Apple's record profits contrasted with Amazon's hopes to turn a profit

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Comments

  • Reply 21 of 42
    Seems like Jeff Bezos acquired more money than Amazon! And it was really bad of amazon to screw up Google's android platform, I feel bad for them.. but not by a whole lot.
  • Reply 22 of 42
    andysolandysol Posts: 2,506member
    I really like Amazon. Fantastic customer service- and prime is absolutely fantastic- blows netflix out of the water for less $. If only Apple TV streamed it.......
  • Reply 23 of 42
    anonymouseanonymouse Posts: 6,860member

    Quote:

    Originally Posted by SpamSandwich View Post


     


    Anyone who uses the argument that on a forward looking basis Amazon has the potential for greater profits than Apple should have their head examined.



     


    I think the belief must be that although Amazon is not making money now, by underselling everyone online and offline they'll eventually put everyone else out of business and then be able to make piles of money because they're the only place to shop and don't have to sell half their merchandise at a loss any longer. Whether that's rational or not, it's hard to say, but, since they appear to have friends at DoJ, at least for now, investors aren't worried about anti-trust action in at least the near term.

  • Reply 24 of 42
    flaneurflaneur Posts: 4,526member
    jragosta wrote: »
    Exactly. The reports about Apple are so incredibly biased that it's incredible. You'd think that they were on the brink of bankruptcy from reading what most of the media is saying about them instead of being the most profitable company on the planet - and still growing.

    I haven't depressed myself with much of the insanity. I did see that the NY Times tried to do a balanced approach on the front page yesterday, but Marketplace on APM/NPR took the very stupid, smartass route, no surprise: "Mighty Apple has struck out," riffing on "Casey at the Bat.." Laura Sidell, NPR's Silicon Valley reporter, said with a straight face that Apple "missed analysts' expectations."

    It ought to be considered Low Journalism to even mention analysts' expectations with a straight face in business reporting. Seriously.

    Am I, or are we, making too much of a deal over this? No, because the Apple story is the one unqualified success story of the era, the one clear reason for believing that Silicon Valley and the U.S. has something clearly legitimate (sorry HP, Facebook and Google) and desirable to contribute to the world.

    And that success story, which defines our present age of this technological revolution, is getting trashed by reasons of insanity. It's got to stop. Gruber should stop laughing about it. Not to rag on him, he's always calling them out, but it really is time to start a campaign against this treachery.

    Insofar as Apple represents the new global knowledge community, enabled by decent technology, it's treasonous to madly and gratuitously sabotage their legitimate progress. A crime against humanity and evolution.
  • Reply 25 of 42
    mikeb85mikeb85 Posts: 506member


    To make sense of Amazon's numbers, look up what their free cash flow is each year.  For 2011, their net operating cash flow was 3.9 billion, they had a decent ROE, and they bought back shares in 2012.  To look simply at P/E ratios is to see a very small portion of the picture.  

  • Reply 26 of 42
    mikeb85mikeb85 Posts: 506member

    Quote:

    Originally Posted by anonymouse View Post


     


    I think the belief must be that although Amazon is not making money now, by underselling everyone online and offline they'll eventually put everyone else out of business and then be able to make piles of money because they're the only place to shop and don't have to sell half their merchandise at a loss any longer. Whether that's rational or not, it's hard to say, but, since they appear to have friends at DoJ, at least for now, investors aren't worried about anti-trust action in at least the near term.



    Amazon wins because of infrastructure.  If you think they're simply a retail business it's no wonder you don't understand them.  

  • Reply 27 of 42
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by jragosta View Post



    Exactly. The reports about Apple are so incredibly biased that it's incredible. You'd think that they were on the brink of bankruptcy from reading what most of the media is saying about them instead of being the most profitable company on the planet - and still growing.


     


    Yes, it is ridiculous.  What do you think causes it?


     


    My first thought is that Americans LOVE underdogs.


     


    Especially with Apple making money like Exxon, they're no longer considered the underdog to root for, or to give extra slack.   Instead, Apple has pretty much cast Samsung into the position of the underdog.   Moreover, Samsung is now seen by many as the "think different" brand to buy...  I mean, when Apple's former top evangelist goes all Android, something's up.


     


    Samsung's ads are good too.  They made up most of the top dozen viral video ad clips last year, according to advertising journals.


     


    Offhand, I don't know what Apple can do to change things.   Thoughts?

