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Apple reports earnings of $6.9 billion on sales of 31.2M iPhones, 14.6M iPads, 3.8M Macs - Page 2

post #41 of 66
Quote:
Originally Posted by darkdefender View Post

 Not a good quarter at all... It's because it's an off year for contract users and those who had the option to trade in a new phone probably didn't upgrade to the 5.
Where did you get this idea. It is a very good quarter considering that the economy is down significantly with many businesses showing far more severe downturns than Apple and finally people are in waiting mode for Haswell based Macs, new iPads and iPhone's. Considering all of this it is an excellent quarter and Wall Street is responding as such right now.
Quote:
They could start charging for iOS 7 updates but for a phone worth 300 to make and sell at 680... good luck finding carriers and users.
Why would the need to do that? They beat many sales projections so by all accounts are doing better than the industry as a whole.
post #42 of 66
Quote:
Originally Posted by gijoeinla View Post

I think it's fair to remind everyone the iPad itself hasn't been redesigned for nearly 3 product cycles
Err NO, iPad has been refreshed with every product cycle, sometimes substantially.
Quote:
-- couple that with a new version plus iOS 7 which I'm running -- personally I'm betting Apple stock is a buy right now -- and that's with nothing new coming out 1smile.gif)

The near future look to be very bright for Apple, this I can agree with.
post #43 of 66
I'd go so far as to say extremely strong.
Quote:
Originally Posted by drewys808 View Post


Yes...many seem to missing this VERY important point.  It's actually decent momentum in a "stale" quarter leading up to a new product cycle.
post #44 of 66

the real news here is that combined iPhone/iPad sales are up YOY from 43 million to 45.8 milion, a 6.5% growth for a "slow" quarter with no new product announcements. but revenue was flat as more buyers opted for the less expensive older iPhone and Mini, with profit down due to those products smaller margains.

 

that's a decent report, not great. the current quarter will likewise be flat as many wait for the next generation of the iPhone and iPad expected by September. how big a bump those new products will give we will have to wait and see from the holiday quarter results.

 

given these trends, a lower priced iPhone touch(?) with modest hardware specs (at improved margains) compared to the new iPhone 5S makes good business sense now, and i definitely expect to see it announced in a month or two. so does a new higher priced iPad Mini S(?) with retina screen and other spec bumps (and improved margains).

 

even tho it would just be a basic iOS ecosystem "extender," i also expect to see the iWatch too, to put some icing on the PR cake and generate new enthusiasm. it'll make a great Xmas gift of course. whether it is really special we'll have to wait and see ...

post #45 of 66

After hours is so inconsequential it isnt even worth talking about.  The real impact will be tomorrow when institutions start reacting to the results and my guess is they wont be thrilled with another dead quarter coming up.  Apple is burning through the buyback at a good clip, but whether that was to support the share price or because the future is so bright the low 400s will look cheap remains to be seen.  On the other hand people will buy for the dividend coming up in three weeks like the last two quarters and the stock will sell off after the payment.

post #46 of 66
Quote:
Originally Posted by tkell31 View Post

After hours is so inconsequential it isnt even worth talking about.  The real impact will be tomorrow when institutions start reacting to the results and my guess is they wont be thrilled with another dead quarter coming up.  Apple is burning through the buyback at a good clip, but whether that was to support the share price or because the future is so bright the low 400s will look cheap remains to be seen.  On the other hand people will buy for the dividend coming up in three weeks like the last two quarters and the stock will sell off after the payment.

Right, my guess is the stock will drop at least 5 points when the market opens this morning. You would have to buy a lot of stock to make the dividend really worth anything though. I buy about 100 shares at a time as that's the most my account can handle at the moment, I mostly tie my money up in Euro Bonds and Futures, the last dividend pay out was 3.05 per share. Last month I bought back the stock at 392 after I shorted it for 449 in the beginning of June, it was a crazy month and it was dumb luck that I made that much. I then turned around and bought at 396 and sold yesterday at 423, depending on the open today I think I will probably end up shorting again. Long story short (no pun intended) a profit of 8400 is a lot more then a dividend payout of 300 especially if the investor lost money. I would imagine at over 40,000 to buy 100 stocks their aren't many individual investors who make their money from dividends either, it's still nice though don't get me wrong. Apple hasn't been a really good long term investment this year for me, starting at 550 in January and now at 420 but it's a fantastic day trading stock to nickel and dime.1biggrin.gif Did anyone in here short Apple in January and haven't bought back yet?


