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Notes of interest from the FY05 Q3 Apple conference call

post #1 of 64
Thread Starter 
Apple posted a net quarterly profit of $320 million, or $.37 per diluted share, and revenue of $3.52 billion. These results compare to a net profit of $61 million, or $.08 per diluted share, and revenue of $2.01 billion in the year-ago quarter, and represent revenue growth of 75 percent and net profit growth of 425 percent. Gross margin was 29.7 percent, up from 27.8 percent in the year-ago quarter.

Mac sales during the quarter grew at 3 times the market average, representing the highest quarterly Mac sales in over 4 years. It was also the highest ever level achieved during a June quarter.

Below are some other notes of interest from the conference call with Apple CFO Peter Oppenheimer and vice president Tim Cook:

Sales and unit shipment breakdown

Apple shipped a total of 1,182,000 Macs during the quarter, including 687,000 desktops and 495,000 portables (a new quarterly record). This represents 65% year-over-year growth for desktops and 8% growth for portables. Desktops combined to deliver $845m in revenue while portables added another $720m.

A total of 6,155,000 iPods shipped during the quarter, accounting for over $1.1b in revenue. Year-over-year this represents a 616% increase in unit shipments and a 343% increase in revenue. From the previous quarter, iPod unit shipments rose 16% with revenue growing 9%.

Apple's "other music products" added another $241m in revenues, a 230% year-over-year increase. Compared to the previous quarter, this segment grew 12%.

Peripherals and other Apple hardware sales brought in $266m in revenue, a year-over-year increase of 21%. However, this figure represents a 5% sequential decrease in sales from the previous quarter.

Software sales, largely fueled by the release of Mac OS X 10.4 "Tiger," grew 21% year-over-year to $345m or 44% from the previous quarter -- the highest quarterly software sales in company history.

Geographical and Retail revenue breakdown

In the Americas, Apple shipped a total of 595,000 Macs representing nearly $1.74b in revenue. Year-over-year these figures represent an increase of 26% in unit shipments and 71% in revenue.

International sales accounted for 39 percent of the quarters revenue.

Apple shipped a total of 283,000 Macs in Europe, a year-over-year increase of 48% in unit shipments and 82% in revenue.

Apple was "unhappy" with Mac sales in Japan, which dropped 7% year over year. The company said it will continue to make changes to its direct and indirect Japanese distribution channels.

Apple's retail stores combined to sell over 144,000 Macs during the quarter. Overall the retail segment accounted for $555m in revenue, 106% year-over-year increase.

Apple's "other segments" combined to sell 84,000 Macs, bringing in an additional $257m in revenue -- an increase of 76% year-over-year.

Other notes of interest

Apple saw "no obvious reduction" in demand for current PowerPC Macs in the three weeks following its announced transition to Intel processors.

95% of Wal-Mart stores are now carrying the iPod. Apple is investigating whether to expand to the retail giant's international locations.

Apple ended the quarter with 25,000 storefront distribution points for the iPod world-wide, an increase from 21,000 distribution points from the end of the previous quarter (primarily due to the addition of 3,500 US-based Wal-Mart locations).

Sales of Mac OS X "Tiger" added about $100m in revenue to Apple's quarterly results. Best selling release in company history. The install base of Mac OS X is now close to 16 million.

According to recent NPD Techworld data, Apple's iPod holds an approximate 75% of the entire MP3 player market in US. The next closest competitor to Apple holds less than a 5% share.

Apple's iTunes Music Store accounts for an 83% share of legally downloaded music. The store operated at above break-even during the quarter.

Apple ended the quarter with 4-5 weeks of Mac channel inventory, in range with the company's expectation.

Apple ended the quarter with 4-6 weeks of iPod inventory, also inline with expectations.

Gross margins during the quarter were higher than expected primarily due to strong sales of Mac OS X Tiger and Final Cut Studio.

Gross margins are expected to decline slightly during the current quarter due to a fall-off in sales of the two aforementioned software products.

