hey tampa tom, if i were you, i'd keep em, because i can bet they will split very very soon
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Apple Q3 2007 Financial Results on July 25, 2007
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hey tampa tom, if i were you, i'd keep em, because i can bet they will split very very soon
If that report is accurate, the numbers are mind-boggling. Just for the $9/month, 10 million iPhones (which looks pretty easily achieved right now) will generate over $2 billion additional pure profit on top of normal margins and that supposed one-time bounty. That's nuts, in a good way (for Apple).
I actually think that may be part of the reason they chose to account for the iPhone over 24 months, since it enables them to hide those numbers.
The iPhone is looking like grand-slam for Apple right now. If they can push through a steady stream of functionality-enhancing software updates, and get the 3G version going, they've got a heck of a franchise in the works.
Part of that doesn't make any sense.If AT&T is paying Apple $150-200 per phone and it costs Apple $150-200 to make I can't see how Apple is making a bounty.
I'm thinking that this might not be your ordinary investor report. I think there'll be .....
NEW PRODUCTS!
iMac revised, mac Mini revised... awesome!
The timing is right and they sorely need a revision.
I'd bet Apple would annouce a product either tomorrow, the Tuesday before the financial update, or the following Tuesday to maximize media exposure. A few rumor site peg August 7th for new iMacs which is perfectly good too.
It's a $200 commission or "bounty" paid to Apple by AT&T in addition to the reported 55% profit margin Apple is making on the iPhone. So Apple is making nearly $500 on each phone sold plus the $9 a month.
i can too, but still, att is getting a boatload of money from subscriptions.... vzn is a complete idiot for saying no
Congrats on a good buy.
Remember, it's not all or nothing!
Don't sell it all, that's just bad trading, i.e. speculation or gambling -vs- investing.
Why not sell $106,000 of it? That guarantees you a doubling, and keeps you in the game should the stock rally after the earnings report.
And, if the stock goes down, you can buy back in at a discount -vs- current.
The online good time to sell it all, short of 100% certain insider information that something bad is about to happen, would be if you think the stock is headed down for good. Anything else is gambling.
I do hope everyone realizes that those are closer to gross profit margins, not net, which is how most people think, i.e. the bottom line.
The reports were about parts costs. On top of those costs, you have manufacturing, shipping, advertising, development, etc. *and* discounts to resellers (AT&T). The ones sold at the Apple stores will certainly bring Apple higher margins, but even then I'm certain that the stores "buy" the product internally at a discount -vs- the retail cost. This allows Apple to separate the profitability of the retain stores -vs- the company as a whole.
Many low volume manufactured items sell for 300-500% manufactured cost, so 55% on parts alone is actually quite low. Of course, this will not be a low volume item. It really shows that Apple is rather efficient! If the parts cost 55%, and the net margins are around 22% (typical for the company), then all soft costs add up to 33% of purchased price.
Now, the ongoing subscription revenues and bounty structure could provide significant upside -vs- the traditional one time purchase model that Apple has always had. I cannot wait to hear earnings reports for the next several quarters to see how much upside AAPL will see.
If I were you I would buy more instead of selling. Sure the stock might pull back 5% but you can not time when and how much.
In July of nexty year you will be amazed to see you $143,000 investment balloon to $286,000
If I were you I would buy more instead of selling. Sure the stock might pull back 5% but you can not time when and how much.
In July of nexty year you will be amazed to see you $143,000 investment balloon to $286,000
Since you are so confident of the future for Apple stock, I expect you to invest all your money in Apple stock.
I don't think it costs Apple much to produce the iPhone: components, labor, marketing, and everything else could perhaps add up to $200. For Apple, it's a huge profit maker. $300-400 raw profit on the phone, and then an additional $150 from ATT. After that, the $9 monthly fee gives Apple even better revenue. 700,000 units equals $6.3 million every month: not bad at all.
You bet.Since you are so confident of the future for Apple stock, I expect you to invest all your money in Apple stock.
100% all in since 2004. Keep buying on margin on a weekly and sometime daily basis.
Sure its risky but since I plan on holding for at least 10 years who cares if it goes down. When it went from 86 to $50 last year I was not crying even though I had a margin call. I sold and bought right back and now own enough to pay off my house. I will retire in 10 years just from aapl stock.
Apple is a great company with a great future.
This quarter will surprise many just like last quarter. Aapl is still on sale so buy while you can. In one year when it is around $250 it will still be cheap but not as cheap as today.
