They might be a little overly cautious on margins, but I wouldn't be extrapolating any big revenue gains beyond their guidance.
Glad to see Apple hang in there - now up on AH!
Apple battled hard to get where they are at, and I'm glad to see them stay above $600.
I was thinking about buying a put on Apple just for shits and giggles to see how the earnings drama played out tomorrow, but I realized it would be a waste of time since I would be looking to grab some shares if it dipped below $600.
My biggest level of concern for Apple was revenue guidance for next quarter. I know margins are important to analysts that like to come up with unrealistic price targets and stuff, but I'd rather see Apple growing revenues with 36% margins than sacrificing growth at 40% margins. I think the revenues will be in line next quarter, but the earnings will beat on higher margins.
Now that all the shit's out of the way, I can't help but to think Apple will be able to sell more iPhone 4 and 4S at lower prices too. Apple's had a very challenging position of growing iPhone market share without a free handset. Last year, the 3G was on sale for free, but that was only for ATT. I don't think many people were able to take advantage.
Now, with the iPhone 4 being free, Apple can pick up more of the low end market share. Now that margins are all that people can think about, it's a good time to be getting back in the stock I think. The next 2 quarters are the best 2 quarters of the year for Apple. |
