Apple profits soar 50% on record sales of 3.36 million Macs

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Comments

  • mdriftmeyermdriftmeyer Posts: 6,924member
    Quote:
    Originally Posted by MacTel View Post


    Yep, 3.3 million Macs as predicted. My sources were spot on.



    3 Million was the consensus with 3.1 million by Piper.



    These 3.3 you speak of are people running at the last moment upping their estimates after consensus was in.
  • mdriftmeyermdriftmeyer Posts: 6,924member
    Quote:
    Originally Posted by macinthe408 View Post


    And my friend the Apple employee still gets a serf-like salary.



    E pluribus unum, I suppose.



    Define serf-like. I'm dyin' to see it.
  • mactrippermactripper Posts: 1,328member
    Quote:
    Originally Posted by obs1970 View Post


    Long time ago, there was a car manufacturer called GM and a smaller one called Toyota...You know the rest of story. To me MS is following in the footsteps of GM.





    I sure hope not, I don't want the government owning Microsoft.





    Quote:

    "The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about."





    Sounds like a total product revamp to tablets.
  • macsharkmacshark Posts: 229member
    And the Q&A session begins...



    Q: Is there any reason why Mac growth rate won't continue?

    A: In some of the markets we are in, Mac growth is absolutely spectacular - more than 40% in several European countries, over 100% in China.



    Q: How does AT&T bad press impact your brand?

    A: AT&T is a great partner. They had more mobile broadband users than any other carrier. They have issues in a few cities, but they have detailed plans as to how to address these. We have reviewed their plans and we have confidence in them.



    Q: Give us a sense of gross margin for Dec and March quarter?

    A: Actual December Q revenue exceeded our previous guidance by $4B. About half of this is due to strong business, the rest is due to accounting change. Dec gross margin was a bit better than expected due to: better commodity environment, better warranty performance and lower duty cost, and lower cost due to higher revenue (volume?) March gross margin is expected to be lower due to higher component cost, seasonal decline in revenue (volume?), and the strength of the US dollar. (He expects DRAM prices to go up. For most other commodity items, supply-demand is in balance. 3.5" drives will still be supply constrained.)



    Q: Does the guidance include revenue from unannounced products?

    A: No comment, wait until Wednesday.



    Q:

    A: Expect seasonal sequential revenue decline for Macs, an even bigger sequential decline for iPods. We also also expect a seasonal decline for iPhone.



    Q: Do you see any dynamic that changes your cash flow.

    A: Cash generation is very strong. Under the new accounting rules, there is a very small deferral for iPhone and AppleTV. I don't see that changing, we are very good with receivables and inventory management.



    Q: How about iPhone and China? More partners over time?

    A: We don't disclose units by country but... We started selling in China at the end of October. We have passed 200K units activated mark. We are focused on the quality of sales and customer experience as we are building the brand name for the long term. I don't want to forecast sales or partner expansion plans.



    Q: Can you comment on your comfort level with iPhone (channel) inventory?

    A: Channel inventory grew up t 2.7M level. We are completely comfortable with it. We could have sold more but we chose not to because we are managing inventory very carefully. We had expansion into several large countries and we needed to expand our inventory.



    Q: Any comments on Nokia litigation?

    A: We have a long standing practice on not commenting on pending litigation.



    Q: GM guidance down to 39%, how do we think through that given that iPhone margins are 60%?

    A: It is difficult to talk about GM on a year-over-year basis due to product and commodity cycles as well as currency fluctuations.



    Q: The iPhone application approval process has been under criticism. Have you received any feedback from iPhone owners?

    A: It is important to keep this in perspective. Over 90% of apps have been approved in less than 14 days. We have the approval process in place to protect the privacy of the consumer or the integrity of the platform. Most of the rejections are due to bugs in the code to protect the customer. The noise on this issue is much higher than the reality.



    Q: How do you feel about new product category opportunities ahead? Do you see something as big as iPhone coming?

    A: Please wait till Wednesday? Stay tuned.



    Q: Is it appropriate to roll out iPhone type products on a globally homogeneous price scale given the income differences?

