is the possiblity of TARP 2 and Stimulus 2...

    Yes, these monies are being requested by our politicians that can't run their own in-house bank, their own in-house post office, their own in-house restaurants, build on time and within budget the peoples visitor center, and highlight the "corporate evils" of those CEO's whose corporation owns and use a corporate jet, polluting the air and wasting the companies money and yet those government politicians that belittle those CEO's for using a corporate jet have no problem on one Friday, with sending a government corporate jet to pick up one democrat in Ohio, who is at the wake for his mother, fly him back to Washington to cast the deciding vote for this government to waste 787 Billion of the peoples money, fly this man back to Ohio in time for his mothers funeral on Saturday and I am sure that government jet flew empty handed back to it's base of operations so the pilots can be at home! Talk about the HEIGHT OF CORRUPTION and INCOMPETENCE!

  1. malax

    Joined: Dec 1969

    +1

    Headline

    The headline is also misleading in that it was HP's crappy earnings report that immediately dragged down all hardware stocks, not some report from days before.

  1. testudo

    Joined: Dec 1969

    0

    Re: relative

    Relativity isn't that important. Apple's stock isn't priced based on whether Dell is seeing grand growth, it's based on it's own growth.

  1. JackWebb

    Joined: Dec 1969

    +2

    No product updates yet

    I can't help but think that these numbers would be better and still can be better if we get some overdue product updates for most desktops. I know I'm personally waiting that out.

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