Apple 1Q 2008 Results: Record $1.58 Billion Profit

[shawnce]

It's interesting that they have released the MacBook Air with a smaller Merom processor. Ideally this should have a Penryn chip in it - for heat and processing power.

Intel is preparing the small form factor Penryn for 2H08 so this one off (using Merom and early spin of the packaging) for Apple is special and likely shouldn't be used to make predictions from.

"standard" size Penryns are ready now for the mobile space with more coming in May.

 

[ArmyKnight12]

Awesome news. Yeah for Apple!

 

[sd452]

Pe

Actually the trailing PE was 24.24 at todays close. The after market drop close the stock dropped about 14 percent. Tomorrow's open should see the trailing PE under 20. That is one heck of a value for 30% + growth. I bought most of AAPL at $12.50 back when Gil bought NEXT. I'll be buying more tomorrow.

 

[shawnce]

Actually the trailing PE was 24.24 at todays close.

I think you meant forward PE.

 

[JGowan]

"The Company sold 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Quarterly iPhone™ sales were 2,315,000."

Maybe I'm just stupid, but 22.1M iPods sold in 3 months sounds like a ridiculous amount, YET people here act like the market's saturated. Why?

Personally, I bought 6 iPods last year (Two 2Gen Shuffles, 80GB 5.5Gen, 160GB 6Gen, a new Nano and an iPod Touch [the last 3 during the Holiday 4th quarter]) I also, plan on getting 2 iPhones next month. I know I'm not alone. Also, I know many people who keep upgrading ever couple of years. Now that Shuffles are so small, cheap and nice, they're owning more than one iPod and using them depending on their need.

Plus, one must consider that 2.3M people DID in fact, get awesome "iPods" when they bought the iPhone. Does the iPhone cannibalize iPod sales? Absolutely.

 

[HelloKitty]

Guidance. Panic. Wall Street.

Exactly. I think Intel suffered the same thing just a while ago when they announced their quarterly report.

But what can I say? They're the one that have big money and are capable of determining stock price. If they say the stock price should be 100, then 100 it is...

 

[RRutter]

Macs still the big market...

Yup

 

[Butthead]

First of all - I'm not taking Stock-buying advice from any of you.
I'd be very poor if I did.

In 6 months time, I don't think Apple will be at $140 or lower - and here's why.

It's interesting that they have released the MacBook Air with a smaller Merom processor. Ideally this should have a Penryn chip in it - for heat and processing power. They haven't - so this suggests to me that they haven't got their laptop platforms nailed down for Penryn yet - and aren't ready to release. If they had to wait 10 weeks for the MBA platform to be ready for Penryn - would they have waited?

So - I'm going to take a guess and say that Apple HAS got a revision ready for the MacBook Pro - and that it won't be released this quarter.
That helps explain their conservative guidance.
Watch them release the MBP in the next quarter and watch the share-price jump up again.

Everything is humming along quite nicely - the iPhone getting ready for release into Asia Macs selling well - and now a share-price drop.
Can you say BUY opportunity? Catch a falling knife... it can be done.

Agreed, buy op, but everything else in the post is wrong If I were a Google CEO and didn't already have some options to get it for less, I'd be buying up hundreds of millions in Apple stock, rather than the over priced Google stock, lol.

Intel is preparing the small form factor Penryn for 2H08 so this one off (using Merom and early spin of the packaging) for Apple is special and likely shouldn't be used to make predictions from.

"standard" size Penryns are ready now for the mobile space with more coming in May.

If you believe digitimes, the 22mm Penryns are due out at the same time in May, as the 35mm Penryns. Now which series of CPU's, in what die size, will be used in what model; you can speculate on that

cache is gone for the DT article, but you get pretty much all of it in engadgets story:

http://www.engadget.com/2008/01/15/intel-releasing-15-montevina-cpus-in-may/

Rumor sites have the MBP being nearly ready for MWSF, but supposedly due to resources being put towards MBA, it (MBP Penryn's ) were a no show, but that they should be out any day, as PC vendors have already announced. Apple would be foolish to wait until the next quarter to update the MBP line.

In May, with the release of Monteviña we can expect yet another MBP revisions to follow, perhaps around WWDC?

Apple's stock won't hinge on the success of the MBA anymore than it did on the MacMini.

 

[spork183]

1.58 Billion? I knew it! Apple is an oil company...

 

[jicon]

"The Company sold 22,121,000 iPods during the quarter, representing five percent unit growth and 17 percent revenue growth over the year-ago quarter. Quarterly iPhone™ sales were 2,315,000."

