Apple Posts $295 Million Profit

[germ war]

I will never forgive my financial advisor for stating I shouldn't buy 100 measly shares way back last February when the stock was $22. I knew Apple's star was rising, but man, the stock has more than tripled, and the new products are gonna keep it soaring.

Oh well. I can't buy much with all the money I lost instead.

 

[ioinc]

Just a quick question. How much Market share do you guys want Apple to gain.
I, for one love that I am part of the small Mac community. Now dont get me wrong, I would love Apple to become the dominate platform, but if that costs me security problems and viruses, then No Thanks. Just wondering what you guys think.

~Jeff

33.3%

 

[Mandril Design]

I will never forgive my financial advisor for stating I shouldn't buy 100 measly shares way back last February when the stock was $22. I knew Apple's star was rising, but man, the stock has more than tripled, and the new products are gonna keep it soaring.

Stock advisors and Apple always remind me of movie critics and the Farrelly brothers.

1. Come out with something.
2. "They did it last time, but this time, they will bomb."
3. Succeed wildly.
4. Repeat.

 

[ioinc]

In a word, no. Hardware revenue was $1.065 billion, up from $1.269 billion in the same quarter last year. A 30% increase in your HIGH margin items is nothing to sneeze at.



http://www.apple.com/pr/library/2005/jan/12results.html

1.065 is not higher than 1.269

 

[coconn06]

Just a quick question. How much Market share do you guys want Apple to gain.
I, for one love that I am part of the small Mac community. Now dont get me wrong, I would love Apple to become the dominate platform, but if that costs me security problems and viruses, then No Thanks. Just wondering what you guys think.

~Jeff

I want the Mac market share just high enough so that software and hardware companies always make their products work on the Mac (and web designers design for Safari as well, assuming most Mac users use Safari). But low enough that it stills feels like a great "small" community, as it currently does. Hopefully that would still be much lower market share than the Wintel world, and thus keep us away from most viruses and spyware. Ah, an ideal world!

 

[kiwi-in-uk]

1.065 is not higher than 1.269

The original post was

In a word, no. Hardware revenue was $1.065 billion, up from $1.269 billion in the same quarter last year. A 30% increase in your HIGH margin items is nothing to sneeze at.

rdowns made a typo - according to the data summary pdf from Apple the Q1 h/w revenue was 1.605Bn, not 1.065 which was what he typed in. So his post should have read "Hardware revenue was $1.065 billion, up from $1.269 billion in the same quarter last year."

EDIT: OK, so I blew it - should have read "Hardware revenue was $1.605 billion, up from $1.269 billion in the same quarter last year." 🙄

 

[rdowns]

The original post was


rdowns made a typo - according to the data summary pdf from Apple the Q1 h/w revenue was 1.605Bn, not 1.065 which was what he typed in. So his post should have read "Hardware revenue was $1.065 billion, up from $1.269 billion in the same quarter last year."

You made the same typo as me. 😀

 

[eazyway]

Advisors

I will never forgive my financial advisor for stating I shouldn't buy 100 measly shares way back last February when the stock was $22. I knew Apple's star was rising, but man, the stock has more than tripled, and the new products are gonna keep it soaring.

Oh well. I can't buy much with all the money I lost instead.

Line them up and .... all they care about is their steady commissions on all their total portfolios they hold.

I lost a ton money listening to all those so called experts. (about $275,000) So I took the securities course for about $1000 and have taken over my own investing. Almost 3 yrs ago .Since then I have bounced back and have recovered all that plus some.

