Tag - Wall Street
The latest episode of The MacNN Podcast attempts to understand Wall Street thinking, which is surely an exercise in madness. Apple had a record (fiscal) Q1, again setting a record for the most profitable quarter from any company ever, but the fact that the growth wasn't as significant against last year's killer Christmas season made Wall Street unhappy, particularly with the guidance that next quarter will see the first-ever iPhone drop in sales from last year's quarter.
Despite missing the analyst consensus targets for both revenue and iPhone sales in Q1, as reported earlier Apple set all-time records in almost all areas of its business; it just didn't grow as much as Wall Street had anticipated, and the news about next quarter is genuinely tough, with a significant year-over-year drop in iPhone sales, the first for the company since it introduced the product nine years ago. Despite the various troubles Apple is dealing with even amidst record revenues, there were several bright spots that got overlooked, including an important milestone in the history of Apple: one billion active devices.
Wall Street analysts are heading into the quarterly results conference call for Apple's fiscal Q1 2016 results with an expectation that the company will once again set an all-time record for quarterly revenues, handily beating last year's $74.6 billion in earnings by a current consensus estimate of $2 billion. A polling of a broader range of analysts by Fortune magazine offers an even more rosy $77.4 billion, but many analysts are concerned that iPhone sales will not top last year's results of 74.5 million units.
As previously mentioned, as far as most analysts are concerned, Apple only makes one product: the iPhone. The stock very clearly rises or falls based on that single metric, despite the fact that the company makes billions every quarter from other products and services -- the iPhone's popularity and staggering growth overshadow these factors, and at the least are seen as a leading indicator of how well Apple will be doing. Two new reports and related comments from analysts say that current speculation on Wall Street about a downturn in iPhone sales in 2016 could be off-base.
Two investment analyst firms, Barclays Capital and UBS, have issued their first predictions on the number of iPhones Apple is likely to sell in its fiscal second quarter, which concludes at the end of March. The firms disagree on the exact number of units, but are within 10 percent of each other, ranging from 54 million to 58 million units. UBS' Evidence Lab is predicting higher numbers, but Wall Street estimates remain conservative.
After falling four percent on Thursday, Apple's stock closed out the week by bouncing back and regaining more than half the drop as Wall Street reacted positively to the company's refutation of the "bending" controversy. Some new questions are being raised about the original video that started the kerfuffle, as careful observation reveals that the video was edited (and the reported noted in the video that his iPhone 6 was already slightly bent before demonstrating the flaw). Investment firms Stifel Nicolaus and BMO Capital Markets have both raised their target prices for AAPL.
There is a tendency among analysts to think of Apple as only "the iPhone maker" and ignore its other products and services, feeling that the fortunes of its most popular and profitable product -- the iPhone -- is the key to the company's overall health, at least in terms of its performance on Wall Street. Barclay's analyst Ben Reitzes told investors in a memo on Thursday that he expects AAPL to stay within a narrow range for the next two years.
Newly-released sales figures of the iPhone on Verizon in the calendar second quarter of 2013 may foretell surprising success for Apple in its core iPhone business, says UBS analyst Maynard Um. The analysis, which relies on Verizon maintaining about the same average of total iPhone sales as it has for the past year and a half, projects that Apple may have sold as many as 34.7 million iPhones between April 1 and June 30 this year, what Apple calls its fiscal third quarter. Wall Street consensus on Apple's Q3 iPhone sales calls for only 26.5 million units sold.
Reports are surfacing that Apple may release a disappointing quarterly earnings report for investors on July 23. The consensus from 35 Wall Street pundits polled exactly matches the revenue from the year-ago quarter at $35.02 billion -- meaning zero revenue growth for the quarter, which is traditionally Apple's slowest. Apple itself said it would earn between $33.5 billion and $35.5 billion for the quarter, which ended on June 30.
Despite moves to buy back shares in itself and the creation of a dividend program, Apple adds money to its enormous cash reserve far faster than it can distribute it -- a problem many companies would like to have, but one that is actually quite thorny for Apple. Wall Street appears to be orchestrating an effort -- or acting on insider information -- to put pressure on the company to make some kind of announcement for a future, additional dispersal of cash to investors. Meanwhile, governments have increased their calls for the "repatriation" of foreign-held profits.
