Apple profits soar 77% on record sales of 3.47 million Macs

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  • Reply 61 of 109
    dr millmossdr millmoss Posts: 5,403member
    Quote:
    Originally Posted by melgross View Post


    So, what's next? $10 billion in disbursement would be a good amount. And I now am beginning to think a 1 to 2% dividend wouldn't hurt.



    That's far more than anything ever I've suggested. I suggested $1.00/share, for the first time maybe two years ago, and every quarter since.
  • Reply 62 of 109
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by Capnbob View Post


    PC sales are growing pretty fast overall too, primarily in the cheap netbook segments - look at the growth of ASUS and Acer - both massively outstripping Apple in units, share and growth rate. Obviously these are much lower revenue and margin items but in terms of getting new PC units out there into consumer hands, they both are doing a great job. While this low end is growing so fast, there is no way that Apple will see an appreciable increase in its share of units.



    Actually, they have been increasing share.



    Look at the reported PC growth rate for each of the past 20 quarters and the Mac growth rate. IIRC, Apple beat the rest of the market every quarter but one.



    For example, I believe the PC growth rate was 18% last quarter vs 33% for Apple. That means that Apple grew share.



    And even that underestimates Apple's position because netbooks are counted in the PC segment and the iPad is not. (whether that's right or not is open to question). If ANYONE bought iPads instead of netbooks, then Apple's reported growth rate should have been even higher.
  • Reply 63 of 109
    dr millmossdr millmoss Posts: 5,403member
    Quote:
    Originally Posted by TBell View Post


    It wasn't nonsense. Apple shouldn't provide a dividend currently. Doing so would be irresponsible. The reality is Apple is currently defending quite a few serious lawsuits. Some are asking for big dollars. Apple has to keep enough money around to weather any potential adverse judgements. Further, Apple wants to keep enough money around to snap up deals in this down economy and have enough money in the bank to weather a storm. Apple remembers what it is like to almost have to go out of business. The money in the bank is a security blanket and gives it a lot of freedom to take competitive chances it might not otherwise have to do.



    If the economy tanks in a way to effect Apple's business, or Apple stumbles, it has significant liability. Look at Gateway. If Apple had to reduce it's retail presence, it is subject to a heavy cost in terms of buying itself out of leases.



    Offering a dividend would do little to give value back to the average investor. It didn't do anything for Microsoft. The stock settled in and has had very little growth since then.



    As long as Apple is growing it's business, a dividend is unnecessary. I bought four hundred shares of Apple at 12 a share. It split twice. Apple has rewarded me quite well. A dividend is meaningless.



    The facts do no bear any of this out. As melgross noted, they could have bought Palm for a fraction of what they've got in the bank, but they passed. So what then? Apple and virtually every other company is faced with lawsuits, constantly. They don't have to hoard cash against them. Nobody does. And they hardly need almost $50b in cash to cushion a stumble. That would not be a stumble, it would be a coronary.



    Once again, I think some have a problem wrapping their minds around the magnitude of $50b.
  • Reply 64 of 109
    anantksundaramanantksundaram Posts: 20,407member
    Quote:
    Originally Posted by Dr Millmoss View Post


    I don't necessarily want to rehash this, but I think at some point it becomes incumbent on those who believe paying a dividend is a horrible thing to show how Apple could responsibly spend as much cash as they've accumulated on growing their business, which in the end, is the only issue that actually matters. And please, don't throw out vague apocalyptic scenarios for how they might need it when their business collapses.



    Every time the subject comes up, I also ask: how much is enough? A year ago, $45b was a theory -- now it's a reality. By this time next year, they could easily be parking $60b in the bank. Then what? Is the goal to reach $100b and call it a day?




    Normally, you're a very careful reader of what people write -- indeed, you often admonish people for not doing so with things you write -- and I'll give you the benefit of doubt. Perhaps, in your mad rush to shoot off an answer, you didn't really read what I wrote.