I have bought a lot of Apple options and leaps in the last year. For example last week I bought 3000 Apr 50 options for $15.90 a share. They now trade at $25 a share. I also bought Jan 65 options almost 9 months ago and these are yielding huge returns, cost of 70 cents now paying $8 a share. BUT you need to know what you are doing. Option trading is leverage you often lose small amounts ie buy 2,000(20 contracts) for $1400 and then turn it into $0 dollars or into $ 32,000 in 9 months. I can see Apple still having the possibilty of continueing to the upside. Right now you can buy JAN 2006 $90 calls for $5 a share. Thus if APPLE 's Mini and Shuffle take off the stock will go with to a split and it has all the makings of going to a double through this year. So if you buy 1000 shares for $5000 you will

(a) lose all or part of the money. You buy now and take one quarter to see what the shuffle and mini bring to market. Doesn't work for you take a loss then (usually less than $5000) or hold the options.

(b) If the home run is hit , then watch the double take effect and stock will split and a good chance that on Jan in 2006 your 2000 shares are now $45 options Apple is trading at around $70 a share and the net effect is you are up $50,000 . If you buy Apple shares for $5000 you will then have $10,000 or be up $5000. So in this case a double has turned into a ten bagger. Now if Apple goes one better and does this year again next year, a triple turns into $120,000 profit or a 24x gain (or 2400% for those of you who like %'s)

So with options doubles turn into larger multiples BUT you have to realize you could lose all of the money (or most of it). For you to break even Apple would have to trade up 30% by next year at $95 a share. You really HAVE to do your homework in a few stocks to be successful. Follow half a doxzen high flyers and work into it slowly.

 

[jettredmont]

Couldn't find exact numbers from yesterday's release other than Total, iMac, and eMac, but something is awry:

1,046,000 million Macs overall in the last quarter
337,000 iMac G5's
119,000 eMacs

That's real numbers.

The following numbers were as of mid December:

836,000 Macs overall
229,000 iMacs and eMacs
238,000 iBooks
156,000 Power Macs
213,000 Powerbooks and xServes

Apple doesn't release actual sales numbers mid-quarter for the current quarter. That would get them in severe reporting trouble with the SEC, and would create a huge amount of extra finance work (the vast majority of which is firming up end-of-quarter/year numbers to SEC reporting standards).

Those numbers, I believe, were estimates of the full-quarter numbers, based on current "burn rates". Apple released "guidance" around that time, and that's what guidance is.

So, what you're seeing is that iMac/eMac sales went way above what Apple had expected.

 

[VincentVega]

I couldn't be more pissed at my grandfather right now. When Apple's stock was $30, I told him to buy. Two weeks ago, I told him to buy Apple stock on January 10th. Here comes January 12th, he hasn't bought squat, and it went up $7 today...

Gosh I'm pissed...

I couldn't be more annoyed at myself. I had $11000 or so in cash lying around at the start of 2004 (lost my job, got a redundancy payment). I wish I'd spent a couple of thousand buying some Apple stock. Now all the money has gone. Oh well.

 

[rdowns]

Wall Street jumps on the bandwagon

NEW YORK, Jan 13 (Reuters) - Prudential Equity Group on Thursday raised its investment rating and share price target on Apple Computer Inc. , after the computer maker reported better than expected quarterly earnings on Wednesday.

Prudential upgraded Apple to an "overweight" rating from a "neutral" rating and raised the company's share price target to $93.00 from $75.00.

*********************

"(We) believe that Apple can grow its consumer share," said Banc of America Securities analyst Keith Bachman, in a note to clients. "Our survey work indicates strong brand appeal and interest in converting from Windows systems to Macs based on better media capabilities and virus protection."

Several analysts on Thursday raised their rating on Apple, including Bachman, who upgraded the stock to "buy" from "neutral." Prudential Equity Group raised its opinion to "overweight" from "neutral."


************************
Some others also raised their opinion of Apple

http://finance.yahoo.com/q/ao?s=AAPL

 

[Kal-EL]

It took me 3 years to convice my dad to stop using DOS 6.22. Now he touts windows XP as a godsend (i installed it for him) yet every weekend i have to remove all the spyware and viruses that he gets... I keep telling him OS X, but i tell you... stupid ignorant people think windows is the shiznit and won't listen to anything you say about an alternative. The cattle MOO, and i am thinking of opening a slaughterhouse...

