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Notes of interest from Apple's Q1 2011 conference call

post #1 of 129
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Apple on Tuesday reported its best quarter in the history of the company, reaching $26.74 billion in revenue with a net quarterly profit of $6 billion. Following the news, Apple executives participated in a conference call with analysts and the press, and notes of interest follow.

Apple crushed estimates with record sales of 16.24 iPhones, 4.13 million Macs, and 7.33 million iPads. The company also sold 19.45 million iPods in the three-month span that included the holiday buying season.

Participating in Tuesday's conference call was Apple Chief Operating Officer Tim Cook, and the company's chief financial officer, Peter Oppenheimer.

Apple's regional business segments

International sales accounted for 62 percent of Apple's revenue in the first quarter of fiscal 2011.

$9.2 billion of Apple's revenue for the quarter came from the Americas, and $3.8 billion from retail. The remainder of the $26.74 billion came from Europe, Japan and Asia Pacific.

Next to America, Europe was the second-largest region, accounting for $7.3 billion in revenue.

BRIC countries: Identified China as their top priority and put an "enormous energy" there. "The results of that have been absolutely staggering."

Viewing Greater China -- mainland China, Hong Kong and Taiwan -- revenue was $2.6 billion. Up 4X from the prior year quarter.

"We did a little over $3 billion for the entire year, in fiscal year 10," Cook said. "We're very proud of the team and the results that we've got there.

Korea is doing well, as is Japan, where revenue was up 83 percent year over year.

Apple's Mac business

Mac sales were a record 4.13 million for the quarter, with portables leading the way, accounting for $3.7 billion in revenue on sales of 2.9 million.

Desktop Macs earned Apple another $1.7 billion for the three-month period, on sales of 1.2 million.

Mac sales almost 8 times IDCs estimate for world average, fueled by strong sales of MacBook Air and MacBook Pro.

On the Mac App Store, Cook: "We are thrilled to have reported over a million (downloads) in a very short amount of time. So we're very happy with the start of it."

"We've done outstanding in our Mac business," 19 quarters straight of growing faster in the market, but still have a "very low share." Still have "enormous opportunity."

iPad cannibalization of the Mac: "Yes, I think there is some cannibalization," Cook said. "But I also think there is a halo effect."

"We have introduced millions of people in Asia to Apple through the iPhone. And we're now introducing many more through the iPad, and I think some of those decide to buy a Mac."

"If this is cannibalization, it feels pretty good."

Apple still has a low share of the PC market, so cannibalization isn't a concern to them. "The other guys lose a lot more. And we have a lot more to win because of that."

On bringing iPad features to the Mac: MacBook Air got instant-on because people loved the feature in the iPad. Cook says there are "tons of examples" of where something started in one product and flowed to another. There aren't "walls" within Apple.

Cook on the MacBook Air: Got off to an "unbelievable start." Customers love it. "We're really happy with how it's doing." Have been shipping for less than 90 days. "We've just gotten going."

Apple's iPhone business

iPhone sales were a record 16.24 million, amassing $10.5 billion in revenue for Apple during the quarter.

The iPhone grew in sales 86 percent in the December quarter, compared to IDC's estimate of 70 percent.

The average selling price of the iPhone was $625.

88 of the Fortune 100 companies are now deploying iPhone.

Apple continues to have sizable backlog and could have sold more if they could have manufactured them faster

On Verizon, Cook: "We're going to do everything possible to get the iPhone into as many hands of those customers as possible."

"It's not enough:" their efforts to meet demand. "We do still have a significant backlog," Cook said. "We are working around the clock to build more."

Expecting "huge" results from the Verizon launch. Won't make a prediction of when supply and demand will equal.

Oppenheimer: "Demand for iPhones has been incredible, and we would have loved to have made more of them."

Cook: "I don't envision the overall iPhone ASP decreasing" from quarter to quarter, with the launch of the CDMA iPhone.

"We're always assessing in every country who we should be doing business with and exploring different deals and arrangements, etc. And so we'll continue to do that."

Growth and market share have changed "significantly" in countries where they have moved from a single carrier model to a multi-carrier model.

CDMA iPhone, Cook says: "I don't have any specific thing to announce today other than we are truly thrilled to be working with the Verizon team. They have built quite a company and earned a great deal of respect from their customers, and some of them have waited a long time to get the iPhone."

Also signed a multi-year non-exclusive deal with AT&T. No longer in a contractual exclusivity in any country in the world -- the U.S. was the last one.

Have sold more than 160 million iOS devices to date

"We think that our integrated approach is much better for the end user, because it takes out all of the complexity for the end user, instead of making the end user a systems integrator themselves. I don't know about you, but I don't know many people who want to be systems integrators."

