Replies to post #116761 on Intel Corp (INTC)

[ibc]

I wonder whether Apple's 30% stock drop is related to Intel's new tablet and phone offerings ?

I doubt it. Intel has a minimal presence in phones and won't be on the radar until they win a tier-1 design like a Nexus or Galaxy or HTC...
Also, it's more like a 40% drop.

As with most high growth stock declines - it's due to EPS and Apple's EPS growth is slowing.

First, the inevitable margin compression that is coming for iPhone. iPhone makes up a very large fraction of Apple's operating income. Margin compression is mostly coming from competition with Samsung which will be a drag on earnings.

Second, the super high growth phase of smartphones is over for developed economies. The growth has shifted to emerging markets and Apple doesn't have a phone that can fit in those price points. The Android hordes do have cheap phones.

Finally, earnings are still growing, but at a lower rate. This too seems inevitable as it becomes harder and harder to grow a very large number.