Apple Nightmare Scenario Is Finally Priced In

This is likely the point where investors have finally made their peace with Apple’s smartphone margins coming down sharply over the next 12 months – while the volumes disappoint simultaneously. As AAPL breaks to $411, several nightmare scenarios have been priced in. Wall Street expectations for spring quarter iPhone volume have been drifting below 30 M for months. After a rash of recent negative brokerage notes, the  number is now probably at 27 M and moving lower. Samsung delivered a barnburner of a 1Q13 and projections for Samsung spring smartphone sales have now been jacked up above 50 M units. We are now at a point where Apple is expected to shift little more than half as many smartphones as Samsung during the current quarter – a scenario that seemed impossible just one year ago. The two vendors were at parity as recently as during 4Q11.

http://www.forbes.com/sites/terokuittinen/2013/04/17/apple-nightmare-scenario-finally-priced-in-great-set-up-for-earnings-report/