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Apple's profits rise 20% on sales of 26M iPhones, 17M iPads, and 4M Macs

post #1 of 79
Thread Starter 
Apple said Tuesday that third-quarter profits rose just over 20 percent to $8.8 billion, or $9.32 per diluted share, on sales of $35.0 billion for the three-month period ended June 30, 2012.

The results compare to revenue of $28.6 billion and net profit of $7.3 billion, or $7.79 per diluted share, in the year-ago quarter. Gross margin was 42.8 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter?s revenue.

Apple sold 26.0 million iPhones in the quarter, representing 28 percent unit growth over the year-ago quarter, in addition to 17.0 million iPads -- an 84 percent unit increase over the year-ago quarter.

Apple also shipped 4.0 million Macs during the quarter, a two percent unit increase over the year-ago quarter. iPod sales continued to decline at a rate of 10 percent to 6.8 million units.

?We?re thrilled?with record sales of 17 million iPads in the June quarter,? said Apple chief executive Tim?Cook.??We?ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we?ve got in the pipeline.?

Apple?s Board of Directors also declared Tuesday a cash dividend of $2.65 per share of the Company?s common stock. The dividend is payable on August 16, 2012, to stockholders of record as of the close of business on August 13, 2012.

"We?re continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today,? said Peter Oppenheimer, Apple?s CFO. "Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65."

Apple's results came in below analyst expectations, as most institutional market watchers expected Apple to report sales of nearly 29 million iPhones, according to data collected by Apple 2.0. The miss was even bigger for the more bullish independent analysts, who projected, on average, that Apple would sell more than 31 million iPhones in the quarter.

Apple will provide live streaming of its Q3 2012 financial results conference call beginning at 2:00 p.m. PDT today. AppleInsider will provide full coverage.
post #2 of 79

26M iPhones which is lower than most of the pessimistic predictions. If the next quarter they sell 20M it will be a success.

post #3 of 79

A great quarter, but the "analysts" were expecting revenues of $37B.  Shares are down 6% in aftermarket trading...

post #4 of 79

Amazing, you can make 8.8 billion dollars profit...and still lose $28/5% of your stock value after hours. 

 

EDIT: CNBC - Apple Delivers a Big Earnings Miss; Outlook Disappoints ....CLOWNS.

I'm not a pessimist. I'm an optimist, with experience.
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I'm not a pessimist. I'm an optimist, with experience.
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post #5 of 79

Apple sure is doing great.  As usual, AAPL is taking a hit.  Apparently, even with the record iOS devices sold, the analysts thought they would sell 1.3 gazillion devices so Apple didn't hit their targets...

pr!cks...

post #6 of 79

Ouch. Stock is going to start sinking.

 

But, for me, it will be a tremendous buying opportunity. I hope it goes to $550 (my reservation price).

 

 

--

PS: I guess it has already started to sink.... missed the earlier posts.

post #7 of 79
Quote:
Originally Posted by thataveragejoe View Post

Amazing, you can make 8.8 billion dollars profit...and still lose $28/5% of your stock value after hours. 

There are a lot of people who should get out of the stock at this point, as it no longer appears to meet their investment objectives, particularly when you consider there is another disappointing quarter coming. A 1.7% dividend doesn't exactly balance it out.

All told though, AAPL is fairly valued at around $600 now, which isn't bad...
post #8 of 79

I understand that a 20% yoy rise may seems good, but this is a horrible quarter for Apple.   The iPhone sales are such a huge miss, the other metrics are actually pretty fair, but with 50% of Apple profit coming from the iPhone, it had a huge impact on profit.

 

Its the worst Apple quarter I can remember, its much worst than the october 2011 quarter considering we are still 1 quarter away from the iPhone refresh.  That being said, this may be a great time to buy either Apple stocks for the long term or option leaps in 2014, if you believe Apple can still compete on the phone side with the new iPhone.

post #9 of 79
The thing that really pisses me off though is Huberty was the closest estimate...
post #10 of 79

APPLE IS DOOMED.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #11 of 79
Quote:
Originally Posted by thataveragejoe View Post

Amazing, you can make 8.8 billion dollars profit...and still lose $28/5% of your stock value after hours. 

 

EDIT: CNBC - Apple Delivers a Big Earnings Miss; Outlook Disappoints ....CLOWNS.

