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

post #1 of 91
Thread Starter 
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.
post #2 of 91
"...starting this week with a major new product that we're really excited about."

I wonder what that could be?

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   Apple develops an improved programming language.  Google copied Java.  Everything you need to know, right there.

 

  MA497LL/A FB463LL/A MC572LL/A FC060LL/A MD481LL/A MD388LL/A ME344LL/A

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post #3 of 91
Quote:
Originally Posted by John.B View Post

"...starting this week with a major new product that we're really excited about."

I wonder what that could be?

I was reading a rumor that it might be a tablet. If so, you heard it here first!
post #4 of 91
This year is e x c i t i n g
post #5 of 91
One word: Wow...
GIGO. The truth in all of life.
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GIGO. The truth in all of life.
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post #6 of 91
I thought it started 5:00PM EST?

Also, the Mac sales are impressive!
post #7 of 91
They should buy Michael Dell.
post #8 of 91
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?
post #9 of 91
Impressive!

So how many iPhones were sold in total for 2009?

Edit: Got it. They've sold 25.1 million in 2009.
post #10 of 91
41% gross margin.....

ouch....

gouge much...?
post #11 of 91
So now that they are away from subscription based accounting, do they retroactively modify previous earnings, or do they realize them as scheduled? Numbers not quite as good as I had hoped; the iPhone numbers are short especially.

Oh well, at least we are finished with the stupid subscription accounting.
post #12 of 91
Very great numbers for Apple.

I wonder where those people are who were crowing Apple would sell 11 million iPhones...

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?
post #13 of 91
Yep, 3.3 million Macs as predicted. My sources were spot on.
post #14 of 91
Quote:
Originally Posted by Archipellago View Post

41% gross margin.....

ouch....

gouge much...?

Maybe it is time for price cuts across the board...
post #15 of 91
Quote:
Originally Posted by astrosmash View Post

They should buy Michael Dell.

Then fire him and refund the money to the investors!

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #16 of 91
Quote:
Originally Posted by astrosmash View Post

They should buy Michael Dell.



But seriously, I do think Apple needs to 'buy' someone with a visionary way of changing the enterprise landscape...

On a side note, I think Windows 7 is the last version that will do Microsoft any real good, Apple is pulling a Return of the Jedi right now...
post #17 of 91
wow, is AppleInsider in trouble? how did you get to post this before the conference started
post #18 of 91
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?

It is pretty unclear right now how they approached it; if all they brought in was $15B including deferred revenue then they had an abysmal quarter. Have to wait for the call for some clarity.
post #19 of 91
Quote:
Originally Posted by ifail View Post

Very great numbers for Apple.

I wonder where those people are who were crowing Apple would sell 11 million iPhones...

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?

The number that really matters is iPod + iPhone unit sales. And apple makes 2x-10x more revenue per iPhone sold compared to per iPod sold, so iPhone cannibalizing iPods is a good thing.

UPDATE: In the conference call, they just mentioned that the iPod revenue increased by 1% despite the unit volume decline.

Another factor to consider is that iPods are not as disposable as they used to be...

Of course, now we have the iTablet coming up into the mix...
post #20 of 91
Quote:
Originally Posted by ifail View Post

Very great numbers for Apple.

I wonder where those people are who were crowing Apple would sell 11 million iPhones...

Also, anyone noticing the trend of slipping iPod sales?

Yes, but an 8% unit decline of one portable device is not really such a big deal when you have another portable device that grew 100%.
post #21 of 91
Quote:
Originally Posted by juanm View Post

wow, is AppleInsider in trouble? how did you get to post this before the conference started

The quarter end press release (and news) is always released before the conference call on all major news outlets...
post #22 of 91
Quote:
Originally Posted by ilogic View Post

I thought it started 5:00PM EST?

Yes, 2:00pm pacific... where Apple HQ is located...
post #23 of 91
Quote:
Originally Posted by ilogic View Post



But seriously, I do think Apple needs to 'buy' someone with a visionary way of changing the enterprise landscape...

