Apple shares plunge despite record results

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Apple shares took a hit last night after the company's quarterly financial results showed weaker than expected growth.... read more

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Apple shares plunge despite record results

Postby Asinine » 24 Jan 2013, 14:19

As much as I'd like to believe their dominance is waning, it is not happening. Their revenues and profits are still increasing, it's just investors are not as happy with the results. I think Apple stock is way over-priced, but that's my tuppence worth.

I think their forward portfolio of products is crap and their back catalogue is s**t, but people still buy it. Their rise has been stifled by the Android manufacturers and Samsung is now selling more than Apple and has a larger market share for the first time in the mobile market.

Microsoft made a larger leap in OS sales than Apple on the PC side too.

But Apple are going no-where.

•Quarterly revenue of $54.5bn, up 17.7 per cent from the $46.3bn earned in the same quarter last year
•iPhone unit sales of 47.8 million, up 29.0 per cent from the 37.04 million sold during same quarter last year
•iPad unit sales of 22.9 million, up 48.4 per cent from 15.43 million year-on-year
•Reserves of $137.1bn, up 40.4 per cent from the $97.6bn it held in cash, short-term, and long-term securities at the same time last year
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Re: Apple shares plunge despite record results

Postby KK-Headcharge78 » 24 Jan 2013, 14:32

Nothing last forever, even cold November rain.

But like Sonic says the Apple haters can hold the front page, why anyone would yearn for a successful company to fail is beyond me but each to their own.
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Re: Apple shares plunge despite record results

Postby rhyfel » 24 Jan 2013, 14:41

hopefully this trend continue's, and people start to realise that apple products are overpriced and you can get much better value if you drop the apple brand, the bubble has got to burst sometime, iam not a apple product hater i just hate there business practice's, apple puts profit before anything just ask the poor sod's who make the product's.
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Re: Apple shares plunge despite record results

Postby KK-Headcharge78 » 24 Jan 2013, 14:51

rhyfel wrote:hopefully this trend continue's, and people start to realise that apple products are overpriced and you can get much better value if you drop the apple brand, the bubble has got to burst sometime, iam not a apple product hater i just hate there business practice's, apple puts profit before anything just ask the poor sod's who make the product's.


With respect mate I think you will be hard pushed to find a consumer electronics company who don't put profits first, some are just not able to ride on a trend wave as Apple have.
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Re: Apple shares plunge despite record results

Postby Skullet » 24 Jan 2013, 14:58

rhyfel wrote:hopefully this trend continue's, and people start to realise that apple products are overpriced and you can get much better value if you drop the apple brand, the bubble has got to burst sometime, iam not a apple product hater i just hate there business practice's, apple puts profit before anything just ask the poor sod's who make the product's.



If that trend continues then the opposite will happen, not sure if you misunderstood the figures?

Anyways for what its worth Apples share price is already on the way back up, so if you hadn't already scored some cheap Apple shares then you've missed the boat till the week before they release their next financial statements.
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Re: Apple shares plunge despite record results

Postby Barca Azul » 24 Jan 2013, 15:00

To be honest their share price like Zynga, facebook, ect...has been over inflated for a long time.

Growth is slowing, wow, economies are slowing again too, btw.

Succeeds breeds arrogance, like MS, Like Sony, like Nintendo, Like Samsung. Its funny actually that when Apple removed Google temporarily that there wasnt a big fuss like when Sony removed other OS. People dont like to be controlled by corporations or restricted, hence why the you tube app is back.

i personally think that while they sell over priced product, I prefer the build to Samsung, the functionality and services compared to android, but thats not to say they wont change. Look at Nokia, they had the best phone OS for years, sat on their hands and congratulated each other, but now look at them. Not saying it wont happen, but sooner or later market will reach saturation, until the next thing comes, this is where I dont see apple leading from the front in the future right now.
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Re: Apple shares plunge despite record results

Postby jonbwfc » 24 Jan 2013, 17:03

Man alive, I'm glad none of you are running my pension scheme.

'Apple shares are over-valued'? You're utterly clueless. Share under/over value is estimated by something called 'PE', Price Earnings Ratio. Basically, the amount the company is worth if you add up all it's shares, divided by the amount of money it earns every year. It's rule of thumb only but it generally seems to work. A low ratio means the share price is too low, a high ratio means the share value is too high. A middling ratio means baby bear is happy.

OK? Simple enough? good.

Apple's PE value is 6. i.e. it earns one sixth of the value of the entire company every year. Samsung's PE? 10.5. Amazon's PE? (as an example) 3939.