 

This is even more amazing in the context of Microsoft's last earning where they posted a loss and still managed to get stock price up. Although they showed it $6.2B write-down on unsuccessful acquisition, what I think really happened is that they accumulated this over many quarters of over-reported earnings. The trick is going to be repeated I guess with Skype in a few years.

post #12 of 79

"Generally speaking, most investors believe Apple will report sales of between 25 million and 27 million iPhones."

(http://www.appleinsider.com/articles/12/07/23/apple_earnings_preview_big_quarter_expected_for_ipad_iphone_forecasts_vary.html)

 

Check.

 

"Mac sales are pegged at 4 million"

 

Check.

 

"iPad sales are harder to nail down, but he believes expectations are between 15 million and 16 million."

 

Check. (actually, better)

 

So it's not really that big of a miss, but people are freaking out because it's also not much of a beat.

post #13 of 79
Quote:
Originally Posted by Tallest Skil View Post

APPLE IS DOOMED.

QFT

post #14 of 79
Quote:
Originally Posted by Tallest Skil View Post

APPLE IS DOOMED.

 

 

There... fixed it for you!


Edited by Dick Applebaum - 7/24/12 at 4:36pm
"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
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"...The calm is on the water and part of us would linger by the shore, For ships are safe in harbor, but that's not what ships are for."
- Michael Lille -
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post #15 of 79
Quote:
Originally Posted by aaarrrgggh View Post

The thing that really pisses me off though is Huberty was the closest estimate...


The world turned upside down!

post #16 of 79

Let's see what Tim and Co. have to say about this quarter's results.  

 

I see the trolls are out.  Oh, well....

post #17 of 79
Quote:
Originally Posted by aaarrrgggh View Post

The thing that really pisses me off though is Huberty was the closest estimate...

 

Hahaha... That really is funny.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #18 of 79

Don't you see the brokerage house game people?

 

Set a too high objective, then the stock drops on it's gain because it didn't meet some analyst guess!

Gives the houses a chance to  buy underpriced Apple shares, from those who panic and sell.

 

Anyway a nice dividend coming for those who ignored the brokerage house game.
 

post #19 of 79

Beat their own guidance.

post #20 of 79
Quote:
Originally Posted by herbapou View Post

I understand that a 20% yoy rise may seems good, but this is a horrible quarter for Apple.   The iPhone sales are such a huge miss, the other metrics are actually pretty fair, but with 50% of Apple profit coming from the iPhone, it had a huge impact on profit.

Its the worst Apple quarter I can remember, its much worst than the october 2011 quarter considering we are still 1 quarter away from the iPhone refresh.  That being said, this may be a great time to buy either Apple stocks for the long term or option leaps in 2014, if you believe Apple can still compete on the phone side with the new iPhone.
Horrible quarter based on what? Inflated predictions from wall street analysts? Apple was pretty much on target with their revenue estimates but yet whenever they provide guidance everyone says they're low balling it just so they can blow out the numbers.
post #21 of 79
Quote:
Originally Posted by herbapou View Post

I understand that a 20% yoy rise may seems good, but this is a horrible quarter for Apple.   The iPhone sales are such a huge miss, the other metrics are actually pretty fair, but with 50% of Apple profit coming from the iPhone, it had a huge impact on profit.

Its the worst Apple quarter I can remember, its much worst than the october 2011 quarter considering we are still 1 quarter away from the iPhone refresh.  That being said, this may be a great time to buy either Apple stocks for the long term or option leaps in 2014, if you believe Apple can still compete on the phone side with the new iPhone.

Yup, despite great growth, a disappointment for the stock. This really speaks to an overestimate on international growth for the iPhone. They need China Mobile. Also, carrier pricing in Europe favors Android. Nevertheless, the ramp up on the iPad suggests that it is not long before iPad profits equal iPhone profits. 2 years?
post #22 of 79
Quote:
Originally Posted by Freshmaker View Post

A great quarter, but the "analysts" were expecting revenues of $37B.  Shares are down 6% in aftermarket trading...

 

The *average* was $37B, Apple actually beat the lower estimates.  

post #23 of 79

Should be a good buying opportunity in the next few weeks.

post #24 of 79
Quote:
Originally Posted by herbapou View Post

I understand that a 20% yoy rise may seems good, but this is a horrible quarter for Apple.   The iPhone sales are such a huge miss, the other metrics are actually pretty fair, but with 50% of Apple profit coming from the iPhone, it had a huge impact on profit.

