On Apple Earnings
Apple announced Q4 earnings, and while they made a pile, it wasn’t enough to meet analyst expectations, resulting in a rare miss.
And I think there’s a problem brewing. It has nothing to do with demand, or designing less-insanely-great products. I think there’s some trouble on the manufacturing end. As in, Apple’s suppliers may be having difficulty making enough product to satisfy the demand. There are quality control issues with the iPhone 5, Foxconn has stated it’s the hardest device they’ve ever manufactured, and supplies are supposed to be constrained with the new iMacs. And less products available to sell, affects earnings in a very real way.
I’d even speculate that manufacturer difficulty in ramping up all these new products ramped up affected this year’s product release schedule. Perhaps the iMac, iPad Mini, and possibly even the iPhone 5 were supposed to drop sooner, but the manufacturers were behind, and Apple obviously didn’t want to announce anything without enough product available to meet initial demand.
So now the question becomes – since all this new stuff only showed up within the last months of 2012, will Q1 earnings be a blow out? Perhaps the really low guidance has set the stage.
But honestly – I’m a little worried.