Apple stock price drop.

Discussion in 'Smartphones and Tablets' started by hmscott, Jan 6, 2019.

  1. hmscott

    hmscott Notebook Nobel Laureate

    Reputations:
    5,461
    Messages:
    18,674
    Likes Received:
    22,960
    Trophy Points:
    931
    Apple stock price drop.
    Louis Rossmann
    Published on Jan 5, 2019


    t lech 1 hour ago
    "Lol. Louis maybe the people are getting educated from your videos and Jessica‘s videos from iPad rehab and they’re getting tired of getting ripped off and screwed in both purchasing overpriced crappy products that continuously break down and get denied warranty being forced to buy new products or being lied to and being grossly overcharged for simple cheap repairs. Keep up the good videos educate the public."

    Awake Night 50 minutes ago
    "I don't see the point in buying a new product every year, two years, three years or even four years (or more)! It seems like such a god damn waste of resources and it's pretty sickening really. Repair is important."

    Peter Steve 55 minutes ago
    "Louis get some chicken soup and some rest. Your voice sounds like you are really sick."
     
    Papusan and Vasudev like this.
  2. Ultra Male

    Ultra Male Super Tweaker

    Reputations:
    18,510
    Messages:
    19,126
    Likes Received:
    27,177
    Trophy Points:
    931
    Great news! I hope they fail so miserably for slowing down my wife's flagship iToy phones 4 times in 3 years forcing her to upgrade and lose a lot of money!
     
    Papusan, Starlight5 and hmscott like this.
  3. hmscott

    hmscott Notebook Nobel Laureate

    Reputations:
    5,461
    Messages:
    18,674
    Likes Received:
    22,960
    Trophy Points:
    931
    Apple's Worst Nightmare
    Apple Explained
    Published on Jan 7, 2019
    Apple is currently facing one of their worst nightmares: declining iPhone sales. And that has led to the company issuing their first profit warning in 16 years. Which means the amount of revenue Apple told investors they’d earn in the fourth quarter of 2018 actually turned out to be inaccurate. So the company had to issue a warning, letting shareholders know that they actually made nine billion less than they original forecasted. And in this video I’m going to talk about how Apple ended up in this nightmare, and what they might do in the future to recover.


    Meir kivelevitz 11 hours ago (edited, me)
    Apple: makes a 1000 dollar phone with barely any changes, few buy it.
    Reason for Apple: must be the battery replacements are too cheap.

    SqueegeePi 11 hours ago
    "I have to laugh. They thought they could price their iPhones the way they did and get away with it... LMAO."

    gringo 8 hours ago
    2007: Think Differently
    2019: Price Differently
     
    Ultra Male and Papusan like this.
  4. hmscott

    hmscott Notebook Nobel Laureate

    Reputations:
    5,461
    Messages:
    18,674
    Likes Received:
    22,960
    Trophy Points:
    931
    A top Apple analyst ponders whether there's another 'shoe to drop' for the stock
    Thomas Franck | @tomwfranck
    Published 9:27 AM ET Fri, 18 Jan 2019 Updated 7:10 PM ET Fri, 18 Jan 2019
    https://www.cnbc.com/2019/01/18/top...heres-another-shoe-to-drop-for-the-stock.html

    "Though Apple has trumpeted its services segment as a potential hedge against slowing iPhone sales, one of the top analysts believes the company is facing a growing revolt against the transaction fees it charges for apps.

    "While the services segment grew 18 percent in the December quarter, we've now started to get investor questions worrying about whether the App Store will be the next shoe to drop," AB Bernstein's Toni Sacconaghi wrote in a note Friday. "Certainly, the headlines in the last few months haven't been encouraging. Netflix, Spotify, and Fortnite have all stopped / threatened to stop paying the so-called 'Apple Tax' of 15 to 30 percent on App Store revenues."

    As sales of the company's popular smartphone decelerate, Apple management has doubled down on its services unit — which includes the App Store, Apple Music subscriptions, Apple Pay and iCloud storage — as its next revenue generator.

    As part of that regular Services revenue, Apple charges between 15 percent and 30 percent of monthly subscriptions for customers who buy software via the iOS App Store, a fee that's come to be known as the "Apple Tax." Any time a a user buys an iOS app, a digital item within an iOS app (e.g., an ebook) or initiates a subscription within an iOS app (e.g., a New York Times subscription), Apple takes a 30 percent cut for the first year and 15 percent for all subsequent years.

    Such a "tax" poses a significant burden to companies like Netflix and Spotify, which have developed work-arounds to dodge the added fees.

    "Unsurprisingly, this 30 percent cut has transformed the App Store into the largest single driver of Apple Services, accounting for about 40 percent of all Services growth in the last three years by our estimates," added Sacconaghi, a five-star rated analyst on TipRanks, a analyst review service. "In recent years, however, discontent over this 'Apple tax' has been brewing among several major iOS app developers."

    Sacconaghi's stock picks average a 23 percent one-year return, according to TipRanks.com, making him among the best tech analysts. The analyst has a market perform rating on Apple shares, which were up slightly before the opening bell on Friday.