This suggests Apple's share price could roughly double before it's shares are as 'overvalued' as it's nearest competitor in it's major market. Apple's PE suggests it's shares are undervalued by about 50% compared to what they should be expected to be if you look at the whole stock market.

Overvalued.. oh, that's a good one.
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Re: Apple shares plunge despite record results

Postby Barca Azul » 24 Jan 2013, 18:15

I meant were over inflated, when at 705, I didnt realise they had tanked so much in the last few months. They have a PE of 10 still btw. Amazons is crazy also.

Investments are looking forward and the market isnt convinced they will keep its market shares going forward and no sign of new innovation at the moment. Yes they have buckets of cash, but what will they do with it?

They lost 15% market share in tablets in Q3 and even that could be hard to hold onto going forward, with the likes of Samsung, MS and all the others. Couple that with reducing component for Iphone's the market is spooked.
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Re: Apple shares plunge despite record results

Postby sh4dow83 » 24 Jan 2013, 19:49

Oh no!! *shriek*

:roll:
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Re: Apple shares plunge despite record results

Postby veato » 24 Jan 2013, 21:55

Which Apple products are so grossly overpriced that people get their knickers in a twist over? Really, genuine question.

It can't be the iMac as HP released effectively a clone of an iMac recently (SpectreOne) and it's no cheaper yet worse in terms of screen and spec.

Then there's the iPhone which, although I'm an Android man personally, is no more expensive than a top end competing device from anyone e.g. at CPW a SIM free iPhone 5 is £509.95. A SIM free Galaxy SIII is £499.95.

The Macbook? Well sure you can buy a much cheaper laptop but if you want a similar spec and build then I'm afraid it's no cheaper. A Sony Vaio Z series with i5-3210M, 4GB RAM, 13 inch 1920x1080 and 128GB SSD is £1300. A MacBook with same RAM, CPU, SSD, and 13 inch screen (although lower res) is £1159. Or alternatively pay £150 more than the Sony Vaio and get an extra 4GB RAM and a retina screen 2880x1800. Hardly a rip off is it.
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Re: Apple shares plunge despite record results

Postby Skullet » 24 Jan 2013, 22:17

veato wrote:Which Apple products are so grossly overpriced that people get their knickers in a twist over? Really, genuine question.

It can't be the iMac as HP released effectively a clone of an iMac recently (SpectreOne) and it's no cheaper yet worse in terms of screen and spec.

Then there's the iPhone which, although I'm an Android man personally, is no more expensive than a top end competing device from anyone e.g. at CPW a SIM free iPhone 5 is £509.95. A SIM free Galaxy SIII is £499.95.

The Macbook? Well sure you can buy a much cheaper laptop but if you want a similar spec and build then I'm afraid it's no cheaper. A Sony Vaio Z series with i5-3210M, 4GB RAM, 13 inch 1920x1080 and 128GB SSD is £1300. A MacBook with same RAM, CPU, SSD, and 13 inch screen (although lower res) is £1159. Or alternatively pay £150 more than the Sony Vaio and get an extra 4GB RAM and a retina screen 2880x1800. Hardly a rip off is it.


That sounds like sensible talk to me, you'd better throw in some unicorns or you'll get branded a fanboy. :)

I completely agree though.
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Re: Apple shares plunge despite record results

Postby Mackins » 24 Jan 2013, 23:33

I thought iPhone 5's were £700+? All their products are way over priced for what they are, I wouldn't embarrass myself by owning anything Apple. No one with sense would.
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Re: Apple shares plunge despite record results

Postby veato » 24 Jan 2013, 23:48

Mackins wrote:I thought iPhone 5's were £700+? All their products are way over priced for what they are, I wouldn't embarrass myself by owning anything Apple. No one with sense would.


Nope, 16GB iPhone 5 costs almost the same (a tenner difference at CPW) as a 16GB SIII. As for overpriced see my post above.
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Re: Apple shares plunge despite record results

Postby Skullet » 25 Jan 2013, 13:45

Mackins wrote:I thought iPhone 5's were £700+? All their products are way over priced for what they are, I wouldn't embarrass myself by owning anything Apple. No one with sense would.


So basically you have no clue how much Apple stuff is but all of it is overpriced?
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Re: Apple shares plunge despite record results

Postby Mackins » 25 Jan 2013, 21:25

Sorry, it's £700 for the 64GB one, yeah, way, way over priced.
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