    Btw, one more thing. I have no disagreement with the notion that Apple could return a significant chunk. Please reread what I wrote.
  • Reply 65 of 109
    brucepbrucep Posts: 2,823member
    Quote:
    Originally Posted by Ochyming View Post


    As Gruber wrote FaceTime can free us all from the chains of providers of fixed telephony service, at least.



    great point



    >>>

    new apple stuff ??



    nano shoe phone



    >>>>



    every 1/4 has been red hot



    go apple



    9
  • Reply 66 of 109
    davegeedavegee Posts: 2,765member
    Quote:
    Originally Posted by Dr Millmoss View Post


    I wonder if it would have been worth that much to Apple. I suspect not, which is why they didn't go for it.



    Yep... My thoughts exactly... Why would Apple really WANT palm?



    - The patent pool ... Okay yes it would have a limited value I guess... 600m if the reports are true.



    - The OS ... Not a chance Apple would have no use for it.



    - Keeping the OS away from a competitor? Nope... Any SANE competitor who wanted to go up against Apple would just as soon get Android from google.



    Now if the reports of this were true... Google was only interested in PALM if they learned Apple was bidding big for it... Apple wasn't so Google stepped out leaving HP and ??? LG was it? Not that it mattered, HP was swinging for the fence and one the ..prize.. Well not exactly a prize but you get the idea.



    The billion dollar question is this.... WTF was HP thinking?!?!?!



    HP bigwig 1: let's go after the iPad in a BIG way!

    HP bigwig 2: YEA!!! Let's get a meeting with google to secure an android license!

    HP bigwig 1: NO I got a much better idea.... Let's buy PALM and see if we can't out market and out design both Apple AND Google!

    HP bigwig 2: Boy! Why didn't ..I.. think of that?

    HP bigwig 1: well I guess we now know why I'm bigwig 1, don't we?

    HP bigwig 2: We sure do...



    It's really comical to think about isn't it... HP with PALM OS in hand is actually going to go up against both Apple AND Google... Someone please tell me what those fine folks are smokin I could really go for a toke right about now.
  • Reply 67 of 109
    anantksundaramanantksundaram Posts: 20,407member
    Quote:
    Originally Posted by TBell View Post




    As long as Apple is growing it's business, a dividend is unnecessary.



    Growing its business profitably......
  • Reply 68 of 109
    john galtjohn galt Posts: 960member
    ...that it's so much fun to review the prognostications of the not-too-distant past!



    Apple should close its retail stores. After all, they didn't work for Gateway



    Apple should "pull the plug" on the iPhone. (A must read from my favorite blowhard. The whole thing is a pull quote.)



    Another fail from the Mayor of Blowhard



    "It's the Pippin all over again" ...what's a Pippin?



    Apple RIP ...from Forbes??? Sometimes even the smart ones get it wrong, apparently.



    Random quotes, from whom the authors are too embarrassed to leave the page up for public ridicule:



    "The iMac will only sell to some of the true believers. The iMac doesn’t include a floppy disk drive drive for doing file backups or sharing of data. ... The iMac will fail.

    - Hiawatha Bray, Boston Globe, 1998.



    "I'd shut [Apple] down and give the money back to the shareholders."

    - Michael Dell, October 1997



    “The biggest long-term problem with moving to an Apple platform is that the company is in decline."

    - Famous dunderhead Rob Enderle, in October 2003



    "Within the next two months, Sony will acquire Apple. … Sony will be the white knight who will step into the picture."

    - former Apple VP Dunderhead Gaston Bastiaens, January 1996.



    "[Apple] seems to have two options. The first is to break itself up, selling the hardware side. The second is to sell the company outright."

    - The Economist, February 1995



    And last but not least:



    "The Macintosh uses an experimental pointing device called a "mouse". There is no evidence that people want to use these things. I dont want one of these new fangled devices."

    - John C. Dvorak, 1984, proving that even dunderhead predictions are occasionally proven right, if you wait long enough. In this case... 26 years.



