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Notes of interest from Apple's Q1 2011 conference call - Page 2

post #41 of 129
Quote:
Originally Posted by melgross View Post

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.

I'm not so good at media multitasking. My hands were full just listening to the audio.

Good to know that it wasn't just me. Maybe the analysts were still trying to digest the incredible numbers and processing where and how their projection models need adjustments.

With respect to the US market, I'd also wish they discussed the potential impact of US mobile carriers' data-cap and paid packet content prioritization. How will it change consumer behaviour? Does Apple need to enter into agreements with each carrier? What does the change between Google and Akamai mean for Apple streaming?
post #42 of 129
Quote:
Originally Posted by macinthe408 View Post

Vapor. Invisible. BOOYAH. Eat that iPad. (Oh wait, you can't. Because you can't find it.)

Neither can anyone who wants to pay money for it.

Quote:
Originally Posted by Postulant View Post

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

Kind of hard on your back. Gotta lift from the knees.
post #43 of 129
Quote:
Originally Posted by Dr Millmoss View Post

I've been saving my Dixie cups.

Good one!

Quote:
So it turns out that Apple is more cautious about preserving their capital then, say, CitiBank. Why am I not comforted?

Well, banks haven't proven to be cautious at all, have they? How much did Citigroup lose on those mortgage derivatives? I assume that Apple isn't buying other companies debts either, as banks were doing. I'm not concerned. If you were right about your concerns, the cash and investments would have seen a big drop during 2009. It didn't.
post #44 of 129
Quote:
Originally Posted by PeterO View Post

I'm not so good at media multitasking. My hands were full just listening to the audio.

Good to know that it wasn't just me. Maybe the analysts were still trying to digest the incredible numbers and processing where and how their projection models need adjustments.

With respect to the US market, I'd also wish they discussed the potential impact of US mobile carriers' data-cap and paid packet content prioritization. How will it change consumer behaviour? Does Apple need to enter into agreements with each carrier? What does the change between Google and Akamai mean for Apple streaming?

Those are interesting questions, but likely too specialized for that call. Apple is still mostly an electronics consumer company. You'll see questions like that on calls for other companies.
post #45 of 129
Quote:
Originally Posted by cvaldes1831 View Post

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.

I agree, the impact can almost get lost when contracting the significant digits, however, it's still a distinct platform and a distribution gateway into the home. I know there's a 'go to market strategy challenge' (in SJ words) but it'd be useful to know where things stand.
post #46 of 129
Quote:
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."

If Apple is not worried about "cannibalization" then they should have no problem selling that midrange Mac tower that people have been asking for.
post #47 of 129
I posted this in the previous article as well, but it is worth repeating:

Here's an interesting group of numbers I haven't seen reported yet:
iPhone: 16,240,000
iPad: 7,330,000
iPod Touch: 10,000,000 (19.45 million units, over half of which were iPod touch)
Apple TV: 1,000,000 (we know they sold at least this many)

Total IOS devices sold this quarter: 34,570,000

Average IOS sales per day over the last quarter: 384,000.

Looks to me like IOS is outselling Android by a huge margin, since they have only recently started claiming over 300,000 per day
post #48 of 129
Quote:
Originally Posted by Haggar View Post

If Apple is not worried about "cannibalization" then they should have no problem selling that midrange Mac tower that people have been asking for.

I think it doesn't fit into where they want to go. I doubt it's cannibalization.
post #49 of 129
Quote:
Originally Posted by melgross View Post

Good one!

Mad Magazine, circa 1965. Got a mind like a rusty trap.

Quote:
Well, banks haven't proven to be cautious at all, have they? How much did Citigroup lose on those mortgage derivatives? I assume that Apple isn't buying other companies debts either, as banks were doing. I'm not concerned. If you were right about your concerns, the cash and investments would have seen a big drop during 2009. It didn't.

Right, that's what I was driving at. The banks treat their capital like... capital. Apple treats their capital like... Fort Knox.
Please don't be insane.
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Please don't be insane.
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post #50 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/

I think this statement and analysis has to be taken as a very long term view. Say 5 or 10 years down the road. The big problem this analysis has is, its not exactly the same as the PC wars of the 90's. That, and the fact that the consumer electronics landscape is far different. Apple has never been this big ever. Sure Apple will have to deal with the coming of a $50 android phone, but the big difference is Apple has seperated themsleves more then ever in their history as the in style, easy to use, high quality, cool product.
post #51 of 129
Quote:
Originally Posted by LTMP View Post

I posted this in the previous article as well, but it is worth repeating:

Here's an interesting group of numbers I haven't seen reported yet:
iPhone: 16,240,000
iPad: 7,330,000
iPod Touch: 10,000,000 (19.45 million units, over half of which were iPod touch)
Apple TV: 1,000,000 (we know they sold at least this many)

Total IOS devices sold this quarter: 34,570,000

Average IOS sales per day over the last quarter: 384,000.

