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Apple revises guidance upward following iPhone launch, expects 36-37% gross margins

post #1 of 46
Thread Starter 
Having just announced record sales figures for its latest iPhone models, Apple has revised its earnings estimates upwards in order to reflect its considerable sales.



Apple filed its Form 8-K on Monday, informing the Securities Exchange Commission and the investor community that it "expects total company revenue for the fourth quarter to be near the high end of the previously provided range of $34 billion to $37 billion." The first line in the filing makes reference to Apple's earlier revelation that it sold more than nine million new iPhones over the weekend following the devices' Friday launch.

In addition to the revised revenue numbers, Apple also tweaked its prediction for quarterly gross margin. The iPhone maker now believes gross margin for the September quarter will fall at the higher end of its previous range of between 36 and 37 percent.

Monday's 8-K filing, along with the announcement of strong iPhone sales, could signal good things for Apple shares going forward. As of 12:56pm EST, AAPL was at $486.14, up 4.01 percent on the day. Some analysts appear to be holding off on upgrading the stock until the wave of early adopters subsides and a observers get a better view of how the iPhone 5s and iPhone 5c are selling. UBS, which previously expressed cautious optimism for the iPhone 5c, retained its Neutral rating on AAPL, and a $520 price target, even following the launch weekend sales announcement and Monday's guidance revision.

"The first weekend numbers are encouraging," the report read, "though with wider availability and product cycles seemingly compressing it is difficult to know how far to extrapolate the figures.
post #2 of 46
Hmm. That estimate is for the Q ending Sept. right? Impressive.
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post #3 of 46
More good news, AAPL will definitely go down again... :-)
post #4 of 46
No matter what Apple does Wall St. will remain corrupt:

http://abcnews.go.com/m/blogEntry?id=20346662&ref=https%3A%2F%2Fwww.google.ie%2F
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #5 of 46

What happened to "grotesquely understocked" carriers? Manufacturing constraints strangling availability?

 

A 3.5 million unit launch?

 

Reality bites.

post #6 of 46
The sales were so strong that Apple ran the risk of breaking the law(or sec rules) if they didn't officially report them.
post #7 of 46
Quote:
Originally Posted by jfc1138 View Post
 

What happened to "grotesquely understocked" carriers? Manufacturing constraints strangling availability?

 

A 3.5 million unit launch?

 

Reality bites.

 

Not to mention all the whining about how the 5c was "too expensive".

 

BTW it's also funny watching all the people who just last week were whining about how the 5c was going to have terrible sales *cough* Rogifan *cough* now suddenly changing their tune and acting like the complete opposite now that the sales came out. A good reason why you never trust the armchair CEOs on forums.

post #8 of 46
These are the same people that just don't understand or are completely arrogant about Apple.

Yes their strategy is offline from what WS wants, but lets step back and think about it. WS wants Apple to be like all other companies in the past -- it's a race to the bottom and all about "shipped" inventory through the channels.

Not only that -- let's add these exorbitant projections that Apple has been put up to meet and has met year after year. Mind you no other company in existence is even on par with the numbers Apple throws up.

But Apple understands its consumer behavior more than anyone.

Everyone hates a winner that keeps winning!
post #9 of 46
meanwhile, blackberry's been sold for 4.7 billion. sad. that's probably close to apple's revenue this weekend.
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appleinsider's mike campbell, august 15, 2013
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post #10 of 46
Quote:
Originally Posted by 123m4c View Post

More good news, AAPL will definitely go down again... :-)

 OMG perhaps Apple won't go down, but some hedge funds will if they don't cover their as--s   fast! There is a limit to market negativity on Apple.

 

 Of course there are some of us just waiting for a good time to profit.

 But Apple may step in and buy back more shares with their buckets of money.

 

Imagine that, Apple destroyed their previous high volume records, yet they ran out of some iPhone  stock.

