Watch how a stock reacts to the news, not the news itself: this is an old trader's saying. Apple shares are displaying some resilient strength this morning following an earnings report that was interpreted both positively and negatively last night. 

This may be a sign that people got too negative on the stock as Apple shares plunged from $700 to $400. It's now bounced back to near $540, with shares are up $7 to $537 ahead of trading this morning. 

This trend now has the potential to feed on itself, as overly negative analysts are forced to revise their forecasts upwards, as is starting to happen this morning. Several analyst firms including Goldman Sachs and Cowen & Co. have alluded to this in their research notes. 

Apple reported profits that beat analyst estimates by about .30 cents per share, though some anlaysts and investors griped that it's projecting flattish profits for its upcoming holiday quarter. In the pre-market hours, however, Apple's stock is strong following a sprinkling of analyst upgrades.

The Cupertino, Calif.-based purveyor of all things "i" reported posted quarterly revenue of $37.5 billion and quarterly net profit of $7.5 billion, or $8.26 per share. These results compare to revenue of $36 billion and net profit of $8.2 billion, or $8.67 per diluted share, in the year-ago quarter. Gross margin was 37 percent compared to 40 percent in the year-ago quarter. International sales accounted for 60 percent of the quarter’s revenue. 

This entry was posted on Tuesday, October 29, 2013 at 13:15 pm and is filed under Mobile, Investing.
Keywords: Apple, iPhone, iPad, Tim Cook

I've be doing a lot of work on Apple, including providing some analysis to other sites such as CMSwire.com, where you can check out my latest anaylsis of Wall Street's reaction to Apple's new product announcements here.

But there's lots of things going on with Apple, and of course there is the nonstop chattering of pundits about what they will do next. And with Carl Icahn getting a lot more involved -- he tweeted today that he has sent another letter to Apple CEO Tim Cook  -- one could see the "vaunted" catalyst that might moving Apple stock higher again.

It seems as if the company is at a key point in it's history. Will it move forward or start to stagnate as it hits a new product slump? Investors are certainly looking for new spark.

Everybody seems to want new products and change. Of course, this is obvious, but the better question is, what's realistic? Here is just a sampling of stuff that's floating around:

Apple TV: Everybody seems to be crying for it, but we're not even sure what it is. They are reportedly working on a mondo, high-end TV that everybody would want. But does Apple really want to be in the high-end TV business? It's a famously commoditized area. I would file this under speculation and not something you will see soon.

More, better tablets: This was a big component of Apple's product release this week. But was it enough? It's no secret that Apple has been under assault in the tablet market -- it's been losing market share in the fastest growing market it's in.

Personally I think Apple needs another product -- something between the iPhone and the iPad mini 2, in the "phablet" market, to compete with the onslaught of various-sized phones from Samsung. Analysts point out that iPad margins and regaining market share in the tablet market are two of the most critical goals for Apple right now.

Tim Cook: They're all asking -- is he the right leader? Cook continues to manage well operationally, and Apple is throwing off a ton of cash, but all of the product announcements have been incremental in nature while everybody screams for something more. Maybe he has a trick up his sleeve, maybe he doesn't. At any rate, he's been at the helm for about two years, and I give him one more year before he comes up with something big or the Apple mob (investors and customers) becomes more vocal.

All that cash: What will Apple do with all that cash? Activist investors such as Carl Ican are screaming for Apple to release more of its cash stockpile, well over $100 billion in cash and long-term investments, while the company throws off nearly $50 billion in annual cash flow. There are many options such as increasing the dividend and share buybacks. I would expect more of both by the end of the year.

The stock price: Apple shares were famously week during 2012 and the earlier part of 2013, moving against the grain of a bullish stock market, but now they have stabilized and are starting a modest uptrend. Can this be sustained? I see two factors: Profit margins and activist moves. Apple's share price has been hit the most by declining margins brought about by competition in the lower-end tablet market. The other factor is what it does with all its cash and how responds to activists cries of people like Car Icahn. If you see movement in either of these ares, watch Apple stock strengthen.

(Disclosure: Author is long Apple stock in a long-term retirement account, which could possibly become very long term.)

This entry was posted on Wednesday, October 23, 2013 at 17:23 pm and is filed under Mobile, Digital Media.
Keywords: Apple, Tim Coook, iPad, iPhone, Tablets, Samsung, Android

Is there a more explosive economic concept than combining iProducts with China? Didn't think so. In that vein, MarketWatch reports that China Unicom starts to ship iPhone 4 in China next month.

Our mind is boggled by the concept of hundreds of millions of frenetic Chinese citizens roaming the fastest growing country on earth clutching iPhones and iPads.

On to the rest of the news:

This entry was posted on Tuesday, August 17, 2010 at 11:15 am and is filed under Media, Technology.
Keywords: China Unicom, China, Telecom, Apple, iPhone, iPad, HP, Fertilizer

Can AT&T stop messing up? In this morning news, Gawker appears to have broken the scoop that 114,000 iPads have been victim of a security breach exposing email and iPad IDs.

The security breach has "exposed the most exclusive email list on the planet, a collection of early-adopter iPad 3G subscribers that includes thousands of A-listers in finance, politics and media, from New York Times Co. CEO Janet Robinson to Diane Sawyer of ABC News to film mogul Harvey Weinstein to Mayor Michael Bloomberg," writes Gawker.

AT&T confirmed the story this morning (Wall Street Journal). Just another black eye for AT&T, which is still trying to work out connection issues with the iPhone.