Looks to me like IOS is outselling Android by a huge margin, since they have only recently started claiming over 300,000 per day

To be fair, Android is still almost all phones. If we're comparing phone sales to phone sales, they are ahead now. Will it remain that way? Probably, but who can say for sure?
post #52 of 129
Quote:
Originally Posted by melgross View Post

To be fair, Android is still almost all phones. If we're comparing phone sales to phone sales, they are ahead now. Will it remain that way? Probably, but who can say for sure?

True, Android is mostly phones, but you can bet they're counting the tablets and PMPs too.
post #53 of 129
Quote:
Originally Posted by Maestro64 View Post

google does not care if you want the latest OS you need to upgrade you phone.

I understand you of course, I know its an ad/search based strategy and in some ways it even worse than the Wintel situation of the 90's where in order to get the latest release one had to buy a new computer.

What is going to be interesting though this time around is that given the 2 year re-buy on phones, most folks (Mom and Pop) won't be upgrading their phones to the lastest version of Android until their contract us up and they buy a new phone/contract.

So they will miss out on the latest and greatest features as compared with iPhone users who for the most part can rely on their iPhone being easily upgradable for at least 2 years in the iTunes/Apps ecosystem.

In the end I suppose it won't make much difrerence really except possibly many of the newer apps won't be really executable on anything but the lastest phones. Time will tell how much of an impact this fragmentation will affect peoples perception of Android and how much of an annoyance it becomes and thus play into Apples hands?
post #54 of 129
Quote:
Originally Posted by melgross View Post

Those are interesting questions, but likely too specialized for that call. Apple is still mostly an electronics consumer company. You'll see questions like that on calls for other companies.

No doubt mine are but a twig in a forest of countless questions that could be asked -- the detailed answers and strategies to which Apple has no doubt discusses internally but need and want to keep bland in public discourse -- it's just inquiring minds are, well, you know, curious.
post #55 of 129
Quote:
Originally Posted by Dr Millmoss View Post

Mad Magazine, circa 1965. Got a mind like a rusty trap.

At least you've still got it.

Quote:
Right, that's what I was driving at. The banks treat their capital like... capital. Apple treats their capital like... Fort Knox.

I'd rather be safe than sorry. You know how our conversation over this has gone throughout the years. Neither of us would like to see a really big purchase, though they could always make one that "surprises and delights". But they could make a number of smaller, but still large ones that do make sense. And no, I have no idea as to what they're thinking.

It now looks that if they make no large purchase this year, they could have, not $70 billion, but $80 billion; maybe even more. I can't see it getting to that point. But it's much more difficult for stockholders to force the issue than it was with Microsoft. There, the stock had not only stagnated, but was down in actual dollars, and much further down when inflation was taken into account. And I'm not talking about the absurd valuation they had before The Fall.

But, they will likely do something. I don't know if it was true about the CFO story, but it makes sense, considering who it was. Maybe not to replace Oppenheimer, but an additional high level position.

Of course, with that failing, assuming it was real, and Steve's new health issue, things could be derailed for a time.
post #56 of 129
Quote:
Originally Posted by ghostface147 View Post

And yet still no white iPhone.


We did see reports today of the white iPhone coming to Best Buy and Vodafone in Feb ...
post #57 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%.

Why would a bank pay 3% interest to Apple when they can borrow money from the Federal Reserve at .25%? I'm surprised Apple gets 1%.
post #58 of 129
Quote:
Originally Posted by LTMP View Post

True, Android is mostly phones, but you can bet they're counting the tablets and PMPs too.

Maybe, but I think they said phones. Even if they didn't, the percentage of other devices was a small percentage, unlike with Apple. Did you post on the Macworld live blog tonight?
post #59 of 129
Quote:
Originally Posted by PeterO View Post

No doubt mine are but a twig in a forest of countless questions that could be asked -- the detailed answers and strategies to which Apple has no doubt discusses internally but need and want to keep bland in public discourse -- it's just inquiring minds are, well, you know, curious.

It would have been interesting just to see whether they would have answered it.
post #60 of 129
To me, what's most remarkable about Apple's continued record-breaking success is that almost everything they sell is priced higher than the competition and that they accomplished this in what is still a terrible world-wide economy (in spite of a recovering stock market.)

Imagine what Apple would be accomplishing had there been no recession.