Apple's iPad business

Apple's sales of 7.3 million iPads accounted for $4.6 billion in revenue during the first quarter of fiscal 2011.

iPad demand is strong for consumer, enterprise and education customers.

Over 80 percent of the Fortune 100 are already deploying or piloting iPad.

The iPad has an average selling price of $600.

Supply was increased in the quarter. Channel inventory increased by about 525,000 by the end of the quarter.

iPad, increased dramatically in sales. Cook said they met supply-demand balance and expanded to a total of 46 countries by the end of the quarter. Are adding 15 countries in the month of January to top 60 total.

"We believe the market is huge," for iPad, Cook said. The market is just starting.

"We're into some great markets, some fast moving markets. We have the best products we've ever done, and an incredible product pipeline. We feel very, very confident."

On margins: Oppenheimer: "We have always aggressively worked to lower our costs." The company has been "quite happy" with their ability to lower margins on the iPad.

On the competition, Cook says "there's not much out there." Right now there are two kinds of groups on the market: ones using a Windows-based operating system ("big," "heavy," "expensive," require a keyboard or stylus, and have "weak battery life"), and ones based on Android ("the operating system wasn't really designed for a tablet").

The next generation of Android tablets: "There's nothing shipping yet, and so I don't know. Generally, they lack performance specs, they lack prices, they lack timing. And so today they're vapor. We'll assess them as they come out, however, we're not sitting still. And we have a huge first mover advantage, and we have an incredible user experience from iTunes to the App Store and an enormous number of apps and a huge ecosystem, and so we're very, very confident with entering into a fight with anyone."

iPad broke into the mainstream in "record time," Cook says, with a short early adopter period.

Apple's iPod business

iPod sales for the quarter were 19.4 million, representing $3.4 billion in revenue. Compared to 21 million in the year-ago quarter.

The iTunes business also exceeded $1.1 billion in revenue.

iPod touch grew 27 percent year over year, and accounted for more than 50 percent of iPods sold.

Apple's retail business

Apple's retail sales accounted for about $3.5 billion in the quarter, nearly doubled -- increased 95 percent from a year before.

Record Mac quarter -- selling 851,000 Macs, an increase of 24 percent.

About half of Macs sold were to customers who never owned a Mac before.

International store volume exceeded U.S. store volume. Stores in China were most trafficked.

Average of 321 stores open in the quarter, average revenue per store of $12 million. 6 new stores opened in the quarter, 323 stores total, with 87 outside the U.S.

Apple's next (Q2 2011) fiscal quarter

Apple has projected revenue of about $22 billion and diluted earnings per share of about $4.90.

Gross margins are expected about 38.5 percent.

Taxes going forward are expected to be about 25.5 percent.

Cook: "In my view, Apple is doing its best work ever. We are all very happy with the product pipeline. The team here has an unparalleled breadth and depth of talent and innovation that Steve has driven in the company, and excellence has become a habit. And so we feel very, very confident about the future of the company."

Oppenheimer: "Thrilled" to be giving 53 percent earnings growth year over year for its guidance.

Expect Mac and iPod sales to see a sequential decline, typical for a holiday season. With the iPhone they expect a "significant" over year increase, while the iPad is a new market, and they're unsure.
post #2 of 129
Surely AAPL won't dip on this news... I see it's close to Friday's close in after hours. (Edit ... now above ...!!!)
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
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post #3 of 129
And yet still no white iPhone.
post #4 of 129
Simply amazing news. All this in one of the most difficult economic times of our generation too!
post #5 of 129
Quote:
Originally Posted by ghostface147 View Post

And yet still no white iPhone.

You could paint one
Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #6 of 129
Quote:
And so today they're vapor.

Yea, but vapor is invisible. How can an iPad crush an invisible competitor? It can't. The Invisible Man rarely got his ass kicked. You know why? BECAUSE HE WAS INVISIBLE.

Vapor. Invisible. BOOYAH. Eat that iPad. (Oh wait, you can't. Because you can't find it.)
post #7 of 129
Wow! It's almost enough to make you pity the trolls...

It is all astounding, but I'm amazed they are still selling 20 million iPods a quarter despite the fact that most every phone (i or not) now plays music too!
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Progress is a comfortable disease
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post #8 of 129
Quote:
Originally Posted by sflocal View Post

Simply amazing news. All this in one of the most difficult economic times of our generation too!

aapl is doomed...

well yeah right! , simply amazing numbers. The Ipod touch too. I think I'm going to get and iPod touch and attach a wi max 4G router to it, then make calls for virtually nothing over skype. Theres plenty of apps to do Texts and SMS. Why people buy iPhones is a mystery to me, yeah I know its harder to receive calls but hey, Is paying over
199+(24mths*85)=> $2239.00
or 199+(24mths*105)=> $2719.00 both are 1 GB per month data
for ONE device , ONE freaking device?

