Notes of interest from Apple's Q309 quarterly conference call

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Comments

  • Reply 21 of 98
    mark2005mark2005 Posts: 1,158member
    Quote:
    Originally Posted by noirdesir View Post


    I would have thought longer-term securities would be counted as 'cash' (as they could be easily converted back to cash) on a company balance sheet. At least compared to 'invested' money in buying shares of companies they are a strategic interest in.



    You're right. My mistake.



    The $31.1B includes 5.6B in cash, 18.6B in short-term marketable securities, and 6.9B in longer-term marketable securities. It's up from $24.4B in Sep08, and $28.9B in Mar09.
  • Reply 22 of 98
    xyz001xyz001 Posts: 117member
    Quote:
    Originally Posted by mark2005 View Post


    You're right. My mistake.



    The $31.1B includes 5.6B in cash, 18.6B in short-term marketable securities, and 6.9B in longer-term marketable securities. It's up from $24.4B in Sep08, and $28.9B in Mar09.



    Seriously what are they going to do with those? What would actually be possible scenarios?



    I always hoped they would buy autodesk for example to own the architecture market. I guess that would maximum be a coupple of billions, they would still have 20-30 left
  • Reply 23 of 98
    tokoloshtokolosh Posts: 101member
    Quote:
    Originally Posted by TBell View Post


    The housing market failure is a result of a lack of government meddling. The reality is that companies were selling mortgages to just about anybody. I bought a house a few years ago, and the bank did a drive by appraisal and came up with the same number as my offer. Further, as a Bankruptcy attorney, I see people who were making little more then minimum wage getting approved for $200, 000 mortgages. There are very few state or federal regulations governing this area. On top of that, there was little government over sight on selling mortgage securities.



    Some years ago the government became concerned about the overwhelming stats on who was being denied mortgages. They changed some laws and mandates that required FNMA and FDMC to find ways to get more of the lower socio-economic classes into homes. That is what opened up the flood gates of easy lending and "cheap" money.



    It was a huge concern during a part of the Bush years but any attempt to change it was rebuffed by the same congressional leaders who are now saying the two lending firms need major reforms.
  • Reply 24 of 98
    mr. hmr. h Posts: 4,870member
    Quote:
    Originally Posted by xyz001 View Post


    Seriously what are they going to do with those? What would actually be possible scenarios?



    I always hoped they would buy autodesk for example to own the architecture market. I guess that would maximum be a coupple of billions, they would still have 20-30 left



    As I've been saying for a while now, it's obvious that they're saving up to buy Microsoft
  • Reply 25 of 98
    vineavinea Posts: 5,585member
    Quote:
    Originally Posted by mark2005 View Post


    Notebook units 13% increase in units yoy; 2% decline in revenue yoy

    Combined Mac units 4% increase in units yoy; 8% decline in revenue yoy (lower prices)



    Yah...which is why ASPs are important to Apple and why they don't like moving to a lower priced product mix.



    This is why the xMac has been DOA for years and the mini usually left to languish. Expect the MB to get discontinued or left out Nehalem.
  • Reply 26 of 98
    mr. hmr. h Posts: 4,870member
    Unless I've mis-interpreted the numbers reported by AI, Gartner's recent report giving Apple 8.7% US market share was a huge over-estimate.



    Using their 16,351,000 total shipments, that gives Apple a 1.147/16.351 = 7%. However, the total includes their over-estimate of Apple's units, making it more like 1.147/16.076 = 7.1%.



    On the worldwide share front, it looks like Apple have 2.6/68.149 = 3.8%
  • Reply 27 of 98
    vineavinea Posts: 5,585member
    Quote:
    Originally Posted by Mr. H View Post


    As I've been saying for a while now, it's obvious that they're saving up to buy Microsoft



    But why would they want to?
  • Reply 28 of 98
    mr. hmr. h Posts: 4,870member
    Quote:
    Originally Posted by vinea View Post


    Yah...which is why ASPs are important to Apple and why they don't like moving to a lower priced product mix.



    This is why the xMac has been DOA for years and the mini usually left to languish. Expect the MB to get discontinued or left out Nehalem.



    Revenues may be down but margins are up and they are still making a ton of money. You also have to consider the requirement to keep the Mac platform healthy to ensure third-parties continue to support it. Three years ago, the xMac would have been a good idea but now there's no point because the desktop market is in its death throes.
  • Reply 29 of 98
    mr. hmr. h Posts: 4,870member
    Quote:
    Originally Posted by vinea View Post


    But why would they want to?



    If it was me, I'd buy Adobe and kill Flash. Then, instead of Flash development tools, I'd sell tools for building HTML 5/AJAX content. Not necessarily to make more money, but as a favour to the human race .



    Actually, in all seriousness I believe that it would be a good business move. Maintaining the Flash platform must cost a crapload and it's selling the tools where Adobe actually make the money. If Apple bought Adobe and killed Flash, they'd sell HTML 5/AJAX tools instead, they still get their money but don't have the headache of maintaining a platform as well, and lack of Flash on the iPhone would no longer be a problem.
  • Reply 30 of 98
    piotpiot Posts: 1,346member
    Quote:
    Originally Posted by Mr. H View Post


    Using their 16,351,000 total shipments, that gives Apple a 1.147/16.351 = 7%.



    Where are you getting 1.147 from ?



