Tuesday, October 11, 2005

Apple (AAPL) Misses Ipod Targets

The street seemed to have set the bar too high for Ipod sales in Apple's most recent quarter. Despite record earnings, shares of Apple were off 10% in after hours trading. Also Ipod suppliers like Sigmatel (SGTL), PortalPlayer (PLAY), Cypress Semiconductor (CY), and Sandisk (SNDK) all were off significantly today. Apple shipped 6.45 million Ipods in the quarter while the street was looking for 7 million. Some were expecting as many as 9 million. Non-Ipod Nano sales also seem to be slow, but no inventory specifics were given.

I wish I posted the unusual Put activity in Apple's October 50 and October 45's today.

My take on Apple is to let it come in a little more. I believe their are a lot of margined players holding Apple that will send the stock lower.


Blogger Kris said...

Its one of those days my instinct worked well. I was gonna go long predicting a better quarter but thank god I didnt :-)

10/11/2005 5:12 PM  

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