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Apple Q3 2005 Financial Results
- Thread starter asif786
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Fender2112 said:
That and PC laptops have got a lot more powerful and a lot cheaper in the last year. Centrino is really hurting Apple there.
dejo said:
Yeah, it was after the call.
I never knew there were so many Apple "experts".
Since the iPod sales explosion it seems everyone wants to say they know what Apple is up to. But they usually just make themselves look bad. Even Businessweek is running a story now saying the end is near for Apple.
At the end of fiscal 2004, Apple announced that they had $8.28 billion annual revnue, and they were hoping to become a $10 billion company again soon.
Well the results are in. In only the first 3 quarters of fiscal 2005, Apple has announced total revenue of $10.25 billion.
Way to go Apple!
Well the results are in. In only the first 3 quarters of fiscal 2005, Apple has announced total revenue of $10.25 billion.
Way to go Apple!
I am not surprised Apple sales are up. In fact, I may be a pretty good case study why they are so. I am a new Mac man, athought I have been programming since 1983. 18 months ago, my boss asked me to learn video production. Gave me a 25K budget. Ended up with a PM 2.0 (very trick) and 10K worth of SW. Needed portibility..enter best PB you can configure. I was so impressed with the Apple products (and depressed by the cost jumps in Wintel - especially enterprise stuff), I started considering Macs as desktops, and using Citrix for running legacy stuff. We now have a test of 4 Minis running and may be close to making a switch away from Dell. This year, all 5 of my family have been converted from Wintel to Mac. My wife got an iPod for her birthday. It seldom is out of her ear. She recently bought me one. I am going to buy another PM soon. I did buy Apple stock. It is not going to be sold. Seems to me there are some pretty good people driving the ship.
Looking for a good Q4
Keep in mind that Apple had a great Q3 for education purchases, the best in NINE years. That can lead to some real inroads in marketshare if schools begin to buy Apples (again)!
Keep in mind that Apple had a great Q3 for education purchases, the best in NINE years. That can lead to some real inroads in marketshare if schools begin to buy Apples (again)!
Fredstar said:
No kidding, and especially with all the hollering in the media that Apple had stockpiles of unsold iPods -- hard to imagine that when units sold were up 6X for the quarter. My god that's a lot of iPods. And most of those people will buy at least a couple of songs from iTunes Music Store, which will make iTunes revune go up in future quarters. I'd say Apple have done a splendid job of reinventing themselves over the past 5 years. It just wasn't Apple without Jobs, no matter what people may say about his management style -- he obviously gets the job done.
Note that in comparison to last quarter, iPod unit shipments rose 16% with revenue growing 9%.Flying Llama said:
iPods are still growing at a good rate - but the huge jump happened over the last year. Do you remember last quarter results showed iPods having a similarly huge growth over the "previous 2nd quarter"?
And talking about advertising Macs:
Hey, why not just include information about Macs in the iPod boxes.Fender2112 said:I took this to mean: Why spend the extra money if the iPod can sell Macs?
I believe Apple should advertise Macs and OS X more aggressively. But obviously they don't share the same belief.
I wonder how much things will change when Apple makes the jump to Intel. Assuming that it removes all of the software barriers, making Apples an option for all software users. It may very well come down to a combination of an advanced operating system and attractive hardware.
I am sure that the Apples inbetween will be good as well, though the switch is going to bring about some changes. I just wonder how many changes. Maybe changes is not the right term, added abilities seems more fitting since Apple has said that OSX has been leading a double life for quite some time, I am curious to see what it can do in its other life.
Either way, by the time I am ready to upgrade again Apple will be using Intel chips. So have the iMac with the 23" display ready. The current setup will be relegated to running the entertainment system.
I am sure that the Apples inbetween will be good as well, though the switch is going to bring about some changes. I just wonder how many changes. Maybe changes is not the right term, added abilities seems more fitting since Apple has said that OSX has been leading a double life for quite some time, I am curious to see what it can do in its other life.
Either way, by the time I am ready to upgrade again Apple will be using Intel chips. So have the iMac with the 23" display ready. The current setup will be relegated to running the entertainment system.