 

 

If Samsung TV interviewed the street people hired  in New York  to get  iPhones, they didn't learn much!  :devil:

post #11 of 46

5C being too "expensive" is a joke. $99, wtf do people want? FREEEEE..... GIVE ME EVERYTHING. SUCH NONSENSE.

 

It gets old everyone wanting everything free, get a damn job, pay for things you like. Simple.

 

I mean its a music player, camera, phone, among other things.. for $99, seems like a good deal to me, but then again I WORK for my money and don't expect handouts.

post #12 of 46
Quote:
Originally Posted by MikeJones View Post
Not to mention all the whining about how the 5c was "too expensive".

 BTW it's also funny watching all the people who just last week were whining about how the 5c was going to have terrible sales *cough* Rogifan *cough* now suddenly changing their tune and acting like the complete opposite now that the sales came out. A good reason why you never trust the armchair CEOs on forums.

My local observation of people buying the 5c is many are new iPhone users.   It's $100 less down here.

Those like myself who have an iPhone now

  are more interested in the 5s, and with contracts to run out waiting for it is no problem.

post #13 of 46
When WS was throwing Apple under the bus now that they see the weekend figures what are they doing? They are heading with a "wait and see" as if that will tell the dumb bastardos anything. A previous poster was exactly right, WS wants, desperately, Apple to be like the other companies so they can track them better and be "right" once in a while. Apple was getting down graded years ago when I was buying Apple stock--companies like American Express didn't have much to say about them while lots have been said about AE.

Now these people are waiting for more numbers to see if "projections" (the new ones) can be sustained. Well, the old ones certainly didn't go anywhere. I suppose these guys have college degrees in finance. That's rich.
post #14 of 46
Originally Posted by Pooch View Post
meanwhile, blackberry's been sold for 4.7 billion. sad. that's probably close to apple's revenue this weekend.

 

Told my roommate–told him two years ago–he’d better not be relying on that BlackBerry of his to run his business. The company won’t see 2014.

 

Didn’t believe me. Poor sap’s stuck in a nonexistent ecosystem now. Hope his startup doesn’t go under.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #15 of 46
Quote:
Originally Posted by Tallest Skil View Post
 

 

Told my roommate–told him two years ago–he’d better not be relying on that BlackBerry of his to run his business. The company won’t see 2014.

 

Didn’t believe me. Poor sap’s stuck in a nonexistent ecosystem now. Hope his startup doesn’t go under.

 

How can his startup go under by using a mobile phone?  Unless your roommate's startup is developing BB apps?  

post #16 of 46

The stock is still criminally undervalued. I hope Apple was buying up their own stock like a madman this past month.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #17 of 46

Cue the iHaters, trolls, and whiners that think a company should not be in business to make money.

post #18 of 46
Listen, I don't claim to know a lot about stocks and margins and ratios BUT I do know when someone doesn't know there job. And these fools(analysts) have no clue wtf they're talking about.

Wait and see if this 9 mil in sales is just early adopters and see if it tapers down?!?!

Of course it's gonna taper down! But you'd be a fool to think apple is not gonna have a record quarter in iPhone sales. What more proof do they need that Apple knows what they're doing and everyone else feebly attempting to copy apples success.

Btw, the 5s is without equal. They can stop innovating right here for another two years and the competition still wouldn't catch up
post #19 of 46
Oh how I hope many of the Analysts shorted the stock and lost money.

Oh how foolish the majority of Analysts look now

Grotesquely inadequate stock. Supply chain signals. Overpriced. Sales collapse. Flop. They ravaged and insulted Apple. And now? They will wait and see?

Wake up and smell the money. Or just do basic math.

Nine million opening. And china mobile is not even included yet.

WSJ. Motley Fool. Seeking Alpha. CSNBC. Idiots.
post #20 of 46

Only one more message to anal-lysts: if you think 5C is selling poorly, then you are bigger morons than stupidity itself. People were not standing in the lines waiting for 5C that much, this is true, but they were surely ordered online like hell... This year iPhone is starting gaining unit market share back. All over the globe. Mark my words.

post #21 of 46
Quote:
Originally Posted by lalaruza View Post
 

5C being too "expensive" is a joke. $99, wtf do people want? FREEEEE..... GIVE ME EVERYTHING. SUCH NONSENSE.