Gross margins for iPods for Q3 were close to 20%. Apple hopes to keep iPod gross margins at about 20%.

Over two million copies of Tiger shipped by early June. Apple then shipped "several hundred thousand" additional copies of the OS with new Mac purchases.

Apple opened 7 retail stores during the quarter, bringing its total to 110 stores. The company reiterated its expectation of operating 125 stores by year's end.

Retail traffic rose to over 12 million for the quarter, or about 8,900 visitors per store each week.

Each retail store averaged about $5.3m in sales, up from $3.4m during the year-ago quarter.

Apple achieved the highest educational Mac revenue during a quarter in over nine years. Both revenue and Mac unit shipments rose 16%. K-12 sales grew 8%.

HP iPod shipments accounted for 8% (??) of total iPod shipments during the quarter.

The tax rate for the quarter was 32%, as expected. Apple expects the same rate for the current quarter.

During Q3 Apple saw a decrease in DRAM and flash prices. However, Apple expects commodity prices to increase during the current quarter due to typical industry trends and demand. The company is also forecasting higher than originally expected storage component prices.

Apple now holds over $7.5b in cash.

Apple is guiding earnings of 32 cents per share on revenues of $3.5 for the current quarter.
post #2 of 64
So! Did we expect anything else?
post #3 of 64
I'm interested in knowing the reasoning of holding on to so much cash. They're probably not debt free so they must be earning more on their cash than they are losing on their debt. Does a company of Apple's size, I guess that's a good measuring stick, usually have 7.5b in cash?
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NOTICE: While every effort has been made to ensure the accuracy of the information supplied herein, fahlman cannot be held responsible for any errors or omissions. Unless otherwise indicated,...
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post #4 of 64
Quote:
Originally posted by fahlman
I'm interested in knowing the reasoning of holding on to so much cash. They're probably not debt free so they must be earning more on their cash than they are losing on their debt. Does a company of Apple's size, I guess that's a good measuring stick, usually have 7.5b in cash?

They are debt free. No long term, and as far as I know still no short term.
post #5 of 64
Quote:
Originally posted by fahlman
I'm interested in knowing the reasoning of holding on to so much cash. They're probably not debt free so they must be earning more on their cash than they are losing on their debt. Does a company of Apple's size, I guess that's a good measuring stick, usually have 7.5b in cash?

I believe they went debt free a couple of quarters ago... they mentioned they are holding the cash for investments and acquisitions but wouldn't go into detail... Apple's cash sum is impressive for the company's size.

Best,

-K
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Questions and comments to : kasper@appleinsider.com
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post #6 of 64
Quote:
Originally posted by Kasper
I believe they went debt free a couple of quarters ago... they mentioned they are holding the cash for investments and acquisitions but wouldn't go into detail... Apple's cash sum is impressive for the company's size.

Best,

-K

And also remember that MS still has over $30 billion even after that large payout to their stockholders that they were "forced" to do by the investor community.
post #7 of 64
Quote:
Originally posted by fahlman
I'm interested in knowing the reasoning of holding on to so much cash. They're probably not debt free so they must be earning more on their cash than they are losing on their debt. Does a company of Apple's size, I guess that's a good measuring stick, usually have 7.5b in cash?

Companies in the growth phase of the product life cycle typically retain earnings for future investment rather than make distributions.

Given the growth -- and potential for growth -- Apple possess, it is better for shareholders if Apple keeps its cash and invests it in growth projects, rather than make distributions to shareholders. Apple is just waiting for the right opportunity to present itself.

A large warchest also provides a buffer against short term volatility and any potential liquidity issues, although this probably doesn't require $7.5b.
post #8 of 64
I hope they're not using Enron style accounting. (Reading Conspiracy of Fools right now)
post #9 of 64
Quote:
Originally posted by Sceptic
Companies in the growth phase of the product life cycle typically retain earnings for future investment rather than make distributions.