Dude, I'm not trying to pick on you or anything, but gramatically speaking, based on your comment, you called your father a stupid, ignorant person.
Unless that's what you were going for.

 

[wdlove]

Apple will need to be sure to produce the quality products that it is known for as a company. Don't want to see over exuberance about Apple harm the company. They currently have an awesome base on which to build. Customer service is going to be very important. Such as learning from all the delays that occurred with the shipping of the 2.5 G5 Power Mac. Is just a good idea to always be cautious, we don't want to harm the current reputation.

 

[Kal-EL]

John Dvorak

Well, having read another poster mentioning his name, I thought I'd go and see if he had any recent comments on MWSF. I haven't seen anything yet, but in an article relating to Apple's marketshare and what he predicts (as always) is Apple's doom, here is one of many comments from the article:
I'm now convinced that this stems mostly from Apple's inability to make the Mac a commodity computer by pricing it to compete with PCs made inexpensively in China and selling with razor-thin margins.
I wonder what he has to say now?

 

[themadchemist]

Wow...This is incredible...Absolutely astounding. Why haven't I had money to invest in Apple!!! AAAAH!

 

[m-dogg]

Remember from the keynote that most of iPods shipped only in 2004. This may repeat on the Mac. I bet we have 50 million Mac users this time next year. It will start out with the techies and first adopters and work that way down to the cattle.

Moo!

The halo effect will not be overnight - It's actually doing better than I expected at this point - I got an iPod a couple months after they became available on Windows, but I just switched to an iMac this month.

I never really knew anything about Macs prior to my iPod. I fell in love with that, and then an Apple Store opened near my house soon after and I quickly became exposed to (and fell in love with) Macs. However, my windows PC was still in good shape so I put it off until now.

In addition, I already responsible for getting my brother to buy an iMac before I switched myself - He doesn't have an iPod but he loved the iMac design. He wasn't crazy about the price compared to other machines, but I compared it to the Sony TV's he is willing to pay more for and he got it enough that he drove up to visit the Apple store to look at them and see if the differences between XP & OSX would bother him (he's not a techie at all). Two hours after playing around with them he walked out with his own!

So to make a long story short, I think this is only the beginning of a long term shift of home users towards apple...

 

[jettredmont]

kids are smart. they should be exposed to new stuff YOUNG so that they can use it later. it is the ADULTS who can't be expected to learn.

they are born as children, but if you don't open up their world, they grow into sheep.

I agree 100%. Our kids (8 and under, youngest being 4) use PCs at school and Macs at home. They handle user accounts and basic program/file manipulation just fine on the Mac. The PCs at school don't have user accounts to deal with, but they handle the crashing and basic program/fie manipulation there just fine as well.

We also have a PC at home for them to use. I think it's particularly telling that they rarely, if ever, use it (only if their Mac is in use, they can't beg me to use my Mac, and they really really have to get something done). They couldn't care less that the OS is different from the one they use at school.

 

[jettredmont]

Well, having read another poster mentioning his name, I thought I'd go and see if he had any recent comments on MWSF. I haven't seen anything yet, but in an article relating to Apple's marketshare and what he predicts (as always) is Apple's doom, here is one of many comments from the article:
I'm now convinced that this stems mostly from Apple's inability to make the Mac a commodity computer by pricing it to compete with PCs made inexpensively in China and selling with razor-thin margins.
I wonder what he has to say now?

That article came out at the height of the headless-Mac rumors. I took it as a cheap attempt to put something in print so that now he can say "Finally Apple listened to my advice!" Expect part 2 of this little shell game any day now.

And no, that's not beneath the "great" Dvorack. He's one of the lowest of the Microsoft-funded PC Mag slimeballs who's more interested in flaming and page views than in reporting or researched opinion.