  • Reply 28 of 42

    Quote:

    Originally Posted by Mikeb85 View Post


    Amazon wins because of infrastructure.  If you think they're simply a retail business it's no wonder you don't understand them.  



     


    Yes, they are into more than retail, but they still don't currently make and significant money off any of it. Their stock performance is fantasy based. Unless of course you really do think they'll take over the world.

  • Reply 29 of 42

    Quote:

    Originally Posted by KDarling View Post


     


    Yes, it is ridiculous.  What do you think causes it?


     


    My first thought is that Americans LOVE underdogs.


     


    Especially with Apple making money like Exxon, they're no longer considered the underdog to root for, or to give extra slack.   Instead, Apple has pretty much cast Samsung into the position of the underdog.   Moreover, Samsung is now seen by many as the "think different" brand to buy...  I mean, when Apple's former top evangelist and premier fanboy goes Android, something's up.


     


    Samsung's ads are good too.  They made up most of the top dozen viral video ad clips last year, according to advertising journals.


     


    Offhand, I don't know what Apple can do to correct their PR ship.   They're seen as more of the "safe and easy" boring brand to buy now.


     


    Thoughts?



     


    Yes, my thought are that your spin doctoring is relentless.

  • Reply 30 of 42
    flaneurflaneur Posts: 4,526member
    kdarling wrote: »
    Yes, it is ridiculous.  What do you think causes it?

    My first thought is that Americans LOVE underdogs.

    Especially with Apple making money like Exxon, they're no longer considered the underdog to root for, or to give extra slack.   Instead, Apple has pretty much cast Samsung into the position of the underdog.   Moreover, Samsung is now seen by many as the "think different" brand to buy...  I mean, when Apple's former top evangelist goes all Android, something's up.

    Samsung's ads are good too.  They made up most of the top dozen viral video ad clips last year, according to advertising journals.

    Offhand, I don't know what Apple can do to change things.   <span style="font-size:13px;line-height:1.231;">Thoughts?</span>

    By geeks, Apple has always been seen as safe and boring. Geeks are the mainstay of the "tech" press. They are left-brain-dominant, reactive creatures. When treatened, they draw on their reptile connections to their amygdalas. Therefore, they're prone to pack and mob "thinking." I don't think they ever have underdog sympathies, aside for themselves out of their own sense of being misfits. They are more likely to find comfort in aligning themselves with overdogs like Microsoft and now Samsung. (No Samsung is not being seen as an underdog by anyone now; maybe as a giant tormented by upstart greedy Apple.)

    Apple's fan base has always been floated by underdog sentiments, also by gnostic-like exclusivity and superiority, exactly the opposite of the geek sense of needy inferiority. (Ok, maybe the mechanism is still a variant of weak self-esteem in the Apple fan.) Lately Apple-ites are having a hard time not gloating, while more recently again having to take on a new underdog stance under all the hatred.

    The growing Apple hatred is understandable. What's unfair about the situation is that the geek "press" and the "regular" media are exploiting the situation, piling on like the pack animals they are. No mainstream outfit is seriously taking on a defense of Apple and its role in this revolution. Only some people here, Gruber and his friends, a few posters on other rumor sites.

    Kawasaki was always more about Kawasaki than Apple, as far as I could tell. Not sure about KDarling: Samsung's ads are not good. Only in a universe devoid of all ethics could they be pronounced good. They are about—and in—bad taste. This is the worst crime in the Apple universe.

    Edit: I should say that geeks CAN be reactive, self-protective creatures of the amygdala. Relic, below, is a more confident sort, but still a geek. Apple does not make things for tinkerers like herself.
  • Reply 31 of 42
    relicrelic Posts: 4,735member

    Quote:

    Originally Posted by KDarling View Post


     


    Yes, it is ridiculous.  What do you think causes it?


     


    My first thought is that Americans LOVE underdogs.


     


    Especially with Apple making money like Exxon, they're no longer considered the underdog to root for, or to give extra slack.   Instead, Apple has pretty much cast Samsung into the position of the underdog.   Moreover, Samsung is now seen by many as the "think different" brand to buy...  I mean, when Apple's former top evangelist goes all Android, something's up.


     


    Samsung's ads are good too.  They made up most of the top dozen viral video ad clips last year, according to advertising journals.


     


    Offhand, I don't know what Apple can do to change things.   Thoughts?