Given the growth -- and potential for growth -- Apple possess, it is better for shareholders if Apple keeps its cash and invests it in growth projects, rather than make distributions to shareholders. Apple is just waiting for the right opportunity to present itself.

A large warchest also provides a buffer against short term volatility and any potential liquidity issues, although this probably doesn't require $7.5b.

Apple has shown itself to be investment adverse if the investment is greater that a few tens of millions, or isn't an investment in a supplier to insure supply.

I've also been curious as to why they've been sitting on all of it.
post #10 of 64
Quote:
Originally posted by Placebo
I hope they're not using Enron style accounting. (Reading Conspiracy of Fools right now)

My wife has been trying to get me to read her copy. She said that she couldn't put it down. (she's a lawyer and senior vice president in Citicorp).

I read about 30 pages so far. Brrr.

Apple is very conservative in its accounting.
post #11 of 64
This is far better than I expected! Maybe the "I'm fed up with MS" attitude is stronger than expected.

The IPod results are surprising, but I still don't see that as a long term thing for the development of the company. Then agian I don't appreciate the music industry at all.

If anything this may be part of the reason that the Intel switch was announced when it was. Best to be in a strong position before scaring the hell out of your customer and developer base. Looks like Apples abiltiy to carry themselves through the transition is a lot stronger than expected.

Dave
post #12 of 64
Good news. Expect some analysts (key word "anal") to somehow find a reason to drive the stock down in the next few months.
post #13 of 64
Simple math on those numbers show that Macintosh hardware sales now account for 44.4% of Apple's revenue. iPod hardware was 31.3%. "Other" music revenue was 6.8%. Peripherals were 7.6%. Software (including 10.4) was 9.8%.

While Apple still needs the Macintosh in order to maintain their revenues for now, most of their revenue did not come from Macintosh hardware this quarter. Going into the Intel transition, this trend may accelerate.
post #14 of 64
"The install base of Mac OS X is now close to 16 million."

Where do you get that figure from?
post #15 of 64
Apple is unhappy about it's sales in Japan.

Let's me try to come up with a few possible reasons:

1. No ITMS. Without ITMS, iPod is just like any other MP3 player. Might as well get a Sony or Panasonic. This is Japan, after all.
2. No TV tuner built-in. (Practically every other computer sold in Japan has this feature. The Japanese love their TV.)
3. PowerMac G5 is too big for a majority of homes and offices in Tokyo and Osaka which is where 2 of it's 3 Apple Stores are located. (Remember that Japan is like half of the U.S. population stuffed in less than the area of California. The houses and offices are really small.)
4. Laptop screens are the worst on the market. Laptops outsell desktops for the same reason as #3 above. And as mentioned in #2, people use their notebooks as TV sets. A good screen is a must.
5. No Postcard software bundled. Again, this is standard practice in Japan. Japanese have a tradition of sending custom-made postcards during certain times of the year. During the main postcard season (New Years), I know that tons of new printers are sold. CPU sales must be affected to some degree.

If Japan wants to increase sales here, they need to make a special edition Powerbook (or iBook) with a brighter and glossy screen (The Japanese prefer glossy screens), bundle a postcard software, and add a TV-tuner. Price it under $2,000 and I think Apple will have a winner. Of course, we can't forget ITMS.
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post #16 of 64
Quote:
Originally posted by AppleInsider
Apple now holds over $7.5b in cash.

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post #17 of 64
Thanks for the interesting thoughts on the Japanese market BeigeUser.

About point 5, I think a small effort with iPhoto could solve that problem. It is easy enough to print out 5 x 7 photos, but I'm guessing you want more customization.
post #18 of 64
Remember a few weeks ago some investment firms were saying people should sell there Apple stocks? They felt that the market was getting saturated with the iPod and it would hurt Apple. lol I hope the iPod phone will be another shot in the arm for Apple. People still love to try to kick Apple down. Keep Rockin' Steve!
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post #19 of 64
Quote:
Originally posted by the cool gut
"The install base of Mac OS X is now close to 16 million."

