AAPL stock drops 8 percent on iPhone numbers and flat guidance

aapl

Despite Apple returning to growth for the first time in a year, AAPL stock opened almost 8 percent down, as iPhone sales fell below analyst predictions and Apple’s mid-point guidance on Q2 earnings forecast was for zero growth.

Analysts had predicted 55.3M iPhone sales, while Apple reported sales of 51M. Analysts were also disappointed in Apple’s guidance for Q2 of $42-44B, as the mid-point of $43B would not show any growth over the same quarter last year …  Read more

AAPL shares down only slightly in morning trading

AAPL shares are trading at a relatively small loss of anywhere from 1.5-2.5% from yesterday’s close against a slightly up broader market.  Overnight, shares had been down 5-6% in after hours trading on the news that Steve Jobs would be leaving his CEO role and taking the Chairman role.  This morning Apple opened at 365 and at the time of this writing, Apple is heading towards yesterday’s close, at 370.

I think the truth is that Jobs resignation from the CEO role, while shocking in the short term, had been baked into the share price for a long time now. Read more