Charges… may be due to Apple stores
Could this all be a misunderstanding?
First, AAPL is doing great, just 6 weeks ago, AFTER the introduction of new products:
smh.com.au
Then, the bomb:
apple.com
Now notice that the revenues expected were 1.9B, the re-stated earnings expectations is now 1.85B. That is a 0.05 B difference or 2.6%. What is the big deal? does it make sense that AAPL would be losing 9B market cap because of a 0.05B short fall in revenues?
Then there is the earnings: Estimated was .45, reestated .30 to .33. A 33% difference!!!
So they will reestate growth targets going forward.
Why is the estimated earnings shortfall so large?
One explanation, which they do NOT mention in the release is the opening of their own retail stores:
biz.yahoo.com
Don, you do not provide a link for Anderson's statement, but if it is true, then this will go down in history as the stupidest press release there ever was. The press release should have included the one-time charge as so. Not give the impression that the shortfall in earnings (no revenues here) was due to poor sales… very poor sales indeed, if you had to justify the 33% drop in earnings estimates.
It this is true, then the shortfall due to sales is really relatively modest (only 0.05B) and certainly does NOT justify a shaving of 50% in the stock.
Can we believe that Apple management is really this stupid? I don't. What I would be willing to believe is that Apple is preparing a fan-fair unveiling of the Apple stores in one of SJ's shows and that thus they left it out of the press release. That, if true, is going to make me really MAD. |
