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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Apple's Next Big Thing

And the shipments would have been even lighter if not for the new iPod nano . Apple shipped more than a million units of the flash-based nano in the last 17 days of the quarter, which means that shipments of its other iPod models came in lower than the number the company posted in its third quarter.

But company officials refused to acknowledge that iPod shipments were disappointing. Regardless of the Street's predictions, iPod sales met Apple's own internal expectations, said Tim Cook, executive vice president in charge of the company's worldwide sales and operations. And Cook said the iPod numbers reflect Apple's move to wind down shipments of the iPod mini during the quarter. (Apple replaced the mini, previously its most popular iPod model, with the nano.)

The nano apparently has been a huge hit, but that could be a double-edged sword for Apple. The company ended the quarter with a "mammoth backlog" of nano orders, according to Cook. Blaming the situation on supply constraints, he added that he couldn't forecast when the company would be able to meet demand for the product, meaning that Apple could potentially miss out on sales during the all-important holiday season.

Still, company officials tried to put the situation in the best light. "The issue is a beautiful issue: Demand is staggering," Cook said on the call. "We're working as fast as possible to get as many out there as we can."

But as hot as the nano has been, sales of other iPods were likely disappointing. According to Cook, despite the backlog on nano orders, Apple ended the quarter with channel inventory within -- though toward the low end -- of its targeted range of 4 weeks to 6 weeks. Although Cook declined to comment on the inventory situation or sales of other iPod models, the overall inventory situation suggests that Apple could have surplus inventory of its top-of-the-line iPods or its low-end iPod shuffles.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
SYM TRADE IT LAST %CHG
DELL $0.00 0.00%
AAPL $130.12 -0.23%
HPQ $34.01 0.00%
FB $80.41 0.00%
GOOG $554.76 -0.13%

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

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