Apple’s day of earnings glory, iPad disappointment

October 19, 2010

Apple’s earnings announcement this afternoon was something of an epic event. First, the company reported making a staggering amount of money: $4.3 billion in profit for the quarter. Second, Steve Jobs got on the phone and was even more obstreperously entertaining than usual. Third, iPad sales for the quarter were a bit lower than hoped and Apple’s stock price dropped 6% in after-hours trading.

That sort of sensitivity to the slightest bit of disappointment is to be expected when a company has been doing as well as Apple has for as long as Apple has. Everybody’s looking for the moment when the company’s spectacular growth trajectory over the past half decade finally plateaus. As somebody who bought Apple at $14 and sold at around $40 early in the 2000s (I don’t own any Apple stock now, except indirectly through mutual funds), I’m certainly not the one to predict when that moment will arrive. But I doubt that the iPad disappointment is any kind of lasting setback.

Why’s that? Because I want an iPad, I really do. And I will buy one soon. But Apple has trained me by now to wait for at least the second generation of any new product—it’s inevitably so much better than the first. I’m going with the rumors that a new-look iPad will be out by Christmas. If and when that happens, I’ll buy. For now, I’m waiting. I’m betting I’m not the only one.

Comments

Isn’t the price drop more to do with a “Buy on the rumour, sell on the news” reaction? As for which generation to buy, never buy the one that comes out directly after “the next big thing” because that’s when they took their eye off the ball…

You won’t be disappointed with your iPad, but the next one won’t be out until next year.

Posted by FifthDecade | Report as abusive
 

All I want is a built-in webcam.
I agree with Mr Decade though, a new one by Christmas would be a stretch.

Posted by TinyTim1 | Report as abusive
 

It’s a tech-age Cinderella story.

The iPad’s strong launch left no doubt about Apple’s “buy” rating and even Jobs himself was quoted saying he’s convinced they’ve “..got tiger by the tail here.” I believe most if not all of the rival tablets will lack compelling product features to attract a strong user base.

That leaves Apple standing alone in the touch-screen tablet arena and it’s proven by the upshot best quarter sales ever of the Apple’s Mac computers. They’ve sold 14.1 million iPhones in this quarter alone to boot (passing RIM) and now Apple has the problem most companies dream of.

What to do with all this excess cash?

Steve – http://www.ipadaccessoriesonlinestore.co m

Posted by ipadaccessories | Report as abusive
 

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