Filed under: Apple Financial
Nokia, Microsoft drop while Apple stock soars
While Apple stock is up over seven percent since its positive earnings report and conference call yesterday afternoon, both Nokia and Microsoft have released dourer reports about their financial outlook.
Microsoft said that it will lay off up to 5,000 people, about five percent of its workforce, over the next year and a half, according to the Seattle P-I. 1,400 of those jobs would be eliminated today. The news comes as the company announced earnings per share two cents less than their quarterly guidance -- 47 cents versus 49 cents -- on revenues of $16.63 billion. Analysts had expected revenues upwards of $17 billion.
Nokia today posted a 69 percent drop in profits for its last quarter. Nokia stock earned 15 euro-cent per share in profit, compared with 47 euro-cent in the same quarter last year. Sales fell 19 percent to €12.66 billion, missing forecasts of €13 billion.
What can we take away from this? Perhaps this is understating things, but Apple appears to be doing very well against its competitors. In yesterday's conference call, the company announced that it had grown sales and revenue even in the face of challenging worldwide economic conditions. In both retail and iPod sales, much of the growth was outside the United States. Apple sold 88 percent more iPhones than they did the same time last year, although much of that may be attributed to pent-up demand for the iPhone 3G.
At midday, AAPL is $10 higher than its record-low close on Tuesday, trading at around $88 per share. Both NOK and MSFT are trading down about $1.65 each.
[Via Daring Fireball.]
Update: Sony, too: It's posting a record annual loss of $3 billion, and plans to close factories and lay off workers.
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Reader Comments (Page 1 of 1)
balls said 1:29PM on 1-22-2009
not a good day for tech.
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GadgetGav said 1:59PM on 1-22-2009
In other news: when it rains, things outside get wet.
Seriously, is it newsworthy that companies that post a 69% drop in profits see their share price go down, while those who manage to sell significantly more in a tough economy see their price go up..?
Apple's stock price has been hit excessively over Jobs' health. The company and their product line is more than one man. People who bought stock yesterday got a bargain.
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samuel said 3:00PM on 1-22-2009
Ha ha, good I hate al those big players
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cneisme said 11:48PM on 1-22-2009
Those big players are laying off real people. Nice attitude - you need to be boned by the amount consistent with the misery you just cheered on and wished.....
But on a brighter note for the over zealous iphone fanboy, lets do a little math: Nokia sells 450 million phones a year. iphone has been out about 1.5 years now. In that time, with the bad quarter, Nokia sold about 600 million phones. In this quarter, the bad quarter, they sold about 30 million phones. Now, fanboy, how many again has Apple sold? And one more thing - sales down 70% and Nokia has not cut any staff.
Tony said 2:33PM on 1-23-2009
"Now, fanboy, how many again has Apple sold?"
Ok, anti-fanboy, how about these numbers:
It's not about how many phones you sell, it's about profit. Apple's is going up, while Nokia's is going down. Although Nokia outsold Apple 3-1, they just barely topped them in profit. Nokia's per-share *earnings* were 6 times less than Apples.
Try taking an economics class before spouting off with your cries of "fanboy" and other drivel.
cneisme said 9:55PM on 1-25-2009
Oh Tony, you hurt me so much with that one. I just feel like crying - but wait, i just remembered that when comparing companies - most economist like to compare shared markets, like say cell phones. Now help me out here Mr Defender, how much did Apple make selling phones in 2008? Let me help you out - $1.5 Billion. And how much did Nokia make - let me help you out with that - $35 Billion Euros. Oh just to help you limp little man now lets review how much Apple did with all sales - lets see, $32 Billion. And what about Nokia you say - $50 Billion Euros. I will help your pathetic limp manhood with the exchange rate - 1 Euro = 1.29 dollars.
So Mr Little Helper - school me some more please. I love it when idiots like you spout off how great Apple is over everyone else. You are a idiot - there are plenty of people and companies making good products outside apple, microsoft and linux.
By the way - I own all Apple computers and a iphone - never owned a Nokia.
ihmettelijä said 3:14PM on 1-22-2009
I wonder why. They still made more profit than Apple..
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puhsitch said 8:00PM on 1-22-2009
It's not how much profit they make, but how it compares to expectations.
ihmettelijä said 11:36AM on 1-23-2009
Makes no sense at all. Next time Nokia should intentionally have far too low expectations so they can come out on top like OMG 500% higher than our teh expectations!!11
puhsitch said 1:51AM on 1-24-2009
I'm sure the companies would love to be the ones setting the expectations for themselves! But alas, that is not the case. There are outside analysts and such who do all of that.
Eric said 8:06PM on 1-22-2009
I'm loving all this volatility in the markets...so many good opportunities. I picked up Apple about $.20 from its 1-year low on Tuesday, then dumped it after hours Wednesday for a tidy profit.
Bought some Microsoft today pretty close to their low too. Hoping for a rebound tomorrow...even if it doesn't come I figure I'm still in a good position seeing as this is a 10 year low for Microsoft.
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jazkeZ said 10:23AM on 1-24-2009
Unfortunately that's why the market is so f'd up. Too many speculators. Buy low sell high. Short term investments. Too many people like this de-stabilize the market. All the money you make from these investments won't mean a thing when toilet paper is worth more than the money you have in your wallet. Enjoy for now though :)
HowGudAmI.co.uk said 3:38AM on 1-23-2009
well, im glad apple are up. im not happy that people are been layed off at microsoft. but maybe if apple grows they can hire the ex-microsoft staff. i might write an article like this one for my blog, it was informative and i think my readers will like it.
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samuel said 6:13PM on 1-23-2009
cneisme: I base my opinion on the products sold by these companies, my interests are not in the welfair of the workers or the bottom line, but the products. That's what a brand is.
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