You're watching...
Morningstar Senior Analyst Michael Holt and FBN’s Robert Grey and Shibani Joshi on Apple’s disappointing third-quarter earnings results.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
-- you know look as Giovanni says -- could have been a throwaway Cordero is we -- get ready for the iPhone 5.
But are these numbers just absolutely shocking new because as -- and everyone -- said this is so I'm typical of apple.
It is on typical for them to be below consensus they're still doing okay vs the guidance they laid out they are notoriously setting a low bar there right but I think.
-- we have to keep in mind -- two things one -- likely to see another quarter just like this where they're not going to.
Have the Blockbuster that we saw in the the first part of the -- Because of iPhone 5 won't be out yet and also that this is becoming as the company that's much more heavily reliant on both the iPhone and -- them especially the iPhone.
And people are really getting in tune with the cycles the product release cycles is -- I'm sick of how audience seasonality hear the -- to -- Robert they're also saying they just didn't know does anybody care but that somehow they just upgraded.
Updated the entire MacBook line they will release right out -- -- so that's something that people are looking up but it's not.
The meat they wanted to see sales more of the I found I guess.
They -- and -- actually a record quarter for the iPad seventeen million that people obviously overlooking that.
On there also -- -- be IEA does start Tim Cook the CEO in this release to teeing it up for the futures and there.
You will be launching ISS.
Sexy and operating system six and this fall which obviously.
Then of course leads into the FBI found five -- -- also looking for today amazing new products they've gotten a pipeline again -- -- Obviously have to wait for the call little later to see if they give away anything apple notorious replaying it very close to the vest so unclear if they'll do it that no talk about a smaller iPad no talk about -- -- confirming the I've found five.
Within this release so a lot of that will be left to the call if then of course they even -- it to get -- -- -- again very very conservative.
Forecast from apple always come to expect that and this is a company that.
But according to bring -- associates had beaten analysts' projections in 97% of their reports.
-- -- earnings going back to 2003.
So it's not just our recent memory it's going back to 03.
In a positive perspective -- let me bring you back -- look we've seen the continuing softness in the PC market.
I want to talk about the Mac sales.
Look I guess -- in line with estimates is that right and is that.
Somewhat of more of a bright spot given the weakness in the PC market well it is it is said the fact that the company was able to meet -- street's expectations of about four million -- out there.
I don't think what it comes to their earnings -- today we're gonna get any indication or any hints as to the iPhone 5 or even.
An iPad -- as we've been talking about on this network for several weeks several months really.
What this company will more than likely do is low -- the estimates for the iPhone sales that they will see next quarter.
And then now we basically -- to disregard that estimate once we get word an indication that the Iceland's five I don't think that this situation is gonna get any more clear unfortunately.
Through.
65 cents per share today.
And that was something we know this is at a major sea change for this company and as for them to -- it declaring -- I think is is a welcome no friend that.
Yours as well the apple ecosystem Michael say for example Qualcomm which drives a lot of what apple does and that it I'm looking at Qualcomm in the -- -- it's down just slightly but.
Who gets hit -- most by -- a double this by apple.
There's there's a lot of players involved that the NAND Flash Memory producers.
Qualcomm -- its patent royalties that.
It's it's it's a temporary -- -- I think that's important thing to remember this is.
Not really indicative of what's a long term demand for their platform and there's their products what about apple TV there's nothing in here yet about apple TV -- -- -- look at that anymore is that just up promise that probably we won't see delivered for a long time.
I think it's something that -- there's more questions and answers to we don't model and into our forecast is not part of our -- US meant he could appear they could.
Figured out but I think there's a lot of questions on the program and -- the -- prefer will willing to put I around -- Let me bring -- and on that same question -- we always had to say what are they saying about apple TV is -- will be very quiet I guess -- comes as no surprise again this time around.
Yet and no surprise we know this is a sort of the last who -- the last Iraq -- jobs had been planning.
I'm whether it will come out -- we think we're gonna get an announcement at the end of this year and then net product delivery next hearing agree with -- gases is sort of not indicative of the long term horizon.
Though it does show I think it a new era for apple which is it's showing its vulnerability here that it's not this powerhouse I can't.
Which stand I mean we we have tremendous macro headwinds going on here.
The company suggests unveiled an at an iPad that was about it we all know how apple sands are -- loyal to the company but that is.
I'm not enough to sustain and make the exact track record Christine and we're seeing.
A little bit of a deviation here and I think this is something that investors.
We're expecting in the air ended days after Steve Jobs and we're -- -- -- -- -- as well well.
Thanks store team and let's not forget the China sales that -- -- just went on sale in China the iPad so that's right just.
Then things could change within the current quarter thank you so much to all of you we've.
