Apple Q4 2004 Financial Results: Revenue Up 37 Percent

[iPost]

What if Apple made Windows laptops?

Okay... I'm putting on my flame resistant suit as I speak...

A few days ago, my boss just asked me to order myself a new laptop for work. It has to be Windows (as that's what the IT guys know). They won't accept a PowerBook running VirtualPC.

You know, if Apple made a laptop running Windows (say, a PowerBook-type system), it would be my first choice by far. And, I could even imagine them producing their own desktop/windows theme, and shipping the iLife apps (that check to see that they are running on an Apple system so that I cannot give them to owners of other systems).

The reason I bring this up, especially under the financial results thread, is that it is apparent to me that without Apple selling iPods to Windows users, their financial results would be nowhere near what they are today.

And that got me to thinking... what kind of numbers would Apple produce if they made Windows laptops too? My guess is that their sales would easily double, if not more. Apple is the premier computer hardware company in the world today -- especially in terms of design -- no one comes close these days. Wouldn't be great if people could buy all electronics from Apple... Windows PCs, PDAs, cell phones, etc.

What do people think about this?

Ducking...

 

[mj_1903]

This numbers are superb but worrying. Mac shipments were not up to par, especially the _fall_ in PowerMac shipments. I will wait for next quarters results before I judge, but looking at it right now I can only see Apple losing more market share. Lets hope we see a reverse in the trends with the PowerMac and iMac sales.

On the other hand, iPod sales are absolutely stunning. I don't think they will ship anywhere near the Walkman's total numbers, but if they sell 3-4 million iPod's a quarter, which is quite doable, then it will be of great benefit to Apple's bottom line.

 

[dejo]

what kind of numbers would Apple produce if they made Windows laptops too?

If Apple produced Windows laptops, they would have to support them too and that would be far too expensive!

 

[SolarisSkyrider]

And that got me to thinking... what kind of numbers would Apple produce if they made Windows laptops too? My guess is that their sales would easily double, if not more.

Personally? I like Apple because of OS X. I like to be able to build my own PC with parts that I select to customize it the way that I want. But OS X is amazing - heads and shoulders above Windows, and if Apple released OS X for x86 systems, I'd go nuts and switch every computer I own over. And yes, this is different with laptops since you can't build your laptop, but still...

Apple hardware is certainly nice and certainly well designed; I love my iBook. But an Apple running Windows? *shudders*

 

[iPost]

i don't agree with his reasoning, but what egged me on the most about his article is his quirk with "Think Different", which is actually acceptable grammar...a substantive adjective (i think?)

I agree with your assessment of the Motley Fool. Apple is a very resilient company with talented people. So, one of the main reasons that Apple won't die anytime soon is that they'll just come out some new killer product if their current product line starts to suffer.

But regarding the "Think Different" thing... I never thought it meant to say "think differently" but instead to think "different" just as you might suggest to someone who's asking about the color of a car they should buy, "Think Red" or to someone who is complaining of the heat, "Think Cool." Of course, the purpose could have been to intentionally use incorrect grammar, as to do so is really thinking differently -- i.e., a self-reflective slogan. But my guess it's the former.

Think Good.

 

[iPost]

and if Apple released OS X for x86 systems, I'd go nuts and switch every computer I own over.

That brings up an interesting question...

If you could only choose one, would you rather run OS X on an x86 system (manufactured by someone other than Apple) or would you rather run Windows on an Apple system?

Personally, I hate Dell, HP, and Toshiba laptops. I don't care what software they are running.

If Apple made a laptop running Windows, I'd certainly use it. Especially, if they shipped it with all the Apple apps so that I never had to use a Microsoft app. I don't do much in Windows. I spend most of my time in applications.

And, if Apple controlled the hardware, that might keep support costs down. I read on some web site awhile ago that the majority of Windows crashes come from buggy drivers.

So, if I had to make a choice, I'd rather have the Apple hardware (with the Apple apps, of course).

 

[Porchland]

Sounds like Apple needs to release a 60 GB Photo iPod to keep sales on the rise!

The sales numbers certainly make you wonder why Apple would be rushing the 60-gigger to market right now when 20/40 are doing so well.

 

[halse]

Apple is up $2.66 in after hours trading (to $42.41)
2 mil iPods is better than even I expected

 

[wrldwzrd89]

Whoa! That EPS is over double last year's EPS...and it looks like next year's EPS could redouble...IE $0.12/share in fiscal '03, $0.26/share in fiscal '04, and $0.54/share in fiscal '05....That's some SERIOUS upturn for Apple. If this trend continues, Apple's EPS for fiscal '06 will be...$1.10/share!!! Zoiks!

