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Apple Posts 2Q 2005 Results
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And as many people already knew, PowerMac sales are ugly:
Sequential Change Year/Year Change
Product Summary Units Revenue Units Revenue
Power Mac (3) -16% -16% -19% -8%
Sequential Change Year/Year Change
Product Summary Units Revenue Units Revenue
Power Mac (3) -16% -16% -19% -8%
Answers and more
yes you are correct, it's almsot a million ipods more than last quarter in a traditionally weak quarter.
Also, the Gross margins increased 2% over last quarter, meaning the lower priced mac mini and ipod shuffle aren't effecting margins in a bad way.
Look for sales of Tiger to blast Apple's earnings next quarter through the roof. The analysts will not even be close...
Stock prices usually tank after earnings reports no matter how good they are when a good report is expected. It will rebound in the next few days, and you can look at it as a good time to get some shares cheap....
I got in at $25 a share last June... it's at $40 now and it split... so I'm pretty content 😉
yes you are correct, it's almsot a million ipods more than last quarter in a traditionally weak quarter.
Also, the Gross margins increased 2% over last quarter, meaning the lower priced mac mini and ipod shuffle aren't effecting margins in a bad way.
Look for sales of Tiger to blast Apple's earnings next quarter through the roof. The analysts will not even be close...
Stock prices usually tank after earnings reports no matter how good they are when a good report is expected. It will rebound in the next few days, and you can look at it as a good time to get some shares cheap....
I got in at $25 a share last June... it's at $40 now and it split... so I'm pretty content 😉
Profit vs. Revenue
While the profit beat expectations, the revenue barely matched expectations. That means that although they "beat the street", they did it through inflation of margins, not growth. While that's a good way to get cash, it means Apple's prices are still high and possibly hurting adoption rates.
The market likes to see growth more than milking your installed base. While there was definitely some growth, the great EPS numbers is mostly the milking thing.
WildCowboy said:
While the profit beat expectations, the revenue barely matched expectations. That means that although they "beat the street", they did it through inflation of margins, not growth. While that's a good way to get cash, it means Apple's prices are still high and possibly hurting adoption rates.
The market likes to see growth more than milking your installed base. While there was definitely some growth, the great EPS numbers is mostly the milking thing.
BornAgainMac
macrumors 604
Rocksaurus said:
Probably bigger investors sell and try to shake the little guys off. The little guys sell thinking that the stock will tank. This makes the stock nice and low. Then the big investor buys at the new low price and make a killing. When the big invester buys the stock, it pumps up the stock and the little guys get back in and the stock goes up.
Just a theory...
the key numbers to know are:
How many Shuffles were sold.
How many Mac Mini's were sold.
If Apple moved >1-1.5million shuffles, then HD iPod sales would actually be flat to down. Then margins become a question. Similar issues with the Mac mini, though its less of an issue. Long term, its a positive just to get more Macs in front of people.
So far though, looks like another homerun for Apple.
How many Shuffles were sold.
How many Mac Mini's were sold.
If Apple moved >1-1.5million shuffles, then HD iPod sales would actually be flat to down. Then margins become a question. Similar issues with the Mac mini, though its less of an issue. Long term, its a positive just to get more Macs in front of people.
So far though, looks like another homerun for Apple.
re: that's a lot of iPods
Well actually, they sold 4,580,000 iPods last quarter, which was a 525% increase over Q1 FY2004.
You're mistakenly comparing year-over-year with quarter-over-quarter. When you look at it by quarter, it's very possible Apple may hit 24-25 million pods this FY.
pennKid said:
Well actually, they sold 4,580,000 iPods last quarter, which was a 525% increase over Q1 FY2004.
You're mistakenly comparing year-over-year with quarter-over-quarter. When you look at it by quarter, it's very possible Apple may hit 24-25 million pods this FY.
daveL
macrumors 68020
You'd be right, except you are looking at year-over-year growth rates, i.e. last year's 2nd quarter iPod shipment. Compared to the 1st quarter of this year, iPod shipments advanced a much more modest 16%, while revenue actually declined 16% (Shuffle models generate less revenue per unit). So, for the last 2 quarters alone, Apple has shipped 9,891,000 iPods. Even if shipments stay flat, you're still looking at nearly 20 million iPods this fiscal year, which excludes Holiday season '05.pennKid said:
The stock has gone through the roof because most expected these great numbers. The big guys made a killing.
The stock will start going up again once those PowerMacs are released and they sell about 250K in the last two quarters.
The stock will start going up again once those PowerMacs are released and they sell about 250K in the last two quarters.
is there anyplace we can see a history of apple's quarter reports? especially since Steve Jobs return?
daveL said:
Many people think it will be hard to sustain the iPod growth I think, but I think people may be missing how much more growth potential there is in the computer business. I think a lot of Mac Minis are going to sell to windows users like me (just ordered my first Mac Tuesday when Tiger announced!) and those will likely inspire PowerBook, PowerMac or IMac sales when those users are convinced to switch and want to move into something more powerful.
I don't invest in individual stocks but now may be a good time to buy Apple.
BornAgainMac said:
lol, a little bit Knights Templar/Dr. Evil conspiracy there... 😉 While someone could technically do what your suggesting, at great cost and risk, manipulating the markets is dangerous stuff. Not to mention largely illegal.
What probably happpened is that Apple failed to meet the "whisper" numbers. That or forward guidance is less than what the street wants to hear.
Summary data...
Looking over the quarter -over-quarter summary data...
iMac up 2%
iBooks down 7%
PowerMac down 16%
Powerbooks up 39%
total cpu growth 2%
iPod growth 16%, with revenue growth of -16%.
Is the Mac Mini considered a PowerMac?
Looking over the quarter -over-quarter summary data...
iMac up 2%
iBooks down 7%
PowerMac down 16%
Powerbooks up 39%
total cpu growth 2%
iPod growth 16%, with revenue growth of -16%.
Is the Mac Mini considered a PowerMac?
Shares of Apple rose about 1.5 percent to $41.52 in extended-hours trading on INET from it's Nasdaq close of $41.0
Glad to see education market ticking up slightly, even flat would have been ok.
Glad to see education market ticking up slightly, even flat would have been ok.
daveway00 said:
Actually, they usually breakdown computer sales. Your right that they haven't broken down iPod sales in the past. But since the Shuffle is in a new category, they might.
Fredstar
macrumors 6502a
Wow good job Apple, those are some fab and healthy numbers.
2005 will be an awesome year for Apple and 2006 will be even better (as long as Longhorn is delayed till 2007).
I bet the next quarter results will be again the biggest profits Apple have seen.
Steve Jobs just had to tease us. Those dual-cores WILL be announced at WWDC and the whole product range will be updated across the first half of the year.
This is definately exciting stuff and is gonna be an exciting year for Apple.
2005 will be an awesome year for Apple and 2006 will be even better (as long as Longhorn is delayed till 2007).
I bet the next quarter results will be again the biggest profits Apple have seen.
Steve Jobs just had to tease us. Those dual-cores WILL be announced at WWDC and the whole product range will be updated across the first half of the year.
This is definately exciting stuff and is gonna be an exciting year for Apple.
