Analysts expect gross margins to remain in the 42% range and for phone shipments to also stay in the 14 million range. We’ll see.
Apple did 14.1 million iPhone units last quarter. Sure, it was their first full quarter for the new handset, but they’ve sold more units in the subsequent holiday quarter in 2 out of 3 release cycles.
edit: Interesting. 14.2 million unit shipments which just beats out Apple’s 14.1 million in unit sales. Overall their profit margin is healthy and slightly higher than last year. Not bad, but I don’t think it’s enough to convince investors you have a plan for fixing their “sinking ship” just that they have talented, fat fingers to slow it down considerably. They need QNX to work.
Analysts expect gross margins to remain in the 42% range and for phone shipments to also stay in the 14 million range. We?ll see.
Apple did 14.1 million iPhone units last quarter. Sure, it was their first full quarter for the new handset, but they?ve sold more units in the subsequent holiday quarter in 2 out of 3 release cycles.
edit: Interesting. 14.2 million unit shipments which just beats out Apple?s 14.1 million in unit sales. Overall their profit margin is healthy and slightly higher than last year. Not bad, but I don?t think it?s enough to convince investors you have a plan for fixing their ?sinking ship? just that they have talented, fat fingers to slow it down considerably. They need QNX to work.
Apple also uses the word "shipment" in the actual SEC footnotes.
Analysts expect gross margins to remain in the 42% range and for phone shipments to also stay in the 14 million range. We?ll see.
Apple did 14.1 million iPhone units last quarter. Sure, it was their first full quarter for the new handset, but they?ve sold more units in the subsequent holiday quarter in 2 out of 3 release cycles.
edit: Interesting. 14.2 million unit shipments which just beats out Apple?s 14.1 million in unit sales. Overall their profit margin is healthy and slightly higher than last year. Not bad, but I don?t think it?s enough to convince investors you have a plan for fixing their ?sinking ship? just that they have talented, fat fingers to slow it down considerably. They need QNX to work.
The live blog for RIMM and Oracle is here, if it works;
They don't lock the cameras out on MacBooks for schools, so why should this be a problem here?
Good point. If they aren’t going disallow notebooks with cameras then why would they care about tablets with cameras? Plus phones typically have cameras are easily concealed. It’s not like they can’t remove drivers, apps in Mac OS X and lock down either Apple OS as needed if it is an issue.
I don't believe it. It's only a rumor they ramped to three million a month. No more than that. This is a rumor as well. I can tell you from the view of someone who was a partner in a manufacturing company that you don't ramp up that much, and then ramp down that much. You try to build inventory up over time before the heavy sales period without ramping up much. Ramping up costs a lot of money, and usually involves more production lines. It then costs a lot to ramp back down. apple, like most other companies, builds inventory up over time, before release.
I understand that logic, but I never said I believed it or stated anything as fact. Just said even if rumors are true of 6 million/month, doesn't automatically mean they're hoping to make and sell 72 million next year as a few people seem to equate that to mean.
I also said it was only reported that they upped production to 3 million a month and based on that, we can only expect 8 million at the most this holiday quarter. (Of course, there's always the possibility that production was higher than that, but not likely.)
Lastly, the only real numbers we can believe are those Apple discloses during its quarterly conference calls; everything up to that point is purely conjecture.
Personally, I couldn't care any less how many they sold or plan on making and selling, I got mine and love it!
I think you are on the right track, applebaum. If I had my guess, Jobs wants the ipad to be the cheap handle to the expensive razorblades. Or Kodak's Brownie, cheap camera means lots of repeat business in film and processing. The ipads like the Kodak Brownie or the Glillet disposable razor.
Jobs wants us to consume Software and Services on our Ipad 2. The money is not in the Ipad, its in its media consuming appetite.
Thats my guess.
Bingo. That is what the new Carolina Cloud is for. Its to support this base of media consuming iproduct. What a cash stream. And internationally applicable.
I understand that logic, but I never said I believed it or stated anything as fact. Just said even if rumors are true of 6 million/month, doesn't automatically mean they're hoping to make and sell 72 million next year as a few people seem to equate that to mean.
I also said it was only reported that they upped production to 3 million a month and based on that, we can only expect 8 million at the most this holiday quarter. (Of course, there's always the possibility that production was higher than that, but not likely.)
