Apple shares halted for "pending news"
- Thread starter ugk
- Start date
New York (CNN Business)The iPhone was once Apple's biggest boon. Now it's becoming the company's biggest headache.
Apple warned investors to expect lower sales from the holiday quarter due primarily to "lower than anticipated" iPhone sales in China, according to a letter from CEO Tim Cook on Tuesday.
"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China," Cook wrote in the letter. He pointed in part to "rising trade tensions" with the U.S.
The company now expects revenue for the three months ending in December to be about $84 billion, down from an earlier estimated range of between $89 billion and $93 billion.
Apple shares were briefly halted after hours before Cook's letter was made public, and fell 8% when trading resumed.
Apple warned investors to expect lower sales from the holiday quarter due primarily to "lower than anticipated" iPhone sales in China, according to a letter from CEO Tim Cook on Tuesday.
"While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China," Cook wrote in the letter. He pointed in part to "rising trade tensions" with the U.S.
The company now expects revenue for the three months ending in December to be about $84 billion, down from an earlier estimated range of between $89 billion and $93 billion.
Apple shares were briefly halted after hours before Cook's letter was made public, and fell 8% when trading resumed.
https://9to5mac.com/2019/01/02/apple-revises-q1-2019-earnings/
Apple shares were halted this evening ahead of the market’s close. CNBC was first to report on the development. Shortly thereafter, Apple published a “Letter from Tim Cook to Apple investors” in which Cook announced a rare AAPL earnings revision for the first fiscal quarter of 2019.
This is what Apple is now forecasting:
In the letter, Tim Cook outlined several reasons for this adjustment. Cook points to factors such as different timing of its iPhone launches, foreign exchange headwinds, struggles ramping new products, and economic weaknesses. Ultimately, Cook says this all resulted in “fewer iPhone upgrades than we had anticipated.”
First, we knew the different timing of our iPhone launches would affect our year-over-year compares. Our top models, iPhone XS and iPhone XS Max, shipped in Q4’18—placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1’18, placing the channel fill and early sales in the December quarter. We knew this would create a difficult compare for Q1’19, and this played out broadly in line with our expectations.
Second, we knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce our revenue growth by about 200 basis points as compared to the previous year. This also played out broadly in line with our expectations.
Third, we knew we had an unprecedented number of new products to ramp during the quarter and predicted that supply constraints would gate our sales of certain products during Q1. Again, this also played out broadly in line with our expectations. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained.
Fourth, we expected economic weakness in some emerging markets. This turned out to have a significantly greater impact than we had projected.
In addition, these and other factors resulted in fewer iPhone upgrades than we had anticipated.
Further, Cook outlined other factors potentially affecting iPhone performance: consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.
Cook also points to China as a pain point for Apple’s first quarter results. Cook says that revenue in China accounts for “over 100 percent of our year-over-year worldwide revenue decline.” Cook says that the economic environment has slowed significantly in China due to trade tensions with the United States:
We believe the economic environment in China has been further impacted by rising trade tensions with the United States. As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed.
With all of that having been said, Cook also takes the opportunity to note that there are “many positive results in the December quarter” thus far. Cook says that revenue outside iPhone is up by almost 19 percent due to things like Apple Watch and AirPods. Apple’s wearables business is up almost 50 percent year-over-year, Cook says.
Cook also says Apple expects to set “all-time revenue records in several developed countries, including the United States, Canada, Germany, Italy, Spain, the Netherlands, and Korea.”
Ultimately, Cook says that Apple’s “profitability and cash flow generation are strong,” with the company expected to end the quarter with $130 billion in net cash. Further, Cook says that Apple is “confident and excited” about its product pipeline.
Most importantly, we are confident and excited about our pipeline of future products and services. Apple innovates like no other company on earth, and we are not taking our foot off the gas.
Cook also notes that Apple is “undertaking and accelerating” initiatives to improve its performance. One of these efforts, Cook says, is the process of trading in an old phone, financing the purchase of a new phone, and getting help in transferring data between devices:
We can’t change macroeconomic conditions, but we are undertaking and accelerating other initiatives to improve our results. One such initiative is making it simple to trade in a phone in our stores, finance the purchase over time, and get help transferring data from the current to the new phone. This is not only great for the environment, it is great for the customer, as their existing phone acts as a subsidy for their new phone, and it is great for developers, as it can help grow our installed base.