Compared with this: -

Wi-Max (4G) + Ipod touch (month to month contract, unlimited data plan, with up to 5 wifi devices)
($50*24)+ 299 => $1399.00

This is a saving of between $840 - 1320, is imho a really good deal given that I can get the same and more - up to 5 wi-fi devices ie:- run a laptop, iPad, ipod touch and Kindle

Plus I can stop and start the Wi-Max plan as needed to save more
post #9 of 129
Quote:
Originally Posted by macinthe408 View Post

Yea, but vapor is invisible. How can an iPad crush an invisible competitor?

Steam is water vapour which is visible. Argument not valid

Quote:
Originally Posted by macinthe408 View Post

The Invisible Man rarely got his ass kicked. You know why? BECAUSE HE WAS INVISIBLE.

And yet he got hit in the head with a shovel which killed him.
post #10 of 129
Quote:
Originally Posted by sflocal View Post

Simply amazing news. All this in one of the most difficult economic times of our generation too!

If you look at it in comparison to movie theaters during the depression of 1929 there are similarities. In the case of movie theaters, they had just introduced sound at that time and people although hurting from the economic situation afforded themselves a single luxury of going to the movies once a week. While other businesses failed, movie theaters with sound stayed open.

Similarly Apple introduced a revolutionary advancement in cell phone technology and although we find ourselves in a similar economic condition, we afford ourselves the simple luxury of this new gadget. We may not go on vacation, entertain guests, or buy new homes and cars, but we aren't going to deny ourselves an iPhone. While Apple is soaring due to the innovative technology they offer, the competitors with less notable features are struggling due to the economic downturn.

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post #11 of 129
Quote:
Originally Posted by Bageljoey View Post

Wow! It's almost enough to make you pity the trolls...

It is all astounding, but I'm amazed they are still selling 20 million iPods a quarter despite the fact that most every phone (i or not) now plays music too!

Are folks using the Ipod Touch with Skype perhaps, hmmm lemme see - YES, hmmm doesn't take a rocket scientist to work that out.

In fact I'm using my old Iphone 3G WITHOUT an ATT plan and make calls from it using my internet connection at home over SKYPE app! there. It saves me $85 per month ! And when not at home I use a WiMAx!!!
post #12 of 129
Aug 27, 2010
Apple Death Knell #54: Apple: Short Term Winner, Long Term Loser
By Fabrice Grinda, Published in BusinessInsider
Relevant Quote:

Android, with its relative openness, seems to be playing the role Windows played for the Mac. […] On the DOS, then Windows side, the constant competition between PC makers, processor makers, and software developers, while less elegant and functional at the beginning, given enough time led to a plethora of offerings and innovation that not only copied many of the Mac’s best features but extended them.[…] The combination of faster PCs with more software at lower prices eventually completely marginalized the Macintosh.

Steve Jobs seems to be repeating the same mistake all over again. The elegant integration between the iPhone, iTunes and the App Store is definitely a current source of comparative advantage. It is easier to offer a better user experience at the beginning when you limit the form factor and completely control the hardware and software. The iPhone 4 is clearly the best smartphone on the market. The apps in the Apple App Store are clearly the best apps on the market.

However, Apple’s insistence on having a single form factor, on being a premium player at a premium price point (to carriers at least), and its arbitrary decisions with regards to what apps make it in the App Store will eventually make Apple a niche player. Even if Apple keeps innovating and has the best phone on the market, it won’t matter.

http://www.macobserver.com/tmo/death_knell/
post #13 of 129
I wonder what it feels like to have 60 billion in cash...
post #14 of 129
Quote:
Originally Posted by dualie View Post

Aug 27, 2010
Apple Death Knell #54: Apple: Short Term Winner, Long Term Loser
By Fabrice Grinda, Published in BusinessInsider
Relevant Quote:

Android, with its relative openness, seems to be playing the role Windows played for the Mac. [] On the DOS, then Windows side, the constant competition between PC makers, processor makers, and software developers, while less elegant and functional at the beginning, given enough time led to a plethora of offerings and innovation that not only copied many of the Macs best features but extended them.[] The combination of faster PCs with more software at lower prices eventually completely marginalized the Macintosh.

Steve Jobs seems to be repeating the same mistake all over again. The elegant integration between the iPhone, iTunes and the App Store is definitely a current source of comparative advantage. It is easier to offer a better user experience at the beginning when you limit the form factor and completely control the hardware and software. The iPhone 4 is clearly the best smartphone on the market. The apps in the Apple App Store are clearly the best apps on the market.