Lastly, the only real numbers we can believe are those Apple discloses during its quarterly conference calls; everything up to that point is purely conjecture.
Personally, I couldn't care any less how many they sold or plan on making and selling, I got mine and love it!
Net sales consist primarily of revenue from the sale of hardware, software, digital content and applications, peripherals, and service and support contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company?s product sales, these criteria are met at the time the product is shipped. For online sales to individuals, for some sales to education customers in the U.S., and for certain other sales, the Company defers revenue until the customer receives the product because the Company legally retains a portion of the risk of loss on these sales during transit. The Company recognizes revenue from the sale of hardware products (e.g., Macs, iPhones, iPads, iPods and peripherals), software bundled with hardware that is essential to the functionality of the hardware, and third-party digital content sold on the iTunes Store in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for the following types of sales transactions: (i) standalone sales of software products, (ii) sales of software upgrades and (iii) sales of software bundled with hardware not essential to the functionality of the hardware.
From what I've read, the $499 iPad parts costs are roughly $230, with major component costs
-- $80 Display
-- $30 SSD
-- $20 A4
-- $10 Case
If we assume that Apple's economies of scale have improved, manufacturing and yields have improved, and aggressive pre-orders/pre-payments and investments in mfg's plants -- I suspect that, say, 3 mm units per month the current $499 iPad could be manufactured for, let's say $150-$170.
If they could hit the $150 cost, then a sell price of $199 would yield 25%; $229 would yield 35% Gross Profit... not the best, but certainly acceptable.
There are several additional things that could be done:
-- Other A4/SSD based products (web server, home server) to further reduce overall parts costs across several product lines
-- Bundling with higher profit apps, content, subscriptions and accessories
-- iPad carrier subsidies - say, $25 per unit for the base iPad
-- Tethering plans
-- special direct sales to education / enterprise
-- Special promotions
In the special promotions I would suggest that they target the OLPC project with an iPad -- Buy 1, Give one, and offer the iPad at cost to participating countries/communities -- lots of workable possibilities here. BTW, some of those communities are in US and Europe.
I find it interesting that when discuss cost you looked at the major component costs of hardware but didn't have anything in the mix for the software (iOS) which is a major cost (amortized across product lines and time). Putting in these component costs but nothing for software and manufacturing is a huge over site IMHO.
Just my thoughts - could be I don't understand manufacture of a hard product (as opposed to software) since I have spent my career in software engineering (and as a civil engr b4 that in my first life).
I find it interesting that when discuss cost you looked at the major component costs of hardware but didn't have anything in the mix for the software (iOS) which is a major cost (amortized across product lines and time). Putting in these component costs but nothing for software and manufacturing is a huge over site IMHO.
Just my thoughts - could be I don't understand manufacture of a hard product (as opposed to software) since I have spent my career in software engineering (and as a civil engr b4 that in my first life).
Sure, it needs to be counted in the total cost, but I don?t think it?s a very much. Just look at Mac OS and how many units and types of units they used to sell and still sell. Then note the nature of that device being able to have various 3rd-party HW and SW that needs to be tested for. iOS is a single new model each year for the iPad, iPhone and iPod Touch (not sure about the AppleTV?s HW update cycle), which are all fairly similar in many of the HW areas, and it?s much more limited in scope of what can diverge due to user interaction due to the closed HW and SW system. On top of that, they sell 6x(?) as many iOS-based devices as Macs.
To put another way, since it?s release in June aren?t they year of use aren?t they slated to sell over 100M iOS-based devices? If they spent $100M on SW for iOS in total that would be $1 per unit, right?
Comments
I hope it is true.
As a share holder I had to run to the bathroom
Bathroom....is there such a thing as an iPOT......you must be flush with excitement.
RIMM Earnings call today!
OT:
RIMM Earnings call today!
This should be good. What time PT?
This should be good. What time PT?
Now?
http://www.businessinsider.com/rim-e...alysis-2010-12
Edit:
https://pennies.interactivebrokers.c...01216.nMKW841a
Now?
http://www.businessinsider.com/rim-e...alysis-2010-12
Analysts expect gross margins to remain in the 42% range and for phone shipments to also stay in the 14 million range. We’ll see.
