Apple Announces $1.07 Billion in Profit for Q3 2008

MacRumors · Jul 21, 2008, 04:36 PM

Apple announced their 3rd Quarter 2008 Financial Results today. Apple posted revenue of $7.46 billion and net quarterly profit of $1.07 billion (or $1.19 per diluted share). This compares favorably to revenue of $5.41 billion and net quarterly profit of $818 million (or $.92 per diluted share) in the year-ago quarter. Apple shipped 2,496,000 Macintosh computers and 11,011,000 iPods this quarter.

Quote:

"We're proud to report the best June quarter for both revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we're busy finishing several more wonderful new products to launch in the coming months."

Looking to the fourth fiscal quarter 2008, Apple expects to earn a revenue of $7.8 billion and earnings per diluted share of about $1.00.

Apple's financial results webcast will begin at 5pm ET / 2pm PT.

Article Link

flashy-cat · Jul 21, 2008, 04:37 PM

Way to go, woo!

Peace · Jul 21, 2008, 04:37 PM

WOW.

Just WOW.

gco212 · Jul 21, 2008, 04:38 PM

It's well below estimates and the stock is taking a hit.

careyjames · Jul 21, 2008, 04:38 PM

maybe they can spend a little bit of that $$$ to fix MobileMe!!!!

:-)

P-Worm · Jul 21, 2008, 04:38 PM

The stock is tanking on AAPL's guidance. You think the market would get used to the fact that AAPL always gives low guidance.

P-Worm

Sirobin · Jul 21, 2008, 04:39 PM

Cool news.

Peace · Jul 21, 2008, 04:40 PM

Quote:

Originally Posted by gco212

It's well below estimates and the stock is taking a hit.

38% is below what estimates?

kenichiwat · Jul 21, 2008, 04:40 PM

ok...announce the re-design macbooks and macbook pros now and make more money apple!!

queshy · Jul 21, 2008, 04:42 PM

nice quarter for apple.

it's pretty obvious that they're busy working on finishing some stuff - imagine what would happen if there were NO new Apple announcements for the rest of 2008!

D4F · Jul 21, 2008, 04:42 PM

Sales rising up, customer care is going down... I guess Apple is joining some giants with their philosophy.

Oh well. Good numbers tho.

Niiro13 · Jul 21, 2008, 04:44 PM

Nice!

Interesting...revenue is 7.46 billion? So they spent 6.39 billion? dang...

iMacmatician · 04:46 PM

Quote:

Originally Posted by MacRumors

Quote:

"We're proud to report the best June quarter for both revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we're busy finishing several more wonderful new products to launch in the coming months."

Redesigned MacBook Pros and MacBooks?
iLife '09 and iWork '09?
Updated iPods?
Mini-tablet?

New iPod socks?

Quote:

Originally Posted by Niiro13

Interesting...revenue is 7.46 billion? So they spent 6.39 billion? dang...

For what? It can't all be iPhone development... can it?

megfilmworks · Jul 21, 2008, 04:45 PM

Quote:

Originally Posted by gco212

It's well below estimates and the stock is taking a hit.

Earnings beat estimates, guidance was more conservative.

clevin · Jul 21, 2008, 04:45 PM

Quote:

Originally Posted by Peace

38% is below what estimates?

I guess they care alot about absolute numbers.

iOrlando · Jul 21, 2008, 04:45 PM

Guidance is insanely low.

$1.00 where the street was looking for $1.25

Looks like a very consertative number due to economic fears.

Not totally surprised with the results. I think apple wants analysts to bring that $1.25 down to more like $1.15.

Target prices might come down a few bucks, but I dont see any reason for major price cuts.

All-in-all.. meh.. nothing too bad nothing too good.

MacsRgr8 · Jul 21, 2008, 04:46 PM

Quote:

Originally Posted by Peace

38% is below what estimates?

Presumably the 80% market share estimate..

There are always some "experts" who over exaggerate how well Apple are doing.