Where do you get that figure from?

During the conference call, an analyst* asked the question. I replayed Apple's answer, yes, it was 16 million as the figure given.




*sigh i miss all the sexy-female-corporate-type-usa-accents, that was one of the cool parts of working in california several years ago... but i digress...
post #20 of 64
Quote:
Originally posted by BeigeUser
Apple is unhappy about it's sales in Japan.

Let's me try to come up with a few possible reasons:

1. No ITMS. Without ITMS, iPod is just like any other MP3 player. Might as well get a Sony or Panasonic. This is Japan, after all.
2. No TV tuner built-in. (Practically every other computer sold in Japan has this feature. The Japanese love their TV.)
3. PowerMac G5 is too big for a majority of homes and offices in Tokyo and Osaka which is where 2 of it's 3 Apple Stores are located. (Remember that Japan is like half of the U.S. population stuffed in less than the area of California. The houses and offices are really small.)
4. Laptop screens are the worst on the market. Laptops outsell desktops for the same reason as #3 above. And as mentioned in #1, people use their notebooks as TV sets. A good screen is a must.
5. No Postcard software bundled. Again, this is standard practice in Japan. Japanese have a tradition of sending custom-made postcards during certain times of the year. During the main postcard season (New Years), I know that tons of new printers are sold. CPU sales must be affected to some degree.

If Japan wants to increase sales here, they need to make a special edition Powerbook (or iBook) with a brighter and glossy screen (The Japanese prefer glossy screens), bundle a postcard software, and add a TV-tuner. Price it under $2,000 and I think Apple will have a winner. Of course, we can't forget ITMS.

looks like you have some real street knowledge on the IT industry and consumer trends in Japan.

i'm living in malaysia at the moment.

for Asia, i think apple faces two main hurdles:
1. tapping into local knowledge to best cater to those markets
2. developing a level of flexibility (eg. custom glossy brite wide iBook screen**) to achive point no 1. above


**dude, tell me about it, i would be ALL OVER such an iBook like a bad, bad rash.
post #21 of 64
Quote:
Originally posted by wizard69
This is far better than I expected! Maybe the "I'm fed up with MS" attitude is stronger than expected.

The IPod results are surprising, but I still don't see that as a long term thing for the development of the company. Then agian I don't appreciate the music industry at all.

If anything this may be part of the reason that the Intel switch was announced when it was. Best to be in a strong position before scaring the hell out of your customer and developer base. Looks like Apples abiltiy to carry themselves through the transition is a lot stronger than expected.

Dave

well, another great moment that will go down as a key part of the history of Steve Jobs. Make the 'riskiest' move around the highest point in Apple history. Few business leaders have that sort of balls, really, most would prefer to ride out the wave as much as possible and not take such risks...
post #22 of 64
Okay. I worked out that if apple gets 5% to 10% interest on that 7.5 billion in cash, that means that they get

$375 to $750 MILLION dollars each year as pure profit (before tax).

compare this to $320million in profits made Q3 '05

financial wizards please enlighten us.
WHERE would apple report its interest earnings?

because, let's say Q4 '05, the interest from their 7.5billion cash reserve is say around $100-200 million.

my questions is:

1. where are (before/after tax) interest from cash reserves reported? is this just reported as how much the cash reserve increases by, minus of course the profits that go into the cash reserve?

confused


.................
edit: i'll control-c out of this loop in a while, but a final guesstimate. macobserver reports: "The company is now sitting on $7.562 billion in cash, up $450 million from the previous quarter"

so, therefore if apple made $320 million in net profits, this would mean that they made an (before/after tax?) interest of 450-320 = $130 million dollars from their cash reserves alone.
..................
post #23 of 64
Quote:
Originally posted by sunilraman
well, another great moment that will go down as a key part of the history of Steve Jobs. Make the 'riskiest' move around the highest point in Apple history. Few business leaders have that sort of balls, really, most would prefer to ride out the wave as much as possible and not take such risks...