Companies are supposed to call the exchange where they are listed 10 minutes prior to announcing any news that could significantly affect the stock. That is what Apple seemingly did here, halting trading prior to making this announcement.
Tim Cook addressed Apple’s earnings revision in an interview with CNBC:
Apple shares were halted this evening ahead of the market’s close. CNBC was first to report on the development. Shortly thereafter, Apple published a “Letter from Tim Cook to Apple investors” in which Cook announced a rare AAPL earnings revision for the first fiscal quarter of 2019.
This is what Apple is now forecasting:
- Revenue of approximately $84 billion
- Gross margin of approximately 38 percent
- Operating expenses of approximately $8.7 billion
- Other income/(expense) of approximately $550 million
- Tax rate of approximately 16.5 percent before discrete items
- Revenue between $89 billion and $93 billion
- Gross margin between 38 percent and 38.5 percent
- Operating expenses between $8.7 billion and $8.8 billion
- Other income/(expense) of $300 million
- Tax rate of approximately 16.5 percent before discrete items
In the letter, Tim Cook outlined several reasons for this adjustment. Cook points to factors such as different timing of its iPhone launches, foreign exchange headwinds, struggles ramping new products, and economic weaknesses. Ultimately, Cook says this all resulted in “fewer iPhone upgrades than we had anticipated.”
First, we knew the different timing of our iPhone launches would affect our year-over-year compares. Our top models, iPhone XS and iPhone XS Max, shipped in Q4’18—placing the channel fill and early sales in that quarter, whereas last year iPhone X shipped in Q1’18, placing the channel fill and early sales in the December quarter. We knew this would create a difficult compare for Q1’19, and this played out broadly in line with our expectations.
Second, we knew the strong US dollar would create foreign exchange headwinds and forecasted this would reduce our revenue growth by about 200 basis points as compared to the previous year. This also played out broadly in line with our expectations.
Third, we knew we had an unprecedented number of new products to ramp during the quarter and predicted that supply constraints would gate our sales of certain products during Q1. Again, this also played out broadly in line with our expectations. Sales of Apple Watch Series 4 and iPad Pro were constrained much or all of the quarter. AirPods and MacBook Air were also constrained.
Fourth, we expected economic weakness in some emerging markets. This turned out to have a significantly greater impact than we had projected.
In addition, these and other factors resulted in fewer iPhone upgrades than we had anticipated.
Further, Cook outlined other factors potentially affecting iPhone performance: consumers adapting to a world with fewer carrier subsidies, US dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.
Cook also points to China as a pain point for Apple’s first quarter results. Cook says that revenue in China accounts for “over 100 percent of our year-over-year worldwide revenue decline.” Cook says that the economic environment has slowed significantly in China due to trade tensions with the United States:
We believe the economic environment in China has been further impacted by rising trade tensions with the United States. As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed.
With all of that having been said, Cook also takes the opportunity to note that there are “many positive results in the December quarter” thus far. Cook says that revenue outside iPhone is up by almost 19 percent due to things like Apple Watch and AirPods. Apple’s wearables business is up almost 50 percent year-over-year, Cook says.
Cook also says Apple expects to set “all-time revenue records in several developed countries, including the United States, Canada, Germany, Italy, Spain, the Netherlands, and Korea.”
Ultimately, Cook says that Apple’s “profitability and cash flow generation are strong,” with the company expected to end the quarter with $130 billion in net cash. Further, Cook says that Apple is “confident and excited” about its product pipeline.
Most importantly, we are confident and excited about our pipeline of future products and services. Apple innovates like no other company on earth, and we are not taking our foot off the gas.
Cook also notes that Apple is “undertaking and accelerating” initiatives to improve its performance. One of these efforts, Cook says, is the process of trading in an old phone, financing the purchase of a new phone, and getting help in transferring data between devices:
We can’t change macroeconomic conditions, but we are undertaking and accelerating other initiatives to improve our results. One such initiative is making it simple to trade in a phone in our stores, finance the purchase over time, and get help transferring data from the current to the new phone. This is not only great for the environment, it is great for the customer, as their existing phone acts as a subsidy for their new phone, and it is great for developers, as it can help grow our installed base.