However, Apples insistence on having a single form factor, on being a premium player at a premium price point (to carriers at least), and its arbitrary decisions with regards to what apps make it in the App Store will eventually make Apple a niche player. Even if Apple keeps innovating and has the best phone on the market, it wont matter.

http://www.macobserver.com/tmo/death_knell/

There's nonsense, and then there's bloody nonsense. This is bloody nonsense.
Please don't be insane.
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Please don't be insane.
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post #15 of 129
http://www.roughlydrafted.com/2010/1...e-7/#more-4385

There is reason to believe that Apple will do well at Android’s expense. The main reason is Verizon itself.

If Verizon was really pleased with Android offerings, it wouldn’t be seeking to negotiate concessions with Apple to carry the iPhone. Verizon isn’t at all acting like PC makers in the late 90s who found the Mac OS irrelevant; it’s acting like a big box retailer of the past decade that already carries cheap MP3 players but desperately wants to sell the iPod.

also

When adherents talk about Android’s market share, they forget that Android isn’t a product like Windows, it’s a technology portfolio. Android’s popularity doesn’t benefit Google in the way that Windows made Microsoft extremely rich. Google gives Android away, and in some cases pays hardware makers to use it. Pointing out that lots of phones being sold use Android is like saying that a large number of smartphones are black. So what?

Also I believe you are fooling yourself if you really believe Android is open. It isn't open at all really. There have been plenty of articles as to why. Aslo you idea thethe app store will marginalkize apple is also erroneous because it is the main reason the IPhone, Ipod and Iphone are selling, no other vendor has a one stop shop where people can rely on the authenticity of the titles .



Quote:
Originally Posted by dualie View Post

Aug 27, 2010
Apple Death Knell #54: Apple: Short Term Winner, Long Term Loser
By Fabrice Grinda, Published in BusinessInsider
Relevant Quote:

Android, with its relative openness, seems to be playing the role Windows played for the Mac. […] On the DOS, then Windows side, the constant competition between PC makers, processor makers, and software developers, while less elegant and functional at the beginning, given enough time led to a plethora of offerings and innovation that not only copied many of the Mac’s best features but extended them.[…] The combination of faster PCs with more software at lower prices eventually completely marginalized the Macintosh.

Steve Jobs seems to be repeating the same mistake all over again. The elegant integration between the iPhone, iTunes and the App Store is definitely a current source of comparative advantage. It is easier to offer a better user experience at the beginning when you limit the form factor and completely control the hardware and software. The iPhone 4 is clearly the best smartphone on the market. The apps in the Apple App Store are clearly the best apps on the market.

However, Apple’s insistence on having a single form factor, on being a premium player at a premium price point (to carriers at least), and its arbitrary decisions with regards to what apps make it in the App Store will eventually make Apple a niche player. Even if Apple keeps innovating and has the best phone on the market, it won’t matter.

http://www.macobserver.com/tmo/death_knell/
post #16 of 129
Quote:
Originally Posted by Postulant View Post

I wonder what it feels like to have 60 billion in cash...

I wonder who they are going to buy. Got to be Nokia for all their IP.
post #17 of 129
Quote:
Originally Posted by AppleInsider View Post

... Participating in Tuesday's conference call was Apple Chief Operating Officer Tim Cook ...

The thing I like about Time Cook is that I don't think I've ever heard him say anything, even a single word, that he didn't fully intend to say and in precisely the way in which he actually said it. He's very Jobsian in that way.

Balmer waffles and blusters and talks in half finished sentences full of buzz words, and most people occasionally say one thing but mean another from time to time. Cook and Jobs on the other hand, say precisely what they mean and mean exactly what they say.

Even if you don't like Apple, you gotta love that. It's so rare nowadays.
post #18 of 129
Quote:
Originally Posted by dualie View Post

Aug 27, 2010
Apple Death Knell #54: Apple: Short Term Winner, Long Term Loser
By Fabrice Grinda, Published in BusinessInsider
Relevant Quote:

Android, with its relative openness, seems to be playing the role Windows played for the Mac. […] On the DOS, then Windows side, the constant competition between PC makers, processor makers, and software developers, while less elegant and functional at the beginning, given enough time led to a plethora of offerings and innovation that not only copied many of the Mac’s best features but extended them.[…] The combination of faster PCs with more software at lower prices eventually completely marginalized the Macintosh.

Steve Jobs seems to be repeating the same mistake all over again. The elegant integration between the iPhone, iTunes and the App Store is definitely a current source of comparative advantage. It is easier to offer a better user experience at the beginning when you limit the form factor and completely control the hardware and software. The iPhone 4 is clearly the best smartphone on the market. The apps in the Apple App Store are clearly the best apps on the market.