Apple did 14.1 million iPhone units last quarter. Sure, it was their first full quarter for the new handset, but they’ve sold more units in the subsequent holiday quarter in 2 out of 3 release cycles.
edit: Interesting. 14.2 million unit shipments which just beats out Apple’s 14.1 million in unit sales. Overall their profit margin is healthy and slightly higher than last year. Not bad, but I don’t think it’s enough to convince investors you have a plan for fixing their “sinking ship” just that they have talented, fat fingers to slow it down considerably. They need QNX to work.
Analysts expect gross margins to remain in the 42% range and for phone shipments to also stay in the 14 million range. We?ll see.
Apple did 14.1 million iPhone units last quarter. Sure, it was their first full quarter for the new handset, but they?ve sold more units in the subsequent holiday quarter in 2 out of 3 release cycles.
edit: Interesting. 14.2 million unit shipments which just beats out Apple?s 14.1 million in unit sales. Overall their profit margin is healthy and slightly higher than last year. Not bad, but I don?t think it?s enough to convince investors you have a plan for fixing their ?sinking ship? just that they have talented, fat fingers to slow it down considerably. They need QNX to work.
Apple also uses the word "shipment" in the actual SEC footnotes.
Any school that has iPads for kids to use should be using profiles to lock them down.
They don't lock the cameras out on MacBooks for schools, so why should this be a problem here?
They don't lock the cameras out on MacBooks for schools, so why should this be a problem here?
Was that about schools secretly turning on the camera to take pictures of "missing" laptops?
Analysts expect gross margins to remain in the 42% range and for phone shipments to also stay in the 14 million range. We?ll see.
Apple did 14.1 million iPhone units last quarter. Sure, it was their first full quarter for the new handset, but they?ve sold more units in the subsequent holiday quarter in 2 out of 3 release cycles.
edit: Interesting. 14.2 million unit shipments which just beats out Apple?s 14.1 million in unit sales. Overall their profit margin is healthy and slightly higher than last year. Not bad, but I don?t think it?s enough to convince investors you have a plan for fixing their ?sinking ship? just that they have talented, fat fingers to slow it down considerably. They need QNX to work.
The live blog for RIMM and Oracle is here, if it works;
http://www.thestreet.com/story/10949...ed&cm_ite=Feed
Apple also uses the word "shipment" in the actual SEC footnotes.
During the conference call, Cook said "sold".
Was that about schools secretly turning on the camera to take pictures of "missing" laptops?
Whatever. I doubt Dell is delivering them without the camera either.
During the conference call, Cook said "sold".
They also start every conference call with legalese that will tell you to look at the actual SEC filings.
They don't lock the cameras out on MacBooks for schools, so why should this be a problem here?
Good point. If they aren’t going disallow notebooks with cameras then why would they care about tablets with cameras? Plus phones typically have cameras are easily concealed. It’s not like they can’t remove drivers, apps in Mac OS X and lock down either Apple OS as needed if it is an issue.
I don't believe it. It's only a rumor they ramped to three million a month. No more than that. This is a rumor as well. I can tell you from the view of someone who was a partner in a manufacturing company that you don't ramp up that much, and then ramp down that much. You try to build inventory up over time before the heavy sales period without ramping up much. Ramping up costs a lot of money, and usually involves more production lines. It then costs a lot to ramp back down. apple, like most other companies, builds inventory up over time, before release.
I understand that logic, but I never said I believed it or stated anything as fact. Just said even if rumors are true of 6 million/month, doesn't automatically mean they're hoping to make and sell 72 million next year as a few people seem to equate that to mean.
I also said it was only reported that they upped production to 3 million a month and based on that, we can only expect 8 million at the most this holiday quarter. (Of course, there's always the possibility that production was higher than that, but not likely.)
Lastly, the only real numbers we can believe are those Apple discloses during its quarterly conference calls; everything up to that point is purely conjecture.
Personally, I couldn't care any less how many they sold or plan on making and selling, I got mine and love it!
Jobs wants us to consume Software and Services on our Ipad 2. The money is not in the Ipad, its in its media consuming appetite.
Thats my guess.
Bingo. That is what the new Carolina Cloud is for. Its to support this base of media consuming iproduct. What a cash stream. And internationally applicable.
They also start every conference call with legalese that will tell you to look at the actual SEC filings.
