Apple revises guidance upward following iPhone launch, expects 36-37% gross margins
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.
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.
Comments
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What happened to "grotesquely understocked" carriers? Manufacturing constraints strangling availability?
A 3.5 million unit launch?
Reality bites.
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.
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!
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!
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.
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.
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.
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.
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?
The stock is still criminally undervalued. I hope Apple was buying up their own stock like a madman this past month.
Cue the iHaters, trolls, and whiners that think a company should not be in business to make 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.
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.
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.
No, Apple revenue this weekend is a minimums 5.5B. Brother worked that out today