    OK.. forget it ... just saw it in the OP.
  • Reply 31 of 98
    robin huberrobin huber Posts: 3,958member
    Consistent with past history and the perversity of Wall Street, Apple will be rewarded for its great performance by having its stock price dive precipitously. What is it with that anyway?
  • Reply 32 of 98
    charlitunacharlituna Posts: 7,217member
    Quote:
    Originally Posted by AppleInsider View Post




    Apple is still on track to open 24 new stores in 2009 and remodel about 27 more.



    there's a Virgin Megastore that just crapped out and is shutting down like 4 blocks from my place. if Apple were to snatch that space and open a store I would be in heaven. especially if they made it a late night/24 hour store like the one in NYC (I'm in LA it's not that crazy an idea).
  • Reply 33 of 98
    newsboynewsboy Posts: 1member
    These reported numbers are great, but the staggering 626% jump in iPhones units 3rd quarter 09 versus 08 leaves out some information:



    In the April to June 2008 time period, supplies of 1st gen iPhones dried up, preparing for the 3G release. 3G phones were announced in June, but were not sold until July, which is the 4th quarter. So, of course Apple only sold 830,000 (or so) iPhones back then. I remember this because I was finally free of my Verizon contract in late April 08, and then couldn't get an iPhone. But I wanted to wait anyway, based on the rumors.



    That's not to take ANYTHING away from this fantastic execution of wise strategy by Apple over the last decade. Tim Cook has been amazing keeping up supply (how much richer would Nintendo have been if he oversaw the Wii production). And, of course, Steve Jobs was right a few years back when he looked at the status quo in cellphones, observed that they sucked, and knew he could build something better.



    And we shouldn't forget either that, before the iPhone in 2007, the carriers had all the final say on what the hardware could do. Apple managed to gain much greater control over that than anyone had previously. AT&T isn't good, but at least they didn't disable my iPhone's Bluetooth like Verizon did.
  • Reply 34 of 98
    Quote:
    Originally Posted by newsboy View Post


    These reported numbers are great, but the staggering 626% jump in iPhones units 3rd quarter 09 versus 08 leaves out some information:



    In the April to June 2008 time period, supplies of 1st gen iPhones dried up, preparing for the 3G release. 3G phones were announced in June, but were not sold until July, which is the 4th quarter. So, of course Apple only sold 830,000 (or so) iPhones back then. I remember this because I was finally free of my Verizon contract in late April 08, and then couldn't get an iPhone. But I wanted to wait anyway, based on the rumors.



    That's not to take ANYTHING away from this fantastic execution of wise strategy by Apple over the last decade. Tim Cook has been amazing keeping up supply (how much richer would Nintendo have been if he oversaw the Wii production). And, of course, Steve Jobs was right a few years back when he looked at the status quo in cellphones, observed that they sucked, and knew he could build something better.



    And we shouldn't forget either that, before the iPhone in 2007, the carriers had all the final say on what the hardware could do. Apple managed to gain much greater control over that than anyone had previously. AT&T isn't good, but at least they didn't disable my iPhone's Bluetooth like Verizon did.





    Nintendos things was that they didnt expect the wii to be as popular. they stated themselves it was an experiment.



    I also think apples statement about netbooks being slow is wrong there is only one thing slow about them and thats the ssd drive in them (my fiances netbook is now flying with an upgraded ssd drive and windows 7). I think apple can make a netbook that is great but for them they cant make one because it would look overpriced next to the others.



    I wonder how many people are with me waiting to get an apple notebook when they get the core i5 and core i7 processors in their laptops.
  • Reply 35 of 98
    al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by brucep View Post


    HUH



    sales are down

    yet sales ae then up

    for mac lappops and desktops





    sales are up sequentially which means compared to last quarter, but they are down compared to the same time last year.



    the yoy number is the important one since you always compare to the same time period



    12% rev and profit growth is MS growth over the last 8 years or so and nothing impressive. My prediction is that the iPhone will run steamroller over the cell phone market and will control more than 50% of the market in a few years. but the big growth is over for Apple.



    the computer sales are probably a stable source of cash since iphone revenue and profits are accounted for over the life of the contract and I wouldn't be surprised if Apple starts slashing prices and releasing lower cost models with lower margins in search of more revenue and growth
  • Reply 36 of 98
    davesmalldavesmall Posts: 118member
    Quote:
    Originally Posted by Mr. H View Post


    As I've been saying for a while now, it's obvious that they're saving up to buy Microsoft



    The smartest thing Microsoft could do is just go ahead and shut down now thus avoiding more defeats and embarrassment. Ditto for Dell.
  • Reply 37 of 98
    al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by Robin Huber View Post


    Consistent with past history and the perversity of Wall Street, Apple will be rewarded for its great performance by having its stock price dive precipitously. What is it with that anyway?





    stock prices go up before the fact



    the miracle happened, Apple has become a monster company, they will probably rule the cell phone market in a few years, add tens of thousands of jobs but 12% growth is slow growth and it's time to find faster growing companies. i need to check up on VMWare
  • Reply 38 of 98
    al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by davesmall View Post


    The smartest thing Microsoft could do is just go ahead and shut down now thus avoiding more defeats and embarrassment. Ditto for Dell.



    would be a great merger



    let the MS part have the corporate computing products and give consumer and web products to the Apple part.
  • Reply 39 of 98
    wigginwiggin Posts: 2,265member
    Quote:
    Originally Posted by mark2005 View Post


    You're right. My mistake.



    The $31.1B includes 5.6B in cash, 18.6B in short-term marketable securities, and 6.9B in longer-term marketable securities. It's up from $24.4B in Sep08, and $28.9B in Mar09.



    A question for the financial wizards out there... how much investment income does Apple get from all this?
  • Reply 40 of 98
    al_bundyal_bundy Posts: 1,525member
    Quote:
    Originally Posted by Wiggin View Post


    A question for the financial wizards out there... how much investment income does Apple get from all this?



    the press release says $60 million in other income and $12 million cash from securities maturing
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