Might it be Apple has huge warrenty claims that eat away profits?

Jump to First Reply
Posted:
in General Discussion edited January 2014
I have had a problem with my new iBook and many many others here with the new style iBooks have also had problems with the logic boards within the iBook.



My question is the following:



Does apple have a "real" problem with numerous warrenty claims which in turn cost the company big bucks?



Look at this info:

Quote:

Apple's profits - for the three months to the end of March - were $14m compared to $40m in the same period last year.



Chief executive Steve Jobs said: "Our 'year of the notebook' is off to a great start, led by the incredible demand for our new aluminum 12-inch and 17-inch PowerBook G4s.



"This quarter, over 40% of the Macs we shipped were notebooks - our highest percentage ever and well ahead of the industry average."



Apple sales in the period were more or less in line with expectations at $1.5bn, about $20m less than the same period last year.



So with sales only $20m less than last years sales of $1.52bn the profits are off $26m???????



As a business perswon who reads P/L statements regularly this raises a big flag to me. I realize there are many variables in business but something has to account for this fall from $40m in profit a year ago this quarter to the same quarter this year of only $14m profit.



I suspect apple has a problem with warrenty claims eating away at their profits...



Where did that $26m go? ? ?



Your thoughts?



Link to Apple profits



Fellowship

Comments

  • Reply 1 of 5
    jante99jante99 Posts: 539member
    With the downturn in the stock market etc Apple probably made less money investing all their cash (4.5 billion) and thus made less profit.



    Considering Apple somehow manages to get people to pay 1300 dollars to repair out of warrenty screen problems for powerbooks, I cannot image that they loose money on repair buisness. Especially since pbResQ only charges 599 for the same repair.
     0Likes 0Dislikes 0Informatives
  • Reply 2 of 5
    eugeneeugene Posts: 8,254member
    FCiB, don't be a retard.
     0Likes 0Dislikes 0Informatives
  • Reply 3 of 5
    Quote:

    Originally posted by FellowshipChurch iBook

    Where did that $26m go? ? ?



    Your thoughts?





    Not where you think it went, apparently...
     0Likes 0Dislikes 0Informatives
  • Reply 4 of 5
    mcqmcq Posts: 1,543member
    Well... I'm not quite a business person by any means (unless a couple business courses in college so far counts).... but taking a quick glance at the data summary for both quarters:



    * Apple sold over 100,000 more units overall in Q2 2002 than this past quarter. Not sure that this really makes a difference.



    * They incurred $3 million in a one-time restructuring cost this past quarter.



    * They earned $4 million less this quarter in interest and other income from what I assume is their $4.5 billion cash reserves, from what I assume to be what was a worse economic time period than last year.



    * They spent $8 million more in R&D this quarter than the same quarter last year.
     0Likes 0Dislikes 0Informatives
Sign In or Register to comment.