However, Apple’s insistence on having a single form factor, on being a premium player at a premium price point (to carriers at least), and its arbitrary decisions with regards to what apps make it in the App Store will eventually make Apple a niche player. Even if Apple keeps innovating and has the best phone on the market, it won’t matter.

http://www.macobserver.com/tmo/death_knell/


I just love this kind of things coming from people who have no clue what they hell they are saying, seriously, we all should hammer these people who write this stuff and ask them to defend their position and asked them how many times there are wrong in their life.

I wish the news media would return to this people and ask them what happen. It was like the Y2K and all the people who were convince the world was coming to an end and how everything you ever knew would fail this people were stock piling food and other things in their basement and the new interview them before Y2K but never went back and asked if the food all went bad and laugh in their faces
post #19 of 129
Quote:
Originally Posted by dualie View Post

Android, with its relative openness, seems to be playing the role Windows played for the Mac. [] On the DOS, then Windows side, the constant competition between PC makers, processor makers, and software developers, while less elegant and functional at the beginning, given enough time led to a plethora of offerings and innovation that not only copied many of the Macs best features but extended them.[] The combination of faster PCs with more software at lower prices eventually completely marginalized the Macintosh.

One of the things that is different about the PC Mac comparison is that almost from the very beginning people were making PCs at home from parts which were readily available, as was a copy of DOS. This was not possible with Apple computers for which parts and ROMs were tightly controlled, which may have been Apple's mistake. Because of that grass roots PC following and eventually IT departments who were able to repair and trouble shoot PCs without a certified dealer's help, Microsoft based computers became widespread very quickly.

The difference now is that you can't make your own smartphone from parts and you can't make a call without a carrier. Since the iPhone is no more expensive than the alternative, Android, it is all about the best phone for the money.

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post #20 of 129
Well! Not too bad. Almost $27 billion in revenue. I was thinking almost 27.5, so i wasn't off by too much.

This means that Apple, with its guidance of $22 billion next quarter could have its first $100 billion fiscal year for 2011, and pretty much definitely have one for calendar year 2011. That would beat analysts predictions of $86 to $94 billion. I'm assuming that the March quarter will show at $24 billion or so.

As that's the worst quarter for Apple, all others would be over $25 billion, and possibly by a good margin.

$60 billion in cash. They generated much more cash than I, or I think anyone thought. it means they could generate an average of $6 to $7 billion this year per quarter. What to do. What to do.
post #21 of 129
I'd previously suggested that the iPad 2 might have a higher price point to accommodate the rumoured new screen technology. The average selling price for iPads was $600. With the entry level iPad being $499 I don't think that leaves much wiggle room in terms of price. However, Cook mentioned that they're investing in a particular area of technology, much like they have in processor development and flash storage, but wouldn't say what it was. I think it's likely he was talking about display technology.
post #22 of 129
Quote:
Originally Posted by Paul94544 View Post

http://www.roughlydrafted.com/2010/1...e-7/#more-4385

There is reason to believe that Apple will do well at Android’s expense. The main reason is Verizon itself.

If Verizon was really pleased with Android offerings, it wouldn’t be seeking to negotiate concessions with Apple to carry the iPhone. Verizon isn’t at all acting like PC makers in the late 90s who found the Mac OS irrelevant; it’s acting like a big box retailer of the past decade that already carries cheap MP3 players but desperately wants to sell the iPod.

also

When adherents talk about Android’s market share, they forget that Android isn’t a product like Windows, it’s a technology portfolio. Android’s popularity doesn’t benefit Google in the way that Windows made Microsoft extremely rich. Google gives Android away, and in some cases pays hardware makers to use it. Pointing out that lots of phones being sold use Android is like saying that a large number of smartphones are black. So what?

Also I belive you are fooling yourself if you really belive Android is open. It isn't open at all really. There have been plenty of articles as to why. Aslo you idea thethe app store will marginalkize apple is also erroneous because it is the main reason the IPhone, Ipod and Iphone are selling, no other vendor has a one stop shop where people can rely on the authenticity of the titles .

Google doesn't pay manufacturers to use Android. Where did you hear that, or did it just come to you as you were typing? They also get paid for the apps by manufacturers, such as Maps. They have an advertising model, and made over $2 billion on it from Android last year. They will make much more this year.
post #23 of 129
Quote:
Originally Posted by melgross View Post

$60 billion in cash. They generated much more cash than I, or I think anyone thought. it means they could generate an average of $6 to $7 billion this year per quarter. What to do. What to do.

I read somewhere yesterday that they only earn around 1% interest on that cash, which some shareholders claim is a good reason for Apple to instead offer a dividend. I was curious why they can't get at least 3%.

Life is too short to drink bad coffee.

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post #24 of 129
Quote:
Originally Posted by Dr Millmoss View Post

There's nonsense, and then there's bloody nonsense. This is bloody nonsense.

