Apple Stock Set to Crash - Stocks - Options - Mutual Funds Article - iphone, apple, att

Make Money Submitting Links:

	Email to friend
	Print

Other writing by Victor Lee

Tags

Investing, Stocks, Economy, Value, Income, Buffett, Passive, Dividends, Retirements, Recession, Apple, Dividend, Stock, Retirement, Real estate, Google, Market, Housing, Banks, Inflation, Stock market, Oil, China, Interest rates, Iphone.

Apple Stock Set to Crash

Article Submitted by: Victor Lee
Stocks - Options - Mutual Funds

Tags: Iphone, Apple, Att.

ATT reported earnings this morning and it should mark the end of the unmitigated and unsustainable hype surrounding the IPhone.

Submitted: Jul 24, 2007 Views: 1034 Comments: 2 Likes: 6

Att reported earnings this morning. While their earnings were strong by all metrics, what they said about the iPhone is not encouraging.

They only signed up 146,000 iPhone accounts in the last two days of the quarter. Analyst estimates about iPhone sales in the first two days of sales ranged anywhere between 200,000 to 700,000.

(This WSJ July 2 link has analyst expectations: http://online.wsj.com/article/SB118339450851255483.html?mod=US-Business-News)

Any way that you cook it, this is a huge disappointment for Apple, especially since the stock is now valued on the iPhone growth as opposed to anything else.

What could ATT say about the future of the iPhone. Only that traffic in stores was running above normal in July.

Without a real pickup in iPhone sales, Apple's stock is hardly likely to stay where it is.

Related Articles:

Despite all the hype, iPhone details are still scarce for would-be buyers by PhilR - Jun 20, 2007
Apple Cuts Price on iPhone by PhilR - Sep 06, 2007
The Nokia Disaster by soczie - Jun 28, 2007
True IPhone Impact Won't Be Known for Months by soczie - Jul 02, 2007
Apple (AAPL) – Ratio Call Spread Update. The Delta / Theta Battle Rages On by PhilR - Jul 23, 2007
Senate Backs Wiretap Bill that Shields Phone Companies by soczie - Jul 09, 2008
ATT Says they are almost out of IPhones by JRodgers - Jul 01, 2007
Adventures with my iphone- part 2 by jsoc - Oct 01, 2007.

6

Email this story Email to someone | Print Content | Add to reading list

Comments Received:

Amelia

As I pointed out in my own writing on this site last week, I wouldn't dream of shorting it.

http://www.bestcashcow.com/stocks_-_options_-_mutual_funds/article/amelia/a-stock-to-short-and-a-stock-not-to-dream-of-shorting

Posted: Jul 24, 2007

Author/Submitter Response:

It is clearly a better short than Amazon now.

EmilyZ

I don't think Apple was counting on that much revenue from the iPhone. It sells tens of millions of Ipods and had modest goals for the iPhone.

Posted: Jul 24, 2007

Author/Submitter Response:

They were selling tons of iPods this time last year with the stock at 60 and in January with the stock at 80. iPod sales have not been materially projected higher by Apple or the analysts. This stock exploded higher this due to (1) iPhone unveiling, (2) hype leading up to iPhone launch, and (3) analyst increasing sales iPhone sales estimates immediately following launch. It has been iPhone, iPhone and iPhone that has led it to 143. IPod sales aren't going to hold it at 143. The stock may go down quickly if the iPhone isn't a smashing success.

© Copyright 2008 Victor Lee All rights reserved. Victor Lee has granted BestCashCow.com, LLC non-exclusive rights to display this work on Bestcashcow.com.

Financial products of all nature bear inherent risks and this website is not a financial advisory service; it is a forum for users to share and to compare notes and observations on financial publications. The website provides, free of charge, the technical and logistical apparatus and the medium for users to share and to publish financial information and to comment on publications. As such, the website’s operator can not and does not take responsibility for information, observations or opinions of any sort or nature provided by third parties with whom it is not affiliated who use the website to publish, to comment or as a means of solicitation. Users are specifically warned against following any advice related to specific instruments, including, but not limited to, equity securities, that may be provided by other users directly on this site or on web pages to which other users have provided links on this site. BestCashCow.com can not and does not check or verify the qualifications and credentials of users who publish or comment on this site or on linked pages. Users should seek personalized advice from qualified professionals regarding all personal financial issues and evaluate the risks and applicability to their own circumstances of each financial product discussed regardless of who the publisher is or purports to be. Should you, through your use of this site, identify an individual or organization purporting to offer personalized advice, you bear all responsibility to ensure that the individual or organization has the qualifications that they may represent on the website, and that their advice is appropriate for your circumstances. On certain webpages, BestCashCow.com provides information related to rates on US-based savings accounts, CDs, short-term government bonds, and other US cash equivalent securities, also free of charge to internet users for their independent use. The accuracy of this information is not guaranteed, and the information, like all other information on this website, should not be construed to provide investment advice, nor to endorse a financial product of any sort.

© 2007 BestCashCow.com, LLC. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy.