This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

On Wall Street, Apple Makes for Some Disbelievers

Still, Apple's report did have some potentially troubling signs. For at least the second quarter in a row, the average sales price of Apple's iPod fell in the third quarter. Apple saw about $179 for each of the digital music players it sold in the quarter, down from about $191 in the second quarter and nearly $290 in the year-ago period.

The decline in average prices is likely the result of a shift in Apple sales. In January, the company introduced a bargain digital music player and has repeatedly cut prices on some of its higher-end offerings.

Meanwhile, the company's inventory rose 18% sequentially from the second quarter to $193 million. That total was up some 168% from the same period a year earlier.

The inventory build was largely related to the seven new retail stores Apple opened in the quarter, Oppenheimer said. The company began and ended the quarter with inventories for both its iPod and Macintosh lines within its targets, Cook said. Channel inventory for iPod is running at four to six weeks, while for Macinosh it's running at four to five weeks, he said.

"We feel extremely comfortable with our inventory level," Cook said.

Apple posted sizable computer sales growth in both North America and Europe and with its retail segment, each of which grew dollar sales at a 70% annual pace or better. But the company's computer sales in Japan came in at a far slower pace.

While dollar sales in Japan grew 32% year over year, unit sales in Japan fell 7% over the same period. And on a sequential basis, both dollar and unit sales in Japan fell more than 20% from the second quarter.

If sales numbers were adjusted to include sales through its retail stores in Japan, Apple's computer sales would be faster than the forecasted market rate of growth there, Cook said. However, he added that Apple is "unhappy" with its performance in Japan and is making changes to try to boost sales there.

4 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs