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Apple 4Q 2007 Results, Conference Call: $6.22 billion revenue, $904 million profit

A few items from the conference call

Conference call is going on. I have never seen Apple execs post so confidently about the next quarter (and future) in general. ( The next quarter may easily see $10B+ revenue, despite the conservative $9.2B estimate from the CFO.)

They still talk about high component prices potentially leading to lower gross margin for the Xmas quarter. DRAM and NAND flash prices are still falling down but they are worried about hard drive and LCD prices.

Handset sales are recognized over a 24-month time, or 8 quarters. (Given that Apple has recognized about $100 revenue per iPhone sold this quarter, Apple's total revenue per iPhone will be at least in the $800 range. Looks like the kick-backs from AT&T and others are more lucrative than a few hundred dollars.)

Question on iPhone pricing being higher in Europe and going up? Answer: Europe prices include VAT and other duties.

Direct sales were 57% of company revenue.

Question on why Europe outgrew US 4-quarters in a row? Answer: Europe did not have the typical "August" wall. New iMac and iPod announcements helped sales in September.

Question: What are the biggest drivers quarter over quarter? Answer: Holiday quarter is usually the biggest quarter for iPods. We are shipping the best iPod line-up ever. We saw iPhone sales accelerate after the price cuts.

Question: Japan? Answer: Japan is the most challenging market. However, the new iMac was very well received. Units up 14% year over year while the overall PC market in Japan contracted 2%.

Question: How should we calibrate your guidance? (implying they estimate much less than the actual revenue for the past quarters) Answer: We are very confident in our strategy. Everything is coming together quite well for us. We are very happy. (Polite way to say "we are sandbagging the next quarter"?)
 
gugy said:
I agree, Apple needs a bare bones $200 or less cheap iPhone. Call nano if you want. That would be a huge hit. I would buy the regular iPhone for me and the nano to my wife since she's not so much into gadgets. but seriously Apple need to address these folks that do not want to, for example get a family plan and have to buy 4 iPhones at $400 each, That's crazy. Bring a cheap version for the kids and wife or husband, etc.:D
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Yeah, great. That way every little teenie-bopper and their mom can go to the mall, grocery store, and restaurant, with their iPhone Nano glued to the side of their head and annoy the rest of the properly educated world, who would never air their dirty laundry in public, about how their husband doesn't hit her G-Spot right, or how they're SO upset that they only got a Gucci bag instead of a Luis Vuitton bag, or how they got a yeast infection from their pool boy, Ernesto, on and on and on, listening to the same friggin' psycho mumbo jumbo that we've all been subjected to by being forced to listen to the conversation since they're talking louder than a leaf blower. Get a life, nouveaux riche! :eek: Yes, I went there ;)
 
Eidorian said:
Now update the computer hardware. :p
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Yeah no computers were in the highlights, except iMac being well received.
So Apple is making a massive profit. They should bring prices down on their overpriced computers - or at least their overpriced ram so I can order it directly from Apple rather than 3rd party after the new baby arrives :D
 
I hope everyone at Apple gets very excited and decides to overhaul and work non-stop to release a new MacBookPro for the holiday season :(
 
neven said:
Same here - it never starts, never even starts to buffer.
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Same here. I restarted everything and it still doesn't work.

I tried it on a Vista laptop and it worked there! WTF, and Apple analyst call only works on Windows machines?! I keep trying on Mac and it still doesn't work.
 
Detlev_73 said:
Yeah, great. That way every little teenie-bopper and their mom can go to the mall, grocery store, and restaurant, with their iPhone Nano glued to the side of their head and annoy the rest of the properly educated world, who would never air their dirty laundry in public, about how their husband doesn't hit her G-Spot right, or how they're SO upset that they only got a Gucci bag instead of a Luis Vuitton bag, or how they got a yeast infection from their pool boy, Ernesto, on and on and on, listening to the same friggin' psycho mumbo jumbo that we've all been subjected to by being forced to listen to the conversation since they're talking louder than a leaf blower. Get a life, nouveaux riche! :eek: Yes, I went there ;)
Click to expand...

Sure, people ARE annoying. Since the twits are already out there having these very conversations, I'd rather they spend their allowance with Apple than some other firm.
 