 

[mixgrafix]

Skrew that guy from the Motley Fool

Bash Bash Bash, Blah Blah Blah...we have heard it all before, and I bet that same guy bought an HP ipod because he thinks HP makes it.

Thanks Steve and Company for maing a great product that is changing the way we listen to, store, and love our music.

I have had my iPod 1st gen for over three years now, and I had one battery change in it. It works like the day it came out of the box, and I bet it will work one year from now just as well. That is what you get when a company has a vision.... make great products that work, and back them up with quality service.

I bought 1000 shares of AAPL at 12, and my broker thought I was a fool. 30 * 1000 = 30,000 the last I checked. I am going to sell 1/2 it at 50 if it hits this week, and buy me a nice 2.5 gig powermac tricked out with 8 gig of memory, and two 30 inch Apple Cinema Displays. And he wanted me to buy China.com.... went down 85 percent in the same time.

https://forums.macrumors.com/images/icons/icon10.gif

 

[iMeowbot]

These Q4 results are just yet more evidence of yet another death nail in Apple's coffin.

It could also be evidence of new PowerBooks on Tuesday.

HOWEVER, joking aside.. how long can Apple / we expect iPod sales to beat the previous Quarter results? I must admit, I'm surprised sales haven't flattened off yet. It is very good sales continue to rise... but for how much longer?

Well, Apple haven't really even hit their full stride in many markets, even the music store is only up in four countries yet. I'm guessing that they might get another year off the initial wave, and will need to have an interesting follow-on very soon (and hopefully something cooler than a tiny photo viewer which everyone else will be doing).

 

[maya]

Sales will go up with the following:

1. PowerBook G5
2. Colour iPod 60 Gig
3. Tiger
4. iTMS (for other countries)
5. iPod mini mini with the 0.85 inch drives (when available)
6. 1 Gig flash market.


Once the 90 fab system is solved (which there is very little news of these days BTW) the clock speed will rise fast, until they move to the 65 fab process. Unless they alread have with the Power5 Lite for the PowerBook and then later on install the dual core for the PowerMac Dual core Dual 3Ghz.<--- I like the sound of that.

PowerMac G5 with dual core and dual processor 3GHz
and the
PowerBook G5 with either single or dual core configurations now available.

::drooling::

As you can see there is a lot of room to grow and profit from for Apple at this point.

Update: Only problem I see is that they have to move the PM 2.5GHz forward since the iMac G5 will catch up and the remainder of the products has to move along the same track.

Next PMG5 rev C, dual 3.0 GHz High-Level | dual 2.5 GHz Medium-Level | dual 2.0 GHz Base level.

Next iMac G5 2.0 GHz 20 inch High-Level | 2.0 GHz 17 inch Medium-Level | 1.8 GHz 17 inch Base model.

XServer dual 2.5 GHz High-Level | dual 2.0 GHz Low-Level

PowerBooks G5 = ?

eMac and iBook will go 1.5 GHz G4 until late 2005 when they sport a G5 @ 1.6 and 1.8 GHz.

And that is my prediction

 

[quackattack]

Now the question is whether to re-invest or not, what with the current condition of the tech sector, the impact of the high oil prices, and the uncertainty surrounding the election....

Yeah, you're right. That is the question. I think I'll have to mull that over myself.

 

[srobert]

Makes you wonder what will be the average update cycle for iPods once things settle down. Evey 3 years? 4 years? (Every 2 Generations? Every 3 Generations) I'm talking mrs and mr everybody, not the Apple afficionado. With such a huge market share, it can be very interesting. By the time Apple has competly saturated the market with iPods, Millions of people will be buying their second or third iPod. It's an endless cycle methinks.

 

[deepkid]

Negative votes on this news?

I typically don't care about how people rate the postings here on mac rumors (positively or negatively), but it's BAFFLING to see 13 negative votes (as of this writing) in light of Apple kicking some major financial *ss in this past quarter and overall.

Unless they work for Microsoft (windows, music store departments especially), Real Networks, Dell, Creative or Napster.

Or maybe it's all 13 of the people who bought something other than an iPod. Hah!

 

[nagromme]

No super-cheap headless?

PowerMac sales were down just like iMac G5 sales... because of IBM delays that won't last forever.

AppleInsider noted a key point: Apple does not intend to compete in the sub-$800 market since they say they can't make much money in it.

Personally I think that sounds a little too simplistic, and I think there's more to be read between the lines. I'm still sure Apple has been working on a low-end headless--simply because demand is there, and an iBook or eMac without screen would be cheaper to make--even though they may not be sure when or if to release it. But I'd say we now know that day won't be soon. Maybe it will come when low-end G5 chips are cheaper.