    A: Even the average income may not be as high as US, one has to look at the distribution of income as well. We are very focused on these markets. Our revenues tripled in greater China (China, Hong Kong, Taiwan) last quarter. 58% of our revenue last quarter was from outside US. We realize the we must do well in these markets to continue to grow.



    Q: Can you provide more color on AppStore?

    A: For competitive reasons we don't share much of this information. We are way ahead of our competitors with over 100K applications in our store. This is one of the key reasons why iTunes set a record last quarter.



    Q: Is iPhone likely to drive corporate acceptance of Mac?

    A: After iPhone 3GS, iPhone saw a lot more corporate acceptance. 70% of Fortune 100 are actively deploying or piloting iPhone. These are some staggering numbers considering we have been in this market for only 2.5 years.



    Q: Have you seen changes in iPhone financial model?

    A: Sales are largely incremental as we add carriers. We see market share increases. However, in most cases, we selected to stay with a single carriers.



    Q: How should investors think about Apple's long term strategy in the context of recent acquisitions?

    A: We occasionally acquire small companies from time to time for their technology and talent.



    Q: How do you plan to use your cash? Share repurchases, dividends?

    A: We don't have a change in our cash philosophy.



    Q: Any plans to change iTunes AppStore revenue model?

    A: We are running iTunes AppStore slightly over break-even, and we are happy to keep doing this to provide the best applications to our customers.



    Q: $25 deferred iPhone revenue?

    A: The second revenue element, the right to receive future s/w upgrades, is estimated to be $25 per iPhone. We applied a $25 deferral all iPhones sold in the past and $10 deferral to all AppleTV sold. As a result of this, in our revised balanced sheet, you will see substantially less deferred revenue. We recognized about $110M in the Dec quarter for all the iPhones sold in the previous quarters over the past 2 years.



    Q: How about the strong CPU growth in APAC and Japan?

    A: The Mac growth is above market, but we believe we can do better. APAC is the highest performing region in terms of Mac growth. iPhone also grew an incredible amount.



    Q: How about mobile advertising? What's going on with Google?

    A: We work with Google in some areas, compete with them on others. Mobile advertising is in infancy. We are going to work hard to provide a great opportunity to developers.



    Q: Are you seeing improvements in the Pro segment?

    A: We saw a small year over year increase. It is still an economically challenged area.



    Q: How about education? How does the economy and shrinking budgets impact this?

    A: The combination of K12 and higher ed grew 16% year over year. This is the best we have seen since before the recession. We really understand teaching and learning and we are the only tech company to get this. We will stay focused on this market and will continue to do well.
  • nuduanudua Posts: 5member
    Quote:
    Originally Posted by Booga View Post


    So basically, they're changing all their historical statements to erase subscription accounting from history. Kind of like going back in a time machine and killing your own CFO. This quarter's results are just this quarter's results, and no deferred revenue of any kind was added to it.



    Wrong. They have deferred $25 per iPhone at purchase.

    So, no longer 100% of revenue, but a $25 per unit as a right to receive future software updates and features.



    This means that in this quarter with 8.7 million iPhones sold, they have deferred 8.7 M x $25 = $217.5 million. This $217.5 million deferred revenue will be recognized over a 24 month basis.





    So to conclude, there is still deferring going on but at a much smaller scale which more correctly reflects reality.



    Btw. no longer deferring of costs.
  • stefano lavoristefano lavori Posts: 16member
    I wonder which device will be available Wednesday? "The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about."?Steve Jobs
  • boogabooga Posts: 1,070member
    Quote:
    Originally Posted by samab View Post


    iPhone channel inventory went up from 2.4 million iphones in September quarter to 2.7 million iphones in the christmas quarter.



    So Apple really only sold 8.4 million iphones in the christmas quarter.



    Are you sure about that? Most of the "channel" are Apple's own stores, so they wouldn't be able to count those as sales. When Apple reports a sale, they're usually talking about retail sales.
  • boogabooga Posts: 1,070member
    Quote:
    Originally Posted by aaarrrgggh View Post


    True... not that bad, but factoring out the lost iPods you have 56% growth. That is more "on par" for expectations. ASP and margins are helping them a lot... wonder how long it will hold up.