On a side note, I think Windows 7 is the last version that will do Microsoft any real good, Apple is pulling a Return of the Jedi right now...

LOL okay.... i like macs but lets be realistic, Microsoft has a stranglehold on both enterprise and home market. Chrome = weak and lol at Ubuntu and Linux (linux meh, Ubuntu is good though) Apple selling just 3 million macs a quarter isnt going to catch the juggernaut beast that is Microsoft in Operating System Marketshare.
post #24 of 91
Quote:
Originally Posted by astrosmash View Post

They should buy Michael Dell.

And what would they do with the remaining $5.7B they earned?

Quote:
Originally Posted by aaarrrgggh View Post

So now that they are away from subscription based accounting, do they retroactively modify previous earnings, or do they realize them as scheduled? Numbers not quite as good as I had hoped; the iPhone numbers are short especially.

Oh well, at least we are finished with the stupid subscription accounting.

As I recall, no new phones use it, but the old sales are grandfathered so well still have ayear and half before GAAP is completely accounted for.

Quote:
Originally Posted by ifail View Post

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?

This was predicted when the iPhone was first announced. Of course it will cannibalize its one iPod sales since its also an iPod. That is to be expected. We also have better PMP functions in basic phones, not just smartphones. What is impressive is that its only an 8% YoY drop in unit sales while the iPod prices havent adjusted much YoY.

People will buy an iPod Touch for many reasons. From not having the iPhone in your country or on your carrier to simply not wanting a cell phone in their PMP or wanting the associated data fee. I think the Touch finally outsold the iPhone in units a couple quarters ago.
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #25 of 91
Quote:
Originally Posted by ifail View Post

Very great numbers for Apple.

I wonder where those people are who were crowing Apple would sell 11 million iPhones...

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?

11MM phones was unrealistic, but 9MM was a reasonable expectation. Not a huge miss, but a slip. Given that the iPod number dropped so much I would say there is some reason for concern.

But, after the pullback recently, AAPL should move up.
post #26 of 91
Remember that Apple has now retrospectively changed all previous quarterly results. This mean that when they say this Q1 is up 100% on earnings compared to Q1 2009, that takes into consideration the change in GAAP rules on both quarters.

This can be a little challenging for Analysts, but what you can take has really hard evidence is Units sold up 10% etc and margin 40% etc.
post #27 of 91
Quote:
Originally Posted by ifail View Post

iApple selling just 3 million macs a quarter isnt going to catch the juggernaut beast that is Microsoft in Operating System Marketshare.

Nor or they trying to do such a thing.
post #28 of 91
Blowout.

Once again, Apple shows the industry the way forward.
post #29 of 91
Quote:
Originally Posted by ifail View Post

Apple selling just 3 million macs a quarter isnt going to catch the juggernaut beast that is Microsoft in Operating System Marketshare.

Why mention PC sales from a company and then compare to the OS sales of another company? Why fault Apple for choosing to make an OS to go with their PCs instead of faulting PC companies that choose to be slaves to an OS maker due to their ineptitude in software development?
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post #30 of 91
Quote:
Originally Posted by MacTel View Post

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

Not too shabby for products that "no one can afford".
post #31 of 91
Quote:
Originally Posted by aaarrrgggh View Post

So now that they are away from subscription based accounting, do they retroactively modify previous earnings, or do they realize them as scheduled? Numbers not quite as good as I had hoped; the iPhone numbers are short especially.

Lots of info in the 10Q

http://yahoo.brand.edgar-online.com/...Ys-H6EB3b0ShX7
post #32 of 91
Quote:
Originally Posted by ifail View Post

LOL okay.... i like macs but lets be realistic, Microsoft has a stranglehold on both enterprise and home market. Chrome = weak and lol at Ubuntu and Linux (linux meh, Ubuntu is good though) Apple selling just 3 million macs a quarter isnt going to catch the juggernaut beast that is Microsoft in Operating System Marketshare.

Yup, and the iPod and iPhone will never catch on, the MacBooks will never be a significant part of the laptop market - and stick with buying MSFT...

Yeah, right.
post #33 of 91
And my friend the Apple employee still gets a serf-like salary.