 

It gets old everyone wanting everything free, get a damn job, pay for things you like. Simple.

 

I mean its a music player, camera, phone, among other things.. for $99, seems like a good deal to me, but then again I WORK for my money and don't expect handouts.

 

I think the complaints are twofold:
 
1) Many markets are not subsidized, so the full price of ~ $550 USD is viewed as expensive.
 
2) In subsidized markets, there's only a $100 difference between the 5C and 5S, so why would anyone buy the 5C?
 
Both have some truth, but are overreactions. The iPhone 5C is still a high-end phone, is viewed as a status symbol, and these "emerging markets" also have an emerging middle class (likely where most of the profit will be). Also, Apple has showed a willingness to offer flexible terms to specific markets (re: India), and who's to say some carriers won't start subsidizing?
 
As to who would buy the 5C, who wouldn't? Unless you need the best, why not get an absolutely great phone and save $100? Lots of people (like my wife) prefer the colors and tactile feel, and don't need the latest and greatest. Others always go "cheap" to save money. It's the iPhone for the masses. And the iPhone for the rest of your family (kids especially, it's an iPod touch killer).
 
Early adoption will be skewed toward the 5S, as early adopters tend to skew toward the best and newest tech. But 6 months from now? I'd say the 5C is giving the 5S a run for it's money, especially during the holidays. Add in possible spring deals ($49 to $79 you say?) and possible back-to-school deals and maybe a mid-cycle color addition, and I'll say the 5C is the better seller by the end of the year.
post #22 of 46
Quote:
Originally Posted by Pooch View Post

meanwhile, blackberry's been sold for 4.7 billion. sad. that's probably close to apple's revenue this weekend.

No, Apple revenue this weekend is a minimums 5.5B. Brother worked that out today
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #23 of 46
Quote:
Originally Posted by Tallest Skil View Post

Told my roommate–told him two years ago–he’d better not be relying on that BlackBerry of his to run his business. The company won’t see 2014.

Didn’t believe me. Poor sap’s stuck in a nonexistent ecosystem now. Hope his startup doesn’t go under.

The company still exists.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #24 of 46
Quote:
Originally Posted by sflocal View Post

Cue the iHaters, trolls, and whiners that think a company should not be in business to make money.

Money is a side-effect of the way Apple operates. It's not why Apple is in business. That's an important distinction.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #25 of 46
There were lots of droid troll, arm chair CEO, 5c nan-sayers until yesterday. Where are they now? Are they finally pull their head out of their ass, and query up at their nearest Apple store?
post #26 of 46
Originally Posted by sflocal View Post

How can his startup go under by using a mobile phone?  Unless your roommate's startup is developing BB apps?  

 

He coordinated everything they did on the thing. Used it more than his laptop, even. He’s one of those you hear about hurting their thumbs from texting/emailing and such on that tiny physical keyboard…

 

Originally Posted by Ireland View Post
The company still exists.

 

For now.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #27 of 46
Quote:
Originally Posted by jsmythe00 View Post

Listen, I don't claim to know a lot about stocks and margins and ratios BUT I do know when someone doesn't know there job. And these fools(analysts) have no clue wtf they're talking about.

Wait and see if this 9 mil in sales is just early adopters and see if it tapers down?!?!

Of course it's gonna taper down! But you'd be a fool to think apple is not gonna have a record quarter in iPhone sales. What more proof do they need that Apple knows what they're doing and everyone else feebly attempting to copy apples success.

