Lots of concern about weak iPhone sales especially after both AT&T and Verizon reported their activation numbers this quarter. The problem is activations aren’t indicative of actual total sales. Furthermore, that focus is solely on the U.S. and not international sales where iPhone sales has been accelerating. The eye has also been taken off the new iPad. Apple back in January offered Q2 guidance of $32.5 billion in revenue, earnings of $8.50 per share, and expected gross margins to be around 42 percent. Still, the expectations are being set high where the street is expecting Apple to show at least earnings of $11 per share.
The underlying story has not changed one bit… but that is the impression one could easily get by what’s being written on financial news site (and god forbid, whatever drivel is being spewed on CNBC).
I put my money where my mouth is and ended up selling a little VMW today so that I could purchase more AAPL at around $556 per share. If the street doesn’t like Q2 earnings, I’m going to be underwater on all these shares which I’ve purchased in the last week. If that huge sell off does happen, I plan on dollar cost averaging once the waters have calmed. If Apple beats huge though, then I expect this thing to head back over $600 in quick order.
