Apple Reports Record March Quarter Results of $13.6B Profit on $58B Revenue, Boosts Dividend and Buybacks

[Rogifan]

Then maybe you should be investing in Google?

It's ridiculous. Even the talking heads on CNBC and Bloomberg are surprised the stock isn't up more after hours. iPhone killed it, margins were good, capital return program to $200B and provided strong guidance. This was a record March quarter (and didn't even include new Macs or Watch) and the after market reaction is meh. Oh and yeah I mentioned Google, but I could have mentioned Amazon or Microsoft as well.

 

[Traverse]

That's a lot of pocket change!

 

[Costino1]

Boggles my mind these numbers...

Think of the BIG 500 companies Apple can scoop up and still have tons of cash in the coffers. Unreal.

 

[thekeyring]

Wow. They are doomed.... said no-one ever.

If only that were true.

 

[ethanwa79]

Mac. A measly 10% of sales.

Yeah... that poor $5.8 billion in revenue on $1.3 billion in profit. 10%. Really hurting them. *sarcastic*

Apple will NOT give up on the Mac, trust me! Not with those kind of numbers! Most companies would KILL KILL KILL to have desktop computer sales numbers like that.

Don't worry about the Mac folks, Apple will continue to invest in it.

E

 

[TallManNY]

I'm waiting for the sat Apple has a $1 Trillion dollar market cap. And that could happen next year or 2017 at this rate.

Stock is up 65% in the twelve months. Why are you so pessimistic it will take until 2016 to reach trillion dollar cap?

 

[callea]

61 millions iPhones in the post holiday quarter??

 

[JeffyTheQuik]

I bet we see $145, then a drop back to $137...

Thank you to all of the Apple customers!

 

[Michael Scrip]

If they get a phone wrong, they are [doomed]; they are so dependant on phones these days.

There are plenty of companies who only do wrong with phones.

I doubt Apple will ever fall into that category.

(and just to be clear... I'm not talking about the handful of smartphone makers who do well... I'm talking about the 50+ smartphone makers who only make garbage phones. Somehow the smartphone industry keeps going even if only 10 out of 60 make money. I don't know how.)

 

[iLondoner]

61 millions iPhones in the post holiday quarter??

Ah, but Q2 included the Chinese holiday period. Apple's push into China is flattening out the Q1 peak.

 

[JeffyTheQuik]

61 millions iPhones in the post holiday quarter??

I'm betting Chinese New Year.

A big thank you to them as well!

 

[Dargoth]

and the rich get richer

Well, eventually they're going to spend their stash on something, at which point the rich will get poorer. Presumably this will result in profits, and they'll get richer again. It goes up and down. It's certainly not as black and white as people like to think. The more money they have, the more they spend, and thus it goes 'round. I mean, not just anyone can employ thousands of people like they do, and indirectly employ probably millions more through purchases from other companies.

 

[saturn88]

Stock is up 65% in the twelve months. Why are you so pessimistic it will take until 2016 to reach trillion dollar cap?

Yes, I think 1 trillion cap could happen by XMas 2015

 

[mackinmike]

up only 2 cuz the price is already factored in. wait for the drop due to profit taking

 

[X-X]

Wow, the Mac is back to being the Nr2 product of the company before the iPad. That's great to see.


But when the iPhone goes down some day, Apple will fall apart.

 

[ToM7]

jesus christ

why is jesus crying?

 

[diddl14]

"The call is beginning, unusually, about two minutes late."

That not good for a company that just released a brand new watch...

 

[firewood]

and the rich get richer

Well, eventually, Apple will have to move the money and it will get taxed. Then more politically connected (but likely also rich) types will get richer by claiming that they are helping the common 99%. What claims do you make?

 

[GrumpyOldMac]

and the rich get richer

Well, I'm not "rich," but I did, on a hunch, buy a bunch of Apple stock in the late 1990s, and the $&%**# huge rise in that value is covering my kid's college tuition.

I'm middle class. I drive a compact car and work 10 hour days and sweat the big bills. But I guess I'm a lot richer because of Apple, so thanks Steve Jobs and Tim Cook, you guys are awesome.

 

[Michael Scrip]

Wow, the Mac is back to being the Nr2 product of the company before the iPad. That's great to see.

But when the iPhone goes down some day, Apple will fall apart.

Not exactly.

We all know the iPhone wil hit the sales peak someday. No product can grow sales forever.

If Apple stopped growing and only sold 60 million iPhones a quarter for the rest of our lives... they'd be OK.

There are hundreds of other companies who would "fall apart" before Apple did.

 

[Soulweaponry]

Jesus iPad just keeps going down and down. I know the upgrade cycle on iPads for most people is slowing and it's not like it's doom and gloom for iPad but wow. At this rate it shouldn't be that long until macs and iPads sell the same.

 

[BruiserB]

Does Best Buy taking ApplePay mean CurrentC is officially dead? Or is the CurrentC exclusivity just expiring? AFAIK it hasn't even launched yet?

 

[TallManNY]

Cash: $193.5 billion in cash plus marketable securities, up $15.6 billion. $171 billion was offshore. $6.5 billion in US dollar denomination notes, $1.3 billion Swiss Franc notes.

Well can we have another round where I suggest more of this money be returned to shareholders and other people counter that Apple should save it for a rainy day or some sort of hypothetical acquisition?

There is more money coming. The increased buyback plan, just like all the ones before, will not actually result in Apple digging into this cash hoard.

Wait until the margins for the Apple Watch start hitting the balance sheet. It will offset the decrease in iPhone sales for next quarter. And then come Fall we are back to another iPhone launch but this time at an even greater scale.

 

[Michael Scrip]

Does Best Buy taking ApplePay mean CurrentC is officially dead? Or is the CurrentC exclusivity just expiring? AFAIK it hasn't even launched yet?

CurrentC may be "stillborn"

 

[GuitarDTO]

Not exactly.

We all know the iPhone wil hit the sales peak someday. No product can grow sales forever.

If Apple stopped growing and only sold 60 million iPhones a quarter for the rest of our lives... they'd be OK.

There are hundreds of other companies who would "fall apart" before Apple did.

Fall Apart isn't the right terminology to use, but he does have a point. Apple is the iPhone company now, and rest assured that if/when iPhone growth slows, the stock will get massacred. It may not come for a long time, but it is the single biggest risk of investing in Apple until they roll out another product category large enough to make a dent in their earnings.