To a certain point, the article makes sense; what goes up must come down, someday, sort of. The argument only makes sense in the very, very long run i.e. Death of Windows in a world full of iPads (Windows 1985 - 2015 or 2020 slow death).

People who believes in these tales are also historians or numbbuts who work in libraries, shouldn't be using Apple products or investing in Apple stocks.

Dr. Millmoss is right on, it's bloody horse shit at the moment.

Apple's halo is just kicking in!!! All cylinders are on fire!!!
post #25 of 129
Quote:
Originally Posted by dualie View Post

Aug 27, 2010
Apple Death Knell #54: Apple: Short Term Winner, Long Term Loser
By Fabrice Grinda, Published in BusinessInsider
Relevant Quote:

Android, with its relative openness, seems to be playing the role Windows played for the Mac. [] On the DOS, then Windows side, the constant competition between PC makers, processor makers, and software developers, while less elegant and functional at the beginning, given enough time led to a plethora of offerings and innovation that not only copied many of the Macs best features but extended them.[] The combination of faster PCs with more software at lower prices eventually completely marginalized the Macintosh.

Steve Jobs seems to be repeating the same mistake all over again. The elegant integration between the iPhone, iTunes and the App Store is definitely a current source of comparative advantage. It is easier to offer a better user experience at the beginning when you limit the form factor and completely control the hardware and software. The iPhone 4 is clearly the best smartphone on the market. The apps in the Apple App Store are clearly the best apps on the market.

However, Apples insistence on having a single form factor, on being a premium player at a premium price point (to carriers at least), and its arbitrary decisions with regards to what apps make it in the App Store will eventually make Apple a niche player. Even if Apple keeps innovating and has the best phone on the market, it wont matter.

http://www.macobserver.com/tmo/death_knell/

And save your Confederate money, the South will rise again!
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post #26 of 129
Quote:
Originally Posted by lowededwookie View Post

Steam is water vapour which is visible.

No, it's not.

Water vapor is invisible. If you can see it, it has condensed into (liquid) droplets. Think 'cloud'.

Quote:
Originally Posted by mstone View Post

I read somewhere yesterday that they only earn around 1% interest on that cash, which some shareholders claim is a good reason for Apple to instead offer a dividend. I was curious why they can't get at least 3%.

It would really be amazing if people would look for facts instead of just shooting off their mouths. From Apple's 10-K:
"The weighted average interest rate earned by the Company ␣ on its cash, cash equivalents and marketable securities was 0.75%, 1.43% and ␣ 3.44% during 2010, 2009 and 2008"

Their average over the past 3 years is just under 2%. Some of that is probably due to currency exchange (I doubt if they hold all their money in dollars) and money market fluctuations.

Still, I agree that they ought to be able to do better than that.
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"I'm way over my head when it comes to technical issues like this"
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post #27 of 129
Quote:
Originally Posted by mstone View Post

I read somewhere yesterday that they only earn around 1% interest on that cash, which some shareholders claim is a good reason for Apple to instead offer a dividend. I was curious why they can't get at least 3%.

They don't earn a lot. That's both good and bad. Good, because during the recession when most investments were down, Apple didn't lose anything. Bad, because when things are moving up, it doesn't gain anything. They've stated several times that their goal for their cash and investments is "preservation of capital". That's a very conservative investment strategy, but safe.

Honestly, I think that investers who don't like that strategy are not understanding what Apple has been about for the past eight years or so. You can't have everything. Apple is a growth company. Their growth has been explosive. Their stock price rise, even with economy related setbacks a couple of times, has also been explosive. If Apple's net wasn't so good; 21.5% last year, then we could properly complain. But that's very good for the type of company they are.

A dividend or cash giveback would be a bonus, but it's obviously not required.
post #28 of 129
(Unless I missed something) Other than rolled into both the iOS device and iTunes numbers, nowhere during the earnings call was there a discussion on Apple TV -- Apple's 4th leg. The officers and analysts talked about current and future projections and strategies on all other devices and services, but not Apple TV. No mention of current market penetration or of a push to new markets.
post #29 of 129
Quote:
Originally Posted by mstone View Post

I read somewhere yesterday that they only earn around 1% interest on that cash, which some shareholders claim is a good reason for Apple to instead offer a dividend. I was curious why they can't get at least 3%.

Maybe that new technology Cook alluded to was a bank!
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A.k.a. AppleHead on other forums.
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post #30 of 129
Quote:
Originally Posted by PeterO View Post

(Unless I missed something) Other than rolled into both the iOS device and iTunes numbers, nowhere during the earnings call was there a discussion on Apple TV -- Apple's 4th leg. The officers and analysts talked about current and future projections and strategies on all other devices and services, but not Apple TV. No mention of current market penetration or of a push to new markets.