    Enjoy.
  • Reply 69 of 109
    melgrossmelgross Posts: 33,586member
    Quote:
    Originally Posted by JimDreamworx View Post


    Who is "they?" Apple?



    Apple.
  • Reply 70 of 109
    melgrossmelgross Posts: 33,586member
    Quote:
    Originally Posted by TBell View Post


    It wasn't nonsense. Apple shouldn't provide a dividend currently. Doing so would be irresponsible. The reality is Apple is currently defending quite a few serious lawsuits. Some are asking for big dollars. Apple has to keep enough money around to weather any potential adverse judgements. Further, Apple wants to keep enough money around to snap up deals in this down economy and have enough money in the bank to weather a storm. Apple remembers what it is like to almost have to go out of business. The money in the bank is a security blanket and gives it a lot of freedom to take competitive chances it might not otherwise have to do.



    If the economy tanks in a way to effect Apple's business, or Apple stumbles, it has significant liability. Look at Gateway. If Apple had to reduce it's retail presence, it is subject to a heavy cost in terms of buying itself out of leases.



    Offering a dividend would do little to give value back to the average investor. It didn't do anything for Microsoft. The stock settled in and has had very little growth since then.



    As long as Apple is growing it's business, a dividend is unnecessary. I bought four hundred shares of Apple at 12 a share. It split twice. Apple has rewarded me quite well. A dividend is meaningless.



    Most of these lawsuits come to nothing. The rest won't use much of Apple's cash. No matter what, altogether even if they lost some of the big ones, we're talking a billion at most. Means nothing. MS loses suits like thisall the time, and still generates far more cash than it loses.



    Gateway is a terrible example. They made every mistake they could possibly make.
  • Reply 71 of 109
    melgrossmelgross Posts: 33,586member
    Quote:
    Originally Posted by Dr Millmoss View Post


    That's far more than anything ever I've suggested. I suggested $1.00/share, for the first time maybe two years ago, and every quarter since.



    I'm looking at the cash influx vs the number of shares. Less than a billion shares vs a billion of new cash per month which will likely increase on average as Apple continues to grow.



    This year Apple will be about $60 billion. Next year, $80 billion, the year after that, likely at least $100 billion. How much cash will they generate then? 2% (per year, of course) of current stock numbers won't seem like much.
  • Reply 72 of 109
    brucepbrucep Posts: 2,823member
    the numbers should kill some trolls dead

    >>



    Apple?s Mac unit sales increased 33% year over year to 3.47 million units, well ahead of IDC?s numbers for the overall PC market, which grew 22% year-over-year.

    Apple wasn?t specific, but said that both desktop and laptop Mac sales beat the overall market.

    iPod touch sales 48% year over year

    iPod revenue grew 4%, even while unit sales decreased 8%.

    iTunes sales up 25% to more than $1 billion

    There are now 225,000 Apps on the App Store

    That includes 11,000 iPad-specific apps

    There have been 5 billion app downloads

    iPhone unit sales great 61% year-over-year to 8.41 million, well ahead of IDC?s latest estimates of 38% global smartphone sales growth.

    Apple has now sold 100 million iOS devices

    Apple?s average selling price (ASP) for the iPad was $640 for the June quarter, with $2.1 billion in total sales

    Apple Store (brick and mortar) saw record revenue, with each store averaging $9 million. Total Apple Store sales were up 73% year-over-year

    Apple Stores sold 677,000 Macs, which was up 38%. Apple claims that half of those sales went to new Mac users

    Apple has 293 Apple Stores open around the world

    Apple is budgeting $175 million for the iPhone case giveaway the company announced in response to ?Antennagate? ? this money will be accounted for during the September quarter

    Apple COO Tim Cook said that iPhones have been deployed or are being tested in 80% of the Fortune 100 companies, and some 60% of Fortune 500 companies

    50% of the Fortune 100 are already testing or have deployed the iPad (See TMO?s full coverage for more information).

