""After launching a series of innovative products (iPod, iPhone and iPad) successfully, Apple has failed to unveil any new innovative products in recent times."
The iPad was introduced a little over a year ago. That isn't "recent times?""
This is clearly an exaggeration planted in the midst of an interesting Zaky analysis. (He also said the Iphone has been out 5 yrs. at the time of the writing when in fact it was out only 3yrs and 11months.)
Far more troubling, imho, is Zaky's deliberate distortion (libel is the more accurate term here) about AAPL's "channel stuffing".
"However, I still expect a modest sequential decline in iPhone sales as a result of channel stuffing in fiscal Q2. As Peter Oppenheimer (Apple's CFO) pointed out in the Q2 conference call, Apple increased its channel inventory by 1.7 million units last quarter,"
This is either a serious libel against Oppenheimer and AAPL or AAPL is engaging in the illegal activity of channel stuffing.
Definition of channel stuffing: channel stuffing-
An illegal practice in which a company willfully sells more of its product to distributors than the distributors can sell to customers. The company makes these sales on credit, which temporarily boosts its accounts receivable and by extension its current assets. This makes the company look healthier than it really is...
I listened to the last earnings report very carefully on this subject. Oppenheimer clearly stated that the increase in the number of Iphones in the channels was a result of the large number of increased countries selling the Iphone in the quarter. In other words, the increase in the number of distributors increased the channel numbers. Consequently the percentage of channel inventory remained constant or slightly lower than the previous quarters. So Oppenheimer was clearly stating that there was no channel stuffing despite the greater number of Iphones in channels.
Zaky has made a serious charge against Oppenheimer and AAPL!
The false accusation of channel stuffing coupled with the exaggerations of "Apple has failed to unveil any new innovative products in recent times.", 'the Iphones has been out 5 yrs', makes one wonder if Zaky has an axe to grind.
Despite this, his predicitions have been good in the past and are worth considering. |
