Apple Q2 Financial Results Conference Call

[Zaty]

I do agree it has probably eaten away more from the emac then the imac, but if I look at myself, the choice of the mac mini has lost apple the sale of an imac, although i wouldnt have had the money to buy one already last quarter.

That's a good point, I can imagine quite a few people making the same decision. They planned to buy an iMac later in the year, for different reason like personal financial situation, holding of for an iMac w/ Tiger preinstalled, Rev. B etc. When the mini was announced they decided to go with it rather than waiting for an iMac. So while Apple probably sold more units because of the aforementioned reasons, they will loose sales of units of higher margins, i.e. most likely iMacs, this quarter.

Apple aimed at two groups of potential customers when they came out with the mini:
a) existing Mac user who either want to buy an additional Mac or replace an aging one
b) Switchers

While there is no doubt they will get group A, it's still unclear how many Windows user have switched or will switch only because of the mini.

 

[aswitcher]

Powermac - 141K shipped, down 16% from Q105 and down 19% from Q204 (the only bad numbers)

Clearly not good.

Are PMs over priced? Is the G5 speed plateau taking its toll? Are Apple's iMacs and other lines taking sales away from the PM?

 

[smurfjammer]

Keeping it to themselves

i think it is a flop
had they sold a million of them you can bet, they would trumpet it from the rooftops - no, this is a flop - for competitive reasons ? come on they are touting their sales on the music store, they always give out numbers, when they are ahead and they are mum when it does not work out too well.
and what does a waiting list mean ? not necessarily strong demand, but maybe just very little allocated production resources.

Apple aren't trumpeting from the the rooftops for the same reason that they won't release the figures for the iPod Mini: "The Competiton"

If you tell everyone how successful a product is and say how many your selling e.g. iPod Mini, Mac Mini, companies who offer similar products will alter they product line to compete and try and undercut you to sell their product.

 

[takao]

Clearly not good.

Are PMs over priced? Is the G5 speed plateau taking its toll? Are Apple's iMacs and other lines taking sales away from the PM?

well the Powermacs are a niche in the PC market ... it is simply the way that few people can afford such a PC _and_ want such a PC .. the market is small for such machines

(personally i think they are awesome but the price is _way_ too high for me ...)

the powermac is more of a machine for businesses than for home user

 

[takao]

Apple aimed at two groups of potential customers when they came out with the mini:
a) existing Mac user who either want to buy an additional Mac or replace an aging one
b) Switchers

While there is no doubt they will get group A, it's still unclear how many Windows user have switched or will switch only because of the mini.

i know 2 other windows using friends who are going to buy one (one already ordered ) both are bombarding me with questions ...
sure it's in the tech savy students crowd but still...

1 months ago 4 hands (including me and one of my friends) were raised to the question "who uses an apple" in a lecture with roughly 120 students so i and my friends are doubeling the amount of users

(the only ipod users were the other 2 mac users ... so the halo effect is not _that_ big )

 

[Tulse]

Folks here are slipping -- where are the iTMS graphs? We have another datapoint: 350 million as of April 13.

 

[swissmann]

Apple is really sailing now. It sure is a different picture from years ago when a lot of people thought they were good as dead. I hope they just don't forget the importance of their customers.

 

[gwangung]

Q1/05 Imac / emac sales units: 456k revenue: $620m
Q2/05 Imac / emac / mac mini sales units: 467k revenue: $483m

And for a reverance on seasonal fluctuations:
Q1/04 Imac / emac sales units: 227k revenue: $251m
Q2/04 Imac / emac sales units: 217k revenue: $252m

Q1/03 Imac / emac sales units: 298k revenue: $356m
Q2/03 Imac / emac sales units: 256k revenue: $302m

The facts speak for themselves.

Yeah, and you DON'T compare quarter to quarter. How many times does this has to be mentioned?

 

[boat]

it's a valid comparison though, note that imac revenue dropped significantly while unit sales actually increased

 

[kotovasii]

Not so bad homework

No I purchase their first PowerBook didn't do their homework.....

Well so what are we to do - build our own one? I have just "switched" to Apple via a PB from my old IBM. I am happy - it is fast, very fast. It also has fast graphics card. And I could not find any windows based laptop on the market which would match PB G4 by price, functions, and ergonomics together. OK, Dells are always faster, but so they are heavier, uglier, more audible etc.
If you need sh*t hot processor - get a desktop or log into your local G5 cluster.
In fact I am doing heavy bioinformatics processing and still find my PB G4 better tan my IBM/Dell PCs.
And if I were to wait till a perfect PB will be released then my switch would not happen for another decade or so...