That's actually the best time to do it.

If they did it when sales and reputation were at a nadir then it would have been said that this is the last thrash of a dying firm, and that Apple was desperate and had no answer for their problems.

But as Jobs said, going into this change when they are at the strongest that they have been for many years, with tremendous brand recognition,is the best time they could do it.

I mentioned on another thread here, that now I could see why they intro'ed 10.4 when they did, bugs and all. (as we see now, MANY bugs).

It was so that they could get it out of the way before and during the dev conf before they announced the changeover. Then after that was over they worked on getting the bugs out that they most likely would hsve fixed first if they weren't making this change. It all makes sense.
post #24 of 64
Quote:
Originally posted by sunilraman
Okay. I worked out that if apple gets 5% to 10% interest on that 7.5 billion in cash, that means that they get

$375 to $750 MILLION dollars each year as pure profit (before tax).

compare this to $320million in profits made Q3 '05

financial wizards please enlighten us.
WHERE would apple report its interest earnings?

because, let's say Q4 '05, the interest from their 7.5billion cash reserve is say around $100-200 million.

my questions is:

1. where are (before/after tax) interest from cash reserves reported? is this just reported as how much the cash reserve increases by, minus of course the profits that go into the cash reserve?

confused

If a company could get 5-10% interest on their money today, there would be NO investment in capital improvements or risk taking (new plant and equipment, etc) at all. Apple might get 2-3% interest. Some of it is investments as well.
post #25 of 64
Quote:
Originally posted by sunilraman
Okay. I worked out that if apple gets 5% to 10% interest on that 7.5 billion in cash, that means that they get

$375 to $750 MILLION dollars each year as pure profit (before tax).

compare this to $320million in profits made Q3 '05

financial wizards please enlighten us.
WHERE would apple report its interest earnings?

because, let's say Q4 '05, the interest from their 7.5billion cash reserve is say around $100-200 million.

my questions is:

1. where are (before/after tax) interest from cash reserves reported? is this just reported as how much the cash reserve increases by, minus of course the profits that go into the cash reserve?

confused


.................
edit: i'll control-c out of this loop in a while, but a final guesstimate. macobserver reports: "The company is now sitting on $7.562 billion in cash, up $450 million from the previous quarter"

so, therefore if apple made $320 million in net profits, this would mean that they made an (before/after tax?) interest of 450-320 = $130 million dollars from their cash reserves alone.
..................

Interest from investments falls under the head of revenue/income. Net profit includes this interest.

Apple has always made shitloads in interest. For several quarters in the 2002-2003 era, the only reason Apple reported a profit was because of interest.

edit:
Increases in cash other than from net profits could be accounted for by capital gains, which are not counted as revenue and are generally not taxable.
post #26 of 64
Quote:
Originally posted by melgross
If a company could get 5-10% interest on their money today, there would be NO investment in capital improvements or risk taking (new plant and equipment, etc) at all. Apple might get 2-3% interest. Some of it is investments as well.


hi mel, good point re: buggy 10.4.0 and intel transition

re: interest:
see my edit above,
if my calculations are right, apple got an interest of 1.83% after tax on their cash reserves for Q3 '05. which means that they are getting 7%-8% after tax interest per year, which makes sense for a reasonably conservative investment portfolio.
hence,
i think your point about "if a company could get 5-10% interest there would be no investment in capital and risk-taking" may be off the mark.

there are companies that make 5-10% in after-tax profits each year purely through investments. those would be investment firms

apple however is a technology/digital lifestyle company, hence they make money through innovative computer-oriented hardware and software. they are making investments in capital (eg new retail stores) and research and development (eg. Tiger, Macintel). The bonus is that all these costs are offset by revenues and so the interest on the cash reserve is the icing on the cake, which is why their cash hoard continues to grow.
post #27 of 64
Quote:
Originally posted by Sceptic
Interest from investments falls under the head of revenue/income. Net profit includes this interest.