Detlev_73 said:
Yeah, great. That way every little teenie-bopper and their mom can go to the mall, grocery store, and restaurant, with their iPhone Nano glued to the side of their head and annoy the rest of the properly educated world, who would never air their dirty laundry in public, about how their husband doesn't hit her G-Spot right, or how they're SO upset that they only got a Gucci bag instead of a Luis Vuitton bag, or how they got a yeast infection from their pool boy, Ernesto, on and on and on, listening to the same friggin' psycho mumbo jumbo that we've all been subjected to by being forced to listen to the conversation since they're talking louder than a leaf blower. Get a life, nouveaux riche! :eek: Yes, I went there ;)
Click to expand...

that was weird!
 
Apple is dominating. Good for Apple. Soon the world will see the benefits to the superior product. I can't believe those iPod numbers. They just can't make those things fast enough. I also love seeing these Macintosh numbers growing like that. It makes me feel all tingly.
 
offwidafairies said:
Yeah no computers were in the highlights, except iMac being well received.
So Apple is making a massive profit. They should bring prices down on their overpriced computers - or at least their overpriced ram so I can order it directly from Apple rather than 3rd party after the new baby arrives :D
Click to expand...
Yeah not like Apple grew Mac unit volumes by 34% from the same quarter last year, setting a record for Mac unit volume... The reality is that with unit growth like that Apple has little reason to drop prices (generally already well priced compared to other vendors). You can only grow so fast before product quality, support quality, etc. are negatively affected.
 
I remember that many people doubted that report that 10% of iPhone were unlocked (I didn't!). By Apples own numbers then they are now estimating ~18%!

So hopefully in the future Apple won't be so keen to clamp down on what they now know is a sizable group of purchasers, despite their loss of AT&T kickback from them.
 
300 million people are US citizens. If apple sold over 2 million computer this past year, that basically means that 1 out of every 150 people you pass on the street just bought a Mac sometime in this year. And since most Macs have a life span of about 3 years before being replaced (last I checked) that means 1 out of every 50 people uses a Mac. And if you consider the fact that most old Macs get passed on to other people after their original owner has bought a new Mac, then that number gets even more than 1 Mac being used for every 50 people you see on the street.

Obviously this is just a very loose analysis that doesn't account for several significant factors (including international sales, non-citizen residents, etc.), but it gives you a really good general idea of just how well Apple is doing these days.
 
Still listening to the call...

I'm assuming it's live, since it's been going since I connected at 2:15pm Pacific time. I don't know what all the problems is with folks not being able to connect, since I'm using an ancient Thinkpad at a wifi cafe (running win2k.) It started right up, clear as a bell.

Well, they're wrapping it up now, giving the url's for replays avail later today...

Conference call now over...

On the real-time quotes... I wouldn't really count on the free sites giving it un-delayed... I compare my Marketcaster streaming real-time quotes via e-Trade to google finance, and google lags by 15-20 minutes - I have them going on simultaneously in separate tabs in Firefox. I watched it climb like a rocket up to 188, then when it leveled off, and started dropping, I put in a $187 limit order (after-hours) to sell, and got 187.14. Now, nearly 45 minutes later it's been hovering in the 187.30-187.65 range, currently at 187.32. At least I locked in my gains. I expect in the pre-market tomorrow it'll fall a bit, and I'll jump back in with a trailing-stop order...

At least I can sleep well tonight knowing I won't give it all back in the morning before I wake up... :)
 
motulist said:
300 million people are US citizens. If apple sold over 2 million computer this past year, that basically means that 1 out of every 150 people you pass on the street just bought a Mac sometime in this year.
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Surely the 2mill figure is worldwide sales?
 
motulist said:
300 million people are US citizens. If apple sold over 2 million computer this past year, that basically means that 1 out of every 150 people you pass on the street just bought a Mac sometime in this year. And since most Macs have a life span of about 3 years before being replaced (last I checked) that means 1 out of every 50 people uses a Mac. And if you consider the fact that most old Macs get passed on to other people after their original owner has bought a new Mac, then that number gets even more than 1 Mac being used for every 50 people you see on the street.

Obviously this is just a very loose analysis that doesn't account for several significant factors (including international sales, non-citizen residents, etc.), but it gives you a really good general idea of just how well Apple is doing these days.
Click to expand...

did they say they sold 2 million macs in the past 12 months in the US? i thought they said they sold 2 million in the past quarter worldwide.
 
After hours trading currently has Apple stock at $187.50 giving them a market cap of over $160bn. Apple are now bigger than IBM :eek:
 
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