Companies are supposed to call the exchange where they are listed 10 minutes prior to announcing any news that could significantly affect the stock. That is what Apple seemingly did here, halting trading prior to making this announcement.
Tim Cook addressed Apple’s earnings revision in an interview with CNBC:
This is about the quality of the product. The rate at which technology is moving does not necessitate that a new phone is purchased each year any more. I just upgraded from a 7Plus to a XSMax not because my 7 was not working or slow but because I change service providers and what I was paying the old service provider I am paying the new one the same and it included a new phone. If you have an IPhone 7 or better you don’t need the X at all. Same with the IPad, shit I am still using my IPad Pro 12’ first edition with no update insight and they have release three or four since mine came out.
wait apple heads are starting to wake up...???
funny shit is warren buffet went big in apple
this year...
apple is gonna have to come up with some hologram type shit if they want to remain industry leader..
to many other cell brands on the come up and coming up fast like that huawei or some shit like that...
crazy shit is the dude who runs the company... this country locked his daughter up over his huawei or whatever its called... company doing business with iran...
chinese owned company too.. crazy shit is.. all this is tied into the chinese trade war your boy trump is waging..
funny shit is warren buffet went big in apple
this year...
apple is gonna have to come up with some hologram type shit if they want to remain industry leader..
to many other cell brands on the come up and coming up fast like that huawei or some shit like that...
crazy shit is the dude who runs the company... this country locked his daughter up over his huawei or whatever its called... company doing business with iran...
chinese owned company too.. crazy shit is.. all this is tied into the chinese trade war your boy trump is waging..
I’m rollin with my 6s plus til the wheels fall off.
Me too. I use it as my travel phone and have no plans to update it. I took advantage of the $29 battery deal and its basically a brand new phone.
I’m rollin with my 6s plus til the wheels fall off.
Ditto.
By September all this current devices will be dirt cheap the way things are going for them.
1. Infringing patents that get your products banned.
2. Using lightning cables that create a barrier to switching.
3.Back in the day people watched cable TV while using their tablet. Now people can do this natively on their TV. You don't need a high resolution tablet, phone, or computer. Apple should be making smart TV.
When is the board going to yank this guy?
Last edited:
Done all the Time
Not by the Company, But by the exchange..
especially when something happens that will cause a Major share price drop
This gives everyone a day or two to clear their head before they start panic selling
I never heard of such things. Can you elaborate with examples?
shares fell its time to buy buy buy
NYSE suspends trading in Amazon, Alphabet on floor because of issue with their $1,000 stock prices
April 2018
Trading Halts 101: The Basics You Need To Know
Trading halted!
But don’t panic. In fact, the whole idea is to prevent any such anxiety.
Timeline of trading halts at stock exchanges and their customers
Trading Halt History - click on a Date on left side
April 2018
Trading Halts 101: The Basics You Need To Know
Trading halted!
But don’t panic. In fact, the whole idea is to prevent any such anxiety.
Timeline of trading halts at stock exchanges and their customers
Trading Halt History - click on a Date on left side
Thanks. Did the NYSE stop Apple or did Apple stop their shares from being sold? The idea that shares could be halted undermines the principle of free market capitalism.
---- The idea that shares could be halted undermines the principle of free market capitalism.
You could say that but the idea behind this is to stop Wild swings in price within One day
This is something the exchange would do ( most times ), For a company to do this would cause a worst panic than doing nothing.
People Buy on hope and sell on fear,, Wild one day swings in price would start a snowball effect
People would think there was insider trading or something funny was going on if the price per share rose and fell and rose again 40% Three times in a day, It is best to stop trading for a few hours
You could say that but the idea behind this is to stop Wild swings in price within One day
This is something the exchange would do ( most times ), For a company to do this would cause a worst panic than doing nothing.
People Buy on hope and sell on fear,, Wild one day swings in price would start a snowball effect
People would think there was insider trading or something funny was going on if the price per share rose and fell and rose again 40% Three times in a day, It is best to stop trading for a few hours
Buy Low and Sell High - works every time
Wordddd
I’m rollin with my 6s plus til the wheels fall off.
