Apple Reports $1.21 Billion Profit for Q2 2009

[mdriftmeyer]

The gross margin (36.2%) is obscene, yes (Dell has 18% I believe), but after wages, marketing, R&D and all that stuff, the actual net profit percentage is around 9% (6% for Dell). So Apple blows more of their earnings than the other companies do. OS X development and more R&D would account for some of it, but I also have a feeling that they spend ludicrous amounts on advertising. Those "Hi, I'm a Mac" ads better have excellent entertainment value, because you're paying a lot for them.

Not remotely correct.

To be clear: Dell's revenue of nearly $68 Billion for a corporation valued at $21 Billion should give you a clue that Dell's 81,000+ employs should be cut in half, but it can't since it's bulk comes from manufacturing/assembly. Dell would kill to get Apple's products to assemble, but of course it never will [both for personal and business reasons].

Dell signs and innovates their own Operating System driving standards changes throughout the industry.

Dell offers Windows and Linux [the better option but still not the best distribution] for it's product line.

Dell doesn't have a differentiator to drive their own market because Dell doesn't have their own market.

Apple with 35,000 [large portion in the retail space] is now achieving gross revenues of 40 million per 1,000 employees. Those are nice ratios. Dell on the other hand is not remotely close.

 

[Anuba]

So money cannot go to anything else? It obviously goes to advertisement?

Since I run into this problem every time with you... I have to ask: Do you have some kind of reading comprehension deficiency I should be aware of?

I said there is "ample room filthy amounts of advertising", given the numbers. How you somewhere along the way manage to equate this to ALL money going to advertising is beyond me.

They DO advertise a lot, which is logical since they're up against the collective advertising budgets of Microsoft, HP, Dell, Toshiba, Acer, Gateway and other brands on the PC side of things. Apple has to carry a heavier advertising load and they're not taking that money out of thin air, ergo you are paying for it.

Not remotely correct.

Product teardowns and corporate profits: the rest of the story

 

[flottenheimer]

Happy financial news. Love it.
Now, go design and open an Apple store in copenhagen, denmark. That should boost sales even more.

 

[netnothing]

Q: Do you care about your market share in the U.S.? And given the lower sales prices, does that change your opinion about Mac pricing?

A: On a worldwide basis, IDC projected that the market contracted by 7% worldwide. On a reported basis, we contracted by 3%. But on a sell through basis we were essentially flat. U.S. was our weakest/largest market but in the U.S. a larger percentage is educational so is subject to recent budget constraints. So, I think that's one reason by the U.S. is disproportionately affected. We saw less Pro Macs being sold in the U.S. compared to other markets which we also attribute to the economy. Do I care, of course, but cycles come and go. We are about making the best computers in the world, not the most. We believe that if we do that over the long term, we will gain marketshare.

Nice to see a comment like that. A company that doesn't just look to put out crap for the sake of having a piece of crap on everyone's desk.

-Kevin

 

[BTW]

The answers on the Netbook were kind of revealing. It seems when Apple points out the weaknesses of a product category they usually have an answer waiting in the wings. The Apple Netbook is near.

 

[Goona]

What is wrong with advertising?

 

[NT1440]

Since I run into this problem every time with you... I have to ask: Do you have some kind of reading comprehension deficiency I should be aware of?

I said there is "ample room filthy amounts of advertising", given the numbers. How you somewhere along the way manage to equate this to ALL money going to advertising is beyond me.

No I dont have a reading problem. You simply annoy me with your inflammatory comment, "Those "Hi, I'm a Mac" ads better have excellent entertainment value, because you're paying a lot for them.", which you defend with loose logic.

Stick with facts, or better yet don't be inflammatory, and you won't hear a peep from me.

 

[Eidorian]

What is wrong with advertising?

People tend to use the ads as their "camp's" final say in who has "won" in the "computer war".

Please reflect upon this.

 

[thoshino]

The "very excited about new products in the pipeline" is getting old. I'll get excited when I see new products more often. The current R&D is providing some adequate updates but more innovation would be nice.

Every time someone says things about products in pipeline they're comparing current gen market products to a prototype who's first incarnation represents a huge leap forward in thinking but is often severly crippled by the "tripple constraint" or just poorly implemented. By the time the first version hits the market that gap has decreased and by the time they get it right (current or next-gen iPhone HW & SW) other companies have more or less caught up (Nokia 5800 et. al.) (apologists and die-hard Apple-products-beat-everything-no-matter-what-so-don't-say-differently people please note the "more or less")

I think Apple have been quite innovative. The problem is rather that they're not thinking basic enough, or as I often say
JUST RELEASE THE CONSUMER TOWER/XMAC WHATEVER YOU F#€€&#& MORONS.

 

[xhambonex]

So they would pick verizon over AT&T if it was just the US. Oh well.

Yeah I'd really like to see some product innovation from apple. They do great things on the OS front, but all these mini updates are expected. The design change on the notebooks was almost exciting, but too predictable. Back to work on that "netbook" of yours. Bring something amazing.

