Apple revises guidance upward following iPhone launch, expects 36-37% gross margins

Posted:
in iPhone edited January 2014
Having just announced record sales figures for its latest iPhone models, Apple has revised its earnings estimates upwards in order to reflect its considerable sales.



Apple filed its Form 8-K on Monday, informing the Securities Exchange Commission and the investor community that it "expects total company revenue for the fourth quarter to be near the high end of the previously provided range of $34 billion to $37 billion." The first line in the filing makes reference to Apple's earlier revelation that it sold more than nine million new iPhones over the weekend following the devices' Friday launch.

In addition to the revised revenue numbers, Apple also tweaked its prediction for quarterly gross margin. The iPhone maker now believes gross margin for the September quarter will fall at the higher end of its previous range of between 36 and 37 percent.

Monday's 8-K filing, along with the announcement of strong iPhone sales, could signal good things for Apple shares going forward. As of 12:56pm EST, AAPL was at $486.14, up 4.01 percent on the day. Some analysts appear to be holding off on upgrading the stock until the wave of early adopters subsides and a observers get a better view of how the iPhone 5s and iPhone 5c are selling. UBS, which previously expressed cautious optimism for the iPhone 5c, retained its Neutral rating on AAPL, and a $520 price target, even following the launch weekend sales announcement and Monday's guidance revision.

"The first weekend numbers are encouraging," the report read, "though with wider availability and product cycles seemingly compressing it is difficult to know how far to extrapolate the figures.
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Comments

  • Reply 1 of 45
    asdasdasdasd Posts: 5,626member
    Hmm. That estimate is for the Q ending Sept. right? Impressive.
  • Reply 2 of 45
    More good news, AAPL will definitely go down again... :-)
  • Reply 3 of 45
    irelandireland Posts: 17,743member
    No matter what Apple does Wall St. will remain corrupt:

    http://abcnews.go.com/m/blogEntry?id=20346662&ref=https://www.google.ie/
  • Reply 4 of 45
    jfc1138jfc1138 Posts: 3,090member

    What happened to "grotesquely understocked" carriers? Manufacturing constraints strangling availability?

     

    A 3.5 million unit launch?

     

    Reality bites.

  • Reply 5 of 45
    The sales were so strong that Apple ran the risk of breaking the law(or sec rules) if they didn't officially report them.
  • Reply 6 of 45
    Quote:
    Originally Posted by jfc1138 View Post

     

    What happened to "grotesquely understocked" carriers? Manufacturing constraints strangling availability?

     

    A 3.5 million unit launch?

     

    Reality bites.


     

    Not to mention all the whining about how the 5c was "too expensive".

     

    BTW it's also funny watching all the people who just last week were whining about how the 5c was going to have terrible sales *cough* Rogifan *cough* now suddenly changing their tune and acting like the complete opposite now that the sales came out. A good reason why you never trust the armchair CEOs on forums.

  • Reply 7 of 45
    These are the same people that just don't understand or are completely arrogant about Apple.

    Yes their strategy is offline from what WS wants, but lets step back and think about it. WS wants Apple to be like all other companies in the past -- it's a race to the bottom and all about "shipped" inventory through the channels.

    Not only that -- let's add these exorbitant projections that Apple has been put up to meet and has met year after year. Mind you no other company in existence is even on par with the numbers Apple throws up.

    But Apple understands its consumer behavior more than anyone.

    Everyone hates a winner that keeps winning!
  • Reply 8 of 45
    poochpooch Posts: 768member
    meanwhile, blackberry's [URL=http://www.wired.com/business/2013/09/blackberry-sold]been sold[/URL] for 4.7 billion. sad. that's probably close to apple's revenue this weekend.
  • Reply 9 of 45
    joshajosha Posts: 901member
    Quote:

    Originally Posted by 123m4c View Post



    More good news, AAPL will definitely go down again... :-)

     OMG perhaps Apple won't go down, but some hedge funds will if they don't cover their as--s   fast! There is a limit to market negativity on Apple.

     

     Of course there are some of us just waiting for a good time to profit.

     But Apple may step in and buy back more shares with their buckets of money.

     

    Imagine that, Apple destroyed their previous high volume records, yet they ran out of some iPhone  stock.

     

     

    If Samsung TV interviewed the street people hired  in New York  to get  iPhones, they didn't learn much!  :devil:

  • Reply 10 of 45

    5C being too "expensive" is a joke. $99, wtf do people want? FREEEEE..... GIVE ME EVERYTHING. SUCH NONSENSE.

     

    It gets old everyone wanting everything free, get a damn job, pay for things you like. Simple.

     

    I mean its a music player, camera, phone, among other things.. for $99, seems like a good deal to me, but then again I WORK for my money and don't expect handouts.

  • Reply 11 of 45
    joshajosha Posts: 901member
    Quote:

    Originally Posted by MikeJones View Post

    Not to mention all the whining about how the 5c was "too expensive".

     BTW it's also funny watching all the people who just last week were whining about how the 5c was going to have terrible sales *cough* Rogifan *cough* now suddenly changing their tune and acting like the complete opposite now that the sales came out. A good reason why you never trust the armchair CEOs on forums.