Bout to get the battery replaced tomorrow
Ya got to understand things like the one plus 6t is fucking with companies like iphones... Cheaper smart phones that are similar in capabilities are slowly getting picked over the bigger name expensive brands...these Asian nigs tapping into the American market is gonna be some of these companies downfall... I been posting one plus vids for a min now..that's gonna be the quiet monster as well as a few others
There are better and faster phones than iphones.
The ios is their biggest selling point.
I like the security over android.
Apple stock has dropped 38 percent in 90 days
Apple stock was down more than 9 percent overnight and continued the downward trend in trading this morning. In fact, the company’s stock price is down a total of 38 percent since October. This, after the company halted trading yesterday afternoon to provide lower guidance for upcoming earnings. As the iPhone upgrade market softened, it was having a big impact on revenue, at least in the short term, and Apple stock took a big hit as a result.
On October 3, the stock was selling at 232.07 per share, and while the price has fluctuated and the market in general has plunged in that time period, the stock has been on a downward trend for the past couple of months and has lost approximately $87 a share since that October high point.
Last night, before the company briefly stopped trading to make its announcement, the stock stood at $157.92 a share. This morning as we went to publication, it was recovering a bit, but was still down 8.19 percent to $144.981.
D.A. Davidson senior analyst Tom Forte says yesterday’s announcement, while not completely unexpected, was surprising, given Apple’s traditionally strong position. “We knew that iPhone unit sales were weak, but just not how weak,” he said.
The biggest factor in yesterday’s announcement, in Forte’s view, was China, where he says the company generates 20 percent of its sales. As the U.S.-China trade war drags on, it’s having an impact on these sales. This could be because of a combination of factors, including a weakening Chinese economy as a result of the trade war, or patriotism on the part of Chinese consumers, who are choosing to buy Chinese brands over of the iPhone.
This also comes at a time when Apple had already indicated that iPhone sales were weak in other worldwide markets, including India, Russia, Brazil and Turkey. This already helped weaken the iPhone sales worldwide, although Forte still sees the Chinese market as the biggest factor in play here.
Forte says that in spite of the soft iPhone performance, the good news is the rest of the product portfolio is up 19 percent, and that could bode well for the future. What’s more, the company has set aside $100 billion for stock buy-back purposes. “They have the balance sheet. They have the stock buy-back program. They still generate very significant free cash flow, and if the individual investor won’t buy the stock, then the company will buy the stock,” he explained.
In a report released this morning, financial analysts Canaccord Genuity believe that in spite of yesterday’s report, the company is still fundamentally sound and they continue to recommend a BUY for Apple stock. “We maintain our belief Apple can expand its leading market share of the premium-tier smartphone market and the iPhone installed base (excluding refurbished iPhones) will exceed 700M in 2018. This impressive installed base should drive iPhone replacement sales and earnings, as well as cash flow generation to fund strong long-term capital returns. We reiterate our BUY rating but decrease our price target to $190 based on our lowered estimates,” the company wrote in a report released this morning.
Forte says the unknown-unknown here is how the U.S.-China trade war plays out, and as long as that situation remains fluid, the company might not recover that income in the near term in spite of stronger sales across the catalog.
https://techcrunch.com/2019/01/03/apple-stock-has-dropped-38-percent-in-90-days/
Apple stock was down more than 9 percent overnight and continued the downward trend in trading this morning. In fact, the company’s stock price is down a total of 38 percent since October. This, after the company halted trading yesterday afternoon to provide lower guidance for upcoming earnings. As the iPhone upgrade market softened, it was having a big impact on revenue, at least in the short term, and Apple stock took a big hit as a result.
On October 3, the stock was selling at 232.07 per share, and while the price has fluctuated and the market in general has plunged in that time period, the stock has been on a downward trend for the past couple of months and has lost approximately $87 a share since that October high point.
Last night, before the company briefly stopped trading to make its announcement, the stock stood at $157.92 a share. This morning as we went to publication, it was recovering a bit, but was still down 8.19 percent to $144.981.
D.A. Davidson senior analyst Tom Forte says yesterday’s announcement, while not completely unexpected, was surprising, given Apple’s traditionally strong position. “We knew that iPhone unit sales were weak, but just not how weak,” he said.