 

Its the worst Apple quarter I can remember, its much worst than the october 2011 quarter considering we are still 1 quarter away from the iPhone refresh.  That being said, this may be a great time to buy either Apple stocks for the long term or option leaps in 2014, if you believe Apple can still compete on the phone side with the new iPhone.

I don't see how 26 million iPhone sales are a huge miss. A refresh is coming soon and I'm sure millions are waiting for it. iPad sales are way up and Mac sales are up. How is this a horrible quarter for Apple? 

post #25 of 79
Quote:
Originally Posted by Boltsfan17 View Post

I don't see how 26 million iPhone sales are a huge miss. A refresh is coming soon and I'm sure millions are waiting for it. iPad sales are way up and Mac sales are up. How is this a horrible quarter for Apple? 
And iPhone sales are actually UP year over year. The panic is ridiculous. Apple is doing just fine.
post #26 of 79
Quote:
Originally Posted by herbapou View Post

I understand that a 20% yoy rise may seems good, but this is a horrible quarter for Apple.   The iPhone sales are such a huge miss, the other metrics are actually pretty fair, but with 50% of Apple profit coming from the iPhone, it had a huge impact on profit.

 

Its the worst Apple quarter I can remember, its much worst than the october 2011 quarter considering we are still 1 quarter away from the iPhone refresh.  That being said, this may be a great time to buy either Apple stocks for the long term or option leaps in 2014, if you believe Apple can still compete on the phone side with the new iPhone.

 

I think you are really overstating things here.  They beat the low estimates.  

 

They made bundles of money, just not as much as the most bullish analysts thought they should.  Nothing has fundamentally changed about the company or it's value proposition.  All sales are up, growth is up etc.  The rest is PR. 

post #27 of 79
Quote:
Originally Posted by willb2064 View Post

Should be a good buying opportunity in the next few weeks.

Yup. I allowed for this drop with my leverage. Time to load up again. ;)

post #28 of 79
This is a bad miss

Apple needs to move faster on multiple fronts. It is ridiculous they have five stores in China still - after talking ad naseum quarter after quarter about how it is a priority. They have allowed a 7 inch market to develop under their noses (yes, I know it is coming). They seem literally incapable of increasing PC share materially. They have no clear prepaid phone strategy. And it took them 4 months to get the iPad into China

I don't want to see Apple be reactionary. But I as an investor and heavy user want to see it move faster

The time is now Tim

Windows survivor - after a long, epic and painful struggle. Very long AAPL

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Windows survivor - after a long, epic and painful struggle. Very long AAPL

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post #29 of 79
Quote:
Originally Posted by thataveragejoe View Post

Amazing, you can make 8.8 billion dollars profit...and still lose $28/5% of your stock value after hours. 

 

EDIT: CNBC - Apple Delivers a Big Earnings Miss; Outlook Disappoints ....CLOWNS.

to those who mocked Microsoft for missing the revenue its stock only lost 1%..Aapl is tumbling..enjoy :) 

"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

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"Apple people have no objectivity when it comes to criticism of Apple.." Lenovo X1 Carbon is out..bye bye MBAir

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post #30 of 79
Quote:
Originally Posted by Boltsfan17 View Post

I don't see how 26 million iPhone sales are a huge miss. A refresh is coming soon and I'm sure millions are waiting for it. iPad sales are way up and Mac sales are up. How is this a horrible quarter for Apple? 

It's a great quarter for Apple. Just not for the stock.
post #31 of 79
Quote:
Originally Posted by Red Oak View Post
(yes, I know it is coming)

 

Of course you do.

 

Quote:
Originally Posted by daylove22 View Post
to those who mocked Microsoft for missing the revenue its stock only lost 1%..Aapl is tumbling..enjoy :) 

 

I'm sorry, so we're expected to feel bad about mocking something that has never happened before because something that happens EVERY SINGLE TIME has happened again?

 

I don't think so.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
Reply
post #32 of 79
Quote:
Originally Posted by blackbook View Post

And iPhone sales are actually UP year over year. The panic is ridiculous. Apple is doing just fine.

Lots of vacant bridges at the moment: Trolls indeed.

"Apple sold 26.0 million iPhones in the quarter, representing 28 percent unit growth over the year-ago quarter, in addition to 17.0 million iPads -- an 84 percent unit increase over the year-ago quarter."