Yup! Nothing at all from either side. Hard to understand. I was on three live blogs, and the call, and people were wondering the same thing. I can understand Apple not mentioning it for some reason, but I'm surprised the analysts, who are usually quick to pick up on something like that, didn't mention it. They have in the past.
post #31 of 129
Quote:
Originally Posted by melgross View Post

Google doesn't pay manufacturers to use Android. Where did you hear that, or did it just come to you as you were typing? They also get paid for the apps by manufacturers, such as Maps. They have an advertising model, and made over $2 billion on it from Android last year. They will make much more this year.

Where did you hear they don't pay manufactures?

Citing several sources familiar with the matter, PaidContent reports that Google signs ad revenue sharing deals with carriers, and sometimes manufacturers, who are willing to include Google applications like search, Gmail, and Google Maps. These applications are not a requirement for Android but apparently, Google is willing to handsomely compensate those who do included them.

PaidContent reports that though Google was already sharing application sales with carriers, these kinds of ad deals with the search giant were previously unheard of.

Google declined to comment, saying it could not discuss the terms of its agreements with partners and handset makers and carriers are also keeping quiet.


http://paidcontent.org/article/419-a...-share-deals-/


ready to make an apology?
post #32 of 129
Quote:
Originally Posted by Paul94544 View Post

Are folks using the Ipod Touch with Skype perhaps, hmmm lemme see - YES, hmmm doesn't take a rocket scientist to work that out.

In fact I'm using my old Iphone 3G WITHOUT an ATT plan and make calls from it using my internet connection at home over SKYPE app! there. It saves me $85 per month ! And when not at home I use a WiMAx!!!

The other way to do this is to use Google Voice. You can use the Talkatone app (Google Voice needs to be configured correctly in Google Chat) or a standalone SIP client if you have a Gizmo SIP account. I'm using Groundwire for the latter.

You can text using the Google Voice app. Total monthly cost: zero dollars. I have prepaid dumbphone when I'm walking around; I spend about 5-10 bucks a month on calls.
post #33 of 129
Quote:
Originally Posted by Paul94544 View Post

http://www.roughlydrafted.com/2010/1...e-7/#more-4385

There is reason to believe that Apple will do well at Androids expense. The main reason is Verizon itself.

If Verizon was really pleased with Android offerings, it wouldnt be seeking to negotiate concessions with Apple to carry the iPhone. Verizon isnt at all acting like PC makers in the late 90s who found the Mac OS irrelevant; its acting like a big box retailer of the past decade that already carries cheap MP3 players but desperately wants to sell the iPod.

also

When adherents talk about Androids market share, they forget that Android isnt a product like Windows, its a technology portfolio. Androids popularity doesnt benefit Google in the way that Windows made Microsoft extremely rich. Google gives Android away, and in some cases pays hardware makers to use it. Pointing out that lots of phones being sold use Android is like saying that a large number of smartphones are black. So what?

Also I believe you are fooling yourself if you really believe Android is open. It isn't open at all really. There have been plenty of articles as to why. Aslo you idea thethe app store will marginalkize apple is also erroneous because it is the main reason the IPhone, Ipod and Iphone are selling, no other vendor has a one stop shop where people can rely on the authenticity of the titles .

This is the thing most people do not understand about the Android platform from Google. They do not make money from the software itself, they tell developers they really do not want them selling the app to the end users they want them to give them away free and use advertising as means to make their money since Google will share ad revenues with the developers. Google does not care about the hardware manufactures kind of like MS and all the PC guys. Google is telling them here it is take or leave it since their model is about advertising. This is the reason Apple did what they did, which is to provide a standardized advertising model for developers which does not exist in Android. I have seen android apps, they have the advertising banner right in the middle of the app and other which force you through the advertising before you can even use the app. People are going to get feed up with this and stop using these apps and the developer will no longer support it on the few phone platforms they had time to debug on.

I think we were will see in the next 3 yrs is Android, Window Mobile and RIM will all share some portion of a declining market share and Apple will have the dominate position in the Mobile computing environment. I would also predict that Google may exist if the ad revenues are not where they think it is for the Android platform.

As long as people realize that Android is a mobile advertising vehicle for Google then you will understand their methods and why there are doing what they do. Google goal it to get as many people looking at ad originating from google that nothing else matters. The proof around this is the fact that there are so many Android phones which can not be upgrade to the latest version of the android OS. some hardware only support certain version and google does not care if you want the latest OS you need to upgrade you phone.
post #34 of 129
Quote:
Originally Posted by Paul94544 View Post

Just to prove you wrong:
Citing several sources familiar with the matter, PaidContent reports that Google signs ad revenue sharing deals with carriers, and sometimes manufacturers, who are willing to include Google applications like search, Gmail, and Google Maps. These applications are not a requirement for Android but apparently, Google is willing to handsomely compensate those who do included them.