 

[Tulse]

I'm still sure Apple has been working on a low-end headless--simply because demand is there

Just because demand is there doesn't mean that Apple can make them profitably. More to the point, just because demand is there doesn't mean that filling said demand wouldn't cannibalize sales from other, more profitable lines, and thus actually lower the company's overall profits.

Apple just isn't going to compete with the low-end, generic PC makers. The last time it went that route, it didn't even do it directly -- instead it licenced clone makers (who didn't follow the low-end game plan, but that's another story). There are just too many factors working against such a move -- low margins, cannibalization of higher margin products, even a tarnishing of Apple's somewhat elitist cachet (which is actually part of the brand appeal).

In any case, Apple already has the eMac, which sells pretty close to the low-end.

 

[deepkid]

Cheaper eMac

I think that Apple is right to avoid cannibalizing so many of their other higher margin machines by trying to compete in a literally no-profit segment of the market.

As with the cube, it would be very difficult for Apple to properly position a headless offering for under $800 without killing some eMac, iMac, powermac and notebook sales.

It is smarter to concentrate on its core product matrix (a good one) while growing other interests like retail, software and digital music which will all help overall revenues and market(s) share more than trying to scrap with flea market types.

A smarter way to offer a low-cost AND uncompromised entry level computer would be to make the eMac a bit more affordable, when possible.

Sell it to institutions for $599, individual student sales for $649 and everyone else at $699 and then keep driving the price down over time.

 

[deepkid]

In any case, Apple already has the eMac, which sells pretty close to the low-end.

We were on the same wavelength at the same time. :]

 

[~Shard~]

The sales numbers certainly make you wonder why Apple would be rushing the 60-gigger to market right now when 20/40 are doing so well.

Yah, but the 60 GB would not necessarily detract from the other models or cannibalize sales if marketed correctly. It could be a "deluxe" iPod (preview of the future 5G iPod essentially), with color screen, 60 GB HD and photo capability - and at the 40 GB's old price point, thus not interfering with the current models.

 

[~Shard~]

Yeah, you're right. That is the question. I think I'll have to mull that over myself.

Let me know what you conclude, I do in-depth financial analysis like that every day and would welcome some other opinions - 2 heads are better than one...

 

[ioinc]

Apple is the premier computer hardware company in the world today -- especially in terms of design -- no one comes close these days.

Ducking...

In terms of design yes.

Michael Dell would have something to say about the overall title.

remember the guy with the company that won the hugley competitive PC wars?

Apple can't compete with Dell in the low end.

 

[Charko]

I agree with your assessment of the Motley Fool. Apple is a very resilient company with talented people. So, one of the main reasons that Apple won't die anytime soon is that they'll just come out some new killer product if their current product line starts to suffer.

But regarding the "Think Different" thing... I never thought it meant to say "think differently" but instead to think "different" just as you might suggest to someone who's asking about the color of a car they should buy, "Think Red" or to someone who is complaining of the heat, "Think Cool." Of course, the purpose could have been to intentionally use incorrect grammar, as to do so is really thinking differently -- i.e., a self-reflective slogan. But my guess it's the former.

Think Good.

Much as I love Apple, I always hated the 'Think Different' slogan.

A few years ago I had a T-shirt printed:-

THINK DIFFERENT
BUT SPEAK PROPER

 

[edenwaith]

Woo, hoo!

Very nice. These are figures which harken back to the height of the iMac days. I'm surprised in the number of iPods being sold. Once again, very nice. Now if they can bump up the number of computers, at least over a million per quarter.

But in traditional Wall Street fashion, Apple's stock will probably go down because they posted a profit. Meanwhile, Microsoft could release an application which would fry your computer, kill your dog, and send the IRS after you for tax evasion, and Microsoft's stock would shoot up an extra $10 per share.

So do they have over $5 billion in the bank now?

 

[Charko]

These arguments about Apple shouldn't be trying to compete with the cheap Dells etc. are just missing the point.
None of us headless Mac protaganists want that.
I know two people who look longingly at Macs (they don't want the ugly and inflexible eMac) but just can't afford that much.
A headless 'iMac' well-designed and well-made with a couple of slots would be more expensive than your average PC, but much less expensive than the present iMac.
AND people could keep their monitors.
Most of us are average earners. We'll pay a bit more (even quite a bit more) but can't afford to pay a LOT more.
There's a huge market of discontented PC-users out there and Apple should tap it.

Only then can Apple turn the tables on Microsoft