     


    I think Apple is doing just fine. As far as calling Samsung an underdog I think that's a little silly, HTC on the other hand. I to have always found iOS to be a very vanilla OS, I don't think I can name one technical advantage OS wise not hardware that has gotten me excited in the last three years. So I completely understand why an IT specialist like Guy Kawasaki would find Android more useful, he mentioned a few things he liked, like NFC, being able to create folders that are linked to his server (file-manager) at home and wireless charging. Innovative hasn't really been the iPhones calling card for a long while, Apple updates the OS to stay current but as far as adding that one wow must have feature, it's been pretty bland this last year. Yes I own an Android phone for work and it works just fine but true enjoyment comes from my Nokia Pureview 808 and my new Nokia 920. The Nokia 808 is a silly phone to own I know but in my eyes it's what Apple should be doing, pushing the envelope, testing new ground. Where is DLNA, NFC, wireless charging, all the blogs just say because the technology isn't matured but I have to say it's real nice when I come home unplug my earphones and simply tap my JVC speaker to continue my podcast while I cook dinner or be able to just set my Nokia 920 on it's charging pillow to charge without connecting anything or be able to stream the home movies I took of my daughters birthday to our DLNA compatible TV without messing around with a HDMI cable.


     


    I like using my iPad for music creation and the kids for the games but if it wasn't for the apps there would be no reason for me to own one. The OS is extremely limited with the bare minimal to stay competitive. Can anyone name one feature that is present in iOS that can't be found in other mobile OS's, a must have feature. OSX and their laptops/all in ones and mini computers on the other hand still continue to be awesome but now that I have been using and liking Windows 8 on a tablet it's just a matter of time where like in the mid 90's Apple and I took a break.

  • Reply 32 of 42
    jragostajragosta Posts: 10,473member
    mikeb85 wrote: »
    To make sense of Amazon's numbers, look up what their free cash flow is each year.  For 2011, their net operating cash flow was 3.9 billion, they had a decent ROE, and they bought back shares in 2012.  To look simply at P/E ratios is to see a very small portion of the picture.  

    OK. Look at cash flow. Apple's cash flow was 30 times that number - yet Apple's stock is being dumped (with cash-adjusted P/E at 7) and Amazon is at 3500. Even the multiples of cash flow are way out of whack.
  • Reply 33 of 42
    mikeb85mikeb85 Posts: 506member

    Quote:

    Originally Posted by jragosta View Post





    OK. Look at cash flow. Apple's cash flow was 30 times that number - yet Apple's stock is being dumped (with cash-adjusted P/E at 7) and Amazon is at 3500. Even the multiples of cash flow are way out of whack.


    Apple's cash flow was only 14 times Amazon's, and their market cap is nearly 4 times as big.  The market obviously believes Amazon will grow, while Apple has peaked.  Apple's P/E and other valuation metrics are roughly on par with ExxonMobil's, so it's not as if Apple's valuation is all that low.  


     


    Maybe instead of arguing against the market, you should learn how it works. Here's another tidbit - stock in the market is like a product in itself, so if everyone already owns a certain stock, demand won't be as robust as if fewer people owned it.  If everyone and their broker owns a ton of Apple stock, they're likely not going to buy more, they'll diversity into other things.  

  • Reply 34 of 42
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by Flaneur View Post



    By geeks, Apple has always been seen as safe and boring. Geeks are the mainstay of the "tech" press. They are left-brain-dominant, reactive creatures. When threatened, they draw on their reptile connections to their amygdalas. Therefore, they're prone to pack and mob "thinking." 


     


    I never thought of most of the "tech" press as real geeks.  To me, a geek would actually understand what the heck they were writing about!   ;)


     



    The growing Apple hatred is understandable. What's unfair about the situation is that the geek "press" and the "regular" media are exploiting the situation, piling on like the pack animals they are. No mainstream outfit is seriously taking on a defense of Apple and its role in this revolution. Only some people here, Gruber and his friends, a few posters on other rumor sites.


     


    You lost me.   Why is hating Apple understandable?   Do you mean people don't like overly successful, or ?


     


    As I've noted before, personally I'm thankful to Apple for bringing my field of touch out into the mainstream.


     



    Quote:


    Kawasaki was always more about Kawasaki than Apple, as far as I could tell. Not sure about KDarling: Samsung's ads are not good. Only in a universe devoid of all ethics could they be pronounced good. They are about—and in—bad taste. This is the worst crime in the Apple universe.