PaidContent reports that though Google was already sharing application sales with carriers, these kinds of ad deals with the search giant were previously unheard of.

Google declined to comment, saying it could not discuss the terms of its agreements with partners and handset makers and carriers are also keeping quiet.


http://paidcontent.org/article/419-a...-share-deals-/

Ad revenue sharing is common. It's also possible that they are sharing some of the money MANUFACTURERS ARE PAYING them. See? You got it partly right.

There are a number of articles about this, but this one happens to be handy:

http://theunlockr.com/2009/09/26/the...e-vs-cyanogen/
post #35 of 129
I can't wait for the next BIG PRODUCT from Apple. It will be another "must have" device that I don't even realize that I must have it. Yeah, I'll buy it anway.
post #36 of 129
Quote:
Originally Posted by Paul94544 View Post

Where did you hear they don't pay manufactures?

Citing several sources familiar with the matter, PaidContent reports that Google signs ad revenue sharing deals with carriers, and sometimes manufacturers, who are willing to include Google applications like search, Gmail, and Google Maps. These applications are not a requirement for Android but apparently, Google is willing to handsomely compensate those who do included them.

PaidContent reports that though Google was already sharing application sales with carriers, these kinds of ad deals with the search giant were previously unheard of.

Google declined to comment, saying it could not discuss the terms of its agreements with partners and handset makers and carriers are also keeping quiet.


http://paidcontent.org/article/419-a...-share-deals-/


ready to make an apology?

The same tired article?

Do you guys have problems understanding these articles? It very clearly says this in the very beginning;

Quote:
“We share revenue on search, not on mobile applications,”

So, who should apologize?
post #37 of 129
If you are a cell phone carrier and you need an OS to compete with the iPhone would you really trust a software company to develop the OS for it. OR would you prefer to develop it yourself?

In an ideal world of course you would prefer to have it in house - you would then not be beholden to the software company. You would have complete control of the software and be able to customize it for you own phones and not be at the mercy of said software company.

It must be rather galling to be forced to use someone else's OS for your phones. And be completely at the mercy of their development timelines and strategic objectives. As long as that OS is kept up to date and adds new fetaures on time and make sense you should be okay but still!

and to top it off that software company is giving the OS away to your nasty rivals too jeez, But again you really should have seen the iOS coming shouldn't you and not have painted yourself in this tight corner in the first place. well thats what come from gettin' complacent! Innovate or die
post #38 of 129
Quote:
Originally Posted by PeterO View Post

(Unless I missed something) Other than rolled into both the iOS device and iTunes numbers, nowhere during the earnings call was there a discussion on Apple TV -- Apple's 4th leg. The officers and analysts talked about current and future projections and strategies on all other devices and services, but not Apple TV. No mention of current market penetration or of a push to new markets.

Apple still considers the device to be a "hobby."

They need the right content deals before this thing is going to take off. If they sold a million of them this past quarter, that's really $100M in revenue, which works out to 0.37% of total revenue, an insignificant amount.

By contrast, they sold 7.3 million iPads at an ASP of $630, giving $4.6B in revenue. That's significant.

They really need to sell ten times as many Apple TVs before the device has any relevance to the bottom line.
post #39 of 129
Quote:
Originally Posted by mstone View Post

I read somewhere yesterday that they only earn around 1% interest on that cash, which some shareholders claim is a good reason for Apple to instead offer a dividend. I was curious why they can't get at least 3%.

Probably their best vehicle for short-term return is commercial paper.

Quote:
Originally Posted by Robin Huber View Post

And save your Confederate money, the South will rise again!

I've been saving my Dixie cups.

Quote:
Originally Posted by melgross View Post

They don't earn a lot. That's both good and bad. Good, because during the recession when most investments were down, Apple didn't lose anything. Bad, because when things are moving up, it doesn't gain anything. They've stated several times that their goal for their cash and investments is "preservation of capital". That's a very conservative investment strategy, but safe.

Honestly, I think that investers who don't like that strategy are not understanding what Apple has been about for the past eight years or so. You can't have everything. Apple is a growth company. Their growth has been explosive. Their stock price rise, even with economy related setbacks a couple of times, has also been explosive. If Apple's net wasn't so good; 21.5% last year, then we could properly complain. But that's very good for the type of company they are.

A dividend or cash giveback would be a bonus, but it's obviously not required.

So it turns out that Apple is more cautious about preserving their capital then, say, CitiBank. Why am I not comforted?
Please don't be insane.
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Please don't be insane.
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post #40 of 129
Quote:
Originally Posted by Postulant View Post

I wonder what it feels like to have 60 billion in cash...

Feels pretty good actually. Taxes are a bitch though.
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