Btw, the 5s is without equal. They can stop innovating right here for another two years and the competition still wouldn't catch up

Exactly!  As for the the 5s being without equal, I'm with you.  Got my silver 5S a couple of hours ago.  Only problem is getting the iWork apps free.  Apple is currently working on that for me.

post #28 of 46
Look it is not easy selling millions of units in weekend that people want let alone 9 MILLION of computers in your hand. But Apple makes it look easy even though it is not. This is why analysts are jaded and bash Apple that it can do better and falling behind.

I really cannot believe the bashing Apple gets even on record setting day. CNBC had on 2 analysts today %u2013 one said Apple will long term be like MSFT and has 300 price target. Really Apple has shown it is like MSFT? One of most profitable companies in world with record setting sales almost every year and recent track record of innovative products? This analyst would think that Apple's sticky ecosystem is worth ZERO with ZERO sales growth.

2nd analyst says Apple sales was really flat and growth was because they expanded into China. It is like he saying Apple is not playing fair because Apple expanded its market/distribution. Let me ask you this %u2013 isn%u2019t that how every company expands %u2013 by expanding into new markets? But when Apple
does it and does it really well with complexity of supply chain and logistics%u2013 the negative analysts are saying like Apple is CHEATING. COME ON!

Who else can sell or even make 9 million units in launch weekend?
I imagine 9 million units is incredibly hard to make especially for something as complex as computer inside your hand. But theses flimsy analysts are saying like it is so so like anyone can do it in their sleep, and comes off as really jaded of record sales Apple sets.


Same analysts who predicted 5-6 million units sold and the 5C would be dud and they got that wrong even though they KNEW ahead of time China was included in launch. A beat is a beat and these are actual sales and not dubious click farms in India- it is like Apple is penalized for finding new ways to do it. It is like analyst are saying wait till next quarter - oh they did great on that - ok lets wait quarter after that - eventually Apple will fall flat and I will be right. Is that how business school is teaching to value companies?

Like how analysts predict sales by how many people in line or asking 100 people which model they are getting. When over 9 MILLION were sold around world. It is absurd how some analysts think and do their analysis.


Same shady analysts who buy into AMZN who has PE 250 and lost money every year since it was born. If you give me billions of dollars %u2013 I promise you I can sell products at or below cost and never make a profit too. Analysts prefer that over Apple PE 10 and one of most profitable companies in world. Eventually analysts will be right and AMZN will make tiny profit and analyst will be like you see I told you so.

And they don't even mention NEW Apple products planned for 2014 like that will be worth zero too
post #29 of 46
Quote:
Originally Posted by Tallest Skil View Post

Told my roommate–told him two years ago–he’d better not be relying on that BlackBerry of his to run his business. The company won’t see 2014.

Didn’t believe me. Poor sap’s stuck in a nonexistent ecosystem now. Hope his startup doesn’t go under.

You had a room mate two years ago? So you are a kid?
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post #30 of 46

Yes everything Apple has come out with the "expert" analysts have always scoffed at and that people would never buy it and how can they possibly beat Nokia or Blackberry. And every time they eat dog food.

post #31 of 46
Originally Posted by digitalclips View Post
You had a room mate two years ago? So you are a kid?

 

I guess sitcoms have been lying to us for decades. No one ever lives together during their adult lives.

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
Reply

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #32 of 46

Can anyone explain why Apple needed to update SEC if the *revised* estimates are in fact within the previously suggested range?

 

Thank you.

post #33 of 46
Quote:
Originally Posted by sflocal View Post
 

 

How can his startup go under by using a mobile phone?  Unless your roommate's startup is developing BB apps?  

 

You obviously don't know the drug trafficking industry well.

post #34 of 46
Quote:
Originally Posted by digitalclips View Post


You had a room mate two years ago? So you are a kid?

 

Dumb post is dumb.

 
Sorry.
post #35 of 46
Quote:
Originally Posted by StruckPaper View Post
 

Can anyone explain why Apple needed to update SEC if the *revised* estimates are in fact within the previously suggested range?

 

Thank you.

