Apple Announces $1.07 Billion in Profit for Q3 2008

[numbsafari]

Margins are down

Based on those numbers and my rough calculations it sounds like, overall, margins are down by almost 1% (~15 to ~14%) from a year ago. Sounds like Apple is starting to feel some internal business scalability issues.

Given the trouble with MobileMe and the bugginess of the new firmware, it sounds like this is extending to their ability to roll out products as well.

Hopefully they can reign in these operational problems without hurting product development.

 

[iMacmatician]

Based on those numbers and my rough calculations it sounds like, overall, margins are down by almost 1% (~15 to ~14%) from a year ago. Sounds like Apple is starting to feel some internal business scalability issues.

Given the trouble with MobileMe and the bugginess of the new firmware, it sounds like this is extending to their ability to roll out products as well.

This may be why the rumored mini-tablet was rumored to be delayed.

 

[seashellz]

Omg-!

.,..and here at the start of another 'Great Depression' no matter what BLS tells ya-layoffs, store closings, millions of empty condos and homes, most stocks tanking and APPLE (APL) comes through!

 

[MacinDoc]

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

emphasis mine

OTOH, I've never heard a keynote or fiscal report in which SJ did not say something along those lines.

 

[iOrlando]

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?

Street has $1.25 for the next quarter, which the $1.00 was guidance for. The estimate for this current was $1.08, and apple had $1.19

 

[numbsafari]

I guess they care alot about absolute numbers.

When you make billion dollar investments those numbers can add up real quick... When you are the fund manager for the retirement plan for all public employees in California, it can mean significant things to even the most "insignificant" investor.

People made their bets about these numbers months ago and are cashing in or out based on how things turned out today.

 

[cameronjpu]

The dumb money and the dumb investor looks at the stock moving down after earnings and complains about his bad luck and the market's stupidity.

The smart money and investor smiles and takes advantage of the situation to make more money.

Which are you?

 

[gcmexico]

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

*
anyone know what were the industry estimates?

 

[MacinDoc]

Based on those numbers and my rough calculations it sounds like, overall, margins are down by almost 1% (~15 to ~14%) from a year ago. Sounds like Apple is starting to feel some internal business scalability issues.

Given the trouble with MobileMe and the bugginess of the new firmware, it sounds like this is extending to their ability to roll out products as well.

Hopefully they can reign in these operational problems without hurting product development.

Margins on the iPhone appear to have been quite high, and there were no revenues reported from iPhone sales in the past quarter, if I understand correctly.

 

[Peace]

The guidance is no surprise to me at all. Apple is spending a lot of money designing new toys for us to buy over the next few months.

This always happens with forward looking guidances.

Give them 2 weeks and the stock will start rising again.

 

[minik]

New Apple Cinema Displays please..

I did contribute with the new iMac purchase in May.

 

[saab]

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

The will introduce MobileMe Pro for business users. Monthly fee will be $99 and the free trial will be $999.

 

[Dmac77]

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

Is not, according to my touch AAPL is up 0.69% or $1.14.

Don

 

[numbsafari]

Street has $1.25 for the next quarter, which the $1.00 was guidance for. The estimate for this current was $1.08, and apple had $1.19

What's scary about that is that Apple has some significant things that aren't showing up in this current estimate but that they are pushing off to next quarter (All those iPhone 1.0's that aren't in this quarter because of some weird accounting rule related to the firmware upgrade). In addition, it is supposed to include those million-in-one-weekend iPhone 3G's.

So, I would say a weaker forecast for next quarter instead of a strong forecast says that Apple sees some significant weakness in their internal numbers whereas you would expect them to have an easy go of it over the next three months because of product launches (iPhone) and seasonality (back-to-school).

 

[Holmes89]

I wonder if the "new" products they are talking about will be a smaller iPod touch to replace the nano or something.

 

[Eraserhead]

MICROSOFT IS DEAD IN THE WATER.

How can you seriously say that, when Microsoft have produced annual profits of 22 billion dollars in the past year .

 

[G5power]

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.

Just think colored iPhone socks. Totally new.

 

[numbsafari]

Margins on the iPhone appear to have been quite high, and there were no revenues reported from iPhone sales in the past quarter, if I understand correctly.

I was commenting on overall margins, not on a specific product.

Indeed, the story on margins is even more concerning given that their product mix now includes so many high-margin items (iPhone 3G).

 

[gkarris]

Way to go, Apple!

"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."

(runs and hides credit cards....)

 

[dongmin]

For reference, analyst's estimate for the 3rd quarter:

Apple may report third-quarter sales of $7.36 billion after the market closes today, a 36 percent jump from a year earlier, according to a Bloomberg survey of 25 analysts. Profit probably climbed 19 percent to $972.1 million, or $1.08 a share, in the period ended June 28, the survey showed.

http://www.bloomberg.com/apps/news?pid=20601204&sid=aU1MQIhbaPVI&refer=technology

 

[dacreativeguy]

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

The analysts are never happy. Would be interesting to see how stocks would perform if based solely on a company's performance instead of what analysts think the price should be.

 

[numbsafari]

The analysts are never happy. Would be interesting to see how stocks would perform if based solely on a company's performance instead of what analysts think the price should be.

And how would you evaluate and quantify that performance??? I guess you'd have to... analyze it...

hrm...

 

[Whorehay]

Is not, according to my touch AAPL is up 0.69% or $1.14.

Don

After hours down $10.49 and falling (-6.3%) since they announced it

 

[MacinDoc]

I was commenting on overall margins, not on a specific product.

Indeed, the story on margins is even more concerning given that their product mix now includes so many high-margin items (iPhone 3G).

The point is that last quarter's report did not include the high-margin iPhone 3G, but did include increased sales of Apple's lowest-margin products, iMacs and MacBooks. Next quarter's margins should increase considerably with the iPhone 3G sales included.

In any case, Apple has enough cash on hand that it can cover low margins if it needs to and still keep up production rates. So, this should not delay the deployment of any new products.

 

[Matthew Yohe]

Street has $1.25 for the next quarter, which the $1.00 was guidance for. The estimate for this current was $1.08, and apple had $1.19

Check your numbers, sir.