Shares of Apple Inc. were pummeled in after-hours trading Wednesday as investors expressed their displeasure over the company's December quarter results and conference call. Bryan Chaffin explains why.
During Apple's 2013 Q1 earnings report, Tim Cook was asked about how to interpret various rumors about Apple's build and manufacturing plans. Hs explanation was helpful -- and sobering for rumor mongers and investors alike.
Apple CFO Peter Oppenheimer raised a few eyebrows during the company's first fiscal quarter earnings conference call when he announced the company was changing how it offered guidance to what he said would be less conservative. The implication was that Apple had been under promising and over delivering, or in other words, employing the Scotty Principle.
Backing up the notion that the iPhone and iPad are big sellers, Apple CEO Tim Cook said his company has sold over half a billion iOS devices since the first iPhone rolled off the assembly line. Mr. Cook made the announcement during Apple's first fiscal quarter earnings report Wednesday afternoon.
Apple will be hosting its financial earnings conference call for the first fiscal quarter of 2013 Wednesday afternoon, and The Mac Observer will be covering the event live. The event is scheduled to start at 5PM Eastern Time (2PM Pacific Time). Be sure to check in with us for our as-it-happens coverage and analysis, and you can follow along at our TMO Live Events Twitter feed, too.
Apple announced results for the December quarter on Wednesday, posting record sales of US$54.5 billion and a record profit of $13.1 billion. Both numbers were led by iPhone and iPad sales of 47.8 million and 22.9 million units respectively. [Updated with more info.]
USB analyst Steve Milunovich cut his fiscal 2013 and 2014 estimates for Apple follow a report that claims consumers are leaning more towards lower memory iPhones and older models. His new 12 month target price for Apple's stock is down US$50 from $700 to $650.
Apple is scheduled to report earnings for the December quarter on Wednesday, January 23rd, after the closing bell on Wall Street. The Mac Observer will provide live coverage of the company's conference call with analysts, which begins at 5:00 PM EST (2:00 PM PST).
When Apple announces its first fiscal quarter earnings for 2013 on January 23, Wells Fargo's Maynard Um expects the company to report selling 48 million iPhones and 20.2 million iPads. iPhone sales would've been even higher, according to his estimates, had cell service providers offered more flexible upgrade options for existing subscribers.
Former vice president and Apple board member Al Gore exercised longstanding stock options this week to purchase 59,000 shares of Apple for $7.475 per share. Even with the recent hit to the company's stock price, Mr. Gore's transaction resulted in over $29 million in profit.
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