BRLawyer · Jul 21, 2008, 04:46 PM

Quote:

Originally Posted by Peace

38% is below what estimates?

Stock is falling NOT because of current numbers, but simply because of Apple's historically-conservative guidance, as usual...

These are FANTASTIC numbers which show that the sky is the limit for Apple, a record-breaking company quarter after quarter...

More growth than anyone else in the computer industry with its Macs, extremely solid sales for iPods that continue to DOMINATE the music industry, and a winning iPhone in all accounts, as the best and most successful smartphone in history...MICROSOFT IS DEAD IN THE WATER.

GO APPLE! TORA! TORA! TORA!

Sandfleaz · Jul 21, 2008, 04:47 PM

"We're proud to report the best June quarter for both revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we're busy finishing several more wonderful new products to launch in the coming months."

emphasis mine

t0mat0 · Jul 21, 2008, 04:48 PM

Quote:

" and we're busy finishing several more wonderful new products to launch in the coming months."

And i'd imagine they're debugging several others...
Snow Leopard in 12 months, MobileMe update soon, Mac Mini needing a refresh, the laptops in line for a platform change, iPhone 3G selling above what even Apple had ready to manufacture - all looking promising

MacinDoc · Jul 21, 2008, 04:48 PM

The market doesn't seem to realize that Apple is not posting revenue from any iPhone sales for the past quarter (this was explained in a previous post). Mac sales up 38%, and surprisingly, iPod sales up as well (it was previously thought that iPod sales had peaked). The problem is that the market follows key terms (such as "earnings less than most market forecasts" or "guidance lower for the next quarter" like a flock of sheep.

The smart investors will look into things in more detail and see that Apple increased year-over-year earnings in spite of not having a key source of its income, that sales increased dramatically, and that there are potential new revenue streams (such as the App store) coming on-line for the current quarter. And they will likely conclude that with today's drop in AAPL, it is now a good time to buy the stock at a discounted price.

gco212 · Jul 21, 2008, 04:49 PM

Quote:

Originally Posted by megfilmworks

Earnings beat estimates, guidance was more conservative.

Good call. My mistake, I was just watching the stock dive and assumed it was due to doing poorly compared with estimates. Why is that guidance so bad though?

Matthew Yohe · Jul 21, 2008, 04:50 PM

Guidance was 1.00, consensus street estimate was 1.10-1.11

Where are you guys seeing that the street was any more than that?

iMacmatician · Jul 21, 2008, 04:50 PM

Quote:

Originally Posted by Sandfleaz

we're busy finishing several more wonderful new products to launch in the coming months."

emphasis mine

By "new," does Apple mean "updated, redesigned, or new," "redesigned or new," or "new, as in a never-existed-before-in-Apple's-lineup" product?

If it's the first, then our hopes have gone up for nothing.
If it's the second, then that points to redesigned laptops soon.
If it's the third, I can't think of anything but the mini-tablet.

Matthew Yohe · Jul 21, 2008, 04:50 PM

Quote:

Originally Posted by gco212

Good call. My mistake, I was just watching the stock dive and assumed it was due to doing poorly compared with estimates. Why is that guidance so bad though?

You obviously don't follow AAPL's historically conservative guidance.

Jul 21, 2008, 04:38 PM	#5
careyjames macrumors newbie Join Date: Oct 2006	maybe... maybe they can spend a little bit of that $$$ to fix MobileMe!!!! :-)

Jul 21, 2008, 04:38 PM	#6
P-Worm macrumors 68000 Join Date: Jul 2002 Location: Salt Lake City, UT	The stock is tanking on AAPL's guidance. You think the market would get used to the fact that AAPL always gives low guidance. P-Worm __________________ Follow my show The Movie Audit as well as watch my other videos on my YouTube Channel!

