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Apple profits soar 70% on record sales of 14.1M iPhones, 3.89M Macs

post #1 of 115
Thread Starter 
Apple said Monday that fourth quarter profits rose more than 70% to $4.31 billion, or $4.64 per diluted share, driven by record sales in three of its four major product categories.

The Cupertino-based company posted record revenue of $20.34 billion and net quarterly profit of $4.31 billion, or $4.64 per diluted share. These results compare to revenue of $12.21 billion and net quarterly profit of $2.53 billion, or $2.77 per diluted share, in the year-ago quarter.

Gross margin was 36.9 percent compared to 41.8 percent in the year-ago quarter. International sales accounted for 57 percent of the quarters revenue.

Were thrilled with the performance and strength of our business, generating almost $5.7 billion in cash flow from operations during the quarter, said Peter Oppenheimer, Apples CFO. Looking ahead to the first fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $4.80.

Apple sold a record 3.89 million Macs during the quarter, a 27 percent unit increase over the year-ago quarter. It also sold a record 14.1 million iPhones in the quarter, representing 91 percent unit growth over the year-ago quarter.

In total, the company shipped 9.05 million iPods during the quarter, representing an 11 percent unit decline from the year-ago quarter, as well as 4.19 million iPads, another record quarterly shipment.

We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earningsboth all-time records for Apple, said Steve Jobs, Apples CEO. iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million phones RIM sold in their most recent quarter. We still have a few surprises left for the remainder of this calendar year.

Apple hold its Q4 2010 financial results conference call beginning at 2:00 p.m. PDT (5:00 PM Eastern) today and AppleInsider will have full coverage.
post #2 of 115
Awesome. I hear iPad lower than expected. Not sure why RIM is mentioned. Android is the rival now.

Now lock the analysts up for the next three months will ya!
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post #3 of 115
I can only imagine what the profits will be like when you can walk into a Canadian Apple Store and buy one.

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post #4 of 115
Quote:
Originally Posted by AppleInsider View Post

Looking ahead to the first fiscal quarter of 2011, we expect revenue of about $23 billion and we expect diluted earnings per share of about $4.80.

Revenue projection for the next quarter is 30% more than the current quarter, but earnings projection stays pretty much the same. This points to significantly lower margin expectation for the Xmas quarter. The only explanation I can think of is that Apple plans to sell significantly more iPods in the Xmas quarter and iPods have lower margin than other Apple products...
post #5 of 115
... and...

... as always...

AAPL gets hammered after hours...
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na na na na na...
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post #6 of 115
3 years ago we were all impressed with 1 million iPhones in a quarter....now it's at 14 million!

If you ask the younger generations, "What is Apple?", they will now say "They are a cell phone company".
post #7 of 115
Quote:
Originally Posted by AppleInsider View Post

We still have a few surprises left for the remainder of this calendar year

Who here is not excited about that!
post #8 of 115
Quote:
Originally Posted by digitalclips View Post

Not sure why RIM is mentioned. Android is the rival now.

those two buffoons running RIM must have angered Steve Jobs. Not smart!
post #9 of 115
Quote:
Originally Posted by macshark View Post

Revenue projection for the next quarter is 30% more than the current quarter, but earnings projection stays pretty much the same. This points to significantly lower margin expectation for the Xmas quarter. The only explanation I can think of is that Apple plans to sell significantly more iPods in the Xmas quarter and iPods have lower margin than other Apple products...

Apple's projections are notoriously low. Like unbelievably low. Many people have asked them why they even bother. Their response has always been "we give a number we feel comfortable we can meet". And of course they blow it out.
post #10 of 115
Around $.10 down in after hours trading (as of 1655 EDT) is hardly getting hammered when they were up over $3.00 on the day. There's hardly anything to read in that meager change. Don't worry, be happy!

Edit 1711 EDT, whoa, now its down $19.68, I reckon that *is* getting hammered. Oh, well, I reckon I'm still up $60.
post #11 of 115
Quote:
Originally Posted by island hermit View Post

... and...

... as always...

AAPL gets hammered after hours...

Yeah, it's down $0.10! (Trading currently halted)
Please don't be insane.
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post #12 of 115
Quote:
Originally Posted by digitalclips View Post

Awesome. I hear iPad lower than expected. Not sure why RIM is mentioned. Android is the rival now.!

RIM is mentioned because they make and sell their phones with OS just like Apple. Android is just the OS, so that would be like comparing apples and oranges (and because it is just an OS on a hundred different handsets it is beating them both) : )
post #13 of 115
Quote:
Originally Posted by island hermit View Post

... and...

... as always...

AAPL gets hammered after hours...