    Apple saw 73% growth in Mac sales in the Asia-Pacific region. This includes 144% growth in China, 184% in Korea, and not quite 100% growth in Hong Kong

    Spain saw 59% year-over-year growth
  • Reply 73 of 109
    jragostajragosta Posts: 10,473member
    Quote:
    Originally Posted by macshark View Post


    '



    Isn't it kind of ironic to see AAPL in a position where they can buy Nokia for cash?



    Or Adobe.



    Quote:
    Originally Posted by DaveGee View Post


    The billion dollar question is this.... WTF was HP thinking?!?!?!



    HP bigwig 1: let's go after the iPad in a BIG way!

    HP bigwig 2: YEA!!! Let's get a meeting with google to secure an android license!

    HP bigwig 1: NO I got a much better idea.... Let's buy PALM and see if we can't out market and out design both Apple AND Google!

    HP bigwig 2: Boy! Why didn't ..I.. think of that?

    HP bigwig 1: well I guess we now know why I'm bigwig 1, don't we?

    HP bigwig 2: We sure do...



    It's really comical to think about isn't it... HP with PALM OS in hand is actually going to go up against both Apple AND Google... Someone please tell me what those fine folks are smokin I could really go for a toke right about now.



    Actually, it wasn't a bad move for HP. They would like to make a product to compete with the iPad (maybe the iPhone and iPod, as well, but that's less clear). Clearly, Windows wasn't going to cut it for all sorts of reasons. That leaves them the choice of PalmOS or Android.



    If they are selling Android systems, they really can't innovate all that much - so it comes down largely to a price war. Margins would always be squeezed. If they use PalmOS, they have something proprietary - with all its strengths and weaknesses. There will be some people who just dislike Android for any number of reasons (fragmentation being a major one). Therefore, HP has a good chance of getting its own fan base - and the ability to profit from it. Chances are that their margins will be higher than if they used Android because they won't be competing with every Tom, Dick, and Harry in the business.



    Whether it works out that way remains to be seen, but it's certainly a plausible strategy.
  • Reply 74 of 109
    melgrossmelgross Posts: 33,586member
    Quote:
    Originally Posted by DaveGee View Post


    Yep... My thoughts exactly... Why would Apple really WANT palm?



    - The patent pool ... Okay yes it would have a limited value I guess... 600m if the reports are true.



    - The OS ... Not a chance Apple would have no use for it.



    - Keeping the OS away from a competitor? Nope... Any SANE competitor who wanted to go up against Apple would just as soon get Android from google.



    Now if the reports of this were true... Google was only interested in PALM if they learned Apple was bidding big for it... Apple wasn't so Google stepped out leaving HP and ??? LG was it? Not that it mattered, HP was swinging for the fence and one the ..prize.. Well not exactly a prize but you get the idea.



    The billion dollar question is this.... WTF was HP thinking?!?!?!



    HP bigwig 1: let's go after the iPad in a BIG way!

    HP bigwig 2: YEA!!! Let's get a meeting with google to secure an android license!

    HP bigwig 1: NO I got a much better idea.... Let's buy PALM and see if we can't out market and out design both Apple AND Google!

    HP bigwig 2: Boy! Why didn't ..I.. think of that?

    HP bigwig 1: well I guess we now know why I'm bigwig 1, don't we?

    HP bigwig 2: We sure do...



    It's really comical to think about isn't it... HP with PALM OS in hand is actually going to go up against both Apple AND Google... Someone please tell me what those fine folks are smokin I could really go for a toke right about now.



    I don't think you're looking at this in the right frame of mind. The patents aren't just worth what they are as patents in the sense that Apple would need, or want most of them. They are a hedge against other companies lawsuits against apple.



    It's been said that the reason Apple didn't sue Palm and now Google and others over multitouch was because Palm had patents Apple was infringing, and so it would have been a messy lawsuit. This is likely true.



    Companies dance around each other over IP rights. Generally they all have patents that others are using, but they stay away from lawsuits unless what is happening is affecting their sales more than the other guys. If one company gains a majority of patents in any one area, it acts as a wall other companies can't leap over. Then they have to be careful.