     


    My fault.  Poor sentence editing.  I haven't even seen some of them.   I only intended to point out that the advertising industry praised them for being so viral. 


     


    Although that gives us one hint of what Apple might change this coming year.  Perhaps more exciting advertising:


     


    "Apple also made the list but with just one video and at just the sixth-place spot -- which was a big drop for the Cupertino company after landing the first-place spot on the same list last year. The ad was the introduction video for the iPhone 5, and it generated about 18 million true reach views.  [whereas the Samsung Next Big Thing ad had 72 million, and the LeBron Note 2 ad got 42 million views]


     


    "Apple's performance in video advertising hasn't grown much in 2012 while the competition has exploded," Viral Measures said in the release for the list. "To stay competitive in video in 2013, Apple will need to rethink its video strategy."


     


    Quote:


    Originally Posted by Relic View Post


    ... true enjoyment comes from my Nokia Pureview 808 and my new Nokia 920. The Nokia 808 is a silly phone to own I know but in my eyes it's what Apple should be doing, pushing the envelope, testing new ground. Where is DLNA, NFC, wireless charging, ...



     


    I'm in agreement with that.  Unfortunately, Apple often likes proprietary solutions.   Which reminds me, one thing that would help iPhone sales in emerging countries might be to make a model with a common mini-USB port so people can charge it anywhere without having to carry a dongle around.


     




    Quote:


    I like using my iPad for music creation and the kids for the games but if it wasn't for the apps there would be no reason for me to own one. The OS is extremely limited with the bare minimal to stay competitive. Can anyone name one feature that is present in iOS that can't be found in other mobile OS's, a must have feature. OSX and their laptops/all in ones and mini computers on the other hand still continue to be awesome but now that I have been using and liking Windows 8 on a tablet it's just a matter of time where like in the mid 90's Apple and I took a break.





     


    There are two things I'd like to see appear on all tablets:   multiple tiled app windows, and multi-user logins for families and enterprise use.  


     


    Regards to both, and thank you for your insightful thoughts.

  • Reply 35 of 42


    and yet, the market is giving you all the finger, Amzn has an untouchable float, Apple stock will get crushed below 400, all the while Apple the "innovator" continues to recycle the same old overpriced junk.

  • Reply 36 of 42
    solipsismxsolipsismx Posts: 19,566member
    kdarling wrote: »
    ]I'm in agreement with that.  Unfortunately, Apple often likes proprietary solutions.

    You mean like Google who has yet to open up and give away their search algorithms to everyone. It's almost as if they want to protect the part of their business that generates money for them.
    Which reminds me, one thing that would help iPhone sales in emerging countries might be to make a model with a common mini-USB port so people can charge it anywhere without having to carry a dongle around.

    So the devices lose all the functionality and access that the Lightning connector and 30-pin dock connector before it affords? Why is that a good thing? Let's remember that Apple used the same interchangeable connector across 3 different product categories for nearly 10 years that totaled over a half billion units before switching to a much smaller, more advanced, and future-forward connector.

    Let's also remember that Apple has made their PSUs with USB A ports for about 8-9 years since powered USB 2.0 ports that worked with any such device would work with.

    You can still walk into gas stations and low-rent electronics stores to see a carousel display of dozens of connector types for a very few number of vendors and just for cell phones. If anyone has been doing it right it's Apple.
  • Reply 37 of 42
    kdarlingkdarling Posts: 1,640member

    Quote:

    Originally Posted by SolipsismX View Post



    You mean like Google who has yet to open up and give away their search algorithms to everyone. It's almost as if they want to protect the part of their business that generates money for them.


     


    No sir, we weren't talking about proprietary IP.   We were talking about interfaces between phones and equipment, like DLNA, NFC.


     


    Apple would rather create their own protocols, but not share them.   They often build a wall between themselves and other devices.   Some people are okay with that.


     


     



    You can still walk into gas stations and low-rent electronics stores to see a carousel display of dozens of connector types for a very few number of vendors and just for cell phones. If anyone has been doing it right it's Apple.


     


    Errr... I said emerging countries, not places with 7-11's on every corner  :)


     


    There are many people who actually have to walk to another village to charge their cell phone from a community solar panel or other source.  This is especially important to many tribal women who often can only communicate with their original family via cell.

