Apple sets iPad, Mac sales records
Wall Street's reaction to missed iPhone target is 'knee-jerk,' says analyst
Computerworld - Apple on Tuesday reported selling a record number of iPads and Macs in the third quarter but missed the aggressive targets set by Wall Street analysts for the iPhone.
Apple sold 17 million iPhones, down 16% from the record 20.3 million it sold in the second quarter of 2011, and also significantly falling short of Wall Street estimates of 20 million to 22 million.
"As a result of new product rumors, sales did decline, especially in the second half of the quarter as speculation intensified," said Peter Oppenheimer, Apple's chief financial officer, during Tuesday's conference call with analysts.
Analysts said the explanation made sense in hindsight, and argued that the sales downturn wasn't anything to get worked up about.
"This is a knee-jerk reaction," said Brian Marshall, an analyst with International Strategy and Investment Group (ISI), of the market reaction to Apple's numbers. In after-hours trading, Apple's stock fell more than $28, or almost 7%. "This is all a matter of timing," Marshall said.
He was referring to Apple's decision to push back the launch of the newest iPhone this year from its usual June or July date to October. On Monday, Apple said it had sold 4 million units of the iPhone 4S in the first three days of retail availability, more than double what the iPhone 4 sold in a comparable period after its 2010 debut.
"The question everyone's asking is, 'What happened to three-to-four million iPhones?'" said Marshall. "The problem is that this update was delayed by several months, and exacerbated the transition to the iPhone 4S."
"Is their share declining? No," said Marshall, adding that the sales that would have otherwise been in the third quarter simply shifted into the current period, with the iPhone 4S.
Another analyst, Ezra Gottheil of Technology Business Research, echoed Marshall.
"My first thought when I heard the four million [iPhone 4Ss] sold was: well, those were four million they didn't sell last quarter," said Gottheil. "They were just deferred sales, pent-up demand."
That demand has been high -- supplies of the iPhone 4S are tight -- but Apple CEO Tim Cook was unwilling to forecast when the company would have enough on hand.
"We're confident that we will have a large supply, but I don't want to predict when supply and demand might balance because the demand is obviously extremely high right now," said Cook. "But I'm confident that we will set an all-time record for iPhone this quarter."
- Apple hasn't exhausted its supply of Yosemite betas
- 13 pieces of advice for Yosemite beta testers
- The other Apple economy: $2B in devices on eBay
- Apple sends users scrambling for OS X Yosemite
- Long replacement cycle drags down iPad sales
- Apple unwraps OS X Yosemite public beta Thursday
- Apple grows Mac sales by 18% on the back of the MacBook Air
- Want an Apple watch? Just 3D print one
- What to listen for during Apple's earnings call today
- Mac sales will again outstrip industry average
- Big Data, Big Mess: Sound Risk Intelligence Through Complete Context This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- Using Cyber Insurance and Cybercrime Data to Limit Your Business Risk This paper examines the challenges of understanding cyber risks, the importance of having the right cyber risk intelligence, and how to use this...
- 5 Tips to Secure Small Business Backdoors in the Enterprise Supply Chain This paper examines the insecurity of the small businesses in the supply chain and offers tips to close those backdoors into the enterprise.
- Confront consumerization with convergence Virtualization expert Elias Khnaser spotlights the security, compliance, and governance issues that arise when enterprise users "consumerize" with shadow IT and public cloud...
- NSS Labs & Cisco Present: Evaluating Leading Breach Detection Systems Today's constantly evolving advanced malware and APTs can evade point-in-time defenses to penetrate networks. Security professionals must evolve their strategy in lockstep to...
- Will the Real Endpoint Threat Detection and Response Please Stand Up? This webinar explores new technologies & process for protecting endpoints from advanced attackers as well as the innovations that are pushing the envelope... All Macintosh White Papers | Webcasts
Our new weekly Consumerization of IT newsletter covers a wide range of trends including BYOD, smartphones, tablets, MDM, cloud, social and what it all means for IT. Subscribe now and stay up to date!