Once again Wall Street analysts have started to create buzz around Apple sales for the period ending this holiday season, to end up punishing Apple stock this next January.

Let me explain how I think the WS analysts do their job about Apple, (pure speculation because I don’t know)

1. At the begining of the Quarter they visit the distribution channels, check how many computers, ipod or iphone in any period of time were sold.
2. Call or visit the channels at the middle of the Quarter to verify how the sales are doing.
3. Compare the two previous visits/calls.
4. Check the Manufacturers in Taiwan, China or whenever manufacture Apple hardware, to verify the order Apple requested from them.
5. Check almost at the end of the Quarter to see the level of inventory at any given store.
6. Compare how many products were delivered to Apple and how many were sold at stores, sum, rest, make calculation, reduction and more.
7. Give to the public what you consider a trend for Apple products in the Quarter investigated.
8. Those numbers you provided to the public must be in line with Apple sales.

If this is the way, which I don’t know, then shouldn’t be any discrepancy between Apple numbers and analysts expectation and of course the stock price shouldn’t fall every Quarter.

So this Holiday Quarter, as usual, Apple will sells a lot of products, but Wall Street will creates false expectations and the stock price will follow, this is for sure.

I admit it, I don’t understand it.

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whataboutmac.com