I apologize if this has already been mentioned – the board is a busy place these days But yesterday, Apple announced record holiday app store sales, which very likely means even more people bought/received iPhones and iPads over the holidays than they did the prior year.
In the two weeks ending January 3, customers spent over $1.1 billion on apps and in-app purchases, setting back-to-back weekly records for traffic and purchases. January 1, 2016 marked the biggest day in App Store history with customers spending over $144 million. It broke the previous single-day record set just a week earlier on Christmas Day.
But trading in Qorvo was halted in after market trading after getting pounded due to lower guidance. Lowered due to slower customer demand in mobile products.
But trading in Qorvo was halted in after market trading after getting pounded due to lower guidance. Lowered due to slower customer demand in mobile products.
I hear ya, oologah. Cirrus Logic also issued a warning today. But here’s what both companies had to say:
Qorvo: For the March 2016 quarter, Qorvo currently expects quarterly revenue to be approximately flat sequentially. For calendar 2016, Qorvo currently expects above-market revenue growth…
Cirrus Logic: Despite this lower outlook for the short term, we expect our full FY16 results to reflect meaningful year-over-year revenue growth and further foresee strong growth for FY17 based on several anticipated new product introductions…
I think the market is obsessed with a situation that, if it does materialize, is likely short term in nature. Ultimately we’ll just have to wait for Apple to release their earnings and guidance, so we can find out what’s really going on straight from the horse’s mouth. But so far, the only data we’ve gotten from Apple itself has been positive.
And remember, folks, what matters is what happens over the coming years, not the coming weeks.
Frankly guys - I think there is a bigger picture that folks are missing with the pointed focus on either Apple or China.
We have been hearing about saturation in the whole smart phone segment for the last 6 months with growth rates declining. Whether or not Apple is coming up short or not the whole sector is not growing as it used to. Every other Apple and smart phone/mobile chip supplier that has gone public has called a miss or brought expectations down - and they haven’t specifically mentioned Apple.
I think this has to be a real phenomenon forget about just Apple and China.
To what degree SWKS is affected remains to be seen but I think there is a real market situation out there that cannot be ignored whether signaled by SWKS competitors or its customers.
All of this started to get Apple stockholders nervous as speculation grew that lackluster sales of the Apple iPhone was responsible for the shortfall in earnings. Both the Apple iPhone and Apple iPad use audio chips from Cirrus Logic, so any drop in the top line at the company had Apple investors reaching for the phone to call their broker. Apple’s shares were decimated on Wednesday, at one point making a new 52 week low around $398. It didn’t help that Needham & Co. analyst Vernon Essi Jr. blamed the problems at Cirrus Logic on problems at Cupertino.
Essi jr. said that Apple was “losing its mobility mojo,” and added that the guidance “indicates that the recent fears of Apple’s lackluster iPhone demand in 2013 are warranted”. He sees first half 2013 sales of Apple’s iconic smartphone closer to 55 million than the earlier forecast 60 million. In addition, R.W. Baird analyst William Power said that increased competition would result in lower than expected Apple iPhone sales and also because Apple will probably not release a new iPad this quarter as it has in previous years. Some are calling for a 20% to 30% drop in Apple iPad mini shipments this quarter as buyers back off, expecting a new model of the device which probably won’t launch until later this year.
For a little perspective, that was written in April 2013! Now maybe there is something wrong as Ant suggests, but this stuff has been said over and over and over before.
Btscheufler: For a little perspective, that was written in April 2013! Now maybe there is something wrong as Ant suggests, but this stuff has been said over and over and over before.
And a little additional perspective: on April 19, 2013, Cirrus Logic traded for $17.70/share. Twenty months later on December 5, 2014, it traded at $18.18/share.
And a little additional perspective: on April 19, 2013, Cirrus Logic traded for $17.70/share. Twenty months later on December 5, 2014, it traded at $18.18/share.
But yesterday, Apple announced record holiday app store sales, which very likely means even more people bought/received iPhones and iPads over the holidays than they did the prior year.
not necessarily. The story I heard was FitBit apps were downloaded like crazy, that means people got Fitbits for Xmas and downloaded the app, it does not necessarily mean that phones and pads were purchased.
I really like what the CEO has been saying, but in the back of my head I also hear Audrey McClendond of Chesapeake Energy saying all those optimistic things as his stock plummeted and his leveraged positions turned to dust. He was an insider buying and buying and buying, and it was all on leverage. His margin calls moved the stock and created more margin calls for him.
Not saying we have that case here, but an optimistic CEO can be wrong.
Neil: But yesterday, Apple announced record holiday app store sales, which very likely means even more people bought/received iPhones and iPads over the holidays than they did the prior year.
Pete: Not necessarily. The story I heard was FitBit apps were downloaded like crazy, that means people got Fitbits for Xmas and downloaded the app, it does not necessarily mean that phones and pads were purchased.
Neil and Pete - isn’t the FitBit app a free purchase? And if so, would it count as an app store sale? I thought I recall the record breaking figure reported as a gross dollar amount.
isn’t the FitBit app a free purchase? And if so, would it count as an app store sale? I thought I recall the record breaking figure reported as a gross dollar amount.
I thought the same thing. There are a few paid Fitbit related apps but nothing that would be more than a drop in the ocean that is the App Store.
This was the first holiday with the Apple Watch around, so that might account for the increased sales. The Watch is more reasonable to give as a gift, and would require downloading a whole new set of apps.
Or maybe people just gave out iTunes gift cards because everyone is content with their existing iOS devices.
But yesterday, Apple announced record holiday app store sales, which very likely means even more people bought/received iPhones and iPads over the holidays than they did the prior year.