 

[FF_productions]

Apple's too cool for netbooks..of course..because they happen to be lower priced.

 

[Project]

Nice to see a comment like that. A company that doesn't just look to put out crap for the sake of having a piece of crap on everyone's desk.

-Kevin

Well, just look at the Nokia earnings. Apple makes more money with the iPhone and its 2% worldwide marketshare than Nokia do with their 40% share.

 

[Anuba]

What is wrong with advertising?

Nothing. I merely tried to defend Apple's profit margin (when someone referred to it as "obscene" and said they could easily cut prices by 20%) by pointing out that Apple isn't actually gorging on all that money, broke it down into (known) items and speculated on what the rest might be used for. But it appears that not even defending Apple's gross margin is enough in the eyes of NT1440, the phrasing must be 100% Apple-zealoty too.

 

[Goona]

Well, just look at the Nokia earnings. Apple makes more money with the iPhone and its 2% worldwide marketshare than Nokia do with their 40% share.

Damn it's that really true, so much for all this marketshare talk.

 

[akm3]

Those profit margins are bordering on the obscene. Apple could reduce sales prices by 20% and their margins would still be above the industry average.

That and 30 billion dollars in the bank gives them a *lot* of wiggle room if things turn south on them.

 

[NT1440]

Nothing. I merely tried to defend Apple's profit margin (when someone referred to it as "obscene" and said they could easily cut prices by 20%) by pointing out that Apple isn't actually gorging on all that money, broke it down into (known) items and speculated on what the rest might be used for. But it appears that not even defending Apple's gross margin is enough in the eyes of NT1440, the phrasing must be 100% Apple-zealoty too.

Yup I'm a zealot because I have a thing for using facts and not throwing around inflammatory comments. I take it you're also a MS fanboy simply because you have criticisms for apple?

Get past the 7th grade name calling.

 

[BMWFan]

I am surprised there hasn't been a backlash similar to the one when oil companies boasted about record profits during the worst part of the economic crisis while in the mean time, the gas prices were off the charts.

 

[ivladster]

Awesome News

While Micro$oft running some retarded ads, Apple keeps gaining every quarter. Clear sign of who's winning.

 

[NT1440]

I am surprised there hasn't been a backlash similar to the one when oil companies boasted about record profits during the worst part of the economic crisis while in the mean time, the gas prices were off the charts.

Now thats an interesting comment. By backlash do you mean like a boycott on apple products?

Do the MS ads count?

Edit: @ ivladster: Winning what exactly?

 

[Goona]

I am surprised there hasn't been a backlash similar to the one when oil companies boasted about record profits during the worst part of the economic crisis while in the mean time, the gas prices were off the charts.

What about Microsoft who make 4 times Apple's profits?

 

[Eidorian]

What about Microsoft who make 4 times Apple's profits?

You don't have to buy a Windows license or a license for other Microsoft software.

That's a bit different because PC prices are going down. Like I said, what makes this situation so similar to the oil companies is that Apple has announced record profits while increasing the prices on their machines during an economic crisis.

I wouldn't go as to say that they're increasing prices in general since the switch to Intel. The iMac reflects this. I will say that the margins on the iMac have gone up dramatically since then though.

 

[BMWFan]

What about Microsoft who make 4 times Apple's profits?

That's a bit different because PC prices are going down. Like I said, what makes this situation so similar to the oil companies is that Apple has announced record profits while increasing the prices on their machines during an economic crisis.

Now thats an interesting comment. By backlash do you mean like a boycott on apple products?

Not a boycott, I mean people didn't really stop using gas when the prices went up. It's just there doesn't seem to be any vocal criticism towards Apple like there was towards the oil companies.

 

[jav6454]

Now thats an interesting comment. By backlash do you mean like a boycott on apple products?

Do the MS ads count?

Edit: @ ivladster: Winning what exactly?

I also started to think, what type of backlash can Apple have? I mean, if you buy a Mac, its either because you have the money to spend it, or you are unwilling to sacrifice quality, or simply because you refuse to downgrade your overall computing experience with Helldose.

So, if people are buying willingly without having the need (need being unlike gas, which unluckily you need to buy to move around in your car), how can one backlash? Complain about poor customer service? No can do, we all know Apple has one of the best CS out their.

However, I know there must be someway, like those $1.29 iTunes songs that need to go back down to $0.99... now who's with me on that one?

 

[Anuba]

While Micro$oft running some retarded ads, Apple keeps gaining every quarter. Clear sign of who's winning.

Microsoft's retarded ads started running only a few weeks ago, and only in the US. I wouldn't draw any conclusions regarding their success or failure from an Apple report of worldwide sales over the entire last quarter.

Clear sign of who's winning.

Wait... the one with the 90% marketshare is losing?

 

[MacLover4491]

All these netbook haters, dont buy a netbook when apple comes out with one. I think you guys dont like netbooks because apple dont have one yet. Thats so biased.