I stopped about 20 minutes into the thing. It sounds like someone was holding a microphone next to a tape recorder.
Malinformed
I don't have an MBA so could someone tell me where all that profit goes?
A. Charity
B. Research and Development
C. Steve Job's Money Market Account
D. Shareholders
E. None of the above
F. B, C, and D
E. Everything but A
This is actually an honest question and not in jest.
I don't have an MBA so could someone tell me where all that profit goes?
A. Charity
B. Research and Development
C. Steve Job's Money Market Account
D. Shareholders
E. None of the above
F. B, C, and D
E. Everything but A
This is actually an honest question and not in jest.
bellis1 said:
I am thinking F.
I hope that B. gets the Lions share though, the payoff will come when more Apples are sold.
For charity, donate some computers to the education system. As self serving as that may seem, schools can always benefit from a few extra eMacs thrown in with every order.
Where does the profit go?
Well, every major corporation gives to charity -- mostly to keep the tax hounds at bay and give consumers an impression that they're "really decent people".
R&D is clearly an area where Apple excels. A company without a good R&D budget would not have developed the iPod mini in 2004, the iPod Shuffle in 2005, nor Panther in 2003 and Tiger in 2005.
As the CEO, Jobs most assuredly has a healthy stock portfolio including Apple stock, of course, and despite his "$1 annual salary" or whatever is taking home quite a tidy sum (CEOs live off their bonuses more than their salaries, even though both are typically way too much for what little actual work they do).
And yes, shareholders always want their money. That's why they're in business -- not to "make the world a better place" or to "help people to help themselves" but to make money. See reference to bonuses above.
There are other places Apple's profit goes -- acquisitions (buying apps like iTunes and Logic for instance), salaries and skyrocketing costs of doing business in their home state of California (taxes, insurance, electricity, etc. etc.). It's not cheap to do business in CA. That's one reason a lot of companies have moved out of the state (two of my former employers for example).
bellis1 said:
Well, every major corporation gives to charity -- mostly to keep the tax hounds at bay and give consumers an impression that they're "really decent people".
R&D is clearly an area where Apple excels. A company without a good R&D budget would not have developed the iPod mini in 2004, the iPod Shuffle in 2005, nor Panther in 2003 and Tiger in 2005.
As the CEO, Jobs most assuredly has a healthy stock portfolio including Apple stock, of course, and despite his "$1 annual salary" or whatever is taking home quite a tidy sum (CEOs live off their bonuses more than their salaries, even though both are typically way too much for what little actual work they do).
And yes, shareholders always want their money. That's why they're in business -- not to "make the world a better place" or to "help people to help themselves" but to make money. See reference to bonuses above.
There are other places Apple's profit goes -- acquisitions (buying apps like iTunes and Logic for instance), salaries and skyrocketing costs of doing business in their home state of California (taxes, insurance, electricity, etc. etc.). It's not cheap to do business in CA. That's one reason a lot of companies have moved out of the state (two of my former employers for example).
Apple's beaten analysts' forecasts for seven straight quarters:Floop said:
http://www.macsimumnews.com/index.php/archive/analysts_ipod_sales_slowing_while_mac_sales_surge/ (pararaph four)
You can pretty much guarantee Apple will do 5-10% better than forecasts...
And for all you hardware geeks complaining about Apple becoming an iPod company: iPod sales made up 31%, with 'other music' sales accounting for 6.8%. And this is despite the fact that laptops have pretty much reached a dead end (until the Intel transition) and Power Mac sales have stunk for a while. Once Apple finally gets the Pentium Ms into Macs, look out for some serious Mac growth.
These are incredible numbers. What makes them so remarkable is that I belive much of increased sales are due to the Halo effect. Most Apple fans already have workable systems, but would love to upgrade. For two years we have waited for the 3 GHZ G5 Tower and the ever phantom G5 Powerbook. Some have given in and bought what was available, but most are still waiting. When those two products finally come out, we will see some real sales growth with strong profit margins.
I would buy as much Apple stock as one can afford. This stock will double if not triple in three years.
I would buy as much Apple stock as one can afford. This stock will double if not triple in three years.