 

when they say 'near the high end' it means 'will likely exceed by a more than a significant (1%) amount.'   

 
If you do the high end math... it's 1.5Billion quarterly profits above the low end revenue/margin range values.   At 40% margins on a $600ASP...  9Million phones is north of 2Billion in gross profits.   Maybe they hedged their July numbers assuming that it was a non-zero chance to release the 5c/5s in October, which would be next quarter.
 
Directly speaking to your question:
 
Releasing this to the SEC allows them to use the updated information for business discussions and insider activity
- for establishing their credit worthiness/bond ratings
- in negotiations with their suppliers, if they strike a deal with someone in the next week (China Mobile), they can't be accused of falsely low-balling numbers.  
- if they release the numbers to either of the above, then they have exposed 'insider information' prior to market release
- Insiders can buy/sell stock based on this information, otherwise all trades have to be embargoed until after the press announcements to avoid tainted trades.
post #36 of 46
Quote:
Originally Posted by MikeJones View Post
 

 

Not to mention all the whining about how the 5c was "too expensive".

 

BTW it's also funny watching all the people who just last week were whining about how the 5c was going to have terrible sales *cough* Rogifan *cough* now suddenly changing their tune and acting like the complete opposite now that the sales came out. A good reason why you never trust the armchair CEOs on forums.

 

I can tell you locally the 5c is selling very well, I bought my daughter the last yellow 5c walmart had for $79.00 (the were selling them for $20.00 off), saturday, and the sales associate there told me that they had 300 5c's and with mine sold them all.  I bought a 5s for myself and went to the apple store yesterday to buy a case for it and was told that they have sold a little over 1000 5c's and just over 1400 5s's out of that store alone.  The apple guy there said they sold twice as many 5s's  this year over the 5's they sold last year.  They continue to get stock in daily and they sell them as fast as they can get them (5s's).  The 5c's they had on hand  but were sold out of the yellow and blue and green.


Edited by Mechanic - 9/23/13 at 4:51pm
post #37 of 46
Quote:
Originally Posted by bobbyfozz View Post

When WS was throwing Apple under the bus now that they see the weekend figures what are they doing? They are heading with a "wait and see" as if that will tell the dumb bastardos anything. A previous poster was exactly right, WS wants, desperately, Apple to be like the other companies so they can track them better and be "right" once in a while. Apple was getting down graded years ago when I was buying Apple stock--companies like American Express didn't have much to say about them while lots have been said about AE.

Now these people are waiting for more numbers to see if "projections" (the new ones) can be sustained. Well, the old ones certainly didn't go anywhere. I suppose these guys have college degrees in finance. That's rich.

 

There still throwing Apple under the bus.  These douche bags will never admit that they are utter failures and completely wrong.  Instead they will just change the color of the bile that they are spewing and spin Apples demise in a different way.  They will keep polishing the Apple is doomed "TURD".  No matter how much they polish it, it still is a "TURD".  There just like the little child that gets caught red handed lying and says "I didn't do that", even when you caught them in the act.

post #38 of 46
Quote:
Originally Posted by muadibe View Post
 

Exactly!  As for the the 5s being without equal, I'm with you.  Got my silver 5S a couple of hours ago.  Only problem is getting the iWork apps free.  Apple is currently working on that for me.

 

Got them for my daughters 5c.  All you have to do is register the iPhone with apple once they have your imei number registered you just go log into the iTunes Store with your apple id and the apps will say "FREE" on the price and you just down load them. The registration is completed automatically when you turn your iPhone on and set it up in iTunes for the first time.

post #39 of 46
Quote:
Originally Posted by Tallest Skil View Post

I guess sitcoms have been lying to us for decades. No one ever lives together during their adult lives.

Just pulling your chain. BTW what's a sitcom? I don't have TV.
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post #40 of 46
Quote:
Originally Posted by Pendergast View Post

Dumb post is dumb.
 
Sorry.

Just kidding as TS tend towards angst much of the time.
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