The tech sector opened lower as the shares of world’s
largest company Apple Inc.(NASDAQ:AAPL) gapped down this morning after
reporting lower than estimated sale numbers of its recently launched iPhone 5 during
the weekend.
Shares of Apple Inc.(NASDAQ:AAPL) fell about 2% in
early trading as the company disclosed
that it sold 5 million of iPhone 5 during the opening weekend, which is very less
compared to analysts target of 6-10 million during the week. If that’s not
enough, the analyst’s target of 6 million was set for the worst case scenario.
So a sell of 5 million is fueling further panic among investors at large
considering the heavy success rate of Apple’s new launch in the past.
There were huge expectations from the company’s latest
development as the pre-order run out of stock in just an hour. After today’s
fall, the stock has erased its entire gain in the past week.
In other news, Apple Inc. supplier Foxconn
Technology Group ordered one of its Chinese factories closed Monday after a
dormitory brawl reportedly escalated into a violent riot that took several
hours to bring under control.
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Rambus Inc.(NASDAQ:RMBS) soared 9% after a judge in
California decided that SK Hynix has infringed Rambus’s patents and the latter
is entitled to receive royalty payments for past infringement.
TiVo Inc.(NASDAQ:TIVO) added 6.50% after Verizon
Communications Inc.(NYSE:VZ) agreed to pay $250 million to the DVR maker to
settle a patent infringement battle.
The companies entered into a mutual patent licensing
agreement on Friday, under which Verizon will pay TiVo about $250.4 million
through July 2018.
The deal consists of a cash payment of $100 million
due on or before Sept. 28 and recurring payments of $6.01 million over the next
25 quarters.
It had to happen eventually.
ReplyDeleteThe 'fanboy' devoted Apple consumers can only carry the company so long before the company's lack of innovation, frivolous court cases and treatment of the people who make its products, eventually caught up with them.
Frankly, I'm surprised it took this long.
Several iphone fans I have spoken with, me included, have decided to wait another couple of months to see what Nokia's new offering is like. I have a 4S (great phone) the new 5 doesn't do much for me, maybe time to jump ship back to my old favourite -Nokia, or possibly if it ever gets released the BB10!
ReplyDeleteMaybe you guys didn't understand the article or the situation ... or both
ReplyDeleteBut the problem here is not a lack of demand , it is a lack of supply.
ie. Apple can not make phones fast enough to sell them!!
Now that's a nice problem to have and one that other phone makers wish they had!
It's not just the fanboys carrying the company , Lots of people out there who just want a pretty looking phone that's not made of cheap plastic, unless You are calling every iPhone 5 buyer out there fanboys, but that's a bit extreme
Apple is constricting supply on purpose to look good (it always sounds good to run out of stock).
DeleteMost locations, though, still have them in stock (at least in my neighbourhood), so what you said is not true.
Oh ... so Apple is "Only" selling 2 million on the first day , and 5 million on the first weekend , and possibly "only" 30 million in the first quarter , because they are "purposely" selling less to generate demand , not because it is physically impossible to make 30 mllion iphones in a short space of time?? And global demand for iphone is not real, everyone you see in the street holding an iphone is just an Apple created illusion by selling less of it !?
DeleteHahahaha , now who sounds like a crazy conspiracy theorist?
Believe what you want to believe mate, my Apple shares grew 80% this year, so you keep on believing what you want and I will keep counting my investment from all the phantom demand for iPhone that doesn't actually exist! lol
aapl now trending down into earnings.
ReplyDeleteSammy sold over 10 million units of its Galaxy S3 in its First month. Over 30 million for the quarter (and still a few days to go) and again, these stats are Only for the GS3. It's still not available worldwide.
ReplyDeleteSammy'a Flagship has caught up to (and may possibly surpass) Apple'a Iphone.
The Demand is almost as much for their Galaxy Note 2 being released next week here in the USA!
Apple IS Scared !
Samsung revealed earlier this year that the Samsung Galaxy S3 took 100 days to reach the 20 million handset sales milestone, a marker the iPhone 5 is on track to reach in a matter of weeks.
Delete