I do think that in the long term, Apple is planning to get involved in totally new businesses. Otherwise, why would they need all that new space in that new campus? And why are they supposedly intending on doubling the size of the server farm?

My bet is that Steve deferred announcing his leave until these numbers could be announced so that there'd be little overall negative impact on the stock price (although I've always gotten the impression that Steve never managed the company to the stock price.)
post #61 of 129
Quote:
Originally Posted by Paul94544 View Post

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

Go for it. But be sure to check back in after you realize how little you've valued your own time and frustration in the equation.
post #62 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.

They were also no questions on Jobs' LOA. Maybe they told the analysts beforehand that they would not answer any such questions. Still surprising.
post #63 of 129
Quote:
Originally Posted by noexpectations View Post

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.



I'm in the same demographic!
post #64 of 129
Quote:
Originally Posted by melgross View Post

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/

I didn't write that - I wrote that google pays them, that means money goes from google to carrier or manufacturer, its got nothing to do with ad revenue - if google shares some $ - so be it. I think you are splitting hairs here. the point is that google is paying to install OS either directly or indirectly. So please stop looking down in such a condescending manner at me !

My main point still stands I think which logically states that Google is giving it away and pays hardware makers to use it sometimes . This is not how MS Windows was sold. Windows was always paid for by the PC manufacturers and public alike though not at same rate. So comparing Android to the PC market and thus will finish off Apple in the same way in the 90's is logically erroneous.

So stop misquoting me please!
post #65 of 129
Quote:
Originally Posted by melgross View Post

I'd rather be safe than sorry. You know how our conversation over this has gone throughout the years. Neither of us would like to see a really big purchase, though they could always make one that "surprises and delights". But they could make a number of smaller, but still large ones that do make sense. And no, I have no idea as to what they're thinking.

I keep trying to envision a sensible large purchase for Apple; the only thing that I can ever come up with is Sony. But, really, Apple likely doesn't want Sony, just Sony Music Entertainment and Sony Pictures Entertainment. Not to mention that such a purchase might create problems dealing with other content providers.
post #66 of 129
Great growth overall, phenomenal growth in China which will be a very important market for Apple to continue to grow. Wasnt it the Lenovo CEO who said he was glad Apple wasnt paying attention to China as a market? He has to be sweating a bit right now.
post #67 of 129
Quote:
Originally Posted by zoetmb View Post

To me, what's most remarkable about Apple's continued record-breaking success is that almost everything they sell is priced higher than the competition and that they accomplished this in what is still a terrible world-wide economy (in spite of a recovering stock market.)

Imagine what Apple would be accomplishing had there been no recession.

I do think that in the long term, Apple is planning to get involved in totally new businesses. Otherwise, why would they need all that new space in that new campus? And why are they supposedly intending on doubling the size of the server farm?

My bet is that Steve deferred announcing his leave until these numbers could be announced so that there'd be little overall negative impact on the stock price (although I've always gotten the impression that Steve never managed the company to the stock price.)

Actually I think that the recession has helped AAPL, Because people are being more careful about frivolous purchases and realize that Apple products are better value than wasting $ on cheap knockoffs which is why almost every PC company has declining sales
post #68 of 129
Quote:
Originally Posted by Paul94544 View Post

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




?????????????????????????

This Troll Seems Ashtrayed into " Wrong Place "!

So What Does Your LENGTHY Buying i-Pod touch Plan Has To Do With Apple Dooming?
post #69 of 129
Quote:
Originally Posted by zoetmb View Post

I do think that in the long term, Apple is planning to get involved in totally new businesses. Otherwise, why would they need all that new space in that new campus? And why are they supposedly intending on doubling the size of the server farm?

Though there will no doubt be room to grow at Apple's new campus, I think this line of thought is overstated. Apple plans to consolidate people currently spread over 54 locations in the area.
post #70 of 129
Quote:
Originally Posted by nealg View Post

Great growth overall, phenomenal growth in China which will be a very important market for Apple to continue to grow. Wasnt it the Lenovo CEO who said he was glad Apple wasnt paying attention to China as a market? He has to be sweating a bit right now.

I also expect they will be expanding their efforts in India soon.
post #71 of 129
Quote:
Originally Posted by penchanted View Post

They were also no questions on Jobs' LOA. Maybe they told the analysts beforehand that they would not answer any such questions. Still surprising.

In the Macworld Live Blog, someone asked the same question. He was told that Apple never does that. They may not answer a question when asked, but they don't tell people to not ask it.

I assume the aTv was simply overlooked. I also assume that Jobs's health wasn't asked about because it wouldn't be polite.
post #72 of 129
Quote:
Originally Posted by melgross View Post

At least you've still got it.