    My local observation of people buying the 5c is many are new iPhone users.   It's $100 less down here.

    Those like myself who have an iPhone now

      are more interested in the 5s, and with contracts to run out waiting for it is no problem.

  • Reply 12 of 45
    When WS was throwing Apple under the bus now that they see the weekend figures what are they doing? They are heading with a "wait and see" as if that will tell the dumb bastardos anything. A previous poster was exactly right, WS wants, desperately, Apple to be like the other companies so they can track them better and be "right" once in a while. Apple was getting down graded years ago when I was buying Apple stock--companies like American Express didn't have much to say about them while lots have been said about AE.

    Now these people are waiting for more numbers to see if "projections" (the new ones) can be sustained. Well, the old ones certainly didn't go anywhere. I suppose these guys have college degrees in finance. That's rich.
  • Reply 13 of 45
    Originally Posted by Pooch View Post
    meanwhile, blackberry's been sold for 4.7 billion. sad. that's probably close to apple's revenue this weekend.

     

    Told my roommate–told him two years ago–he’d better not be relying on that BlackBerry of his to run his business. The company won’t see 2014.

     

    Didn’t believe me. Poor sap’s stuck in a nonexistent ecosystem now. Hope his startup doesn’t go under.

  • Reply 14 of 45
    sflocalsflocal Posts: 5,529member
    Quote:
    Originally Posted by Tallest Skil View Post

     

     

    Told my roommate–told him two years ago–he’d better not be relying on that BlackBerry of his to run his business. The company won’t see 2014.

     

    Didn’t believe me. Poor sap’s stuck in a nonexistent ecosystem now. Hope his startup doesn’t go under.


     

    How can his startup go under by using a mobile phone?  Unless your roommate's startup is developing BB apps?  

  • Reply 15 of 45

    The stock is still criminally undervalued. I hope Apple was buying up their own stock like a madman this past month.

  • Reply 16 of 45
    sflocalsflocal Posts: 5,529member

    Cue the iHaters, trolls, and whiners that think a company should not be in business to make money.

  • Reply 17 of 45
    512ke512ke Posts: 782member
    Oh how I hope many of the Analysts shorted the stock and lost money.

    Oh how foolish the majority of Analysts look now

    Grotesquely inadequate stock. Supply chain signals. Overpriced. Sales collapse. Flop. They ravaged and insulted Apple. And now? They will wait and see?

    Wake up and smell the money. Or just do basic math.

    Nine million opening. And china mobile is not even included yet.

    WSJ. Motley Fool. Seeking Alpha. CSNBC. Idiots.
  • Reply 18 of 45
    poksipoksi Posts: 481member

    Only one more message to anal-lysts: if you think 5C is selling poorly, then you are bigger morons than stupidity itself. People were not standing in the lines waiting for 5C that much, this is true, but they were surely ordered online like hell... This year iPhone is starting gaining unit market share back. All over the globe. Mark my words.

  • Reply 19 of 45
    Quote:

    Originally Posted by lalaruza View Post

     

    5C being too "expensive" is a joke. $99, wtf do people want? FREEEEE..... GIVE ME EVERYTHING. SUCH NONSENSE.

     

    It gets old everyone wanting everything free, get a damn job, pay for things you like. Simple.

     

    I mean its a music player, camera, phone, among other things.. for $99, seems like a good deal to me, but then again I WORK for my money and don't expect handouts.


     

    I think the complaints are twofold:


     


    1) Many markets are not subsidized, so the full price of ~ $550 USD is viewed as expensive.


     


    2) In subsidized markets, there's only a $100 difference between the 5C and 5S, so why would anyone buy the 5C?


     


    Both have some truth, but are overreactions. The iPhone 5C is still a high-end phone, is viewed as a status symbol, and these "emerging markets" also have an emerging middle class (likely where most of the profit will be). Also, Apple has showed a willingness to offer flexible terms to specific markets (re: India), and who's to say some carriers won't start subsidizing?


     


    As to who would buy the 5C, who wouldn't? Unless you need the best, why not get an absolutely great phone and save $100? Lots of people (like my wife) prefer the colors and tactile feel, and don't need the latest and greatest. Others always go "cheap" to save money. It's the iPhone for the masses. And the iPhone for the rest of your family (kids especially, it's an iPod touch killer).


     


    Early adoption will be skewed toward the 5S, as early adopters tend to skew toward the best and newest tech. But 6 months from now? I'd say the 5C is giving the 5S a run for it's money, especially during the holidays. Add in possible spring deals ($49 to $79 you say?) and possible back-to-school deals and maybe a mid-cycle color addition, and I'll say the 5C is the better seller by the end of the year.
  • Reply 20 of 45
    irelandireland Posts: 17,743member
    pooch wrote: »
    meanwhile, blackberry's been sold for 4.7 billion. sad. that's probably close to apple's revenue this weekend.

    No, Apple revenue this weekend is a minimums 5.5B. Brother worked that out today
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