  • Reply 38 of 42
    solipsismxsolipsismx Posts: 19,566member
    kdarling wrote: »
    No sir, we weren't talking about proprietary IP.   We were talking about interfaces between phones and equipment, like DLNA, NFC.

    Apple would rather create their own protocols, but not share them.   They often build a wall between themselves and other devices.   Some people are okay with that.

    You said proprietary solutions. Connectors, algorithms, OSes, etc are all types of IP. Their connectors and OS are proprietary IP just like Google's search algorithms and their OS. Guess what, USB is also proprietary IP. What you want is for Apple to harm itself in the market so that it releases a worse product that others can more easily compete with. I give big a **** that[/I] to that.
    Errr... I said emerging countries, not places with 7-11's on every corner  :)

    There are many people who actually have to walk to another village to charge their cell phone from a community solar panel or other source.  This is especially important to many tribal women who often can only communicate with their original family via cell.

    Hold up. I don't classify a single outlet between two extent villages as an emerging market. An emerging market is like the Chinese's middle class. There has to be "social or business activity in the process of rapid growth and industrialization"<sup>[1]</sup> for this to make sense otherwise it's not not emerging. If it's emerging then Apple will address it accordingly like it's doing with China.

    A village with a cellphone and power source. You're not even trying. :no:
  • Reply 39 of 42
    mikeb85mikeb85 Posts: 506member

    Quote:

    Originally Posted by SolipsismX View Post





    You said proprietary solutions. Connectors, algorithms, OSes, etc are all types of IP. Their connectors and OS are proprietary IP just like Google's search algorithms and their OS. Guess what, USB is also proprietary IP. What you want is for Apple to harm itself in the market so that it releases a worse product that others can more easily compete with. I give big a **** that[/I] to that.

    Hold up. I don't classify a single outlet between two extent villages as an emerging market. An emerging market is like the Chinese's middle class. There has to be "social or business activity in the process of rapid growth and industrialization"[1] for this to make sense otherwise it's not not emerging. If it's emerging then Apple will address it accordingly like it's doing with China.



    A village with a cellphone and power source. You're not even trying. image


     


    Of all things to keep proprietary, I think connectors are silly.  How many iPhone users were inconvenienced when they switched from the 30 pin to Lightning?  Or when Macbooks changed power cables?


     


    Sony's insistence on proprietary connectors, flash memory, etc... are a reason I don't give Sony any of my business.  I really don't think the 'user experience' would be harmed by going from Lightning to microUSB.  Or even better, they can do what HTC did on the phone I have - create a proprietary port that accepts and works with microUSB...  

  • Reply 40 of 42
    solipsismxsolipsismx Posts: 19,566member
    mikeb85 wrote: »
    Of all things to keep proprietary, I think connectors are silly.  How many iPhone users were inconvenienced when they switched from the 30 pin to Lightning?  Or when Macbooks changed power cables?

    Sony's insistence on proprietary connectors, flash memory, etc... are a reason I don't give Sony any of my business.  I really don't think the 'user experience' would be harmed by going from Lightning to microUSB.  Or even better, they can do what HTC did on the phone I have - create a proprietary port that accepts and works with microUSB...  

    1) I didn't have a problem with it just as I didn't have a problem with a connector for other phones I owned before the iPhone.

    2) If there was a connector that was licensable to all (at a reasonable rate, of course) and had all the features that make the 30-pin iPod Connector and the Lightning connector so useful then I'd be all for it. Unfortunately the USB can only do basic data and power, and micro-USB is an absolutely horrid design from an industrial standpoint.

    3) Sony and Apple are nothing alike here. Sony changed port interfaces more often than I change my pants. Apple had the same 30-pin connector for nearly 10 years. They finally updated that aging port interface with something modern for which I am very happy about. For you to say Apple should just do what the others are doing means no MagSafe which I don't want to go away. Should they have made it thinner in anticipation of even thinner machines? Maybe but they used it for 6.5 years before they made the change. I've bought aftermarket power supplies at Radio Shack. Not a great experience.

    4) Note that they owned but licenses for free their mDP port interface. This was added to VESA's DisplayPort specs and then adopted by Intel for Thunderbolt. If it makes sense for others to inter-operate with the port then Apple will do what is needed but to say that every PC vendor should be able to use MagSafe so I don't have to buy a Mac next time or that every cellphone maker should use micro-USB without considering what that would do to those that have iDevices, what the port interface to be durable, and use accessories designed for that interface is just anti-Apple rhetoric.
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