The biggest factor in yesterday’s announcement, in Forte’s view, was China, where he says the company generates 20 percent of its sales. As the U.S.-China trade war drags on, it’s having an impact on these sales. This could be because of a combination of factors, including a weakening Chinese economy as a result of the trade war, or patriotism on the part of Chinese consumers, who are choosing to buy Chinese brands over of the iPhone.
This also comes at a time when Apple had already indicated that iPhone sales were weak in other worldwide markets, including India, Russia, Brazil and Turkey. This already helped weaken the iPhone sales worldwide, although Forte still sees the Chinese market as the biggest factor in play here.
Forte says that in spite of the soft iPhone performance, the good news is the rest of the product portfolio is up 19 percent, and that could bode well for the future. What’s more, the company has set aside $100 billion for stock buy-back purposes. “They have the balance sheet. They have the stock buy-back program. They still generate very significant free cash flow, and if the individual investor won’t buy the stock, then the company will buy the stock,” he explained.
In a report released this morning, financial analysts Canaccord Genuity believe that in spite of yesterday’s report, the company is still fundamentally sound and they continue to recommend a BUY for Apple stock. “We maintain our belief Apple can expand its leading market share of the premium-tier smartphone market and the iPhone installed base (excluding refurbished iPhones) will exceed 700M in 2018. This impressive installed base should drive iPhone replacement sales and earnings, as well as cash flow generation to fund strong long-term capital returns. We reiterate our BUY rating but decrease our price target to $190 based on our lowered estimates,” the company wrote in a report released this morning.
Forte says the unknown-unknown here is how the U.S.-China trade war plays out, and as long as that situation remains fluid, the company might not recover that income in the near term in spite of stronger sales across the catalog.
https://techcrunch.com/2019/01/03/apple-stock-has-dropped-38-percent-in-90-days/
After its profit warning, Apple slashes iPhone production by 10 percent
It's not all that long since Apple celebrated becoming a trillion dollar company, but then just last week it issued a profit warning and its value plummeted. Hot on the heals on this comes the news that Apple is cutting production of new iPhones for the current quarter by a significant amount.
The Nikkei Asian Review reports that Apple is slashing production of its current trio of iPhone models by 10 percent in the January-March quarter.
The report suggests that the move is a sign that Apple is expecting a further profit hit later in the year, marking a bleak start to 2019 after a disappointing end to 2018. Sources say that Apple contacted suppliers last month, telling them to produce fewer iPhones for the current quarter. As the Nikkei Asian Review reports, this "is the second time in two months that the US company has trimmed its planned production for the flagship device".
Sources say that having initially projected production numbers of around 47 to 48 million units, Apple is now expecting to produce somewhere between 40 and 43 million iPhones. The number covers both new and old models. It is going to be difficult to track the precise numbers as Apple announced late last year that it would no longer be sharing details of iPhone shipment figures.
https://betanews.com/2019/01/09/apple-reduces-iphone-production/
It's not all that long since Apple celebrated becoming a trillion dollar company, but then just last week it issued a profit warning and its value plummeted. Hot on the heals on this comes the news that Apple is cutting production of new iPhones for the current quarter by a significant amount.
The Nikkei Asian Review reports that Apple is slashing production of its current trio of iPhone models by 10 percent in the January-March quarter.
The report suggests that the move is a sign that Apple is expecting a further profit hit later in the year, marking a bleak start to 2019 after a disappointing end to 2018. Sources say that Apple contacted suppliers last month, telling them to produce fewer iPhones for the current quarter. As the Nikkei Asian Review reports, this "is the second time in two months that the US company has trimmed its planned production for the flagship device".
Sources say that having initially projected production numbers of around 47 to 48 million units, Apple is now expecting to produce somewhere between 40 and 43 million iPhones. The number covers both new and old models. It is going to be difficult to track the precise numbers as Apple announced late last year that it would no longer be sharing details of iPhone shipment figures.
https://betanews.com/2019/01/09/apple-reduces-iphone-production/
The should broker a hardware deal and license ios to maybe 2 other companies.
I need that iPhone X (original) price to drop down to $649