Edited by Relic - 7/24/13 at 12:42am
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post #47 of 66

If you look at the bottom line on the PDF ("Total Apple") the Q3 '13 numbers are basically identical to the Q3 '12 numbers. No growth YoY.

http://images.apple.com/pr/pdf/q3fy13datasum.pdf

post #48 of 66
Quote:
Originally Posted by tkell31 View Post

After hours is so inconsequential it isnt even worth talking about.  The real impact will be tomorrow when institutions start reacting to the results and my guess is they wont be thrilled with another dead quarter coming up.  Apple is burning through the buyback at a good clip, but whether that was to support the share price or because the future is so bright the low 400s will look cheap remains to be seen.  On the other hand people will buy for the dividend coming up in three weeks like the last two quarters and the stock will sell off after the payment.
Who know where Apple will end up at the end of today but as of 7.30 EST it's up about 4.5%, when I last checked yesterday evening it was up 3.9%. Last quarter the stock was up after hours until Tim Cook said no new products until the fall/2014. After he said that the stock took a sharp u-turn into negative territory and that's where it stayed the next day. There weren't any surprises on the call, not sure how much things will look different today than they did yesterday,
post #49 of 66
This is just my opinion, but I really think Apple needs to starting handling the iPad a little differently. The sales are obviously slowing. I don't think the iPhone needs more frequent refreshes but the iPad would certainly benefit if a new one was released every 6 months. I have been waiting for a new iPad for months. Phones have contracts and many people have to wait to upgrade anyway, but tablets do no have those limitations. The only thing stopping me from getting another tablet is I want an iPad, and there are definitely people out there that won't be as loyal.

If Apple isn't going to release a new iPad every 6 months they need to at least step up their advertising game. There is no shortage of tablet commercials on TV and the iPad commercials are the ones I see the least, except around a release.
post #50 of 66
Quote:
Originally Posted by rednival View Post

The only thing stopping me from getting another tablet is I want an iPad, and there are definitely people out there that won't be as loyal.

Everything about sales says otherwise.
Quote:
If Apple isn't going to release a new iPad every 6 months they need to at least step up their advertising game. There is no shortage of tablet commercials on TV and the iPad commercials are the ones I see the least, except around a release.

Because they don't need to be advertised. What, you'd prefer crap commercials like the ones we do see?

Apple really needs to start suing the people that lie about them. That new Best Buy Samsung Sexperience Store commercial is effing subtle, isn't it? "Ow! Did you just SHOCK me?!" For the tiny percent of MacBook Pro owners who've had that happen to them (through no fault of the computer itself)…

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #51 of 66
Quote:
Originally Posted by rednival View Post

This is just my opinion, but I really think Apple needs to starting handling the iPad a little differently. The sales are obviously slowing. I don't think the iPhone needs more frequent refreshes but the iPad would certainly benefit if a new one was released every 6 months. I have been waiting for a new iPad for months. Phones have contracts and many people have to wait to upgrade anyway, but tablets do no have those limitations. The only thing stopping me from getting another tablet is I want an iPad, and there are definitely people out there that won't be as loyal.

If Apple isn't going to release a new iPad every 6 months they need to at least step up their advertising game. There is no shortage of tablet commercials on TV and the iPad commercials are the ones I see the least, except around a release.

The only thing Apple must do is lower the price and they would completely own the market place. Apple's iPad mini starts off at $329 for 16GB of storage, but according to figures published by AllThingsD, the device has a bill of materials of only $188. The bill of materials only includes the parts, and not assembly costs, but as a rule assembly costs are usually only a few dollars add shipping and let's call it a even 200, 130 markup is ridiculous, I don't care how magical Apple thinks their devices are. It get's even more crazy when you consider Amazon's Kindle Fire HD tablet, which retails for $199, costs $165 to build.

Apple sells the iPad mini in 16GB, 32GB and 64GB models, and charges $100 per storage bump. However, the additional storage costs Apple very little. In fact, the jump between 16GB and 32GB costs about $15, while the bump between 32GB and 64GB costs about $45. They shouldn't even offer a 16GB model anymore and start off with 32GB, then absorb the cost in their huge margins.
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post #52 of 66
Quote:
Originally Posted by Tallest Skil View Post

Apple really needs to start suing the people that lie about them. That new Best Buy Samsung Experience Store commercial is effing subtle, isn't it? "Ow! Did you just SHOCK me?!" For the tiny percent of MacBook Pro owners who've had that happen to them (through no fault of the computer itself)…

That's supposed to be a MacBook? Really, really subtle if so. I had no idea keyboard shocks were an issue with Macbooks. I doubt most anyone else knows that either.
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post #53 of 66
Quote:
Originally Posted by Gatorguy View Post

That's supposed to be a MacBook? Really, really subtle if so. I had no idea keyboard shocks were an issue with Macbooks. I doubt most anyone else knows that either.

