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

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  • Reply 81 of 109
    docno42docno42 Posts: 3,759member
    Quote:
    Originally Posted by anantksundaram View Post


    The substance of the matter is that it is a very well-researched topic in financial economics.



    Your not going to get anywhere with him. He sees no problem with large debt loads either



    I for one am extremely happy Apple is being fiscally conservative - and who knows what they have up their sleeve or in their long term planning. Who is anyone to question if they have more than enough cash for future expansion - we have no clue what they are planning nor where they are going.



    But arm chair quarterbacking on a fine Tuesday is great Internet sport!
  • Reply 82 of 109
    paulmjohnsonpaulmjohnson Posts: 1,380member
    Quote:
    Originally Posted by Dr Millmoss View Post


    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.



    I find myself wondering what Apple intend doing with this money if they are not planning to return some of it to shareholders. I'm quite happy to accept the idea that holding a nice cash pile is sensible, especially as we come through one of the worst economic downturns in history, but given they are adding to the cash pile at a rate of $4bn per quarter, how much is enough?



    Maybe they are planning on doing something with it (and I actually hope they are, given Apple's incredible ability to change ideas into great products), but doing something with $4bn (the amount they generate per quarter) is actually a pretty huge deal, so they could do some major things without actually going at the cash pile.



    What I'd love to see them do is start manufacturing their own stuff. I've been critical of suggestions in the past about Apple making their own chips but hell, a mega-fab is about $5bn so it's not beyond the realms of possibility, and given the problems they are having making enough stuff at the moment, you could imagine them wanting to take control of the supply chain themselves.



    Maybe they could buy ARM? Given they're designing their own chips now, owning the entire core could be attractive?



    The mind boggles at the thoughts of what they could do.
  • Reply 83 of 109
    docno42docno42 Posts: 3,759member
    Quote:
    Originally Posted by jragosta View Post


    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.



    Plus, they can use the Palm OS in Printers and other devices they have. I'm sure someone at HP had the idea of using an embedded iPod touch as a commoditized command and control device in their equipment, dramatically reducing support costs and standardizing their user interface and experience. Well, now they can do it with tech they own 100%.



    Quote:

    Whether it works out that way remains to be seen, but it's certainly a plausible strategy.



    I predict that HP will make more on their tablets than all the Android hardware producers combined. Sure, there may be more Android tablets shipping in volume, but as Apple has proven there is far more to success than pure volume or market share. It looks like someone at HP may be paying attention to Apple's success and decided they didn't want to get "Microsofted" with Android. I think your analysis is spot-on.
  • Reply 84 of 109
    docno42docno42 Posts: 3,759member
    Quote:
    Originally Posted by PaulMJohnson View Post


    What I'd love to see them do is start manufacturing their own stuff. I've been critical of suggestions in the past about Apple making their own chips but hell, a mega-fab is about $5bn so it's not beyond the realms of possibility, and given the problems they are having making enough stuff at the moment, you could imagine them wanting to take control of the supply chain themselves.



    Yes, but where? The US is too over regulated and hostile to manufacturing, and your stuff may just get nationalized if you invest a bunch in some place like China. Component shortages are now Apple's biggest enemy, not competitors. They simply can't produce products fast enough, and there is no indication it's going to change any time soon.



    Quote:

    The mind boggles at the thoughts of what they could do.



    Indeed!
  • Reply 85 of 109
    john galtjohn galt Posts: 960member
    Quote:
    Originally Posted by PaulMJohnson View Post


    Isn't economics amazing!



    It's capitalism that's amazing.
  • Reply 86 of 109
    SpamSandwichSpamSandwich Posts: 33,407member
    Quote:
    Originally Posted by monstrosity View Post


    Hooray! Higher please AAPL. I have a wedding to shell out for this year.



    Oh, that's a shame.
  • Reply 87 of 109
    SpamSandwichSpamSandwich Posts: 33,407member
    Quote:
    Originally Posted by Postulant View Post


    100 million iOS devices - Amazing!



    Yes, it's an astounding marketplace for devs. Absolutely incredible.
  • Reply 88 of 109
    SpamSandwichSpamSandwich Posts: 33,407member
    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.



    Well, that's not quite accurate. Skype, MagicJack, Ooma, and others have all already given us that choice. FaceTime, when implemented across devices outside the Apple product line AND on cell service, WiFi, WiMax and whatever else... then we will be free from the previous restraints to open communications everywhere.
  • Reply 89 of 109
    Quote:
    Originally Posted by Dr Millmoss View Post


    They've been building cash reserves at a rate of over $1b a month for several years now. Some seem to think it would be virtually criminal for Apple to give even some small fraction of that growing cash hoard back to the stockholders. Beats me why.



    Realistically it depends on what Apple has planned for its use. They may well have some large purchase they are saving for (like say some slowly devaluing property in the state of Washington *wink* jk!) or some leading edge technologies that they can't currently produce in-house (as they did with Fingerworks - for example).



    They may well be prepping for pushing the paradigm shift even further into technology. You just never know.



    Now if you want to unload those Apple shares of yours I'll cut you a deal to take them off your hands for a tiny loss, but the offer is only for a very short time....
  • Reply 90 of 109
    jfanningjfanning Posts: 3,398member
    Quote:
    Originally Posted by john galt View Post


    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.



    John Dvorak has stated he didn't that entire quote as given, people have added extra stuff to it
  • Reply 91 of 109
    The Mac thing is a stunning surprise!