You bet.
100% all in since 2004. Keep buying on margin on a weekly and sometime daily basis.
Sure its risky but since I plan on holding for at least 10 years who cares if it goes down. When it went from 86 to $50 last year I was not crying even though I had a margin call. I sold and bough right back and now enough to pay off my house.
Apple is a great company with a great future.
Still, you have other savings right? It isn't wise to put all your eggs in one basket, even if it is an Apple basket.
I have all my eggs in one basket. Every single one of them. In three years I will have $500K on margin alone.
I can lose it all if Apple goes under when California goes into the sea after an earthquake. In the mean time I will laugh all the way to the bank.
The stock will go down. But one must be patient. Had I followed my own advise 6 years ago I might be retiring today.
Buy, Buy, Buy!
No, yesterday (Monday was the day to buy, when that BS security story dipped the price by $2.30, before the share recovered.)
In after hours trading the shares traded up $.47 But if this pans out AAPL should be good for another $10 of upside to $155-160 range. This would be huge it true. And to think I almost sold a huge part of my long position to buy some downside protection. Now it's looking like that might not be necessary.
Good night to be long AAPL
No, yesterday (Monday was the day to buy, when that BS security story dipped the price by $2.30, before the share recovered.)
In after hours trading the shares traded up $.47 But if this pans out AAPL should be good for another $10 of upside to $155-160 range. This would be huge it true. And to think I almost sold a huge part of my long position to buy some downside protection. Now it's looking like that might not be necessary.
Good night to be long AAPL
You might want to look into some far out of the money leaps to protect you AAPL position. I too am bullish Apple for the next few years. About the only thing that could tank the stock would be if Steve Jobs gets ill again. Knock on wood, perish the thought.
We need Steve for the next 30 years of Apple Inc. Just think what cool products they will be delivering in 2037. "One never knows!" Steve Jobs' response to whether Apple would be offering HD movie rentals on the AppleTV, he simply said, "One never knows!" I took that to be a YES. Or at the very least "We're working on it"
I'm thinking that this might not be your ordinary investor report. I think there'll be .....
NEW PRODUCTS!
iMac revised, mac Mini revised... awesome!
The timing is right and they sorely need a revision.
So Peter Oppenheimer is donning the black turtleneck and jeans?
"And so concludes our report on our company tax for this quarter but (places finger tips together)...there is just one more thing."
Ah yes I can see it now.
HobeSoundDarryl
macrumors G5
146K activations is apparently the 1st weekend number
I don't see it posted anywhere else, though I do see speculations of sales of 700K iphones in the first 2 days, but an article at CNNmoney has AT&T owning up to activating 146K phones in the first 2 days of launch.
Now activations is not units sold, and there were problems getting activated, but it's good to have a solid (non-speculative) number for a change. Here's the story...
http://money.cnn.com/2007/07/24/news/companies/bc.at.t.results.reut/index.htm?cnn=yes
It also says that greater than 40% were new customers to AT&T.
I don't see it posted anywhere else, though I do see speculations of sales of 700K iphones in the first 2 days, but an article at CNNmoney has AT&T owning up to activating 146K phones in the first 2 days of launch.
Now activations is not units sold, and there were problems getting activated, but it's good to have a solid (non-speculative) number for a change. Here's the story...
http://money.cnn.com/2007/07/24/news/companies/bc.at.t.results.reut/index.htm?cnn=yes
It also says that greater than 40% were new customers to AT&T.
Apple is down almost 5%. Good day to buy for those who have the cash.
We might see a further correction in AH after earnings if iPhone sales are confirmed well below what the street expected.
Strap in it will be a bumpy ride the next few days.
You don't have to be a professional money manager to know that this is a very, very bad idea. And I'm speaking as someone who's held AAPL for ten years. My portfolio is now terribly lopsided as a result, but my basis is also extremely low (about $5/share) so the risk is essentially all on paper. Still I recognize my need to diversify so I am thinking about some stop-loss orders. Margin calls can kill you overnight, my friend. Easily.
ATT has been pushing its broadband TV access lately, perhaps it's a tie in with that that would create a subscription income for Apple TV.
Personally, I hope it's a rental system. I'd gladly pay a little beyond what Netflix charges as long as their international offering is just as large.
Personally, I hope it's a rental system. I'd gladly pay a little beyond what Netflix charges as long as their international offering is just as large.