Photo: Jay Yarow
Apple’s stock stumbled out of the gate this morning, falling 1 per cent to start the day.People are blaming Verizon’s earnings report, and a note from Canaccord Genuity for the tumble.
Apple sold 3.2 million iPhones at Verizon, which is pretty good. It was more than half of all smartphone sales at Verizon.
However, it was a 24 per cent drop on a quarter over quarter basis. If iPhone sales OVERALL fell by 24 per cent, then Apple would have only sold 28 million iPhones.
Analysts are calling for 30 million+ units sold.
In addition, T. Michael Walkley at Canaccord says he’s seeing “modestly slowing iPhone 4S sell-through trends in developed markets.” He thinks iPhone sales will start slowing as we move into the June quarter. He blames it on carriers pushing Android phones with LTE as well as people waiting for the newest iPhone which should be out in the fall.
As a result of all of this, the stock has dipped.
Here’s the thing, though. Apple shouldn’t have a 24 per cent sequential decline because it’s selling the iPhone around the world. The Verizon sales trend probably won’t hold across the board. Apple will likely beat expectations.
As for Walkley’s theory, it sounds accurate. And it could have an effect on the stock in the short term, but as Barclays pointed out yesterday, whenever Apple releases a new iPhone, the stock goes up.
And all signs point towards Apple having a monster iPhone release this fall.