Tuesday, October 19, 2010

Apple Tanks 5% In After Hours Trading After 'Record Sales'

The top headline for CNN.Money is Apple sales top $20 billion - new record.

  • NEW YORK (CNNMoney.com) -- Apple's wildly popular gadget lineup propelled the company to a new all-time sales record of $20 billion, Apple said Monday as it announced its fourth-quarter results.

    Calling himself "blown away" by the results, Apple CEO Steve Jobs promised more magic to come: "We still have a few surprises left for the remainder of this calendar year."

    The company sold 14.1 million iPhones in the quarter, which represents a 91% increase from this time last year and easily topped even the most bullish estimates from Wall Street analysts.

    Apple Chief Operating Officer Tim Cook told analysts on a conference call that the company would have sold even more had it been able to keep up with demand. Online, iPhone 4s have been on backorder since the device debuted in July. When pressed by an analyst about Apple's supply chain snags, Cook responded that the manufacturing issues have been mostly solved.

    Apple sold 3.9 million Macintosh computers, which was up 27% over the previous quarter and also topped most estimates. The company also sold 250,000 Apple TV devices.

    But Apple disappointed investors by selling just 4.2 million iPads in the quarter, up from 3.3 million tablets in the previous quarter. Apple said more than $2.7 billion of its sales, or 13% of its quarterly revenue, came from iPad sales -- a revenue stream that didn't exist just six months ago. But the sales came up short of the roughly 5 million that most analysts had anticipated.

    Investors focused on the iPad sales and sent shares of Apple (AAPL, Fortune 500) down 5% after hours.

    Overall, Apple easily surpassed Wall Street forecasts and turned a profit $4.3 billion, or $4.64 per share -- up 70% from a year earlier.....

Ahhh.... the fine print...

  • Investors focused on the iPad sales and sent shares of Apple (AAPL, Fortune 500) down 5% after hours.

Yeah as can be seen clearly from the above chart, ipad sales are NOT hot.

And the shares tumbled 5% after hours.

Hmm... doesn't quite match the attention grabbing headline " Apple sales top $20 billion - new record", does it?

ZH captures the moment beautifully in his post, iTIMBER. Check out the CNBC screenshot!

Falls slightly?


ZH's after hours chart of APPL.

LOL! LOL! iTimber! LOL! LOL!

And what are the insiders doing lately?


Serlet Bertrand? That's the Senior Vice President of AAPL.

Check this out... sec form filling from Serlet Bertrand

On 28th Feb 2010, 33,296 options were exercised at a cost of 11.84. Look at the recent disposal prices! I see 289, 291...

See the following page http://finviz.com/insidertrading.ashx?oc=1252200&tc=7


Life is seriously good on Wall Street, eh?