Apple Inc (AAPL) First Quarter Performance a Disaster? Analyst Warns of Stock Crashing
By Reissa Su | March 14, 2014 6:53 PM EST
Apple Inc is on its way to a 'disastrous' first quarter for Fiscal Year 2014 as analyst Brian Blair of Wedge Partners delivers the bad news about the company's Q1 performance. According to Mr Blair, Apple may be having a bad first quarter. He warned investors that Apple's stock could crash after the company releases its first quarter earnings.
The gold colored version of the new iPhone 5S is seen after Apple Inc's media event in Cupertino, California September 10, 2013.
Mr Blair blames Apple Inc's continued slowdown in the smartphone market with no low-end product to compete in emerging markets where cheaper Android phones have become popular. The cheaper iPhone 5C, according to Mr Blair, only has a "soft" demand compared to its premium cousin the iPhone 5S. Another reason to expect a disastrous first quarter for Apple is the low expectation of a new product and a phone upgrade weakness.
The analyst also mentioned lofty expectations for iPhone sales in China Mobile. The closing of the China Mobile deal is Apple Inc's key to gain entry to the largest handset market in the world where rival Samsung has long dominated by selling Android phones. The deal will also benefit China Mobile to attract high-end subscribers to its new 4G network.
Despite what Mr Blair perceives as bad news for Apple Inc, the expected stock crash may be good news for the company after all. The low stock price may trigger a buying opportunity since rumours have been circulating that Apple is about to release innovative products that may send the company's stock rising again.
Apple Inc CEO Tim Cook is looking forward to "big plans" in 2014 as Apple is expected to revamp its product line. Mr Cook has previously assured everyone working for Apple that the company has shown its "breadth and depth of innovation" in 2013 and extended its lead in the smartphone market with the success of the iPhone 5S. The past year also marked the year the App Store has reached 50 billion downloads which Mr Cook said was a milestone.
With all eyes on Apple Inc for its future product release, Mr Cook may be put the test as he said Apple has a lot to look forward to in 2014.
To contact the editor, e-mail:
Most Popular Slideshows
- 2014 MLB World Series Game 1: San Francisco Giants 7, Kansas City Royals 1 [PHOTOS]
- 2014 MLB World Series - Game 2: Kansas City Royals 7, San Francisco Giants 2 [PHOTOS]
- NFL Thursday Recap - Denver Broncos 35, San Diego Chargers 21: Peyton Manning Has 3 TDs In Easy Win [PHOTOS]
- 2014 MLB World Series Game 3: Kansas City Royals 3, San Francisco Giants 2 [PHOTOS]
Join the Conversation
- Xiaomi Redmi 1S vs. Sharp Aquos Crystal – Specifications, Features And Price Showdown
- Verizon Motorola Droid Turbo Leaked Live Images Surfaces, Scheduled To Get Unveiled On Oct 28
- Update HTC One M7 with LG G2 with Android 4.4.2 as Sprint OTA: Fixes and Installation
- U.S. Targets Buyers of ISIS Oil, Threatens Sanctions
- ISIS Syria Airstrike Bombing Has Killed 550 People, Civilians Included
- Russia Shifts Blame On US For Ukraine Crisis, Putin Accuses West of 'Remaking World'
- Russia Blocking OSCE Monitoring Of Its Border With Ukraine