They all say that. It just happens to match
I understand that logic, but I never said I believed it or stated anything as fact. Just said even if rumors are true of 6 million/month, doesn't automatically mean they're hoping to make and sell 72 million next year as a few people seem to equate that to mean.
I also said it was only reported that they upped production to 3 million a month and based on that, we can only expect 8 million at the most this holiday quarter. (Of course, there's always the possibility that production was higher than that, but not likely.)
Lastly, the only real numbers we can believe are those Apple discloses during its quarterly conference calls; everything up to that point is purely conjecture.
Personally, I couldn't care any less how many they sold or plan on making and selling, I got mine and love it!
I'm just responding to what you said.
They all say that. It just happens to match
They all say that because it's true.
From Apple's 10K (http://www.apple.com/investor/)
Revenue Recognition
Net sales consist primarily of revenue from the sale of hardware, software, digital content and applications, peripherals, and service and support contracts. The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company?s product sales, these criteria are met at the time the product is shipped. For online sales to individuals, for some sales to education customers in the U.S., and for certain other sales, the Company defers revenue until the customer receives the product because the Company legally retains a portion of the risk of loss on these sales during transit. The Company recognizes revenue from the sale of hardware products (e.g., Macs, iPhones, iPads, iPods and peripherals), software bundled with hardware that is essential to the functionality of the hardware, and third-party digital content sold on the iTunes Store in accordance with general revenue recognition accounting guidance. The Company recognizes revenue in accordance with industry specific software accounting guidance for the following types of sales transactions: (i) standalone sales of software products, (ii) sales of software upgrades and (iii) sales of software bundled with hardware not essential to the functionality of the hardware.
Here's an interesting speculation:
http://finance.yahoo.com/news/Is-The....html?x=0&.v=1
From what I've read, the $499 iPad parts costs are roughly $230, with major component costs
-- $80 Display
-- $30 SSD
-- $20 A4
-- $10 Case
If we assume that Apple's economies of scale have improved, manufacturing and yields have improved, and aggressive pre-orders/pre-payments and investments in mfg's plants -- I suspect that, say, 3 mm units per month the current $499 iPad could be manufactured for, let's say $150-$170.
If they could hit the $150 cost, then a sell price of $199 would yield 25%; $229 would yield 35% Gross Profit... not the best, but certainly acceptable.
There are several additional things that could be done:
-- Other A4/SSD based products (web server, home server) to further reduce overall parts costs across several product lines
-- Bundling with higher profit apps, content, subscriptions and accessories
-- iPad carrier subsidies - say, $25 per unit for the base iPad
-- Tethering plans
-- special direct sales to education / enterprise
-- Special promotions
In the special promotions I would suggest that they target the OLPC project with an iPad -- Buy 1, Give one, and offer the iPad at cost to participating countries/communities -- lots of workable possibilities here. BTW, some of those communities are in US and Europe.
I find it interesting that when discuss cost you looked at the major component costs of hardware but didn't have anything in the mix for the software (iOS) which is a major cost (amortized across product lines and time). Putting in these component costs but nothing for software and manufacturing is a huge over site IMHO.
Just my thoughts - could be I don't understand manufacture of a hard product (as opposed to software) since I have spent my career in software engineering (and as a civil engr b4 that in my first life).
I find it interesting that when discuss cost you looked at the major component costs of hardware but didn't have anything in the mix for the software (iOS) which is a major cost (amortized across product lines and time). Putting in these component costs but nothing for software and manufacturing is a huge over site IMHO.
Just my thoughts - could be I don't understand manufacture of a hard product (as opposed to software) since I have spent my career in software engineering (and as a civil engr b4 that in my first life).
Sure, it needs to be counted in the total cost, but I don?t think it?s a very much. Just look at Mac OS and how many units and types of units they used to sell and still sell. Then note the nature of that device being able to have various 3rd-party HW and SW that needs to be tested for. iOS is a single new model each year for the iPad, iPhone and iPod Touch (not sure about the AppleTV?s HW update cycle), which are all fairly similar in many of the HW areas, and it?s much more limited in scope of what can diverge due to user interaction due to the closed HW and SW system. On top of that, they sell 6x(?) as many iOS-based devices as Macs.
To put another way, since it?s release in June aren?t they year of use aren?t they slated to sell over 100M iOS-based devices? If they spent $100M on SW for iOS in total that would be $1 per unit, right?