But then how come net profit was reported as $320 million when their cash reserve went up by $450 million ?
post #28 of 64
Quote:
Originally posted by sunilraman
But then how come net profit was reported as $320 million when their cash reserve went up by $450 million ?

I have edited my original post to include the following:

Capital gains account for this discrepancy. Cash from CGs are not counted as revenue, and are generally not taxable.
post #29 of 64
Quote:
Originally posted by sunilraman
hi mel, good point re: buggy 10.4.0 and intel transition

re: interest:
see my edit above,
if my calculations are right, apple got an interest of 1.83% after tax on their cash reserves for Q3 '05. which means that they are getting 7%-8% after tax interest per year, which makes sense for a reasonably conservative investment portfolio.
hence,
i think your point about "if a company could get 5-10% interest there would be no investment in capital and risk-taking" may be off the mark.

there are companies that make 5-10% in after-tax profits each year purely through investments. those would be investment firms

apple however is a technology/digital lifestyle company, hence they make money through innovative computer-oriented hardware and software. they are making investments in capital (eg new retail stores) and research and development (eg. Tiger, Macintel). The bonus is that all these costs are offset by revenues and so the interest on the cash reserve is the icing on the cake, which is why their cash hoard continues to grow.

Nice talking to you again.

Remember that I said that they had investments as well. They stated that, and I read it in the quarterly reports they send me. Their interest income can't be much above prime, and no doubt is less. Prime is somewhwre around 3% right now, and that's only because Greenspan has been raising it as of late.

Investment income is something else, and without knowing what it is, I can't speak ro it. It could be money market, though with the market where it's been, that might not be good. It could be currency hedging. It could be Treasury notes, bonds, derivitives. In short, it could be almost anything.
post #30 of 64
heh cool. thanks skeptic and melgross for tha info... this financial interest (dodgy pun intended) thing is fairly new for me, following on from the geek/tech/science thing.

i'll try and read up more when i have the time. overall, great news from apple, makes me happy, although personally, i've just given up on a new iBook released before paris expo 2005. maybe i'll get an imac g5, it costs the same as an iBook 14" COMBO drive !!

i'm 26 now but i expect to do some hard time ala bernie ebbers before i reach 50

having a geek/hacker mentality like a lot of us, when dealing with financial stuff, not always a good thing
post #31 of 64
Quote:
Originally posted by sunilraman
heh cool. thanks skeptic and melgross for tha info... this financial interest (dodgy pun intended) thing is fairly new for me, following on from the geek/tech/science thing.

i'll try and read up more when i have the time. overall, great news from apple, makes me happy, although personally, i've just given up on a new iBook released before paris expo 2005. maybe i'll get an imac g5, it costs the same as an iBook 14" COMBO drive !!

i'm 26 now but i expect to do some hard time ala bernie ebbers before i reach 50

having a geek/hacker mentality like a lot of us, when dealing with financial stuff, not always a good thing

You can do both. I have. I bought my first stock when I was thirteen. Let's see now, that was in 1963! I've done real well at it because the only thing I invest in is the computer industry with a light dusting of related technologies.
post #32 of 64
Quote:
Originally posted by sunilraman
But then how come net profit was reported as $320 million when their cash reserve went up by $450 million ?

I haven't looked at their financial statements, and I'm more of a finance guy than an accounting guy by far (I'm a university business undergrad). Here are some potential answers to your question:

- Biggest single answer is that accounting profit/loss does not necessarily always lead to increase/decrease in cash. For example, there is something called amortization (depreciation), whereby you regularly expense the decreases in value of capital assets. This type of expense is a cashless expense.

The simplest example I can give is that if you buy a brand new car, it goes down in value over time, accounting standards dictate that this decrease in value be recognized over time (on a personal basis we just know that the car isn't worth as much, but usually don't bother to formally track this).