Maybe I'm just stupid, but 22.1M iPods sold in 3 months sounds like a ridiculous amount, YET people here act like the market's saturated. Why?

Personally, I bought 6 iPods last year (Two 2Gen Shuffles, 80GB 5.5Gen, 160GB 6Gen, a new Nano and an iPod Touch [the last 3 during the Holiday 4th quarter]) I also, plan on getting 2 iPhones next month. I know I'm not alone. Also, I know many people who keep upgrading ever couple of years. Now that Shuffles are so small, cheap and nice, they're owning more than one iPod and using them depending on their need.

Well, the question must be asked. How many do you plan to buy this year? Surely you should be buying more than two iPhones, as revenue generated from the phones counts for over the length of the two year contract I believe... Otherwise, I'd speculate your iPod consumption is oversaturated.

 

[elgruga]

Yeah the iPod is starting to get some serious competition.

THIS is exactly the kind of stupid comment that irritates so many, including me.

1 - The iPod has the same market share it has had for some time - north of 70%
2 - The iPhone is also an iPod - consider the two together and you have more like 80% of the music player market, and of course, 20% of the smartphone market in its FIRST 6 months.
3 - the iPod is up on profits, and despite a downturn in retail, sales are still UP 5%.

Competition? From where - the planet friggin' Zargon?

The stock market does NOT reflect huge gains in Macs, 2.5 TIMES the rest of the PC market - the stock market is a shell game so that rich folks can fleece poor folks. There is no logic, just greed.

Wake up!
Apple 1Q 2008 Results: Record $1.58 Billion Profit.

 

[hagjohn]

Time to buy?

If you buy now, your nuts... the market is going to drop more and so will Apple.

 

[hagjohn]

Wake up!
Apple 1Q 2008 Results: Record $1.58 Billion Profit.

Yes and they expect less profits in the 2nd quarter, which is where the drop in price comes in.

 

[hulugu]

Not at all good, and that's the point. They certainly weren't reporting record profits. This is turning into a battering of historic proportions, which I can only compare numerically to a time when Apple was not in anything like its current condition financially.

... Catch a falling knife... it can be done.

I'm sticking to my guns here. It's a time to buy a bunch of discounted Apple stock. I can't help but think this is an opportunity for someone to make a lot of money betting on a company weathered the last slow-down with aplomb by committing money to R&D rather than withdrawing into itself. Maybe it's the RDF, or maybe it's because I'm sitting in a coffee shop frequented by law students, professors, and other university types and half of the laptops are running OS X.

 

[JGowan]

Well, the question must be asked. How many do you plan to buy this year? Surely you should be buying more than two iPhones, as revenue generated from the phones counts for over the length of the two year contract I believe... Otherwise, I'd speculate your iPod consumption is oversaturated.

Well, I'm sure, come the holidays, at least 2 or 3 more people will find iPods in their stockings. I really believe that many here are thinking that iPods/iPhones are only bought by those using them, when clearly many people are getting them as gifts. As they get cheaper and better, people will continue to consider buying them for the techie in their life. Perhaps at $399, they wouldn't consider it, but at $79 and $149, suddenly it opens the door for an awesome gift to replace someone's iPod who normally would've tried to eek out another year of their current model.

Factor in several other gift-giving holidays (Valentines, Mother's Day, Father's Day and BIRTHDAYS [everyone's favorite holiday]) and there will always be a reason to buy more iPods. Oh yeah... and Apple will continue to make them better and better, enticing those of us who already own multiple iPods to buy "just one more".

 

[wildmannz]

Nuts

If you buy now, your nuts... the market is going to drop more and so will Apple.

The market already HAS dropped.
And so has Apple.
The market will show proof on Weds - either way.

 

[Wild-Bill]

Apple should take that 1.58 billion and sink it into quality control. Immediately.

 

[Starflyer]

Apple should take that 1.58 billion and sink it into quality control. Immediately.

Yeah, because customer satisfaction for Apple products are at an all-time low.

 

[hulugu]

You know, I'm actually excited about Windows 7. I think Microsoft is so determined to amend its Vista blunder that they will point every gun they have at Windows 7. If this is the case, I await it eagerly. Competition is good and keeps Apple on its toes.

-Clive

I think Microsoft hasn't figured out that they're sailing the wrong damned direction, yet. So, this having all hands aboard set the main and load the guns won't make much difference.

I'd like to think that Microsoft has woken up and will be attempting a renaissance for Windows, but I think they're still sleepwalking based on Silverlight, the Zune 2, and IE 7. And, Vista...oh the tragedy is almost Olympian.

