Apple just reported earnings and they were pretty bad considering the low expectations. The guidance is rather soft and this will effect SWKS which is also down 3.5% in after hours trading. Apple is down 6% in AH:
Q2 EPS: $1.90 versus expectations of $1.99 Q2 revenue: $50.6 billion versus expectations of $52 billion Gross margin: 39.4%, versus expectations of 39.47%, iPhone unit sales: 51.2 million, versus expectations of 50.7 million iPad unit sales: 10.2 million, versus expectations of 9.4 million Mac unit sales: 4.03 million, versus expectations of 4.6 million Q3 revenue guidance: $41 billion and $43 billion, versus expectations of $47.35 billion
Apple just reported earnings and they were pretty bad considering the low expectations. The guidance is rather soft and this will effect SWKS which is also down 3.5% in after hours trading. Apple is down 6% in AH:
It will affect SWKS’s stock price in the near future. But will it affect SWKS earnings? Maybe not so much. In January we heard Aldrich say that SWKS products are in “everything”. So if Apple sells fewer iPhones it will only affect SWKS if the overall market for mobile phones declines. If the weakness from Apple if Apple specific and made up for by other manufacturers selling more (like the Chinese companies such as Xiaomi) then SWKS should remain largely unaffected. We will see on Thursday what SWKS reports and says on the conference call…
So if Apple sells fewer iPhones it will only affect SWKS if the overall market for mobile phones declines.
GauchoChris - The odd thing is that the numbers Charlie posted about Apple show they beat iPhone sales expectations, not missed. SWKS ended after hours trading 5.38% down. Seems like a disconnect. We’ll find out Thursday night.
Does anyone else recall the CEO saying this quarter will be challenging, but that he was very confident about the 2nd half of the year’s performance? It will be interesting to hear his guidance in the call. I sold a couple of weeks ago, but plan to get back in for the 2nd half if guidance holds.