Now AAPL Stock: 93.4 ( -2.7 )
WhatsApp now handles over 100M calls daily
WhatsApp is celebrating that it is being used for over 100 million calls every day. In a brief notice, the Facebook-owned messaging platform advises the voice-calling feature it rolled out to its users last year now deals with an average of over 1,100 calls initiated per second. Earlier this year, it increased the security of its calls and other messages, by introducing end-to-end encryption on all platforms. http://bit.ly/292HqCX
Adele's '25' album now streaming
Recording artist Adele has "pulled a Kanye" after saying that her current album "25" would not be available for streaming. The seven-month-old record, which has yielded a number of hit singles, is now available for streaming on all the major streaming services, such as Apple Music and Spotify, as of today in most major markets, with worldwide distribution to come. Reportedly, the singer had demanded streaming be limited to paid subscribers -- a condition that has hurt some streamers with artists, who aren't paid royalties for free or trial listens . Apple pays performers its normal royalty rates during its free trial, avoiding the issue -- and having repeated success in both signing up exclusives and placing those exclusives into the top of the charts. http://ti.me/28U7NOu
SanDisk iXpand case has battery, storage
A new iPhone 6 and iPhone 6s case from SanDisk appears to be the "holy grail" of accessories: a stylish and protective case that offers both extra storage as well as the option of extra battery power as well. The iXpand Memory case offers either 32GB, 64GB, or 128GB of additional storage incorporated into the case, and an optional add-on battery pack (sold separately) adds up to an extra day or more of charge. Through the associated iXpand app, camera photos and videos can be automatically stored on the extra storage, optionally password-protected, The cost for the case is (in order of storage capacity) $60, $100, and $130. The battery pack's release data has not yet been announced, but the add-on should retail for an additional $30. http://bit.ly/291epHu
Fifth Hong Kong store to open June 30
The 46th official Apple store in what the company calls the "Greater China" region will open at 10AM local time in Hong Kong's New Town Plaza in the Sha Tin district on Thursday, June 30, according to a new page on Apple's retail website. Despite slowing growth due to economic turmoil in China, the country is still Apple's fastest-growing market. The new story will be the fifth for Hong Kong, a lucrative market for Apple thanks to the high concentration of wealth there and a thriving "gray" market. Normal store hours for the new store will be 10AM to 10PM every day. http://apple.co/291diaT
Apple Music bug bites very short songs
There appears to be a reproducible bug in the current version of iTunes -- version 12.4.1, running on OS X 10.11.5, both the current non-beta versions of the respective software -- that causes a streamed song to become "stuck" in endless buffering if the streamed item just before this happened was 60 seconds or less in length. The problem appears to stem from code in iTunes that signals the next track to start downloading one minute before the currently-playing track is done, and thus songs shorter than one minute don't trigger the download. Locally-stored music is unaffected by the bug, and the problem does not appear to exist in either the macOS Sierra developer beta or versions of iTunes earlier than 12.4, and does not affect the iOS Music app at all. http://bit.ly/291cN0l
Walmart Pay expands to 15 states
Walmart, one of the key progenitors of the failed CurrentC mobile payment system that was distinguished from Apple Pay by its ability to collect and share customer financial and buying data among its participants, has expanded the soft rollout of its alternative solution "Walmart Pay" to an additional 15 US states following a pilot program in Arkansas and Texas last month. Walmart continues to resist adding Apple Pay. The system, built into the Walmart app for iOS and Android, works with a complicated system of the camera scanning a purchase code at the register, then generating a QR code which is then scanned by the register. The system is available now in Alabama, Georgia, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, Missouri, Nebraska, North Carolina, North Dakota, South Carolina, South Dakota, Tennessee, Virginia, and Washington, DC. http://apple.co/28SqZfu
Amazon refreshes entry-level Kindle
Amazon has added a new Kindle to its ebook reader range, one that is thinner and lighter than the previous entry-level model. Offering a six-inch 167-dpi touchscreen display, a doubled 4GB of storage, and an option for a white casing, the new model also adds in the ability to export highlights and notes to an email account as a PDF. Two versions of the all-new Kindle are available, priced at $80 including "Special Offers" and $100 without. http://amzn.to/28Q4c3R