- Inventory may have dropped during the quarter. If you have $x in inventory, then sell it, your inventory valuations go down, and your cash is likely to go up. Of course this assumes that you don't have accounts payable (people you owe money to) and accounts receivable (people that owe you money), which leads us to:

- If someone owes you money (accounts payable) and they pay off some of their debt to you, your cash goes up, and your accounts payable goes down.

- A company can sell stock (shares) in their company, which would increase their cash position.

I won't provide any further examples of this, but just think about it like this: in the business world, profit and loss generally are not directly related to cash, i.e. $30 million profit does not directly mean an increase in cash of $30 million.
post #33 of 64
Quote:
Originally posted by Chagi
I haven't looked at their financial statements, and I'm more of a finance guy than an accounting guy by far (I'm a university business undergrad). Here are some potential answers to your question:

- Biggest single answer is that accounting profit/loss does not necessarily always lead to increase/decrease in cash. For example, there is something called amortization (depreciation), whereby you regularly expense the decreases in value of capital assets. This type of expense is a cashless expense.

The simplest example I can give is that if you buy a brand new car, it goes down in value over time, accounting standards dictate that this decrease in value be recognized over time (on a personal basis we just know that the car isn't worth as much, but usually don't bother to formally track this).

- Inventory may have dropped during the quarter. If you have $x in inventory, then sell it, your inventory valuations go down, and your cash is likely to go up. Of course this assumes that you don't have accounts payable (people you owe money to) and accounts receivable (people that owe you money), which leads us to:

- If someone owes you money (accounts payable) and they pay off some of their debt to you, your cash goes up, and your accounts payable goes down.

- A company can sell stock (shares) in their company, which would increase their cash position.

I won't provide any further examples of this, but just think about it like this: in the business world, profit and loss generally are not directly related to cash, i.e. $30 million profit does not directly mean an increase in cash of $30 million.

Very good. I might add that is after re-investment (R&D, etc)
post #34 of 64
Quote:
Originally posted by melgross
Very good. I might add that is after re-investment (R&D, etc)

Thanks, though I just read through it again and caught a boo-boo, it should have read as

- If someone owes you money (accounts receivable) and they pay off some of their debt to you, your cash goes up, and your accounts receivable goes down.
post #35 of 64
Quote:
Originally posted by Chagi
Thanks, though I just read through it again and caught a boo-boo, it should have read as

- If someone owes you money (accounts receivable) and they pay off some of their debt to you, your cash goes up, and your accounts receivable goes down.

I read by it too. I assumed that's what you meant.
post #36 of 64
Very nice quarterly report. I will tend to agree with the points brought up about Japan. I honestly think Apple won't be successful in Japan until they do a sub-notebook, or some other "super geeky high-end" product. Japan loves small things... wonder why?
post #37 of 64
Quote:
Originally posted by BeigeUser
If Japan wants to increase sales here, they need to make a special edition Powerbook (or iBook) with a brighter and glossy screen (The Japanese prefer glossy screens) [/B]


I don't like those glossy screens at all.

They feel cheap and candy coated. A cheesy attempt to add a cool feature.

Maybe its necessary when you have the dull graphics of Windows.
post #38 of 64
Quote:
Originally posted by scavanger
.... Japan loves small things... wonder why?

ouch...
post #39 of 64
Yea well.... everyone was thinking it.
post #40 of 64
Hey there's plenty of Mac heads in Japan - as far as I remember.
But it's true there was sub-notebooks on the scene there almost four years ago now. I had an internet phone 6 years ago. And the photo phones was 5 years ago I guess. I read somewhere there's 20 odd millions with video phones these days

Wasn't it they made a Japan only slightly, sub-PB3400(c) that was big success over there....

Moreover, it's a good testing ground for new products. As millions will buy new non-standard experimental electronics..

Cummon Apple Sub ibooks plz!

yatte kure!

--- Whoever said Japanese are small these days - should simply go there --- There's an equal number of grotesquely obese kids walking/waddling about as there is in the Apple motherland...
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