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SlideshowApple's Planned Cover-Up Meets Backlash

iPhone Average Selling Price ($)
Source: Apple. Notes: The ASP has been calculated by dividing product revenues by unit shipments for each quarter; the figures are at current exchange rates for each quarter.
Source: Apple. Notes: The ASP has been calculated by dividing product revenues by unit shipments for each quarter; the figures are at current exchange rates for each quarter.

brooks7 11/3/2018 | 12:39:23 PM
Re: Knuckle head on Apple Futures @trapdaddy,

You are simply either missing the point or ignoring it.  Companies report on themselves in basic ways like revenue and profit.  They also report on numbers that are strategically important to the business.  They do this over time and with great deliberation.  The reason is that reporting on numbers once and never again is viewed as a Sales Tactic meant to convince the public to buy the stock.

Now here we are on the other side of things.  Numbers that have been reported for years are being removed.  Apple has every right to do so, but understand that analysts ask the question:  "Why?"  This creates uncertainty around the stock and people report on it.  Now cover-up and backlash are strong words.  But this is Lightreading a site that once reported that I hated Grandmothers (I can go find the article from about 2001 if you want me to).  

So do analysts write with concerns when companies stop reporting on numbers that they used to?  Yes, yes they do.  They do it EVERY time unless there is a good reason to stop.  An example of the reason to stop would be Autodesk, where they completely changed how they did business.  This meant the old metrics were no longer valid.  Not the case with Apple.

seven

 
trapdaddy 11/3/2018 | 11:38:15 AM
Re: Knuckle head on Apple Futures Not sure why comparing with oneself is not taken care of by presenting the numbers in terms of revenue.  Yes, compare Apple to apples is easy but comparing apple (phone sales) to its competitors is not so simple.  I get it but I'm an engineer not a bean counter and nothing comes for free. 

When a "smart" company realizes market saturation and future sales will be at best incremental well for apple that's flat (or soft).  Apple sees "no  big win fall" in this market just product maintenance.

Some of the well known financial anylyzers are really showing their ignorance of business by reacting in such a way. 

They should also realize market saturation and where is Apple going to make big gains/steps.  "Service", yes that's a no brainer but real big means jumping into a new industry.  They are signaling it time to move on.  I have my thoughts on what it will be and it will happen within the next year.  Perhaps a huge marriage to another innovative company?   But I'm sure the bean counters will eventually realize this.

 

 
bosco_pcs 11/2/2018 | 7:51:50 PM
The Most Overvalued Company? I am curious why Apple* is the most overvalued company. 

A lot of companies stop giving guidance because they are sick of the Q to Q mentality. Recently, two financial heavy weights, Warren Buffett and Jamie Dimon, chime on the subject matter.

Ok, Apple's decision not to give iPhone unit number is not guidance but a metric. However, it can be weaponized by financial analysts just the same. For a number of years, analysts attacked Twitter on the MAU metric, until they have decided to stop recently. Sometimes you have to wonder if the stock price is driving the narrative and not the other way round.

I am at a loss to see the word 'overvalued' in Apple's valuation. Sure, it is more expensive after Apple and Warren Buffett started buying its stock but it is still cheaper than most S&P or its DJIA fellow members.

Financial engineers can cook earnings but not revenues. In fact, Apple will continue to guide those numbers. 

Twenty some years ago, there was an ax analyst on Cicso - I forgot his name or his firm now - he would do channel check and all the leg works and he gave great analysis. As people know, Cicso was - still is - notoriously able to beat earning estimate by 1c. This guy was willing to go an extra mile to do the work. It appears the newly minted analysts don't want to do that. Instead, they want companies to give them numbers so they can plug them into their spreadsheets. Even you and I can do that!

So I don't see Apple making them do some real work to earn their living really that disastrous

* Full disclosure, I am an Apple shareholder; however, I hope at least I am not  too bias. After all, as I stated previously, you can cook bottom line but not top line. But it is the job of an analyst to "trust but verified." :)
brooks7 11/2/2018 | 3:25:13 PM
Re: Knuckle head on Apple Futures Wow, your post is very biased.

It is always an issue when a Public Company changes its reporting.  This is especially true when information is being removed.  The whole point is to see the trends in the business.  If product volume is going down, that is important to know.  The real question is why this information is going away after years of it being there.  Companies report on what they report on.  They report based on the way they have run and measured their business.  It doesn't matter what competitors are doing.  Apple is measuring itself against Apple.

seven

 
trapdaddy 11/2/2018 | 1:13:36 PM
Knuckle head on Apple Futures Your opinnionated article misses the point.  There's nothing nothing to hide.  It's called full transparency with it's future direction.  Apple does not have a crystal ball to predict unit sales and if they did they would not tell you.  I can only think you must have shorted the stock or have dislike great American companies.   I'm sure you are aware that the parameter of unit sales is "only" provided by apple and non of it's real competitors.  The bottom line is sales are up x% over the period and they expect awesome growth in the service sector!  It's pains me to see opinnion oriented articles on this site.  
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