Don't play this game.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #54 of 66
Quote:
Originally Posted by Tallest Skil View Post

Don't play this game.

1confused.gif

EDIT: Doing a quick search the only thing I see is some minor complaint from a MacBook Pro user or two back in 2011. I think you're reading too much into the commercial TS. Keyboard shocks aren't an issue anyone would associate with the MacBook IMHO.
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post #55 of 66
Quote:
Originally Posted by Relic View Post

The only thing Apple must do is lower the price and they would completely own the market place. Apple's iPad mini starts off at $329 for 16GB of storage, but according to figures published by AllThingsD, the device has a bill of materials of only $188. The bill of materials only includes the parts, and not assembly costs, but as a rule assembly costs are usually only a few dollars add shipping and let's call it a even 200, 130 markup is ridiculous, I don't care how magical Apple thinks their devices are. It get's even more crazy when you consider Amazon's Kindle Fire HD tablet, which retails for $199, costs $165 to build.

Apple sells the iPad mini in 16GB, 32GB and 64GB models, and charges $100 per storage bump. However, the additional storage costs Apple very little. In fact, the jump between 16GB and 32GB costs about $15, while the bump between 32GB and 64GB costs about $45. They shouldn't even offer a 16GB model anymore and start off with 32GB, then absorb the cost in their huge margins.

Have you not seen the recent numbers? They already own the market.
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post #56 of 66
Quote:
Originally Posted by Tallest Skil View Post

Don't play this game.

GG is correct. Who in their right mind would ever even think that it's a mac book. First there's no apple on the back of the screen and did you see the size of it? Plus the color is all wrong. So if it was a shot at Apple it was an extremely poorly executed one.
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post #57 of 66
Quote:
Originally Posted by Tallest Skil View Post


Everything about sales says otherwise.
 

 

Then I question your reading comprehension.  

 

Quote:
The Cupertino-based company also sold 14.6 million iPads during the quarter, compared to 17 million in the year-ago quarter.

 

That's 3 million (edit:2.4 million)less iPads than a year ago.  I was purposing a reason for the 3 million decrease and a possible solution that I clearly marked as an opinion.  I am actually trying to contribute to the conversation, and perhaps I am wrong or you feel differently, but calling me a liar is completely unnecessary.

 

The 3rd generation iPad came out in March of last year.  That is certainly why the sales of iPads were so good.  The comparisons made to 2012 and 2013 are unfair as a new iPad hasn't been released since October 2012. It appears that iPad refreshes in March and October of last year resulted in higher iPad sales throughout the year. 

 

My point: why not keep it up?

 

I would never suggest they do this for the iPhone though because they keep breaking records and there is no reason to mess with what is clearly working.  But they do have evidence now that refreshing the iPad biannually seems to result in a more consistent sale of iPads.  We will wait to the end of the year.  Maybe 2013 iPad sells will ultimately out perform 2012 after the holiday numbers are in, in which case, I will be proven wrong.

 

We shall see.


Edited by rednival - 7/24/13 at 9:41am
post #58 of 66
Quote:
Originally Posted by dasanman69 View Post

Who in their right mind would ever even think that it's a mac book.

Yeah… not the implication.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #59 of 66
A better than expected quarter then, but I was surprised at the drop in iPad sales compared to a year ago - from 17 million to just 14.6 million, that's a 14% decline! AAPL shares are sky-rocketing at the moment though - which is good.
post #60 of 66
Quote:
Originally Posted by 1983 View Post

A better than expected quarter then, but I was surprised at the drop in iPad sales compared to a year ago - from 17 million to just 14.6 million, that's a 14% decline! AAPL shares are sky-rocketing at the moment though - which is good.

Investors care more about the iPhone than iPad. The iPhone has higher margins and makes Apple quite a bit more money than the iPad hence why shares are up even with weak iPad numbers.
post #61 of 66
Quote:
Originally Posted by Relic View Post

The only thing Apple must do is lower the price and they would completely own the market place. Apple's iPad mini starts off at $329 for 16GB of storage, but according to figures published by AllThingsD, the device has a bill of materials of only $188. The bill of materials only includes the parts, and not assembly costs, but as a rule assembly costs are usually only a few dollars add shipping and let's call it a even 200, 130 markup is ridiculous, I don't care how magical Apple thinks their devices are. It get's even more crazy when you consider Amazon's Kindle Fire HD tablet, which retails for $199, costs $165 to build.