    You'd think Apple became the iThing company and got out of the computer business altogether, but BAM! They sold more Macs than any quarter in history!



    Keep in mind Apple's taken maybe 10% of US market share and I think is still less than 5% internationally. I still think they have a lot of room to grow.
  • Reply 92 of 109
    paulmjohnsonpaulmjohnson Posts: 1,380member
    Quote:
    Originally Posted by DocNo42 View Post


    Yes, but where? The US is too over regulated and hostile to manufacturing, and your stuff may just get nationalized if you invest a bunch in some place like China. Component shortages are now Apple's biggest enemy, not competitors. They simply can't produce products fast enough, and there is no indication it's going to change any time soon.



    You know I'd have said the same about the likelihood of manufacturing in the US until a year ago, but in the past 12 months Global Foundries have announced a huge new fab in New York state and Samsung are dropping a lot of money expanding in Austin, Texas, so there is scope to do chip manufacture in the US.



    Whilst there are hurdles that don't exist elsewhere, but that has to be balanced by the fact that Americans are very productive. The Chinese may work for little money (though who knows how much longer that will last for) but if you hire three people to work in a Chinese fab vs. one in a US fab, the costs are not too much different.......
  • Reply 93 of 109
    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.



    I think if you look at PC sales over the last several years you see netbook sales stripping away regular PC sales - mostly desktops and of course the more expensive laptops. So you end up with a double hit as it were - you are not only NOT retaining PC sales at the higher price points, but you are getting a significant margin less from the netbook class as well. The unit sales are growing in PC sales due to increasing or incremental prosperity in developing countries where the standard of living increases, allowing more discretionary spending on things like electronics, but because there are netbooks to be had, the margins cramp down considerably.



    Apple on the other hand doesn't chose to join the race to the bottom, but keeps its margins intact by delivering to the higher end market segment, and guarding its profitability. In Apple's case slow growth is not only more sustainable, but it is desirable as well. Sharp increases in demand force ramp up and investment in manufacturing, but any subsequent market down-turn leaves the company with undepreciated overhead and excess staffing. Which depletes profitability.
  • Reply 94 of 109
    Quote:
    Originally Posted by drow View Post


    Congress took a break from considering other legislation today to pass a bill prohibiting patent trolls, the media, technoblog pundits, or deathgripping idiots from picking on Apple any more. "It's about the only gawdsdamned part of the US economy which is still working, and it's our job to protect that," said Congressman McNotsteve. "Jobs is our number one priority," added an aide, smugly.





    LMAO Thanks!
  • Reply 95 of 109
    Wow, and to think the only people who buy Apple products are idiots, uninformed, and most of all sheep. I am sure many other companies wish they had a sheep farm like Apple.
  • Reply 96 of 109
    paulmjohnsonpaulmjohnson Posts: 1,380member
    Quote:
    Originally Posted by mesomorphicman View Post


    Wow, and to think the only people who buy Apple products are idiots, uninformed, and most of all sheep. I am sure many other companies wish they had a sheep farm like Apple.



    Baaaaa
  • Reply 97 of 109
    melgrossmelgross Posts: 33,586member
    Quote:
    Originally Posted by brucep View Post


    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



    Apple has paid dividends before, and they can do so again. At some point, if their cash hoard continues to increase, and they don't seem to be using it, shareholder dissatisfaction will become so great, like it did with MS a few years back, that they will have to do something, like it or not.
  • Reply 98 of 109
    melgrossmelgross Posts: 33,586member
    Quote:
    Originally Posted by DocNo42 View Post


    Yes, but where? The US is too over regulated and hostile to manufacturing, and your stuff may just get nationalized if you invest a bunch in some place like China. Component shortages are now Apple's biggest enemy, not competitors. They simply can't produce products fast enough, and there is no indication it's going to change any time soon.







    Indeed!



    Let's get something straight about manufacturing in the US. It was only a month or two ago that China exceeded the US in manufacturing. The US was the largest manufacturing nation until then. The difference between us and the Chinese will remain small for a bit of time.



    What has happened is that most low value manufacturing moved there. Now most things are made there too. But plenty of things are still made here.
  • Reply 99 of 109
    melgrossmelgross Posts: 33,586member
    Quote:
    Originally Posted by jfanning View Post


    John Dvorak has stated he didn't that entire quote as given, people have added extra stuff to it



    What he said is that he didn't remember saying "new fangled". Therefor the last sentence is assumed to be incorrect. But it may not be. It certainly sounds like something he would say. Anyone who reads his columns would understand that. But if someone says they don't remember saying something, and it's not libelous or criminal in nature, the press will usually leave it out.
  • Reply 100 of 109
    davidwdavidw Posts: 2,083member
    Quote:
    Originally Posted by bluedalmatian View Post


    True, but that would only work if Macs weren't selling. But if sales are surging I would have expected the % usage share to surge too. Unless loads of people are buying Macs and not using them



    Not all Macs sold are to new users. I think only about 50% sold are to new users. And an increasing Mac sales is not the same as an increasing the actual installed market share for Mac.





    So a 30% increase in Mac sales (year to year) is 1M more Macs sold for Apple. Of which only 500,000 are to new users. And 500,000 new users only adds to the install base fractionally. And this is not the same as increasing their percentage of the Mac installed market share because PC's are still selling and adding to their installed market share.
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