Notes of interest from Apple's Q2 2011 conference call

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Comments

  • Reply 21 of 67
    Quote:
    Originally Posted by jmkaza View Post


    He didn't say there was no issue with supply, he just said that the disaster in Japan didn't impact the supply.





    What Cook said was that its not easy to ramp up production of a new product and ramp down production of the existing product in the short period of time they had in Q2. There was no mention of the various analysts' estimates ( obviously poorly estimated) of Ipad2 sales for Q2. The takeaway to me was clearly that they are producing many more now, with no component access issues and with "the mother of all back orders" on the Ipad 2, they are doing the best they can now to increase production and have demand/supply reach the desired equilibrium.



    As a very long time Apple product user and investor, I couldn't have asked for a more articulate and clearly stated presentation and Q&A session than what was just given by Cook and Opp. this afternoon.



    If the US/state governments ran with 10% of the productivity and efficiency that Apple

    did, this country would be in a far, far better situation than we currently are in.
  • Reply 22 of 67
    gatorguygatorguy Posts: 24,388member
    According to someone a few posts up Apple indicated they didn't expect the demand, thus they didn't have enough product. Disruptions in the supply chain weren't an issue.



    That's still an odd comment IMO. . .
  • Reply 23 of 67
    addaboxaddabox Posts: 12,665member
    Quote:
    Originally Posted by Gatorguy View Post


    According to someone a few posts up Apple indicated they didn't expect the demand, thus they didn't have enough product. Disruptions in the supply chain weren't an issue.



    That's still an odd comment IMO. . .



    Why? He addressed concerns about supply chain disruptions from Japan by mentioning contingency plans and stated that Japan hadn't, to date, had any material impact on supply. He also said that they hadn't been able to make iPads fast enough to meet demand and that that was an artifact of product transition-- drawing down iPad 1 inventory while trying to ramp up iPad 2 production in the face of massive demand.



    Not seeing any oddness.
  • Reply 24 of 67
    cvaldes1831cvaldes1831 Posts: 1,832member
    Quote:
    Originally Posted by OriginalMacRat View Post


    Apple should buy T-Mobile.



    No, Apple considers mobile operators to be dumb pipes, nothing more.



    They don't fit Apple's business model of making scads of money of hardware sales. There is very little value-add to what Apple considers a utility.
  • Reply 25 of 67
    mdriftmeyermdriftmeyer Posts: 7,503member
    It must be difficult for some people to realize that the explosive growth in the iPhone was putting a strain on panel materials.



    The development of several new plants will alleviate this concern and allow for the flood gates to fully open up for the iPad 2 and beyond.
  • Reply 26 of 67
    rot'napplerot'napple Posts: 1,839member
    Quote:
    Originally Posted by AppleInsider View Post


    Apple's retail business



    In the coming days, Apple will host its 1 billionth retail visitor.



    Time for Apple to raise some Golden Arches, er, I mean Apples... Golden Delicious I think...







    Quote:

    Projected gross margin of 41.4 percent. Expect the tax rate to be about 25 percent.



    Only one quarter tax rate for such a rich company like Apple that is doing so well. Time for Obama to spring into action and confiscate, er, take, er, tax, er, reinvest a lot more of that money for those he deems deserving. Watch out, the dude is one bad apple, Apple...

    /

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  • Reply 27 of 67
    mdriftmeyermdriftmeyer Posts: 7,503member
    Quote:
    Originally Posted by cvaldes1831 View Post


    No, Apple considers mobile operators to be dumb pipes, nothing more.



    They don't fit Apple's business model of making scads of money of hardware sales. There is very little value-add to what Apple considers a utility.



    Apple is correct.
  • Reply 28 of 67
    gatorguygatorguy Posts: 24,388member
    You're of course probably right. Apple simply didn't expect much demand for the new iPad at launch. Their uncharacteristic silence about iPad2 sales numbers till now had added to my initial skepticism that there was adequate stock at launch to meet their anticipated demand.



    All is good.
  • Reply 29 of 67
    Quote:
    Originally Posted by Rot'nApple View Post




    Only one quarter tax rate for such a rich company like Apple that is doing so well. Time for Obama to spring into action and confiscate, er, take, er, tax, er, reinvest a lot more of that money for those he deems deserving. Watch out, the dude is one bad apple, Apple...

