Sanford C. Bernstein analyst Toni Sacconaghi looked at Apple Inc.'s (NASDAQ: AAPL) latest sales numbers and thinks that the company may have an iPhone inventory problem:
We believe the data points to a significant amount of iPhone channel inventory ... This is negative in two ways: (1) it indicates end-user demand for iPhone is lower than many investors may think based on Apple's sales figure; and (2) it points to slower iPhone sales in the current quarter, since much of this inventory is likely to be drawn down.
Check out News.com's coverage of the report for more details and insight.
Apple's stock has been hit hard of late, and this latest inventory report underscores one of the reasons I wouldn't buy Apple stock (I wouldn't short it either): The company is 100% dependent on its continued ability to innovate and stay ahead of the competition with each new product introduction. Even a blockbuster hit can only carry the company for so long.
Any investment in Apple is essentially a bet on the company's ability to continue being an innovator. Call me crazy but if I'm going to pay 6+ times book and 25 times earnings, I'd prefer a strong moat that doesn't require continued brilliance.
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Reader Comments (Page 2 of 2)
1-29-2008 @ 11:05AM
Nikki said...
I have to say I enjoy watching what Apple will come up w/next not to say I'm going out and buying them but....Anyway the biggest draw back I think w/a lot of people not buying it is it's w/AT&T. If you have a carrier you're happy with y would you want to change? Maybe they need to re-think that deal and make it available to everyone.
1-29-2008 @ 11:12AM
Suns said...
Because of AT&T I will never, own an iphone. It is really to bad because I think they are awesome phones.
1-29-2008 @ 11:24AM
markvember said...
If they were smart they would offer there stupid phone with Verizon and not limit it to the sucky AT&T.
1-29-2008 @ 12:19PM
MSUSpartans04 said...
I think the "problem" with the iPhone, quite honestly, is that it's on AT&T. AT&T doesn't have the most progressive network, in fact, the iPhone isn't even on their "high-speed" netowrk. Had the iPhone been released through Verizon or Sprint, I think sales would have been much better.
1-29-2008 @ 12:19PM
Ramona said...
I am locked into a service contract with another provider as soon as that is up... I go IPHONE and I will explain why...
Verizon informed me 4 months ago that when the Voyager came out it would be totally compatible to the IPHONE... let me tell you as a 54 year old with glaucoma THERE IS NO COMPARISON.
Granted I have 2 family members who are totally sold on apple products. They are wedding photographers and have showed me the IPHONE it is amazing I can use my fingers to operate every single function... NOT TRUE WITH THE VOYAGER.
I can see the screen clearly with the IPHONE ... NOT TRUE WITH THE VOYAGER...after I left the Verizon store sitting at a stop light the couple in the car in front of me had and IPHONE ...guess what I could see the screen clearly (almost) from the driver's seat in my car. IPHONE... I think if more people of age actually could get to a place where they could have HAND'S ON EXPERIENCE with it and could be educated the IPHONE market would find a whole new market ready to absolutely use this phone... I WILL CHANGE IMMEDIATELY... and after writing this I am sitting here going pay the early out fee to Verizon and start using the IPHONE IMMEDIATELY.. why continue to cause problems with my eye sight when there is a phone that does work for me. Thanks for publishing this article and making me realize there is not time like the present to make this swithc....
1-29-2008 @ 12:26PM
capitan said...
Joey jo jo
You should read what you write. What a whining ass.
1-29-2008 @ 12:37PM
Vivi said...
Apple, AT&T, Iphone? What's this all about? I'm still back in the '30's when one just picked up the home phone and a sweet young lady said,
"Number, please?"
1-29-2008 @ 1:37PM
JD said...
My husband and I both have the IPhone and we love it, it works great. You can add stuff to your IPhone, there are numerous web apps you can apply to your phone and add them to your front screen, almost every week they are adding new web apps. My husband and I travel too, we actually move every three months for his job and no matter where we go we have service with AT&T, even at my parents house and they live out in the middle of nowhere. With the IPhone it gives us all the things we need at your finger tips, being able to surf the web, get driving directions, check my Bank account whenever and where ever I am makes my life a lot easier.
1-29-2008 @ 1:34PM
Tony said...
I bought an Iphone at the same time my wife got a Trio. I find her Trio to be much more business oriented. I think that makes a difference. While Iphones are fun, I don't find them pracitical for my business (i.e. appointments, etc.)
1-29-2008 @ 1:41PM
Rumi said...
Isn't it obvious? The only way you can get an Iphone is to drop your current carrier (assuming you can get out of your contract cheaply.....right) and switch to AT&T, which in my opinion is one of the worst for customer service. If Apple is so smart, why didn't they release it to Verizon? The whole thing is just a big, expensive, HASSLE. Verizon is already offering similar products.
1-29-2008 @ 2:18PM
RoughAcres said...
Got the iPhone about a week ago and haven't been able to let it out of my sight for an instant... people talk about "revolutionary" products; this thing is amazing.
As for dropped calls, poor service, etc. on AT&T: have had no problems whatsoever.
The ONLY complaint I have is that the ringer isn't as loud as my Verizon phone... and that will be solved when I find the right ringtone, I'm sure.
This thing is AMAZING.
1-29-2008 @ 6:17PM
dustfrmpluto said...
One of the main problems with the iPhone is the service carrier, if it was provided by more than just AT&T carried it then more people would be willing to buy it, even people who own it despise the service coverage but love the phone, so if the other service companies out there were able to carry it then it would sell more I know I would if it was carried by Verizon or Altell
1-29-2008 @ 2:06PM
Paul said...
Verizon has the Voyager, it's real similar to the iphone. Cool keyboard for texting too. It's $340.00 with an upgrade. I like Apple and if the iphone were available through Verizon, I would have gotten it. I wish that a lot of the people that post on here, would check their spelling, before they post. It's a shame how they just don't care, because they are in such a hurry to get posted.
1-30-2008 @ 9:25AM
Beltway Greg said...
Apple $260 by Dec. 2008.
Beltway Greg.
1-30-2008 @ 11:11PM
Rune said...
It really doesn't take an expert to tell you Apple is down . . .What a drop 37% in what, 3-4 weeks. No thanks. Apple's itunes is being torn to bits by Amazon.com's $7.99 any CD, DRM free. It's only the idiots who throw money at a company who has already failed once. Buyer beware. Apple will be down another 10%-15% before a level off.