 

[jmurray]

Apple doesn't release actual sales numbers mid-quarter for the current quarter. That would get them in severe reporting trouble with the SEC, and would create a huge amount of extra finance work (the vast majority of which is firming up end-of-quarter/year numbers to SEC reporting standards).

Those numbers, I believe, were estimates of the full-quarter numbers, based on current "burn rates". Apple released "guidance" around that time, and that's what guidance is.

So, what you're seeing is that iMac/eMac sales went way above what Apple had expected.

That makes perfect sense, thanks jettredmont!

I was asuming the second list of numbers were from mid December only because it didn't make sense that they "actual" numbers for Q4 could have been that far off, and why would they be released before end of year. So releases of numbers before the quarter is up are nothing more than projections? Is that correct?

 

[pair-a-dice]

Mac Sales Promoting

Though there haven't been commericials advertising anything besides the iPod (at least I haven't seen any recently), I noticed that Best Buy now has Powerbooks on their website and I believe they are going to carry some models at their physical locations too (I'm in the Daytona Beach, FL area)

 

[Steven1621]

I can proudly say I added a bunch to that number. Odd when people are proud they help a company make money.

 

[mustang_dvs]

So, now that Apple's on a roll, how long do you think it will be before some Tech Writer (*cough*Dvorak*cough*) or investment firm writes a flashy article that uses the ever-popular "Beleaguered" to predict that Apple's time is nigh?

🙄

(I'll reply to my own post.)

We have a WINNER!

And it took even less time than I could have expected in my most jaded dreams. I present to you, straight from Canada's National Post: Jobs' Apple gets down and dirty by Paul Kedrosky.

...Because Apple has a problem. Most of the company's growth in recent years has come from its foray into consumer electronics. From a standing start only a few years ago, the company's popular iPod music player has becoming a standout performer, accounting for something like 30% of the company's sales -- and more sales units than the company's Macintosh personal computers...

...Hence the company's announcements this week. Far from being forward-thinking and strategic, Jobs was busily shoring up a currently foundering product line -- Apple's over-priced Macintosh -- by leveraging a soon-to-be foundering product line -- Apple's iPod...

(No, he doesn't actually use the B-word, but he gets the spirit of the contest, for sure.)

 

[k2k koos]

Apple results

GO APPLE!!!!! 🙂

It is a long way up hill, but the introduction of the Mac Mini might just see Apple go back to two digit marketshares, and that is a good thing!These figures look good, and that was before the Mac mini!
just keep the thing updated swiftly and put dualcore e 600's in there as soon as they become available, that will also put an end to all those hesitant because the performance lacks behind the PC's of similar prices(bullsh*t if you ask me, the G4 is a good enough CPU for everyday use, word processing, surfing, mailing, and digital photo's and music.... When you start editing your own movies in iMovie etc , perhaps then you need something with a bit more "oompf" to keep waiting times down....)

There will always be those hardcore PC fanatics, and each to their own, it's their loss (in my view, perhaps not in others).... 🙂

 

[fastred]

Just a quick question. How much Market share do you guys want Apple to gain.
I, for one love that I am part of the small Mac community. Now dont get me wrong, I would love Apple to become the dominate platform, but if that costs me security problems and viruses, then No Thanks. Just wondering what you guys think.

~Jeff

Actually, 10% would be nice.... seriously....

Jeremy

 

[SiliconAddict]

Well, having read another poster mentioning his name, I thought I'd go and see if he had any recent comments on MWSF. I haven't seen anything yet, but in an article relating to Apple's marketshare and what he predicts (as always) is Apple's doom, here is one of many comments from the article:
I'm now convinced that this stems mostly from Apple's inability to make the Mac a commodity computer by pricing it to compete with PCs made inexpensively in China and selling with razor-thin margins.
I wonder what he has to say now?

Actually John has really warmed up to the mini. I don't have a clue where the article is but he was skeptically optimistic as “being the first Mac he could recommend in a long time.”