 

[neilspartacus]

What could be the Mac Vs PC market shares?

With such great results someone should have visited the market share of Mac and PC. The last i knew was mac were just 5 or 6.1%! I think its time to revisit those figures if they weren't!
Do someone have credible figures on this?

 

[hulugu]

With such great results someone should have visited the market share of Mac and PC. The last i knew was mac were just 5 or 6.1%! I think its time to revisit those figures if they weren't!
Do someone have credible figures on this?

According to AppleInsider, Gartner is reporting that Apple's share for the 3rd Quarter (2007) was 8.1.

Now, remember that this is just for the quarter of sales and thus has no impact on overall sales nor installed-base, which is always the problem of relying on these numbers. However, with this in mind, Apple increased from 6.2 to 8.1 over the same period.
Of note, similar studies place Apple with 17% of notebook purchases.

 

[Confidemus]

Definitely time to buy

Time to buy?

The markets are very volatile due to a some large investors playing around and making a lot of money. I suppose that there are some guys sitting together on their "boat" and smile...

AAPL will rise as expectated up to 600 the next years. Take your stock widget and tick the "2y" button. And then make a projection into the next two years. What do we see?

Time to buy.
Best,
Confidemus

 

[Scottgfx]

The stock in tanking in after hours. They sort of deserve it for not addressing some of the holes in their product line. Apple my friends has become a "niche" computer maker again. The MacBook Air is proof.

So... Apple sees a market to break into, and just because it doesn't fit your personal needs, you slam it? Is Apple just supposed to make just one "People's Computer" that addresses all computing needs? You slam the MBA as a niche computer at the same time you say that Apple isn't diversifying their product line! You can't have it both ways!

Next time, make a point.

The markets are very volatile due to a some large investors playing around and making a lot of money. I suppose that there are some guys sitting together on their "boat" and smile...

AAPL will rise as expectated up to 600 the next years. Take your stock widget and tick the "2y" button. And then make a projection into the next two years. What do we see?

Time to buy.
Best,
Confidemus

I doubt that just looking at a 2-year graph is enough information to make a stock purchase decision. I did that kind of stuff with SBUX and I've taken a beating. *ouch*

But I am all set up to buy more AAPL in the morning. Wish me luck.

 

[Pandaboots]

Ah, No, clearly you do not understand the fundamental underpinnings of an economy and where they currently stand in ours.

I don't care what textbooks say about an economy. People really are idiots. The market right now makes no sense at all. But please enlighten us all to the fundamental underpinnings and where these underpinnings are right now in our economy. In other words, elaborate more on your response.

I wonder how many people are actually selling off at a loss right now due to panic? Now if Apple had its hand in the subprime game and was writing down billions for the quarter, I could understand a mass hysteria to get out. Apple has become a very big company in the last fews years. Very few companies have the market cap that Apple has and fewer more have the growth that Apple continues to have coupled with the hottest products and services and diversity.

No one is even talking about the retail side of Apple. Surely people can now see that Apple is serious business and not just a trendy niche company anymore. Steve Jobs is everywhere now---Computers/Software/Apple Retail Stores/iTunes store/Hollywood/Music/Phones/Starbucks/Disney. You can't escape Apple no matter where you go. On top of all that, they are making profits hand over fist, increasing and more importantly maintaining any market share they gain in any division, and are sitting on tons of cash. Furthermore, they are well positioned and well armed to gain the top spot in market share for their phone and movie divisions. And all the while, their computer and software division keep steadily growing.

Where the hell else would any investor want to put his money right now? Are companies like Apple a dime a dozen? You see my point now?...People are idiots.

As a sidenote, I did sell my shares at $200. I had owned Apple since 2000. I've seen more than my fair share of massive paper losses in that time, as well as some really good roller coaster rides. In the end, my investment made 720%. I re-invested half of that back into Apple in the low 180s recently and diversified the rest. I can't imagine another 720% gain, but I anticipated Apple growing a little more through 2008 before reaching the saturation point and becoming a blue chip. Point of the story is, yes Apple's growth will slow and eventually flatten, but it doesn't mean they are doomed. They are just maturing into a mega company that if ran well will maintain its dominance and market share. Think Wal-Mart, Xerox, Fed Ex, Starbucks, McDonalds...and from time to time they will have a sudden spike in stock price, but will not continue to double every year like we have become accustomed to recently. Go long on Apple, and you'll enjoy some hefty profits and might even see a dividend sometime too.

 

[Scottgfx]

...Go long on Apple, and you'll enjoy some hefty profits and might even see a dividend sometime too.

Huzza! Huzza!