<p>They only made $13.1B in profit and generated only $23B in cash from operations. They only had revenue in the quarter, not the year of $54.5B. By comparison, back when things were going great for Apple, like a year ago, they $46.B and also $13.1B. Last year was a 14 week quarter and this year was 13 weeks so you can see how terrible they are doing. </p>
<p>They only sold 47.8M iPhones, compared 37M a year ago. They only sold 22.9M iPads, compared to 15.4M a year ago. So things are definitely trending down. And while Apple doesn’t tell you how many 5’s versus 4S’ versus 4’s they sold, they said it was the same mix as last year, so about half 5’s. So again, Apple clearly needs a phone that’s cheaper than free because no one wants their phones anymore.</p>
<p>Analysts of course know this is terrible because some of them were projecting higher and they thought revenue should be $54.7B, meaning Apple missed by $200M. </p>
<p>Apple hit $50B in yearly revenue 3 years ago. Again, you can see the trend is terrible. </p>
<p>You can see the difference if you look at Google. Their quarterly income was up to $14.4B and they made $2.89B profit and hit $50B for the year’s revenues. So you can see Apple is in terrible shape because they only generate for the year about what Google’s revenue was last year and Google will generate less profit for the year than Apple did this quarter but the trend is obvious. </p>
<p>I can only wonder at how many Android tablets were sold. Considering how the iPad has been losing market share - I keep reading that - then Android must have sold - or maybe shipped because I can never tell the difference with Android tablets - tens of millions. Now Microsoft only sold a few million but they’re obviously going to wipe the floor with Apple like it’s the 80’s all over again.</p>
<p>Android sold one tablet to this house last year and one phone to this house the year prior. Apple sold zero. and will continue to sell zero. Though I have every intention of getting rid of this android phone this year and going back to a dumb phone because I don’t like it.</p>
<p>From my perspective, some people who had invested in AAPL early on as a growth company found their portfolio too overweight in AAPL starting about last quarter. To rebalance their portfolio they find themselves selling and some who had held off selling until today, the lower profit margin confirms their belief that AAPL may no longer be the leader in innovation. </p>
<p>Value investors may step in and provide support at the low $400 just as BCEagle suggested.</p>
<p>Apple launched the new super-thin iMac in the 4th quarter and they had supply-chain issues and customers couldn’t get them in a timely manner. I assume that this will correct in Q1.</p>
<p>The protection that I had to 480 was apparently not enough - at least tonight. We’ll see tomorrow. If Jobs was alive and these numbers came out, the stock would have dropped but not to this level. The market hasn’t any faith in Tim Cook. Apple needs Jeff Bezos who gets a break every quarter in overpriced amazon.</p>
<p>When did your friend start catching that knife, BCEagle91?</p>
<p>I have said many times I don’t get amzn. Amzn wiil probably be the number 2 retailer in the country soon. A profitless number 2.</p>
<p>Maybe being profitless is the secret. I am not kidding. Once amzn starts making money, the dream will be over and investors will ask, “Is that all there is?”</p>
<p>The sad thing - and I mean sad - is that Amazon, which I of course use, has endless access to Wall Street capital while its competitors don’t. That is killing companies and costing jobs. If indeed Amazon eventually raises prices to make profits, then we may regret having been its customers.</p>
<p>As to Apple, i have no idea how one can imagine profit growth continuing when the level is $13.1B in a quarter. It’s absurd.</p>
<p>If aapl isn’t going to grow, that is a problem for aapl’s valuation.</p>
<p>Getting rid of all the noise…the psychological issues, the short term demand and supply of the stock, a company’s long term valuation is based on its future cash flow or earnings.</p>
<p>The analysts listen to aapl’s management, project aapl’s financial performance in the future and discount it to come up with a stock price. I think you know this, Lergnom. </p>
<p>The joke is the next quarter is such a factor in aapl’s future projections earnings projections. Another joke is analysts don’t know aapl’s future so they have to make up the numbers.</p>
<p>This is a long time ago…there was this biotech company, can’t remember which, and it didn’t make any money. For some reason, I saw an analysts future earnings projections and I saw that 10 years out, the company was going to make $10 a share in earnings. The drug was going to be priced at X, and the amount of people who were going to use the drug was Y, and the costs were Z. Presto. $10 a share in earnings 10 years out. The company did not have a drug on the market. It didn’t have a FDA approved drug. The company was worth over a billion bucks. That spread sheet has always bugged me.</p>
<p>How many times did similar stories play out in 1999?</p>
<p>Edit…all my typos…I am typing on an Ipad. :)</p>
<p>I think the drop is an overreaction, but then again, in the words of the sage from Fast Money, Guy Adami: “Price is truth”. The bottom line is a stock is worth what people will pay for it - nothing more and nothing less.</p>
<p>I’m surprised. This is a stock that is now at ten times trailing earnings.</p>
<p>Obviously the days of 50% plus growth are behind us when the company is at the size it is, but I don’t see the reaction being “justified”. Pretty interesting stuff.</p>
<p>Wasn’t too long ago that I was reading about Apple as a “luxury brand” company. Today I heard an analyst refer to it as a “handset” company. From a Buffettian point of view, its a lot better investment at $450 than it was at $700</p>
<p>Another tidbit: this was the largest annual profit ever. Beats ExxonMobil by about $6B, which is more than the total annual profits of all but a small number of companies.</p>
<p>I don’t care much about the stock price but all the talk about how Android and Samsung in particular are doing so great looks kind of stupid next to Apple’s numbers. I read pieces last week about how the Galaxy line of phones has sold 100 million and that shows how Samsung is terrific and, of course, left out that Apple has sold over 200 million in exactly the same time period. But Samsung is doing great and Apple with over 2/3 of all the profits in the smartphone business is doing terrible. I just find that so weird.</p>