In other news:

 

 

This entry was posted on Thursday, June 10, 2010 at 10:37 am and is filed under Media, Technology.
Keywords: Apple, AT&T, iPad, iPhone, Security, BP, Obama

Well, AT&T has eliminated the unlimited data plan, and Internet anarchists everywhere are having a cow. The funny thing is AT&T's headline on the announcement: "AT&T Announes New Lower-Priced Wireless Data Plans..."

First question: Are the plans really lower priced, as AT&T claims? Now that's funny. If you read the headline on this press release you would think it was some mundane, tiny pricing shift -- like AT&T thought it could slip one by millions of frothing-mouthed, blogging mobile data heads. Of course the digital-media addicted Internet anarchists note that by definition eliminating an all-you-can eat plan is raising prices. MobileCrunch calls this a "sad day in data land."

This entry was posted on Wednesday, June 02, 2010 at 23:32 pm and is filed under Technology.
Keywords: Telecom, AT&T, Mobile Data, Verizon, Apple, iPhone, iPad

Hopefully one of these mornings we'll wake up to learn that they've stopped the oil leaking into the Gulf of Mexico. Depressing stuff, it is.

Meanwhile, while the oil spills, Google and Microsoft are sparring, with Google launching an anti-Windows campaign. Here's what's in the news today:

This entry was posted on Tuesday, June 01, 2010 at 11:38 am and is filed under Macro.
Keywords: BP, Gulf Oil Spill, Adobe, iPad, Apple, HP, Layoffs
Apple announced today that it has already sold 1 million iPads, coming in less than a month after it was launched. Wow. As pointed out in the press release, that means it took less than half the time it took the iPhone to get to 1 million (74 days). And as an experienced trader and investor, I know to watch the reaction to the news rather than the news itself. Apple, a stock I'm accustomed to seeing up $10 or $20 in short swatches of time, is only up $6 (2%). That seems like a lot but in the Apple world, it's quite a pedestrian gain.  In addition, on the chart, it looks like it's struggling to take out a new high (around the $267 level). Watch this development carefully. If it fails to take out a new high today or tomorrow,  I think it's time to book profits. Disclosure: I was in Apple briefly earlier in the year, but I unloaded my Apple stock around the $230 level. Doh! But sometimes you can't get greedy. Chart forApple Inc. (AAPL)
This entry was posted on Monday, May 03, 2010 at 18:57 pm and is filed under Mobile, Technology.
Keywords: Apple, iPad, iPhone
Gold-plated Silicon Valley venture firm Kleiner Perkins Caufield & Byers (KP) is upping its bet on iPad applications.  The partners, in a post on TechCrunch, say that the immense growth projected in the iPad market is leading them to  "double down" by boosting the venture capital firm's fund focused on the iPad -- the iFund -- by $100M to a total size of $200M. Why now? KP partners believe, apparently, that the iPad is ushering in a new phase of innovation comparable to the World Wide Web. Kleiner Perkins Caufield & Byers partners John Doerr, Bing Gordon, Chi-Hua Chien and Ellen Pao write that the iPad experience is a follow-on boom to the Web:
The rest of the 90’s were a ONCE-in-a-lifetime experience. Entrepreneurs created the Web, and great ventures – Netscape, Amazon, Ebay, Google, and others. And they changed our lives. Silicon Valley became the Florence of the New, Networked Economy. The advent of the iPad feels like deja-vu, like it’s happening all over again. Not once, but TWICE-in-a-lifetime.
The VC partners have funded 14 companies, with 3 in stealth mode. The companies include Booyah, Cooliris, GOGII, iControl, InMobi, ngmoco, Pelago, Pinger, Shazam, shopkick, and Zynga mobile. KP partners say the companies in the iFund have generated more than 100 million downloads and that they expect the companies to generate more than $100 million in revenue this year. To read the full article, go here.
This entry was posted on Tuesday, April 06, 2010 at 14:33 pm and is filed under Media, Mobile, Technology.
Keywords: Apple, iFund, iPad, John Doerr, Kleiner Perkins, Startups
If there is a technology guru and review who can make a break a technology's future with a few keystrokes, it's Walt Mossberg. The veteran gear reviewer for the Wall Street Journal is now out with his take on the iPad, and he calls it nothing short of revolutionary. Oh boy. This should uncork any remaining iPad hype that hadn't already boosted the press  into oxygen-depleted zones of the atmosphere.  The iPad is now akin to the discovery of the wheel.
This entry was posted on Thursday, April 01, 2010 at 12:00 pm and is filed under Mobile, Technology.
Keywords: Apple, iPad, Steve Jobs, Tablet Computing, Walt Mossberg
I have a Labrador  as a pet. They are famous for eating everything.  So are mobile consumers, which brings an interesting question: With a flood of mobile "tablet computing" devices such as Apple's iPad coming, are the wireless networks ready for mobile consumers, the Labradors of data? The short answer is, "No." The problem is that tablet computers and all of their bandwidth-heavy network-based applications are a little too innovative for the 3G networks they will be running on. Really, they need 4G, which isn't really widely available yet, unless you are in a Sprint/Clearwire WiMax zone.
This entry was posted on Wednesday, March 31, 2010 at 18:01 pm and is filed under Media, Mobile, Technology.
Keywords: 3G, 4G, Apple, iPad, Mobile Backhaul, Tablets, WiFi