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Apple reports earnings of $7.5B on sales of 33.8M iPhones, 14.1M iPads & 4.6M Macs - Page 3

post #81 of 96
Quote:
Originally Posted by zoetmb View Post


All consumer companies have decreasing margins as they get bigger. B-to-B companies have much larger margins, but much smaller revenues. Distributors, like Amazon to consumers or Ingram to the trade, operate on tiny margins. Supermarkets are a 3% business, but they have huge cash flow.

Wall Street wants it all ways: They don't want Apple to retain so much cash, they want them to have less expensive products to gain (or stop losing) market share AND they want them to increase margins. You can't have it all. But I don't care...if the stock drops, I'll buy some more.

As I've posted many times before, it used to take a year for a consumer electronics company to sell a million units of anything. Now it takes Apple a few hours. And still Wall Street isn't satisfied. Even Macs sold well and no one expected that. With all the new products, even though only evolutionary, 4 th Q should be great.

 

I don't think Wall Street wants Apple to have them all.

 

I think Wall Street wants to see a gain for the plan Apple chooses before the share price will increase.

 

If Apple lowers margins then Wall Street wants to see increased market share to the point that eps increases.

 

If Apple increases margins then Wall Street wants to see revenue and earnings increase  to the point that eps increases.

 

This is not to say that Apple is doing poorly.

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post #82 of 96
Quote:
Originally Posted by lkrupp View Post

Fans of the company need to disconnect the stock price from the business. Apple is firing on all cylinders, making and selling tons of great products, satisfying its millions of customers, innovating, moving forward. It exceeds in every metric there is to look at. That the stock price is stuck in a range says more about investors than the company. In the Wall Street crap game that is the stock market it’s all about quick profits, pump and dump, scorched earth policy and dismembered carcasses laying in a pile. As Apple fans we don’t want Apple doing what Wall Street wants, or what Carl Icahn wants. That would be bad for Apple and its customers.


Let the trolls crow about market share, stock prices, and all the crap they think makes Apple look bad. We already know they can spin anything into doom and gloom. They’re already doing it over at c|net and here.
Excellent comment! I agree totally!
post #83 of 96
Quote:
Originally Posted by Constable Odo View Post

FIRE TIM COOK!!! Apple is truly doomed and Apple shareholders are cursed. I don't want to hear another word about how great a company Apple is or how many iPhones are being sold. I knew this would happen because Google and Amazon are sucking the life out of Apple and Tim Cook doesn't have a clue. One whole year has gone by since Apple's horrific stock collapse and Apple still can't figure out how to beat earnings while sitting on $150 billion in reserve cash. Appalling. As a long-time shareholder I have to hang my head in shame as the House That Steve Built gets uglier by the quarter. I'm willing to bet the holiday quarter will be no better. Apple keeps trying to make more money with hardware and with Android's huge market share sitting on Apple's face, the company is going nowhere fast. Damn you, Tim Cook.
I can't decide if you're being sarcastic or if you're just a complete idiot?
post #84 of 96
Quote:
Originally Posted by darthW View Post

I can't decide if you're being sarcastic or if you're just a complete idiot?

All I want from apple is great hardware coupled with great software. Market share and profit margins can go to hell.
post #85 of 96
Quote:
Originally Posted by wizard69 View Post

You can have good margins on cheaper products. Go to the grocery store and look at the price of razor blades, lot and lots of margin in each package sold there.

The idea behind a cheaper product is to secure a larger share of the market.
Apple's products are a bit more complicated that razor blades. Apple can't simply snap it's fingers and make their products cheaper to design, manufacture and manage thereby increasing profit margins. If they could they would. Making the product cheaper to manufacture has too many variables and will often make a product suck. Apple doesn't want to make sucky products just to increase margins, thank heavens.
post #86 of 96
Quote:
Originally Posted by CoreAndExplore View Post

Oh wow, very interesting.  Ugh, this is why Tim Cook needs to brush up on his PR skills.  I feel like he leaves excuses in his bag, even when they're 100% legitimate and could help to prevent AAPL from getting punished in the market.  Then again, his tight-lipped demeanor probably helps with the implementation of the buyback at lower prices lol.