Jul 21, 2008, 04:39 PM	#7
Sirobin macrumors regular Join Date: May 2008 Location: California	Cool news. __________________ iMac G3, 233 Mhz, 96 MB RAM, 4 GB HD eMac G4, 700 Mhz, 768 MB RAM, 40 GB HD Powerbook G4, 1.67 Ghz, 2 GB RAM, 120 GB HD Mac Pro, 2.66 Octocore, 6 GB RAM, 4870, 1 TB HDD

Jul 21, 2008, 04:42 PM	#10
queshy macrumors 68040 Join Date: Apr 2005	nice quarter for apple. it's pretty obvious that they're busy working on finishing some stuff - imagine what would happen if there were NO new Apple announcements for the rest of 2008! __________________ "I always feel sorry for the guy in the iPhone commercials. He always gets a call right in the middle of trying to do something" (one1).

Jul 21, 2008, 04:42 PM	#11
D4F macrumors 6502a Join Date: Sep 2007 Location: Planet Earth	Sales rising up, customer care is going down... I guess Apple is joining some giants with their philosophy. Oh well. Good numbers tho. __________________ 13" Macbook Pro

Jul 21, 2008, 04:37 PM	#2
flashy-cat macrumors member Join Date: Apr 2007 Location: UK	Way to go, woo!

Jul 21, 2008, 04:37 PM	#3
Peace macrumors Demi-God Join Date: Apr 2005 Location: On top of the Storm Peaks waiting for the Time-Lost Proto Drake	WOW. Just WOW.

Jul 21, 2008, 04:38 PM	#4
gco212 macrumors 6502 Join Date: Jul 2004	It's well below estimates and the stock is taking a hit.

Jul 21, 2008, 04:40 PM	#9
kenichiwat macrumors newbie Join Date: Jul 2008	ok...announce the re-design macbooks and macbook pros now and make more money apple!!

Jul 21, 2008, 04:44 PM	#12
Niiro13 macrumors 68000 Join Date: Feb 2008 Location: Illinois	Nice! Interesting...revenue is 7.46 billion? So they spent 6.39 billion? dang...

Jul 21, 2008, 04:45 PM	#16
iOrlando macrumors 65816 Join Date: Jul 2008 Location: Miami Beach, Florida	Guidance is insanely low. $1.00 where the street was looking for $1.25 Looks like a very consertative number due to economic fears. Not totally surprised with the results. I think apple wants analysts to bring that $1.25 down to more like $1.15. Target prices might come down a few bucks, but I dont see any reason for major price cuts. All-in-all.. meh.. nothing too bad nothing too good.

Jul 21, 2008, 04:47 PM	#19
Sandfleaz macrumors regular Join Date: Jan 2007	"We're proud to report the best June quarter for both revenue and earnings in Apple's history," said Steve Jobs, Apple's CEO. "We set a new record for Mac sales, we think we have a real winner with our new iPhone 3G, and we're busy finishing several more wonderful new products to launch in the coming months." emphasis mine __________________ Funniest T-Shirts & Stuff on the net http://www.cafepress.com/shirtspot

Jul 21, 2008, 04:48 PM	#21
MacinDoc macrumors 65816 Join Date: Mar 2004 Location: The Great White North	The market doesn't seem to realize that Apple is not posting revenue from any iPhone sales for the past quarter (this was explained in a previous post). Mac sales up 38%, and surprisingly, iPod sales up as well (it was previously thought that iPod sales had peaked). The problem is that the market follows key terms (such as "earnings less than most market forecasts" or "guidance lower for the next quarter" like a flock of sheep. The smart investors will look into things in more detail and see that Apple increased year-over-year earnings in spite of not having a key source of its income, that sales increased dramatically, and that there are potential new revenue streams (such as the App store) coming on-line for the current quarter. And they will likely conclude that with today's drop in AAPL, it is now a good time to buy the stock at a discounted price. __________________ MB Alu 2GHz, iMac i7, iPhone 3G, iPhone 3GS

Jul 21, 2008, 04:50 PM	#23
Matthew Yohe macrumors Demi-God Join Date: Oct 2006 Location: Iowa City, IA	Guidance was 1.00, consensus street estimate was 1.10-1.11 Where are you guys seeing that the street was any more than that?

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