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woodman said:
The bank. Apple has a lot of cash.

And that's a hedge to ride out downturns, and to form a reserve to acquire companies that might catch their eye.
 
davey-nb 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.

Yeah, I like this part of the Businessweek article:

"Still, the consensus among analysts is that iPod sales compared to the previous quarter will be flat, at roughly 5 million units. From a device that has boosted Apple's revenues 148% since 2001, signs of a plateau are clear. "

I wonder what they say about Apple on their "Tech and You" Podcast :D

http://www.businessweek.com/technol...3_9022_tc024.htm?campaign_id=topStories_ssi_5
 
freiheit said:
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.
I thought that R&D spending was part of their costs?

I mean, if $1million of earnings went into R&D, then the profit would actually be $1 million less. Or am i missing something?

Oh - one other thing - Apple now has $7billion in the bank, a few years ago it was $4billion. So one place the money goes is "into the bank, savings for the future!".
 
woodman said:
Yeah, I like this part of the Businessweek article:

"Still, the consensus among analysts is that iPod sales compared to the previous quarter will be flat, at roughly 5 million units. From a device that has boosted Apple's revenues 148% since 2001, signs of a plateau are clear. "

I wonder what they say about Apple on their "Tech and You" Podcast :D

http://www.businessweek.com/technol...3_9022_tc024.htm?campaign_id=topStories_ssi_5

One more quote from that article:

"Goldman Sachs, for one, thinks Tiger sales could have boosted revenue by as much as $50 million. "
 
bellis1 said:
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 see the point of either Es...

llama :confused:
 
bellis1 said:
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.

It goes a lot of places. Some of it goes into the bank, some of it goes to Apple employees, etc... Then a lot of it goes back into the company, more money to spend on developing awesome new products.
 
Wow, $7B in cash. Hey, Apple, if you want, I'll take that to Vegas and double it in a weekend. I've had some bad luck lately, but I think it's turning around. I can feel it. Better yet, let's go right now and just call in sick tomorrow and friday. Don't worry, we'll Tivo Galactica. What do you say, Steve?
 
MS on deathwatch.

I've stopped recommending any and all MS products. Period, end of story.

The activator problems, security holes, etc are no longer something I want to spend any time with.

Of course, I am an "opinion leader" and that means hundreds of people are swayed by my reality distortion feild! :rolleyes:
 
chatin said:
I've stopped recommending any and all MS products. Period, end of story.

The activator problems, security holes, etc are no longer something I want to spend any time with.

Of course, I am an "opinion leader" and that means hundreds of people are swayed by my reality distortion feild! :rolleyes:

What do you recommend as an office productivity suite for Mac users then? I find Pages/Keynote to be too limited and NeoOffice/J too slow and 'alien' feeling. I haven't tried Nisus Writer or Mariner Calc though.
 
"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"

Profit goes to none of these at Apple.

R&D is a cost. It's accounted for as an expense and does not fall down to the profit line. Except as referenced below.

Steve Jobs is not an embezzler.

Apple pays no dividend.

Charity is a cost, albeit an infinitesimal one for Apple. It's deductible for IRS purposes, but it's not an accounting deduction.

Apple takes its profits and puts the money into the bank, as do most corporations that don't pay dividends. The other thing the money does is allow for increased investment spending -- which is deducted over years via depreciation typically -- which might mean building new plants, offices, etc. In addition, some R&D can be capitalized so having lots of cash allows for larger scale increases in R&D than is normally possible without borrowing.
 
The iPod is really hot.

I've spent a fair amount of time in the last few months figuring out how to put an iPod in my car. I ended up buying a CD Player/Receiver with an Aux input, and a charger. I'm still not happy with it completely, but it gives good audio. While looking around for the best gear for me, I've become aware of what's going on out there. You can see, if you look, that putting an iPod in the car is a growing phenomenon. This week's announcement by Harman Kardon that they'll going to sell an interface that allows for external control, charging, and a screen that displays the current track, is further proof. Six months ago I went into a car audio store and asked if they had a receiver that would play nice with the iPod, and they looked at me as though I was nuts. Now, there's a big banner hanging from every "Al's and Ed's Autosound" that announces a specialized service to set it up in your car.
 
Incredable!!!

Magnificent!

Simply Perfection!

This is what I always hoped for and expected from Apple. Lets all hope 3 major things. That this trend continues till at least year end, then shifts next summer to the desktop lineup - sales going full steam. That Apple starts offering dividends to shareholders. And lastly, lets hope that WallStreet will finally adopt the beauty of Apple and do what their dentists always told them. An Apple a Day.... ;)
 
jinzo012 said:
Who in the hell voted this negative?!

Windows fanboys, obviously. (Yes, that's technically an oxymoron, but some people are paid to be....)

--Eric
 
After Hours Trading

rdowns said:
Apple shares up $.76 in after hours trading. I hope this is the beginning of another run up as I still own 250 shares.

"after hours trading" <-- Isn't this another wall street scam.
 
Well the stock has really taken off this morning. Up 8%. It is about time.
 
So much for the somewhat expected fall off :D
I expected ipod sales to start falling as it seems like everyone already has one but I guess everyone wants two
 
rdowns said:
I think that was a smart response. As a VP of Sales and Marketing, might I suggest to Apple that they continue to advertise the iPods but put Macs in the ads as well? In the background but show them none the less.



I agree. At the end of the iPod+iTunes commercial, when the iconic Apple logo is shown, the camera should pan out and show the viewer that the whole commercial was running on an iBook.

If anyone at Apple is reading this and uses this suggestion, please send me an iBook. A copy of Final Draft would also be nice too... :)
 
freiheit said:
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, generally thought to be a liberal company (Al Gore on the board, not that he's a true liberal), gave some political donations to one of Governor Arnold's reform propositions.
 
dejo said:
Only way this is possible is via dividends. AAPL doesn't do dividends. (So far).



Apple shouldn't do dividends until they have 30% of the American PC market. Until then, they should use the cash on R&D, marketing, and acquisitions.

Like, for example, in the next few months, buying Creative out of bankruptcy. Creative has some great IP. Not to mention a stake in THX which could be milked with the pro-apps. And EMU.

Or, send some cash to whomever is truly calling the finances of Michael Jackson and grab hold of his 50% holding in ATV Publishing, giving Apple 50% of the Beatles publishing rights and leverage against Apple Records into settling once-and-for-all and giving the iTunes Music Store exclusive rights to the online digital sales of Beatles music.

Or buy now-privately-held Roxio and incorporate Toast into iLife. Milk EasyMedia Creator on the PC side and funnel the profits into iLife development.

Buy DeliciousMonster, and incorporate it into iLife.

Or...the old rumor. TiVo.


All of those scenarios are better than issuing dividends because all of those suggestions would strengthen Apple and generate more sales.
 
This is awesome news. Congratulations to Apple and Steve Jobs. Now to look to the future. Hopefully Apple has plans to build on its current success.
 
good, solid results. Anybody know quarter on quarter results?

Also, how much of the quarter was before and how much after the intel announcment?

This sets apple up perfectly-did very well. Now they estimate stagnation for the next quarter, and get to impress by beating their expectations. Then, people buy for the x-mas season, thinking intel macs are far off, and it being x-mas. So, apple maintains face in the most important quarter of the year to get right. Just as the intel thing will catch up to them, and they have the very hard just after christmas quarter, they announce intel macs early, and we're golden.
 
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