I think Cook is smarter to underplay things. He could be personally sued for misrepresenting things if something goes wrong and given the "kill the rich" philosophy running rampant in Washington, it's better to steer the ship on a sensible course.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

Reply
post #87 of 96
Quote:
Originally Posted by Rogifan View Post

So basically Wall Street is dumping the stock because margins are down 3% compared to the year ago quarter. And yet Amazon can have another quarter where they make no money and the stock jumps 9%. 1rolleyes.gif


Actually that's crap and you know it. Amazon makes a pile of money. They just don't hoard it like Scrooge in a bank vault so they can dive into the cool coins. Amazon reinvests virtually every cent they make. Its a completely different business model than simply creaming off the gullible and stashing the money in the bank.

post #88 of 96
Quote:
Originally Posted by NexusPhan View Post

They may have beat the estimates but the fact is that **profit** is down. Again. A year-over-year quarter decrease of $700 million is no joke. They need to do something to stop that decreasing **profit**. I'm surprised AAPL is only down 2%.

Edit: Fixed revenue to be profit. My apologies.

I don't get it.

About 3 years ago, the Apple management issued the warning during such an event, that from now on margins would be readjusted down, die to new product lines and new products that would come with lower margins.

That is still vivid in my memory, because journalists either didn't pick up on it, or started wondering about cheaper iPhone/mac models back then (I think the rumour for cheaper iPhone started then).

We are exactly in the scenario that Apple foretold us, which means that the company is still on course with their forecast, that the management has done their homework really well, and that Apple still manages to outperform Wall Street estimates.

As for Google and Amazon, we're not talking about newbies here. They've been going for many years now. In fact, I am inclined to think that they've been going short of a couple of years only than the 'new' Apple (the return of Steve Jobs and the new resulting board).
Edited by jdunys - 10/29/13 at 2:38am
post #89 of 96
So when the investor call started yesterday Apple stock was down about $14. As the call progressed it rebounded to be up $6 and then by the end of the call it was down $6. Now this morning I see its up almost $6. Wall Street is clearly confused when it comes to Apple. lol.gif
post #90 of 96
Quote:
Originally Posted by wizard69 View Post

...
The idea behind a cheaper product is to secure a larger share of the market.

...and lower profit.

 

(finished the sentence for you. :D )

post #91 of 96
Quote:
Originally Posted by Rogifan View Post

... Wall Street is clearly confused...

 

That is all you need to say. :lol:

post #92 of 96
Quote:
Originally Posted by icoco3 View Post
 

...and lower profit.

 

(finished the sentence for you. :D )

 

Lower profit per item but not necessarily lower net profit.

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post #93 of 96
Originally Posted by icoco3 View Post
What a bunch of garbage, sending us to a place to install garbage on our computers...  You get 2 options..."Install" and "Now"  Yeah, right.

 

It’s a spambot. Just report; don’t reply. And certainly don’t visit the link.

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.
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post #94 of 96
Quote:
Originally Posted by Taniwha View Post


Actually that's crap and you know it. Amazon makes a pile of money. They just don't hoard it like Scrooge in a bank vault so they can dive into the cool coins. Amazon reinvests virtually every cent they make. Its a completely different business model than simply creaming off the gullible and stashing the money in the bank.

It's easy to invest millions than it is to invest billions. And your right, Amazon's business model is to drive mom and pop shops out of business, establish monopolies, create barriers of entry, and then drive up prices once all competitors are diminished.
post #95 of 96
Quote:
Originally Posted by jungmark View Post


It's easy to invest millions than it is to invest billions. And your right, Amazon's business model is to drive mom and pop shops out of business, establish monopolies, create barriers of entry, and then drive up prices once all competitors are diminished.

 

I think you better change your brand of corn flakes.

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post #96 of 96
Quote:
Originally Posted by NexusPhan View Post
 

 

 Margin is not gonna be an easy fix for Apple. They already have some of the highest selling prices and lowest per unit cost in the industry. Already at some serious volumes and have already flexed some muscle over their suppliers. I'm sure some much smarter than I people over at Apple are all over this. I don't think Apple is as stubborn as they appear to be to the public.

In 2012, Apple has about 26% Net Profit to Gross Revenues.


Is Apple's Net Profit compared to Gross Revenues slipping?  Yeah, but they aren't even in the same realm as the PC mfg.  They are at about 5% Net Profit to Gross Revenue.

 

If Apple stays above 20% or so, they'll do fine.

 

People are looking at the worse quarter for the year without evaluating the entire 12 month period.

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