Revenue missed.

Earnings per share missed.

The blame on television went from China to lack of innovation to absurd theories as to why Apple products must modernize and take advantage of their iWatch which in this writer’s opinion is just an overpriced toy for people to show their friends and say “look at me.”

The reality?

Apple is now realizing what Samsung and other manufacturers are keenly aware of:

The middle class, worldwide, is disappearing.

Median household income as measured by none other than the U.S. Government has yet to recover to pre-crash levels and thanks to Obamacare, state tax increase, the Obama income tax increase, and the stagnant employment market, the back of the American worker is broken. Need proof?

In fact median household income is falling faster than ever and will drop below the 2001 level this year unless the economy slams into sudden sustained growth.

The truth behind Apple’s dismal report is that the primary buyer of their products can no longer afford to upgrade their $1800 laptop and $700 iPhone every year. They are tapped out. Credit lines are getting stretched again, car payment delinquencies are rising, and the so-called new jobs being created are so disparate with only 1 out of every 500 jobs being created considered actual career or non-entry level positions according to some economists. Apple is not in trouble due to their boring AppleTV, iPhone, iPad, MacBook, etc. products; they are in deep trouble because Apple is considered THE marketing genius for new products and affiliated developments and for two plus years now have failed to not just wow the experts but the marktplace.

There is nothing in the current pipeline that can be considered affordable for the average household and thus the possibility of their stock retesting the last major death cross in December of 2012 around $80 per share:

If this breaks the $80 price level, the bellwether alarms will go off and possibly lead to the now long overdue 20% correction providing a short-lived (several month) bear market which will eventually be offset by the Fed going nuts before the election. In the mean time, the earnings are telling a story, one that the MSM and political elites refuse to discuss or listen to.

http://johngaltfla.com/wordpress/2016/04/26/the-truth-behind-apples-dismal-earnings-the-msm-wont-report/