Well... one man's panic is another man's buying opportunity.

Little disappointed on iPad sales, but blown out of the water by iPhone sales which more than compensate. Glad I sold half of my November calls during regular hours.
post #14 of 115
Quote:
Originally Posted by island hermit View Post

AAPL gets hammered after hours ...

after hours trading figures could be the result of profit taking.
post #15 of 115
Quote:
Originally Posted by un_plug View Post

RIM is mentioned because they make and sell their phones with OS just like Apple. Android is just the OS, so that would be like comparing apples and oranges (and because it is just an OS on a hundred different handsets it is beating them both) : )

That's an interesting interpretation for the reason. By that logic Macs can not be compared to any PC out there.
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post #16 of 115
I've just read that Apple has generated more revenue in this quarter than Google has for the whole of 2010!

Pretty amazing.
post #17 of 115
If you believe forward earnings of ~$5.00/share/quarter, then $20 x 20 PE = $400. While some may argue that a 20 PE may be optimistic, it is below current PE of ~23 (and below Google's PE of ~24). Can Apple continue to achieve approximately 20% growth, year over year? (methinks they can indeed).

With all the overseas and domestic outlet sales increases in the next year, not to mention upgrades by everyone owning apple products, I don't see how Apple can help but achieve the above results. And all this in a global recessionary period. Impressive, to say the least!
post #18 of 115
Quote:
Originally Posted by emacs72 View Post

after hours trading figures could be the result of profit taking.

Yep, it never fails. It will recover over the next few days.
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post #19 of 115
Quote:
Originally Posted by Bagman View Post

If you believe forward earnings of ~$5.00/share/quarter, then $20 x 20 eps = $400. With all the overseas and domestic outlet sales increases in the next year, not to mention upgrades by everyone owning apple products, I don't see how Apple can help but achieve the above results. And all this in a global recessionary period. Impressive, to say the least!

It's 'Magic'
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post #20 of 115
Quote:
Originally Posted by digitalclips View Post

Yep, it never fails. It will recover over the next few days.

It often fails. I've held this stock for 13 years, so I know.
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post #21 of 115
Quote:
Originally Posted by PaulMJohnson View Post

I've just read that Apple has generated more revenue in this quarter than Google has for the whole of 2010!

Pretty amazing.

Google has a strange business model to be sure. I am pretty sure they could have charged for their OS and still sold just as many.
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post #22 of 115
Quote:
Originally Posted by digitalclips View Post

Awesome. I hear iPad lower than expected. Not sure why RIM is mentioned. Android is the rival now.!

Is Android the rival? Android is an OS and Apple doesn't sell an OS across multiple vendors so I am not sure it is fair to call Android a rival. It may be a rival in terms of how good the OS is but in terms of numbers it is a lost battle. Unless Android totally screws up, of course, but I don't expect that.
post #23 of 115
Quote:
Originally Posted by Dr Millmoss View Post

Yeah, it's down $0.10! (Trading currently halted)

Really... it was down over $17 at one point...
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post #24 of 115
Has MSFT ever had over $20B revenue in this same quarter? Are analysts projecting MSFT over $20B for this same quarter come 28-OCT-2010?
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post #25 of 115
All the shorters are selling off massively to drive the price down.
post #26 of 115
Quote:
Originally Posted by island hermit View Post

Really... it was down over $17 at one point...

Yahoo was showing the suspended trading figure. It was actually down around $20 at one point. I don't know what traders were betting on by running AAPL up so much over the last week or so, but it was apparently something more than beating the street by 14%.
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post #27 of 115
Quote:
Originally Posted by paxman View Post

Is Android the rival? Android is an OS and Apple doesn't sell an OS across multiple vendors so I am not sure it is fair to call Android a rival. It may be a rival in terms of how good the OS is but in terms of numbers it is a lost battle. Unless Android totally screws up, of course, but I don't expect that.

I truly think that is a semantical argument. If buyer Joe buys an Android phone instead of an iPhone what does it matter? That purchase wasn't from Apple it was from a manufacturer that would not have a product but for Android. Hence for simplification I use the term Android. It is no different than referring to MS as a rival of Apple's even though it may translate into a DELL or an HP.
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post #28 of 115
Quote:
Originally Posted by Dr Millmoss View Post

Yeah, it's down $0.10! (Trading currently halted)

It's down $17 at 5.5 %. Below 300 again.

http://moneycentral.msn.com/detail/s...te?symbol=aapl
post #29 of 115
Just extrapolating from those numbers, Apple can easily sell north of 100 million iOS devices next year, probably substantially more barring some major error on their part. And subsequently to that? Who knows, but I wouldn't bet against an ever expanding world of devices and sales. Sure, Android tablets will be coming onto the market, but Android phones don't really seem to have crimped iPhone growth, have they?