    I would never count Hp out of this. Hp is an old line computer company with a vast amount of IP in the mini computer business, the workstation business, and a number of other sophisticated areas. They have the money Palm never had. They can take WebOS and make something of it. They have the knowledge. Before Windows, Hp had their own desktop software that was considered to be the best in the business. They aren't stupid.



    This has to worry Microsoft.
  • Reply 75 of 109
    john galtjohn galt Posts: 960member
    Quote:
    Originally Posted by TBell View Post


    ... It didn't do anything for Microsoft. The stock settled in and has had very little growth since then.



    True, if your definition of "very little growth" is "zero"



    MSFT has hefty corporate licensing fees and gets about $50 for every computer sold. It's not a growth company and has more in common with a utility than a technological innovator like Apple.



    Here's a weird one though... FDGFX's largest holding is... AAPL. Everyone loves a winner.
  • Reply 76 of 109
    brucepbrucep Posts: 2,823member
    Quote:
    Originally Posted by melgross View Post


    Most of these lawsuits come to nothing. The rest won't use much of Apple's cash. No matter what, altogether even if they lost some of the big ones, we're talking a billion at most. Means nothing. MS loses suits like thisall the time, and still generates far more cash than it loses.



    Gateway is a terrible example. They made every mistake they could possibly make.



    ms stock has froze for yrs



    MS is the worst run company on the planet considering what they could be doing OR COULD HAVE DONE

    ie

    Apple stepped in and now sells over % 70 of its product to wintel owners

    or non mac owners .



    Apple sold over 8bn this qt to msft branded people.



    Apple ipad is a msft to -macOS under the radar conversion marvel.



    3/4 of all apple itunes ipod ipad iphone itouch is written to sync with msft computers.





    Apple is in effect a msft company .



    Balmer just sat their holding onto his two monopolie;s and simply let the world pass him by . he saw the first ipod and wondered i guess.

    hmm how nice they sync with all my machines



    Anyway thats why apple will never pay a dividend >>> I think.....



    . 50bn in THE bank makes apples real share price $210 per



    rant is over



    9
  • Reply 77 of 109
    brucepbrucep Posts: 2,823member
    Quote:
    Originally Posted by jragosta View Post


    Or Adobe.








    or

    EA
  • Reply 78 of 109
    paulmjohnsonpaulmjohnson Posts: 1,380member
    Quote:
    Originally Posted by anakin1992 View Post


    the more apple sells, the faster internet is needed, and the more advanced equipments are needed. this is definitely bearing good for many tech companies. this is simply amazing.



    Yep, the company I work for sells equipment to semiconductor manufacturers, and the more stuff Apple sells, the more advanced fabs are needed, the better we do, the more I'm paid and the more Apple gear I can buy.



    Isn't economics amazing!
  • Reply 79 of 109
    docno42docno42 Posts: 3,759member
    Quote:
    Originally Posted by depannist View Post


    I wonder if there really will be new products or just new versions of existing products, i.e. iPod Touch refresh, etc.



    I expect the eventual release of desktops and laptops with the iOS on them- perhaps sooner than I expected?



    Then there is the whole Apple TV "hole" that is yet to be plugged.



    And a hopeful competitor to Microsoft's Windows Home Server.



    Then again, Apple could get back into camera's or some other unexpected direction. Whatever it is, it will compliment their exiting ensemble of products but I can't think of anything else.
  • Reply 80 of 109
    docno42docno42 Posts: 3,759member
    Quote:
    Originally Posted by Capnbob View Post


    there is no way that Apple will see an appreciable increase in its share of units.



    And I sincerly doubt Apple or Steve Jobs is concerned in the least. Everyone else can focus on market share and unit volume, I'm happy that Apple focuses on turning out a product with a premium user experience that leads to people being willing to buy a premium product that leads to premium products.



    Seems like a much more viable strategy - make a good product that people want to use and market share and profit take care of themselves
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