    Following music streaming provider Spotify, Netflix has also moved to stop new users from signing up via iOS, first within specific international markets and then globally. That move "is when investor concerns really came to a head," Sacconaghi wrote, especially since Netflix was widely reported to be the single highest-grossing app within the App Store in 2018.

    While his clients are concerned, Sacconaghi does not believe this should be a top worry.

    "We are not concerned - at all - about potential disintermediation of the App Store," he wrote. Instead the analyst is worried about the iPhone and believes estimates for sale of the smart phone may need to come down more.

    Apple stock is down more than 13 percent over the past 12 months and down more than 27 percent in the past three. Much of that decline has followed the company's decision to no longer break out individual sales numbers for the iPhone, iPad and Mac, a statistic analysts and investors for years used as a proxy for Apple's financial health.

    Instead, CEO Tim Cook has placed his bets on the Services business, which reported revenues of $9.98 billion in the fourth quarter.

    "When we look at our services business, we think about the fact that we have a very large and growing installed base," CEO Tim Cook said on the company's earnings call. "The installed base of all our major product categories is at an all-time high and has been growing over the last several quarters, so the opportunity for us to monetize our services business continues to grow over time."

    Still, Apple is unlikely to be hurt much by the loss of Netflix, which as the company's single largest developer, represented "less than 0.3 percent of total services revenue" in 2018, according to Apple Chief Financial Officer Luca Maestri. What concerns Sacconaghi in the long term, though, is an ongoing lawsuit at the Supreme Court whether the "Apple Tax" meets the definition of a monopoly that has overcharged customers for apps.

    While the current case before the high court does not actually address the issue of whether the App Store violates antitrust law (instead, the deliberation is just determining whether the plaintiffs even have the standing to sue in the first place), if the Supreme Court rules against Apple, it means that the actual case "has only just begun," Sacconaghi wrote.

    (Update: This story and headline has been updated to reflect that the iPhone is the analyst's top concern, not services.)"
     
    Papusan likes this.
  5. kojack

    kojack Notebook Virtuoso

    Reputations:
    321
    Messages:
    2,321
    Likes Received:
    698
    Trophy Points:
    131
    Apple is in a tail spin right now. It has nothing to do with China etc and everything to do with Apple. Easy to see.
     
    Papusan likes this.
  6. Starlight5

    Starlight5 So what if I'm crazy? The best people are.

    Reputations:
    430
    Messages:
    2,673
    Likes Received:
    1,229
    Trophy Points:
    181
    What?! They're still one of the most successful tech companies. So what if their profits are less than expected and stocks drop in price somewhat? They will earn a lot regardless, it's not like they're going bankrupt or anywhere near.
     
    Last edited by a moderator: Jan 27, 2019
    hmscott likes this.
  7. kojack

    kojack Notebook Virtuoso

    Reputations:
    321
    Messages:
    2,321
    Likes Received:
    698
    Trophy Points:
    131
    I did not say they were going bankrupt, I said they are in a tail spin. Stock prices dropping 30 percent in a very short amount of time is a tail spin. If they do not re capture the "magic" they will keep dropping. So what if stock drops 5% not 30% over a period of less than 6 months. Do you even know anything about business economics? 30% over a few years is a huge drop, the same drop in a much shorter amount of time is very real cause for concern.
     
  8. Starlight5

    Starlight5 So what if I'm crazy? The best people are.

    Reputations:
    430
    Messages:
    2,673
    Likes Received:
    1,229
    Trophy Points:
    181
    This has nothing to do with business economics - and everything to do with speculative assholes economics. Stocks prices on their own do not indicate manufacturing company performance, they are merely affected by actual indicators (with added unhealthy dose of hysteria and speculation). Average Joe not involved in investment or stock trading should not care or judge a company by stock prices, it is meaningless and ridiculous - and even if you are involved in either - why spread false information, the company is doing OK overall unless you're a shareholder.
     
  9. kojack

    kojack Notebook Virtuoso

    Reputations:
    321
    Messages:
    2,321
    Likes Received:
    698
    Trophy Points:
    131
    maybe I'm a shareholder. watching apple get mopped this past 1/4 was terrible. But it was a long time coming. And YES it does indicate the performance of the company. MANY units not sold, means many of millions of dollars not coming into the company, means stock prices drop. If apple does not start INNOVATING, more stock price drops are in store for them. and ME too.

    Thank god I have Microsoft shares too!
     
  10. Papusan

    Papusan JOKEBOOKS = That sucks! Dont waste $$$$$ on FILTHY

    Reputations:
    18,549
    Messages:
    20,982
    Likes Received:
    34,137
    Trophy Points:
    931
    Successful or not... People don’t buy expensive phones as before. If you haven’t cheaper options you will be hit hard. Maybe they should increase prices to stop the losses?:biggrin: Or release more models (in different colors) and same high price tags?
     
    Last edited by a moderator: Jan 27, 2019
    Starlight5 likes this.
Loading...

Share This Page