Add that to the installed user base now (allowing for replacement or defections of course) and you've got an absolutely massive market for devs and peripheral makers to cater to-- not to mention further incentive for more sites and publications to get on board with the HTML 5 express.
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post #30 of 115
Quote:
Originally Posted by mdriftmeyer View Post

all the shorters are selling off massively to drive the price down.

buy buy buy,
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post #31 of 115
The EPS anyway. From his post on AI just this morning before the conference call:

"Based on my earnings model (see here), my estimates this quarter fall on the lower end of the unaffiliated analyst estimates. My model is looking for Apple to report earnings of about $4.64 in EPS on about $19.6 billion in revenue. I'm looking for Apple to report sales of 12 million iPhones, 3.92 million macs, 10 million iPods and 5 million iPads."

http://www.appleinsider.com/articles...s_preview.html
post #32 of 115
Quote:
Originally Posted by Dr Millmoss View Post

It often fails. I've held this stock for 13 years, so I know.

It never fails ... to drop after an ER ... I abbreviated assuming my meaning was obvious as it related to the comment I was replying to.
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post #33 of 115
I hope Apple can stay on this course of success, when a company is on such a good streak, it must end at some point, and it may be very ugly... what I'm saying is, I hope Apple is not France under Napoleon Bonaparte...

I'm a bit pessimistic today...
post #34 of 115
Quote:
Originally Posted by digitalclips View Post

Android is the rival now.

Android isn't a company.
And the company that makes it, charges zero for it. Is that a rival?

C.
post #35 of 115
Quote:
Originally Posted by digitalclips View Post

Nearly as long as me

Then you should know that it doesn't "always happen." I believe it was two quarterly reports ago that AAPL soared in after-hours trading on a similar blow-out.
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post #36 of 115
Quote:
Originally Posted by addabox View Post

Just extrapolating from those numbers, Apple can easily sell north of 100 million iOS devices next year, probably substantially more barring some major error on their part. And subsequently to that? Who knows, but I wouldn't bet against an ever expanding world of devices and sales. Sure, Android tablets will be coming onto the market, but Android phones don't really seem to have crimped iPhone growth, have they?

Add that to the installed user base now (allowing for replacement or defections of course) and you've got an absolutely massive market for devs and peripheral makers to cater to-- not to mention further incentive for more sites and publications to get on board with the HTML 5 express.

I have a gut feeling Apple will untether the iPad from a mother PC / Mac by launching an iTunes in the cloud. A new purchaser will be able to contact and sign up (if no account) via WiFi or perhaps even at Apple's expense to sign up via some arrangement with the carriers. Once this happens the iPad is a PC like it or not in terms of definition. That makes Apple the number one PC maker. The sky is the limit after that.
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post #37 of 115
Quote:
Originally Posted by johnnielse View Post

It's down $17 at 5.5 %. Below 300 again.

http://moneycentral.msn.com/detail/s...te?symbol=aapl

It's now back over $302.
post #38 of 115
Quote:
Originally Posted by Dr Millmoss View Post

Then you should know that it doesn't "always happen." I believe it was two quarterly reports ago that AAPL soared in after-hours trading on a similar blow-out.

I was not being specifically accurate merely cheering someone up with the term 'It never fails ... sigh' as in 'it often happens'. Lighten up will ya
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post #39 of 115
Quote:
Originally Posted by digitalclips View Post

Nearly as long as me

Good for you - in the days when every article about Apple included the word 'beleaguered' I thought of buying. Apple still had millions of loyal users and (probably through ignorance) I was certain Apple would pull through. Unfortunately I didn't feel I could put all my money into any company let alone a beleaguered one, no matter how certain I was that its imminent death was exaggerated. I was wrong on more counts than one but oh how I wish I had sunk every penny in to stock. Makes me wanna cry.
post #40 of 115
Quote:
Originally Posted by un_plug View Post

RIM is mentioned because they make and sell their phones with OS just like Apple. Android is just the OS, so that would be like comparing apples and oranges (and because it is just an OS on a hundred different handsets it is beating them both) : )

Quote:
Originally Posted by digitalclips View Post

That's an interesting interpretation for the reason. By that logic Macs can not be compared to any PC out there.

Macs can't be compared to any PC out there, because they are so superior. But my point was that, of course apple is going to pick the number that looks good for them, and what their reasoning might be. Andriod may not be an exact rival, but they are a definite threat to iPhone sales, and Apple profits.
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