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The guidance suggests no new products before July 1, yes?


It would suggest they are not expecting a big revenue jump this quarter. May also suggest they will announce either a new ipad or iPhone this quarter that will slow sales on existing devices as people wait for a release.
 
Apple, regardless of stock price, is not going anywhere, Nokia/Rimm never reached anywhere near Apple's profitability, it is here to stay and with TMobile launch and cheaper iPhone and heaven forbid a large screen option Apple can put a lot of pressure on Android. Heck the only reason I am using a Galaxy Note is because of the screen size.

None of it will improve profit margin unfortunately, Samsung will see this too as today's Smartphones are too powerful for everyday usage and most popular games are all low graphic 2D games. Unless some amazing apps / new ways to use our phones come out, the industry as a whole has peaked and price war will squeeze everyone's margin. If you have a Galaxy S3/iPhone 5 why upgrade when nothing in app store requires it? Hardcore users who upgrade every year can not carry the market.
 
Actually, the stock is up about 3% to $420 right now. It may hover in the 400s for a while. No biggie for long term buyers. (FD I'm long AAPL).
 
I'm not really familiar with Apple's internal budget.

How much are they spending on R&D?

If you could tell me, than I could better assess if they are spending enough.

Thanks...

$1.7 billion for 2011. And huge increase to $3.1 billion for their last fiscal year ending Sept 2012. They are spending, big time.
 
But, but, but I thought they said Apple is doomed since they don't have a 10000000 inch iPhone or REAL innovation. Smh.

Great job beating expectations, Apple. I can't wait until I hear these analysts response. They will flip it somehow.

They'll concentrate on the margin compression and lower quarterly net profit (YoY).
 
YES YES YES AAPL

4291107_o.gif
 
Probably selling less 32 gb iPhones and 64 gb iPads and more of the low end memory models. The biggest margins come from those $100 price bumps to add a bit of larger flash memory. If you are still buying an iPhone 4, you aren't going to buy it with a larger flash memory for an extra $100 (if that option is even available, I don't know that it is). Same thing for iPad Mini, less likely to bump its price by $100 to add memory than for an iPad.

Not to mention the 4 and 4S cannibalizing profits of the 5. While not at a loss or break even, profit not likely as high as an iPhone 5 sale.
 
$50 bil stock buy back?

at 939 mil outstanding shares, that's $53 per share.

Damn, Tim Cook is basically saying **** you to wall street! :p:p

With Style! :D:D

:apple:
 
A big kudos to a lot of the forum members right now that are helping break this down for the rest of us. Awesome.

I came to MR BEFORE some of the other news outlets.
 
They'll latch onto the low guidance for Q3. I.e. probably no new product releases (iPhone 5S and "cheap" iPhone) until July or August.

The institutional analysts EPS consensus was within less than 2% of actual. Maybe time to be a little less conspiratorially minded.
 
AAPL up over 5% in after-hours trading.....go figure. Good solid earnings call and the stock responds with growth.....

What an anomaly!
 
I'd like to see that too. I wonder if it's double? Triple?

I think the Mini outselling the full-sized would explain most of the margin difference. If it is true, than the margin dip is only really a problem for 2013 and in a relative sense won't matter much after that. Margins are still better than any one else in the industry, but the analysts will preach them as a sign of the apocalypse.
 
Apple, regardless of stock price, is not going anywhere, Nokia/Rimm never reached anywhere near Apple's profitability, it is here to stay and with TMobile launch and cheaper iPhone and heaven forbid a large screen option Apple can put a lot of pressure on Android. Heck the only reason I am using a Galaxy Note is because of the screen size.

None of it will improve profit margin unfortunately, Samsung will see this too as today's Smartphones are too powerful for everyday usage and most popular games are all low graphic 2D games. Unless some amazing apps / new ways to use our phones come out, the industry as a whole has peaked and price war will squeeze everyone's margin. If you have a Galaxy S3/iPhone 5 why upgrade when nothing in app store requires it? Hardcore users who upgrade every year can not carry the market.

You are trying to guess why an iPhone 5 user will upgrade now? Of course you can't come up with a good reason. There was also not much of a reason to upgrade from a 4 to a 4S. But that didn't stop Apple's iPhone sales from increasing dramatically with each new model. 5S probably won't be compelling to a 5 user. But check back for the 6 or the 6S, I bet that will be dramatically better.

Apple just needs its users to stay in the eco-system. It doesn't need yearly upgrades, it can wait for two-year or even three-year upgrades and still meet these revenue levels.
 
Excellent results. However, Tim Cook's job is to increase share holder value.

If I was Tim, I would be very concerned about the fact that 53% of my revenue was coming from a single product line that gets refreshed just once a year.

At some point, everyone who wants an iPhone will have one (or two).
 
AAPL up over 5% in after-hours trading.....go figure. Good solid earnings call and the stock responds with growth.....

What an anomaly!

I think the new dividend rate and the Apple's commitment to buy back $100 billion over 18 months has a lot to do with it.
 
I posted this quarter I felt Apple should modestly increase dividends by a figure near its growth rate, which they did at 15% increase to $3.05 per share. I also felt they should aggressively increase the buy back which they did from $10B to $60B. This is a smart company. Buy APPL. Cash is $145B. That's almost HALF of the $381B market cap.

Rocketman

As I've posted elsewhere, this is yet another pathetic decision that would have never been taken by SJ himself, particularly considering that Apple has always been a GROWTH stock with huge upward potential in barely-tapped markets.

Cook shows once more that Apple's innovation and independence days are increasingly behind us, where design by commitee and financial "analyst" pressure counts more than envisioning the next big thing. A stock buyback program is akin to admitting that you are no longer able to lead, just follow.

A Michael Spindler redux?

p.s.: remember my prediction for an iPad Mini flop? It came in the form of much-lower margins following a steep fall in normal iPad sales.
 
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Excellent results. However, Tim Cook's job is to increase share holder value.

If I was Tim, I would be very concerned about the fact that 53% of my revenue was coming from a single product line that gets refreshed just once a year.

At some point, everyone who wants an iPhone will have one (or two).

Maybe, but people only keep them for 2-3 years. I would be a lot more worried if they were spending money to refresh it every quarter.
 
It is also part of the reasons margin are down a bit. Still things are going well.
True. But I think it's inevitable, along with commoditization, margins will fall.

The iPad mini, though it has a new form factor, is a good example of commiditzation since internally it's got hardware that was 1.5 years old at its launch date.
 
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