 

28% iPhone sales growth is in no way a fail. Especially given the headwinds of the current economic challenges.

post #33 of 79
How much cash is Apple sitting on now, $116 Billion?
post #34 of 79

Do people expect iPhone sales to break records *every* quarter?  I mean, I'm impressed Apple was able to manage as many as they did. Apple's "bad' quarter is everyone else's golden moment!

 

Aside from iPhone sales (iPhone 5 = more record-breaking numbers) Mac sales were very good. BUT the big news:

 

 

17 Million iPads. 

 

 

Soon enough, iPad sales numbers will be approaching iPhone sales numbers. 

 

THAT is significant. Like thermonuclear weapon significant, translated into consumer tech. It sends a clear message to the industry, and about the future of computing. 

post #35 of 79
Quote:
Originally Posted by Red Oak View Post

This is a bad miss
Apple needs to move faster on multiple fronts. It is ridiculous they have five stores in China still - after talking ad naseum quarter after quarter about how it is a priority. They have allowed a 7 inch market to develop under their noses (yes, I know it is coming). They seem literally incapable of increasing PC share materially. They have no clear prepaid phone strategy. And it took them 4 months to get the iPad into China
I don't want to see Apple be reactionary. But I as an investor and heavy user want to see it move faster
The time is now Tim

Calm down, Mr. Oak. No one is making money on the 7-inch, afaik. (Google just barely introduced it.) If Apple produced and sold it at Amazon's margins, its shares would get killed.

 

Re. PC share, I guess you haven't been reading newspapers lately. Overall PC sales are down, but the Mac up significantly.

 

Prepaid phones are for those who have no/low credit. In any event, it's not for Apple to decide, but the carriers.

 

It took them four months to get to China because they had to overcome a naming lawsuit from a shady company called ProView.

 

If you're so p-oe'd, put your money where your mouth is and sell. I have a limit order for $555 (I don't want to up it), and the darn thing is nowhere near getting there. I am bummed. Please help by adding some selling pressure...

post #36 of 79
Quote:
Originally Posted by Postulant View Post

How much cash is Apple sitting on now, $116 Billion?

$117.2B.

post #37 of 79
Quote:
Originally Posted by daylove22 View Post

to those who mocked Microsoft for missing the revenue its stock only lost 1%..Aapl is tumbling..enjoy :) 

 

Why even bother mentioning MS, when in today's market they're in everyone's rear-view?

 

MS no longer matters. They're of no account. Consumer response to their half-hearted mobile platform tells the sad tale. 

 

This isn't just evident in their fails in mobile. It's virtually everywhere at MS. With Metro, or example, and this whole jumbled, confused and misguided Windows 8 paradigm, MS has shown very clearly and beyond any doubt, that the future of personal computing belongs to their leaner, meaner, and definitely faster competitors, like Apple. MS has handed it to them on a silver platter. 

 
It's not because they don't have any talent. It isn't because they don't have resources. It isn't because they don't have any contact with the outside world. 
 
It's because a CLOWN has been running the circus there for over 10 years.
post #38 of 79
Two things:

1) Stock performance is not directly correlated with the company's health. Apple sold a ton of iOS devices, and beat its own estimates while rising YoY. Despite claims otherwise, Apple was even in line with the average estimates.

2) People don't understand how stock price works. The price is based on all available information, which includes very-bullish analyst estimates. When the actual earnings come in, this new information causes an adjustment in the stock price. People saying its only dropping because stupid analysts made insane predictions, they forget a key point: without those insane predictions, the stock price would have been lower anyway. If, say, analysts strictly followed Apple's guidance, the stock likely would have rose today, but it would end in the same spot. So if you want to blame the analysts, blame them for overvaluing the stock, not for somehow reducing its value.

By way of comparison, consider fantasy football. A star running back is ranked in the preseason as being a Top 5 pick. As the season draws closer, analysts go crazy with the hype machine, and suddenly he is the unquestioned #1 pick. At the end of the season, the running back performed admirably and was Top 5... But not #1. If you drafted him, you overpaid. But he was still incredibly productive. The analysts merely overvalued him, they didn't cause him to drop in value.
post #39 of 79
Quote:
Originally Posted by anantksundaram View Post

$117.2B.

Analyst may not like it but Apple has to be proud... It's just phenomenal what they have been able to do.
post #40 of 79

Always love the glass is half empty people, what an empty life...

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