AAPL earnings.
I hope they're interesting. They should have had a GREAT quarter in relation to recent quarters. I expect they're going to be making a profit. I mean a real profit, not just interest off their $4.5b+ in cash. That's what's been carrying them the past few years. G5's shipping in volume. iPod sales THROUGH THE ROOF. New powerbooks. Their consumer line has been dragging but I suspect the iBooks are still doing well. AAPL's pro stuff is the highest margin for them anyway, so if I had to choose....
I suspect there is going to be some updates on the ed. front, as Apple's been really active lately. I hope for good news all around. If AAPL isn't showing a significant boost in earnings/share, I suspect it'll be due to R&D spending.
Can we try to keep discussion of the conference call and related stuff to this thread? That'd be cool.
I suspect there is going to be some updates on the ed. front, as Apple's been really active lately. I hope for good news all around. If AAPL isn't showing a significant boost in earnings/share, I suspect it'll be due to R&D spending.
Can we try to keep discussion of the conference call and related stuff to this thread? That'd be cool.
Comments
damn fine machines.
Originally posted by BRussell
I bet they lost money this past quarter. I bet those G5s are making them quite a nice profit, but they didn't start shipping until the end of the quarter, and I'd bet they lose money when they first ramp up a product like this. Also, because they pre-announced them before they were really available, I bet G4 sales really tanked.
Lost money? As in negative profit? Highly doubtful, they would've had to issue a warning guidance of some sort.
The single G5s were shipping in decent quantities before Sept. 30, and the duals weren't shipping as quickly but were getting out there... so I think the G5 situation was okay. How many new PBs they got out before the end of the quarter could be a factor in how much sales they'll realize. However, I do expect them to meet or slightly break analyst expectations.
Next quarter should be quite interesting (and I'd assume very profitable) with G5s, PBs, and Panther in full swing, along with assumedly the iTunes/iTMS for Windows and the current iPod ad campaign... not to mention it being the holiday season.
I imagine they would have put out a warning if they were coming in much below, I don't know, four cents.
Certainly if they were going to be in the red!
Originally posted by Flounder
I believe the consensus estimate is seven cents a share.
I imagine they would have put out a warning if they were coming in much below, I don't know, four cents.
Certainly if they were going to be in the red!
Considering last quarter they made $.11/share on interest (I think), $.07 would be not good news. I hope they at least beat analyst expectations. Even then, look for the price to fall if they don't make more per share than just interest earnings.
I had just heard that this was expected to be a comparatively down quarter.
Originally posted by BRussell
I bet they lost money this past quarter. I bet those G5s are making them quite a nice profit, but they didn't start shipping until the end of the quarter, and I'd bet they lose money when they first ramp up a product like this. Also, because they pre-announced them before they were really available, I bet G4 sales really tanked.
The IDC market share figures also show that Apple gained 2% share in the laptop segment (from 5% to around 7%) plus strong demand for iPods. These obviously also translate into revenues and profits.
I would not be betting on a loss. Perhaps a small turnaround and small profit, but certainly not a loss.
With the current pipeline (rev 2 3Ghz G5, G5 in PB's, etc) the revenue growth and profit outlook strikes me as looking very promising indeed. AAPL still looks like a raging buy.
Originally posted by penseive
Um, that article was wrong. They posted a $.12/share profit! That's damn good. $.05 higher than expectations. Huge revenue increase, too.
Actually, they posted $0.08/share when you exclude one time items.
# PowerMac sales rebounded to 221,000 units due to the G5
# All 3 PowerMacs are shipping in volume
# 176,000 PowerBooks, record Quarter
# 3rd generation iPod gaining momentum. New record for iPod sales this quarter 336,000 units (up from last year: 140%
# iPod is the #1 MP3 Player in sales in the U.S.
# Working on expanding the iPod channels.
# Tomorrow, Apple plans to announce more exciting news about their Music Efforts
# Retail segment achieved its first profitable quarter
# Panther on Oct 24th, enthusiastic about a strong product line in the upcoming quarter
MacRumors Link
787K machines sold is sweet, AFAIK that's the first time they actually increase the numbers year-after-year since about 2000. Likewise, 336K iPods sold means a solid influx of money into their coffers.
"Revenues for the quarter were $1.715 billion, up 19 percent from the year-ago quarter, and gross margins were 26.6 percent, up from 26.4 percent in the year-ago quarter"
Apple link
19% higher revenues, thats the G5 :-)
Keep it up
The best-selling PowerMacs appear to be the big duallie and the $1299 G4.
Good job Apple.
Originally posted by penseive
iPod sales in the Dec. quarter of last year were 50% higher than the previous quarter. This quarter they sold 336,000. Next quarter? 1/2 million! Wow.
The success of the iPod is completely insane, this is one hell of a story.
When the iPod was introduced two (?) years ago, I could barely conceal a yawn, yeah right, another mp3-player, very expensive too. Boy have I been wrong
Originally posted by msantti
I imagine iBook sales to schools were pretty decent as well.
Good job Apple.
Well, the high profile sales are good, but overall iBook sales for the quarter weren't too impressive (both in comparing sequentially and the year ago quarter)... only 137k units. Hopefully an iBook refresh in this quarter (I'd assume this would happen) would remedy the issue.
Otherwise, solid to impressive numbers all around. The 176k PB numbers look very good, considering I don't think they finished up shipping all the preorders by Sept. 30.
so where does apple grow, reinforce lines, develope uplines.
you can't live on iPods alone. so does this influence their updates timing??
should apple refressh sooner, did the delay in the 15pb hurt them?
Originally posted by Smircle
The success of the iPod is completely insane, this is one hell of a story.
When the iPod was introduced two (?) years ago, I could barely conceal a yawn, yeah right, another mp3-player, very expensive too. Boy have I been wrong
Even if iPod sales started to flatten down so they grew at a more modest 10%/quarter, Apple would build a user base of over 7M iPod users.
It's fairly safe to assume that these customers are - as a result of iPod being the sole AAC-capable portable player - natural customers for iTMS.
Assuming that they spent an average of $20/quarter, these customers alone would generate over $750M in iTMS sales in that same 3-year period.
Another scenario - 15% growth and $45/quarter - would generate over 10M iPods and $2 billion in iTMS sales.
In my personal opinion, this is the real beauty of the AAPL strategy: sell something to you once, and then sell you something you genuinely want to buy (as opposed to inkjet cartridges or upgrade licences) from an ever expanding content catalog that they didn't even have to pay to develop.
Just to expand that point, let's say the average price of a purchased iPod is $250, with Apple holding on to $225: 10M iPods will generate $2.25 billion in sales and probably around $350M in profit, or $35/unit. If a single iPod user generates $45/quarter in iTMS sales, they'll generate $540 in sales and $40 in profit during a three-year lifespan at 7.5% profit.
All rolled up, Apple could generate $25 profit per year per unit which - although a fraction of profit that Apple generates from the sale of Macintosh - turns out to be more profitable as a) the costs of R&D are lower, b) the costs of production and distribution are lower and c) the overall market opportunity is so much larger.