Falling Apples—–Lessons Learned

The signposts were there (but were ignored by many, including Warren Buffett and Berkshire Hathaway – starting with the persistent supplier weakness over a month ago and the company’s decision not to provide unit guidance going forward. (It was almost like management knew a big unit miss was coming (from slowing demand and excess inventory) when they issued their most recent – and far too optimistic – guidance.

There were also signs of an elongated iPhone replacement cycle (in China and around the world) – also ignored by many. The Apple “miss” notes are rolling out this morning, but surprisingly the numbers are still being hockey sticked in the out quarters and into next year.