Record Q4 Helps Apple Stock Bounce Back After Early Dip
Steve Jobs' Health Concerns Drove Apple Stock Down This Morning
January 18, 2011 at 3:31 PM (PT)
APPLE's record-breaking quarterly report has largely muted an expected stock price fall coming on the heels of STEVE JOBS' announcement of medical leave (NET NEWS 1/17), reports the NEW YORK TIMES. After reporting $6 billion in net income from the last three months of 2010 -- a 78% increase from 2009 -- APPLE's stock price rose from an initial 6% drop (with predictions of a 10% dip) to just a 2.2% drop ... lessened further by more than a 1% increase in after-hours trading.
According to the CNN.COM, the results far exceeded analysts’ bullish expectations. APPLE said it sold 4.13 million MACINTOSH computers (23% more than '09), 16.24 million iPHONES (86% more than a year earlier), and 7.33 million iPADS (75% more than in the previous quarter). The iPHONE and iPAD sales were far higher than forecasts; APPLE's iPAD currently owns 87% of the tablet market.
"We had a phenomenal holiday quarter with record MAC, iPHONE and iPAD sales," JOBS, said in a statement. "We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPHONE 4 on VERIZON, which customers can’t wait to get their hands on."
Last FRIDAY, just days after announcing the VERIZON iPHONE, the company saw an all-time high of $348.48 per share.
What's Ahead For Apple?
JACOB INTERNET FUND's RYAN JACOB told THE NEW YORK POST, "unless told otherwise, he would plan for the worst-case scenario at APPLE: that JOBS won't be coming back."
"In the past they've been less than forthcoming, and unfortunately you have to assume the worst. So, as an investor, it makes it very tricky," JACOB said.
APPLE's future may be determined next month, at a FEBRUARY 23rd shareholder meeting, when a proposal regarding a successor to JOBS will be addressed. The proposal would require the company to make public details on a post-JOBS APPLE. The company is fighting it and has advised shareholders to vote "no."
"STEVE JOBS is not just a figurehead; he's integral to that company," JACOB told THE POST. "If he wasn't able to return for some reason, it would be significant."
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