Apple sells the iPad mini in 16GB, 32GB and 64GB models, and charges $100 per storage bump. However, the additional storage costs Apple very little. In fact, the jump between 16GB and 32GB costs about $15, while the bump between 32GB and 64GB costs about $45. They shouldn't even offer a 16GB model anymore and start off with 32GB, then absorb the cost in their huge margins.

First, I don't think you should compare Amazon's predatory pricing with Apple's.

Second, since you are a numbers person, I think you have a responsibility to look into the true cost of pricing for memory increases, rather than parrot (yes, parrot) the simplistic meme that the chip costs 15 or 45 dollars, yet Apple has the nerve to charge 100 dollars.

Do they have to set up a separate line, with separate inventory, separate quality control, separate packaging, in other words an entirely different product line across all the radio choices, for each memory configuration? If you answer yes, which I think is the correct choice, then you have to add in that cost and add margin for that as well to cover administration of all that new product manufacturing category. And don't compare all this to Samsung, who own their own manufacturing. Apple has to pay Foxconn or Pegatron to set up additional lines and staff them for each memory choice. Or so I see it until it's proven otherwise.

Ultimately it comes down to whether Apple will be giving back to the world enough to justify their margins, which has resulted in their $140 billion head of steam. I think they already are, in terms of pushing technology into a more humane dimension, but we have yet to see what they're really going to do with the capital. My personal favorite idea is that they're working on the antidote to commercial television, i.e., education, with a mass distribution system like the world has never seen.

Anyway, if they lower prices on iPads, it means their costs have gone down, or their expenditures have been amortized, not that they're taking a margin hit.

Edit: took out some dubious prognostication.
Edited by Flaneur - 7/24/13 at 12:17pm
post #62 of 66
Quote:
Originally Posted by Flaneur View Post


First, I don't think you should compare Amazon's predatory pricing with Apple's.
 

 

I don't agree with what Relic's comparison but I hate the term "predatory pricing".  It implies there is something wrong with competing on the basis of price.  If Amazon wants to sell their tablet at a loss, fine.  It is pretty clear they are not driving Apple out of the market.  

 

The comparison was flawed though.  Amazon is targeting a whole different segment.

post #63 of 66
Quote:
Originally Posted by 1983 View Post

A better than expected quarter then, but I was surprised at the drop in iPad sales compared to a year ago - from 17 million to just 14.6 million, that's a 14% decline! AAPL shares are sky-rocketing at the moment though - which is good.

 

They drew down channel inventory, which means "sold" numbers were pretty flat, while "shipped" numbers were lower as you said.

 

In terms of analyzing demand, it means the iPad was pretty much just as much in demand as it was a year ago, despite not releasing a new product (last year had the iPad 3 in Q3). 

 

It also signifies that Apple is perhaps either a) not going to keep as many iPads in the channel or b) that Apple is prepping to phase out the current lineup due to an imminent (read: end of current quarter) new version. 

post #64 of 66
Quote:
Originally Posted by Pendergast View Post

They drew down channel inventory, which means "sold " numbers were pretty flat, while "shipped" numbers were lower as you said.

In terms of analyzing demand, it means the iPad was pretty much just as much in demand as it was a year ago, despite not releasing a new product (last year had the iPad 3 in Q3). 

It also signifies that Apple is perhaps either a) not going to keep as many iPads in the channel or b) that Apple is prepping to phase out the current lineup due to an imminent (read: end of current quarter) new version. 

Sales should have been higher. Last year there was only the iPad, this year there was the iPad and the iPad mini, which if I remember correctly was made to cover more points of the price umbrella. I can understand iPad sales being lower but sales of the iPad mini should've bought it back up.
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"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #65 of 66
Quote:
Originally Posted by rednival View Post

I don't agree with what Relic's comparison but I hate the term "predatory pricing".  It implies there is something wrong with competing on the basis of price.  If Amazon wants to sell their tablet at a loss, fine.  It is pretty clear they are not driving Apple out of the market.  


The comparison was flawed though.  Amazon is targeting a whole different segment.

Ok, how about "vicious and anticompetitive"?
Edited by Flaneur - 7/24/13 at 12:19pm
post #66 of 66
Quote:
Originally Posted by Flaneur View Post


Ok' how about "vicious and anticompetitive"?

Oh much better.  1biggrin.gif

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