    /

    /

    /



    Effective tax rate is much lower than that.
  • Reply 30 of 67
    Quote:
    Originally Posted by quinney View Post


    The fact that Apple can not manufacture enough

    iPads to keep up with demand indicates that the sales were not below their own estimates.



    The conf call alluded to the fact that numbers were low as they drained the iPad1 reserves and ramped up the iPad2s...



    they also said that they still can't keep up with demand where they would like to (they'd like to have 4-8 weeks of inventory in the pipe... they have less than 4 now).



    They sell everyone they are making... which means they underestimated demand, and are taking a hit on short term sales.
  • Reply 31 of 67
    peter236peter236 Posts: 254member
    When they say China sales of $5 billion is 10% of Apple, I don't quite get it. Their total sales is $24.67 billion for the quarter.
  • Reply 32 of 67
    postulantpostulant Posts: 1,272member
    Quote:
    Originally Posted by Gatorguy View Post


    You're of course probably right. Apple simply didn't expect much demand for the new iPad at launch. Their uncharacteristic silence about iPad2 sales numbers till now had added to my initial skepticism that there was adequate stock at launch to meet their anticipated demand.



    All is good.



    The iPad2 launched on March 10th and the fiscal quarter ended March 26th - think about it!
  • Reply 33 of 67
    asdasdasdasd Posts: 5,686member
    Quote:
    Originally Posted by cvaldes1831 View Post


    Correct.



    The iPad 2 was on sale for the last two weeks of Q2 to one market. There was very little supply in bricks-and-mortars stores (in Apple's own retail stores as well as third-party stores). They didn't charge shipping orders for about a week, so they really only booked about a week's worth of online sales.



    It was more than one market by the end of the quarter - but you're right in general. How people though that Apple would beat the december Q given the release was so limited is beyond moi.
  • Reply 34 of 67
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by peter236 View Post


    When they say China sales of $5 billion is 10% of Apple, I don't quite get it. Their total sales is $24.67 billion for the quarter.



    Good question. I didn?t get that either.
  • Reply 35 of 67
    asdasdasdasd Posts: 5,686member
    Quote:
    Originally Posted by happyden View Post




    As a very long time Apple product user and investor, I couldn't have asked for a more articulate and clearly stated presentation and Q&A session than what was just given by Cook and Opp. this afternoon.



    Its worthwhile to compare Apple's conference call to Google's. You come away from google with no idea of whats going on - APple is clear, concise and honest.



    They dont give any information about future products, except sometimes when guiding low on gross margin - this time he guided low on gross margin ( lower than their conservative normal guidance) but pretty much suggested it was no new product ( not this Q). It could that they expect a lot of iPads to be sold.



    However the sequential revenue for this quarter is not expected to be higher - thats interesting, if iPads are not supply constrained do they expect a hit somewhere else?



    ( he said that iPhones are now in supply demand balance).
  • Reply 36 of 67
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by asdasd View Post


    It was more than one market by the end of the quarter - but you're right in general. How people though that Apple would beat the december Q given the release was so limited is beyond moi.



    I thought it was possible given the still growing popularity of the devicr and considering the iPhone unit sales for Q2 have exceeded Q1 for the past two years (now 3 years).
  • Reply 37 of 67
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by asdasd View Post


    Its worthwhile to compare Apple's conference call to Google's. You come away from google with no idea of whats going on - APple is clear, concise and honest.



    They dont give any information about future products...



    Cook?s comment regarding LTE is interesting. Obviously they are working to include it but I wonder if the rumoured delayed launch of the next iPhone is because of LTE. I?m not saying I strongly believe that as I think there are better reasons for a potential time change, but I also don?t think it can be excluded.
  • Reply 38 of 67
    onhkaonhka Posts: 1,025member
    Quote:
    Originally Posted by peter236 View Post


    When they say China sales of $5 billion is 10% of Apple, I don't quite get it. Their total sales is $24.67 billion for the quarter.



    That is not what he said. http://www.macworld.com/article/1593...ranscript.html
  • Reply 39 of 67
    this is why i bought aapl for the last few weeks. its obvious its a great buy!
  • Reply 40 of 67
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by Onhka View Post


    That is not what he said. http://www.macworld.com/article/1593...ranscript.html



    From that site:
    iPhone sales were up over three times during the quarter, and in the first half [of the fiscal year] we did just slightly under $5 billion in greater China in revenue, which is about 10 percent of Apple, to put it in perspective.
    That makes more sense.
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