    Except that average selling price for the iPods were up 9% because a greater percentage of iPods were iPod Touches. If you count iPods + iPhones together, unit sales were up and revenue was up a lot. If you count iPhones + iPod Touch vs old iPods, then the decline in iPods is even more dramatic and it's obvious that iPhone OS based devices are the future here.
  • samabsamab Posts: 1,953member
    Quote:
    Originally Posted by Booga View Post


    Are you sure about that? Most of the "channel" are Apple's own stores, so they wouldn't be able to count those as sales. When Apple reports a sale, they're usually talking about retail sales.



    Apple store inventory is NOT part of the channel.



    When Apple reports SEC numbers, they are "shipped" numbers. And if you read the definition of shipped in Apple's SEC filings, you will know that whatever shipped to the carriers are classified as shipped --- whether the carriers sell the iphone or not.
  • asciiascii Posts: 5,363member
    With millions of Macs being sold every quarter, how come there isn't more software? Maybe there needs to be an App store type arrangement.
  • paulsorensenpaulsorensen Posts: 82member
    Quote:
    Originally Posted by markb View Post


    So they just barely beat street estimates? These numbers are confusing. Did they roll all the prior quarters unrecognized iPhone revenue into this quarters numbers or is the 15 B JUST this quarter?



    They DESTROYED street estimates... not exactly sure about the answer to your second question, haven't read the detailed release yet.
  • tsad23tsad23 Posts: 46member
    Quote:
    Originally Posted by Archipellago View Post


    Shares sinking after hours...now down below $200



    people buy on rumors and then trade on the news
  • sflocalsflocal Posts: 3,541member
    Quote:
    Originally Posted by ifail View Post


    Very great numbers for Apple.

    Also, anyone noticing the trend of slipping iPod sales? With so many devices doing it all-in-one the age of owning just a music device is dying. Even if Apple continually updates their iPod Touch line to mimic the iPhone...why would you bother buying one if you owned an iPhone/Smartphone already?



    Easy... I myself purchased a standalone iPod to hook into my car stereo. Many friends of mine in addition to their iPhone have iPods for their home stereo systems, gym, etc. There is no one-device-to-rule-them-all. Why play a good tune only to have it shut down due to the phone ringing?
  • extremeskaterextremeskater Posts: 2,248member
    Quote:
    Originally Posted by Quadra 610 View Post


    And Apple keeps breaking records. In a recession.



    Which is fine but the stock can't take advantage of that fact. Apple lost nearly 5% on Friday and while it make about half that up today its back down under 200.00 in after hours trading.



    So all this means nothing for the "shareholders".



    Record after record in sales and the stock was at 197.00 on Friday an all the bullish fools keep predicting its still going to hit 270.00 which is never going to happen.



    So the only one that should be happy about this is Steve Jobs because you and I sure aren't making any extra money on the record sales.
  • quadra 610quadra 610 Posts: 6,613member
    Quote:
    Originally Posted by extremeskater View Post


    Which is fine but the stock can't take advantage of that fact. Apple lost nearly 5% on Friday and while it make about half that up today its back down under 200.00 in after hours trading.



    So all this means nothing for the "shareholders".



    Record after record in sales and the stock was at 197.00 on Friday an all the bullish fools keep predicting its still going to hit 270.00 which is never going to happen.



    So the only one that should be happy about this is Steve Jobs because you and I sure aren't making any extra money on the record sales.



    I don't hold any shares in Apple. I don't have the stomach for it.
  • solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Quadra 610 View Post


    I don't hold any shares in Apple. I don't have the stomach for it.



    Being long on Apple means that I don?t care about a day?s drop in relation to the market as a whole or a economic downturn so a company I invest in doing well YoY means a great deal. I don?t think Extremeskater has ever held stock in a company if he devalues a companies financial success because of a day?s trading that affected the market as a whole. Then again, internet trading has exponated the fear and greed emotional factor of trading with some people so it?s possible he is a shareholder outside of some corporate 401k or mutual fund.
  • extremeskaterextremeskater Posts: 2,248member
    Quote:
    Originally Posted by Quadra 610 View Post


    I don't hold any shares in Apple. I don't have the stomach for it.