PS The above doe snot mean I do not want to see PB G5 or whatever it will be, it is just current PB is really not that bad.

 

[bankshot]

608,000 iMac, eMac, Mac mini and PowerMacs
462,000 portables
________
1,070,000 total Mac units sold.

By this reckoning Xserve sales are zero. They are probably folded into the 608,000 number.

No, they're obviously in the portables. Have you seen how thin those things are?

 

[Gus]

Wall Street is confounding

So, Apple posts another stellar quarter (especially one where they are historically weak-Q2), trounces the street's per-share increase, and just because they warn that they will meet, but not exceed the Q3 estimates Apple is down almost $4 today. I'm sure some of you will have a good explanation, but it's still nonsense. The company is healthy and making money.

Regards,
Gus

 

[Zaty]

So, Apple posts another stellar quarter (especially one where they are historically weak-Q2), trounces the street's per-share increase, and just because they warn that they will meet, but not exceed the Q3 estimates Apple is down almost $4 today. I'm sure some of you will have a good explanation, but it's still nonsense. The company is healthy and making money.

Regards,
Gus

According to some reports, analysts expected Apple to sell many more iPods. I don't know but 5.3 mn sounds good to me.

 

[Tulse]

According to some reports, analysts expected Apple to sell many more iPods. I don't know but 5.3 mn sounds good to me.

I don't know what the hell these "analysts" want, given the huge percentage of the market that Apple has for portable digital music players. How could their results realistically have been better?

 

[Titian]

I don't know what the hell these "analysts" want, given the huge percentage of the market that Apple has for portable digital music players. How could their results realistically have been better?

The analyst does expectations according to the actual market situation and sets a target for the shares according to these expectations (in this case some analysts expected revenue as high as $3.5 billion).

Analysts are not so stupid as we might think. Their analysis have a fundament which then helps the company, they are woking for, to make a lot of profit. My point of view is that they have certainly a reason why their expectations were so higher.
Over 8% tumble as today shares did is certainly very high and was also stimulated from the actual general fear of economy growth in the US stock exchanges.
Maybe in a few days it will be time to buy (again) Apple shares.

 

[dongmin]

According to some reports, analysts expected Apple to sell many more iPods. I don't know but 5.3 mn sounds good to me.

Typical Wallstreet "irrational exhuberance." I remember some forecasting 4-5 million shuffles alone. So 5.3 mil total is disappointing.

Some crazy analysts were projecting 50 million ipods for the year. That's 12.5 mil a quarter. You can see why the Street is a wee bit upset.

 

[Gus]

No, I can see where the Street is a wee bit stupid. How they can possibly expect Apple to ship that many iPods in ONE quarter is ridiculous. The analyists calling for 6 mln iPods this quarter was a rare call, and yet, after they ONLY sold 5.3 mln, eveyone takes that as bad news, when before the conference call, everyone thought the 6mln anaylist was nuts. It's truly stupid. Besides that, they sold more Macs this quarter than were expected. We'll see what happens tomorrow.

Regards,
Gus

 

[rogo]

Folks here are slipping -- where are the iTMS graphs? We have another datapoint: 350 million as of April 13.

Check the other thread.

FWIW, if it really is only 350 million on April 13, that's actually negative growth rates, which would be a nightmare given the millions of new iPod owners out there.

I'd say to look out to May 11 for the 400 million announcement. It really should come much sooner than that, but it was suggested by the 300 million date that iTunes Music Store adoption is slower and slower among newer iPod owners. The dark cloud on a brilliant quarter.

 

[Zaty]

Typical Wallstreet "irrational exhuberance." I remember some forecasting 4-5 million shuffles alone. So 5.3 mil total is disappointing.

Some crazy analysts were projecting 50 million ipods for the year. That's 12.5 mil a quarter. You can see why the Street is a wee bit upset.

Why should Apple suddenly sell 12.5 million iPods per quarter when they sold 4 million in the busiest quarter? They might reach that number in Q1 06. There were rumours Apple sold 2 million shuffles. If that guess/assumption is close to the real number, they would still have sold over 3.3 million HDD iPods which isn't too bad a number compared to the 4 mn of last quarter.

 

[topicolo]

Yeah, and you DON'T compare quarter to quarter. How many times does this has to be mentioned?

lol. leave him be. It's investors who think like him that I make my money off of in the stock market . Waiting for apple to drop to $26-30, then I'm buying!