Following its quarterly earnings miss, Apple shares face a variety of new pressures, Colin Gillis of BGC said Thursday on CNBC.
On "Fast Money," he said that the company's forecast was a bit lower than expected, putting it into perspective. "The September quarter, that's the refresh quarter, right, so a miss is not a surprise," he said. "Apple has disappointed in the last three out of five quarters."
Looking ahead, Gillis pointed out challenges facing the company.
"The stock is not expensive, but there are a few cracks to worry about. We got margin pressure. We have the possibility of a vacuum in the product refresh in the next six months. The overall smartphone marketplace is slowing," he said. "And then the company still has competition in the low end that it's choosing not to serve."
Competition was becoming formidable, he added.
"You see Amazon getting a decent amount of traction with Kindle, and you see Google chasing into the market, as well," he said.
Gillis also wondered what would happen to iPhone 5 sales if telecom carriers stopped subsidizing them.
"Apple's very good about staying true to its niche, which is a high-end marketplace," he said. "We've always said that they may have trouble getting scale and retaining those margins."
Trader disclosure: On Oct. 25, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Karen Finerman is long AAPL PUT SPREADS & PUTS; Karen Finerman is long BAC CALL SPREADS; Karen Finerman is long JPM CALL SPREADS; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long TKR; Karen Finerman is long M; Karen Finerman is long RLGY; Karen Finerman is short MDY; Karen Finerman is short IWM; Karen Finerman is short SPY; Brian Kelly is long EWT; Brian Kelly is long SMH; Brian Kelly is short XLF; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Steve Grasso is long ACI; Steve Grasso is long AET; Steve Grasso is long ASTM; Steve Grasso is long AUO; Steve Grasso is long BA; Steve Grasso is long BTU; Steve Grasso is long CLF; Steve Grasso is long F; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long P; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long WYNN;
For Aaron Kessler
Raymond James expects to receive or intends to seek compensation for investment banking services from the subject companies in the next three months: AMZN, GOOG, SCOR.
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