E pluribus unum, I suppose.
post #34 of 91
Quote:
Originally Posted by aaarrrgggh View Post

11MM phones was unrealistic, but 9MM was a reasonable expectation. Not a huge miss, but a slip. Given that the iPod number dropped so much I would say there is some reason for concern.

But, after the pullback recently, AAPL should move up.

They gained a couple million more iPhone sales than they lost in iPod sales (8% decline to 21M vs 100% increase to 8.7M)... how can that be a bad thing?
post #35 of 91
Quote:
Originally Posted by macshark View Post

The number that really matters is iPod + iPhone unit sales. And apple makes 2x-10x more revenue per iPhone sold compared to per iPod sold, so iPhone cannibalizing iPods is a good thing.

Of course, now we have the iTablet coming up into the mix...

True but this tablet is seemingly more and more niche the more i hear about it.

Quote:
Originally Posted by solsun View Post

Yes, but an 8% unit decline of one portable device is not really such a big deal when you have another portable device that grew 100%.

Not if it continues to happen, the iPod still represents a significant portion of Apples sales. If Apple keeps its success going with the iPhone than it will be in good shape, but as history has shown, todays top dog is tomorrows beggar.
post #36 of 91
Any word on how the Microsoft stores are doing in comparison to Apple's 13% increase in the stores?
post #37 of 91
Quote:
Originally Posted by ifail View Post

LOL okay.... i like macs but lets be realistic, Microsoft has a stranglehold on both enterprise and home market. Chrome = weak and lol at Ubuntu and Linux (linux meh, Ubuntu is good though) Apple selling just 3 million macs a quarter isnt going to catch the juggernaut beast that is Microsoft in Operating System Marketshare.

That "juggernaut" is the bargain-bin of the industry. They can keep the title.

Wal-Mart also sells the most plastic lawnchairs. Garbage is plentiful.

Apple isn't trying to catch the Wal-Mart of the tech world, but aiming to keep the Premium end and entice newcomers to the higher-income bracket to choose Apple.

Apple doesn't compete with $600 junkboxes running the worst OS known to man. HP, Dell, and the oter also rans are desperate for differentiaton, and they're in a race for the bottom. Their numbers tell the tale.

And Apple keeps breaking records. In a recession.
post #38 of 91
Quote:
Originally Posted by Apple 10-Q

The Company had the option of adopting the new accounting principles on a prospective or retrospective basis. Prospective adoption would have required the Company to apply the new accounting principles to sales beginning in fiscal year 2010 without reflecting the impact of the new accounting principles on iPhone and Apple TV sales made prior to September 2009. Accordingly, the Companys financial results for the two years following adoption would have included the impact of amortizing the significant amounts of deferred revenue and cost of sales related to historical iPhone and Apple TV sales. The Company believes prospective adoption would have resulted in financial information that was not comparable between financial periods because of the significant amount of past iPhone sales; therefore, the Company elected retrospective adoption. Retrospective adoption required the Company to revise its previously issued financial statements as if the new accounting principles had always been applied. The Company believes retrospective adoption provides the most comparable and useful financial information for financial statement users, is more consistent with the information the Companys management uses to evaluate its business, and better reflects the underlying economic performance of the Company.

The financial statements and notes to the financial statements presented herein have been adjusted to reflect the retrospective adoption of the new accounting principles. Refer to Note 2, Retrospective Adoption of New Accounting Principles in this Form 10-Q for additional information on the impact of adoption.

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.
post #39 of 91
Quote:
Originally Posted by ifail View Post

True but this tablet is seemingly more and more niche the more i hear about it.



Not if it continues to happen, the iPod still represents a significant portion of Apples sales. If Apple keeps its success going with the iPhone than it will be in good shape, but as history has shown, todays top dog is tomorrows beggar.

1. Then perhaps you should stop listening to rumors and only make a judgement after it's been introduced.

2. Every iPhone sold is also an iPod.. And it's also a much more profitable one.. .
post #40 of 91
Shares sinking after hours...now down below $200
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