A vote on the matter would be a squeaker.

Quote:
I'd rather be safe than sorry. You know how our conversation over this has gone throughout the years. Neither of us would like to see a really big purchase, though they could always make one that "surprises and delights". But they could make a number of smaller, but still large ones that do make sense. And no, I have no idea as to what they're thinking.

It now looks that if they make no large purchase this year, they could have, not $70 billion, but $80 billion; maybe even more. I can't see it getting to that point. But it's much more difficult for stockholders to force the issue than it was with Microsoft. There, the stock had not only stagnated, but was down in actual dollars, and much further down when inflation was taken into account. And I'm not talking about the absurd valuation they had before The Fall.

But, they will likely do something. I don't know if it was true about the CFO story, but it makes sense, considering who it was. Maybe not to replace Oppenheimer, but an additional high level position.

Of course, with that failing, assuming it was real, and Steve's new health issue, things could be derailed for a time.

Well, I'm happy they're not letting it ride on roulette wheels at Monte Carlo, or speculating in hog back futures.

The real forces to be reckoned with are the big institutional investors, not individual schmoes like us. If Apple does start pushing $80b plus, which seems almost certain by the end of the calendar year, the issue of dividends will be pushed by the big stockholders, and will be hard to resist, since they have blocks of voting shares that actually count.
Please don't be insane.
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Please don't be insane.
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post #73 of 129
Quote:
Originally Posted by Paul94544 View Post

I didn't write that - I wrote that google pays them, that means money goes from google to carrier or manufacturer, its got nothing to do with ad revenue - if google shares some $ - so be it. I think you are splitting hairs here. the point is that google is paying to install OS either directly or indirectly. So please stop looking down in such a condescending manner at me !

My main point still stands I think which logically states that Google is giving it away and pays hardware makers to use it sometimes . This is not how MS Windows was sold. Windows was always paid for by the PC manufacturers and public alike though not at same rate. So comparing Android to the PC market and thus will finish off Apple in the same way in the 90's is logically erroneous.

So stop misquoting me please!

You're saying that, but it still isn't true. Even the article linked to didn't say that.
post #74 of 129
Quote:
Originally Posted by penchanted View Post

I keep trying to envision a sensible large purchase for Apple; the only thing that I can ever come up with is Sony. But, really, Apple likely doesn't want Sony, just Sony Music Entertainment and Sony Pictures Entertainment. Not to mention that such a purchase might create problems dealing with other content providers.

The problem with most big companies is that they're in businesses Apple doesn't want to be in, or that conflict with their plans and needs, or with that of other companies Apple is partners with. Usually, the bigger the company, the more this will be true.
post #75 of 129
Quote:
Originally Posted by nealg View Post

Great growth overall, phenomenal growth in China which will be a very important market for Apple to continue to grow. Wasnt it the Lenovo CEO who said he was glad Apple wasnt paying attention to China as a market? He has to be sweating a bit right now.

That's why Apple's 4 China stores are the busiest, with both the most traffic, and the most sales. It's also why Apple said that they would have 25 stores in China by the end of 2011.
post #76 of 129
Quote:
Originally Posted by Dr Millmoss View Post

A vote on the matter would be a squeaker.



Well, I'm happy they're not letting it ride on roulette wheels at Monte Carlo, or speculating in hog back futures.

The real forces to be reckoned with are the big institutional investors, not individual schmoes like us. If Apple does start pushing $80b plus, which seems almost certain by the end of the calendar year, the issue of dividends will be pushed by the big stockholders, and will be hard to resist, since they have blocks of voting shares that actually count.

Yeah, there's plenty of greed out there. I do think that from a companies point of view, investors views are not in alignment with what's best for the company. It's a delicate situation. I've seen many companies burned over the years who listened to investors and the investment community.

But I do think that unless they act fairly quickly to do something with a good chunk of that money, then they may as well give some of it back. And not through a stock buyback.
post #77 of 129
Quote:
Originally Posted by jragosta View Post

No, it's not.

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

Good point but steam is also a transitional phase towards vapour.
post #78 of 129
Quote:
Originally Posted by jason98 View Post

I wonder who they are going to buy. Got to be Nokia for all their IP.

They'd be wise to secure the most wide-ranging collection of multi-touch and telephony patents available... Clearly the future is iPhone and iPad.

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

Reply
post #79 of 129
It is just mind boggling the acceleration curve that Apple has been set upon...

Proud AAPL stock owner.

 

GOA

Reply

Proud AAPL stock owner.

 

GOA

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post #80 of 129
Quote:
Originally Posted by Paul94544 View Post

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

___________________________

This is exactly why Apple dumped Adobe Flash.
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