    Well seeing I bought most of my Apple stock years ago around 9.00 a share I guess I can't complain much. However this is where the recession does impact Apple, in the stock price. With quarter after quarter record sales the stock should be higher but the market is killing everyone.



    I posted here a few months ago it was the financials keeping the market elevated and clearly I was right on that when the market tanked 500 points last week when Obama decided he wanted to tax the banks and Apple stock fell victim along with everyone else.



    In any case its good to see Apple doing well. Hopefully the Tablet will end up doing what I want it to do. Rumors are getting rough these days.
  • extremeskaterextremeskater Posts: 2,248member
    Quote:
    Originally Posted by solipsism View Post


    Being long on Apple means that I don?t care about a day?s drop in relation to the market as a whole or a economic downturn so a company I invest in doing well YoY means a great deal. I don?t think Extremeskater has ever held stock in a company if he devalues a companies financial success because of a day?s trading that affected the market as a whole. Then again, internet trading has exponated the fear and greed emotional factor of trading with some people so it?s possible he is a shareholder outside of some corporate 401k or mutual fund.



    Get a clue. If I bought Apple stock at around 9.00 a share how long have I been holding it? You talk out your ass most of the time.
  • brucepbrucep Posts: 2,823member
    Quote:
    Originally Posted by AppleInsider View Post


    Apple said Monday that first-quarter profits shot up more than 50 percent to $3.38 billion, or $3.67 per diluted share, on record sales of $15.68 billion for the three-month period ended December 26, 2009.



    The results compare to revenue of $11.88 billion and net quarterly profit of $2.26 billion, or $2.50 per diluted share, in the year-ago quarter. Gross margin was 40.9 percent, up from 37.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter's revenue.



    Apple sold an all-time best 3.36 million Macintosh computers during the quarter, representing a 33 percent unit increase over the year-ago quarter. The company also shipped a record 8.7 million iPhones in the quarter, representing 100 percent unit growth over the year-ago quarter. Meanwhile, iPod sales came in at 21 million, representing an eight percent unit decline from the year-ago quarter.



    During the quarter Apple elected retrospective adoption of the Financial Accounting Standards Board's amended accounting standards related to certain revenue recognition. Adoption of the new accounting standards significantly changes how the company accounts for certain items, particularly sales of iPhone and Apple TV. Put more simply, the company is now reporting an amended version of GAAP financials as their official results.



    "If you annualize our quarterly revenue, it's surprising that Apple is now a $50+ billion company," said Apple chief executive Steve Jobs. "The new products we are planning to release this year are very strong, starting this week with a major new product that we're really excited about."



    "We are very pleased to have generated $5.8 billion in cash during the quarter," added Apple chief operating officer Peter Oppenheimer. "Looking ahead to the second fiscal quarter of 2010, we expect revenue in the range of about $11.0 billion to $11.4 billion and we expect diluted earnings per share in the range of about $2.06 to $2.18."



    Apple will provide live streaming of its Q1 2010 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PST on January 25, 2010. AppleInsider will provide full coverage.



    WOW !!!



    apple keeps on rolling ever higher ever faster ever mote products ever more sales ever more profit

    monster quarter

    MONSTER SALES

    MONSTER GROWTH





    AND THANK GOD STEVES SEEMS HEALTHY NOW

    MAY GOD BLESS STEVE AND ALL AT APPLE



    PEACE



    9







    2 xmas in one yr wow
  • solsunsolsun Posts: 763member
    Quote:
    Originally Posted by extremeskater View Post


    Record after record in sales and the stock was at 197.00 on Friday an all the bullish fools keep predicting its still going to hit 270.00 which is never going to happen.



    So the only one that should be happy about this is Steve Jobs because you and I sure aren't making any extra money on the record sales.



    Never?????



    Here's some perspective for you...



    http://finance.yahoo.com/echarts?s=A...urce=undefined
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