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Apple Reports Q2 2013 Quarterly Results: $9.5 Billion Profit on $43.6 Billion in Revenue, Increases Dividend and Share Repurchases
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I think you kind of answered your own question. The company's cash stockpile doesn't mean a thing to stockholders unless it's being used to increase the company's earnings, to buy back shares, or is being paid out as a dividend. They have way more than they need for the former, and we are finally seeing some of the latter.
This chart disagrees. But heck, let's not let the facts get in the way of your "Apple is doomed" crusade.
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Why not give them a chance first, nothing lasts forever. They may see the bright side (or not)
That's a revenue chart, not an earnings chart. I can explain the difference to you, if you really need me to.
Earning are down year over year.
Oh, the irony...
So lets see what Wall Street would have done if earnings were flat (or slightly up) but revenues were down. My guess is the stock would have been hammered.
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How is growth negative when revenues were up 11%? Apple is selling more iPads because of the mini (lower gross margin) and more iPhones because of aggressive pricing of the 4 in certain international markets. Wall Street can't have their cake and eat it too. If they want Apple to increase market share then more than likely it will come at the expense of lower margins.
"Flat" = immensely profitable and generating cash well in excess of their needs. Wow, who wouldn't want that? Oh yeah, moron stock speculators who require growth regardless of the underpinned fundamentals.
Earnings decreased 18%, year over year. Margins were much lower, and that is never a good thing.
In other words, AAPL stock will have to wait another 5-7 months for a boost from new products. Another 5-7 months for people like myself who want to upgrade to the next iPhone and/or get a iPad mini 2. Disappointing news.
People complained when Apple released the 4th iPad 6 months after the 3rd, and now people are complaining because it may be a year between that announcement and the 5th iPad/2nd iPad mini.
More profits and higher margins are a better thing, but given that Apple released no major new products in the quarter, the tablet market is proliferating, and the PC market absolutely collapsed during the quarter, Apple did quite well the last 3 months.
No, "flat" as in the current share price does not undervalue the company and nothing in the company's near future will be increasing its value. You can buy what you want but there's a lot of things I'd put my money into right now before spending it on aapl.
Anyone who is surprised because they have lower margins on cheaper priced products is a moron imo.
Any one who expects higher margins on cheaper products is also a moron imo.
You're talking to a finance major here so no need for the condescension nor the lesson on what revenue and earnings are. I'm just saying earnings would logically go up proportionality to the increase in revenue.
And while you're right earnings are lower compared with Q2/12, you are wrong with the year-over-year comment, especially if you look at the further back than just a year Q1 was at about the same as 2012 and 2013. It's only been one quarter that's lower so it's still too soon to be making this presumption for 2012/2013 anyway.
But save your "Apple is doomed" predictions for later and come back when revenues and profits are in nosedive.
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Just curious why you expect margins to be higher on cheaper products? It's pretty clear that the mini as well as an aggressive push of iPhone 4 in certain markets (like India and Brazil) brought down margins. Wall Street is so obsessed with market share...do they really expect Apple to increase market share internationally and at the same time keep up insane margins? Something has to give.
Also the fact that older models of iPhone are still so successful is a big deal. The 4 and 4S are probably selling better than some newer flagship Android phones.
It wasn't a disaster, no. But then the problem is the lack of new products. This is the longest dry spell we've seen from Apple in some time.
Surprised? Expects?
Expect? The markets have been expecting lower margins and profits, which is why the stock price has been driven down. Wall Street doesn't give two figs about market share. What investors care about is growth in earnings. A margins squeeze results in reduced earnings and also suggests the real possibility of lower profits going forward due to increased competition. A pretty basic concept, and not at all controversial, or so I would have thought.
Apple's success in growing earnings over the last ten years has been based on the regular release of breakout products, not on new iterations of old products. If you are an AAPL investor, I suggest you hope for another one of those, a product where Apple's margins are not already squeezed. If you are investing for more than entertainment value, anyway.
Wall Street doesn't care about market share? Yeah right. If they didn't care about market share why were they screaming for a cheaper iPad last year and a cheaper iPhone this year? What's the point of a cheaper iPhone other than to increase market share in places like China and India. What Wall Street seems to want is Apple to increase its market share AND maintain absurdly high profit margins. As far as regular release of breakout products, I'm not sure how you're defining regular but it was 3 years between iMac and iPod, 6 years between iPod and iPhone and 3 years between iPhone and iPad. So one would assume that late 2013 or more likely 2014 is when we'll see a new product category or game changer from Apple.
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Unless of course you're Amazon. Then investors could give a **** if you make a profit or not.
