Apple Reports Q3 2013 Quarterly Results: $6.9 Billion Profit on $35.3 Billion in Revenue [Call Concluded]

[adnbek]

I always LOL at these numbers you know why? It means their products are massively over priced and we, the people that buy their over priced items, are dumb.


IF we all stopped buying at their inflated prices they would be forced to lower them. However WE will not so they will not.

They will sell them at whatever price people are willing to pay, like any business would do. Don't blame Apple. Every PC maker's dream would be to sell their wares at similar prices, but companies like Acer and HP blundered when they pushed cheap netbooks down people's throats for so long, people refuse to pay anything more than 300 for a PC and are shocked when their "premium" stuff doesn't sell.

Except for Lenovo (and Dell to a lesser extent through their Alienware line) but that's because they succeeded at differentiating themselves as "premium" with their products, the same way Apple does. Don't kid yourself. Aiming for the cheapest price points/lowest margins route isn't how ensure your company's success. It looks good from a market share standpoint only, while you struggle to make a profit.

 

[FrozenDarkness]

According to the NASDAQ Amazon's projected P/E Ratio for 2013 is 224 and for 2014 is 94. A little way short of 3500.

The share price is based on a number of factors of which P/E Ratio is just one. My principle holds true. Revenue and/or Profits Growth generates confidence which raises the share price.

yes and apple's forward P/E sans cash is 6. please don't try to justify amazon vs amazon on P/E ratio alone, it's a never ending battle.

 

[AFDoc]

They will sell them at whatever price people are willing to pay, like any business would do. Don't blame Apple. Every PC maker's dream would be to sell their wares at similar prices, but companies like Acer and HP blundered when they pushed cheap netbooks down people's throats for so long, people refuse to pay anything more than 300 for a PC and are shocked when their "premium" stuff doesn't sell.

Except for Lenovo (and Dell to a lesser extent through their Alienware line) but that's because they succeeded at differentiating themselves as "premium", like Apple does. Don't kid yourself. Aiming for the cheapest price points/lowest margins route isn't how ensure your company's success. It looks good from a market share standpoint only, while you struggle to make a profit.

Ummmm... I clearly blamed the consumer in my post.

 

[FrozenDarkness]

Ummmm... I clearly blamed the consumer in my post.

LOL @ blaming the consumer. that's my favorite anti-apple sentiment "why are people so retarded and buying overpriced apple"

 

[69650]

Tim also quoted a very important number %internet traffic. As of this AM a new study shows Apple devices account for 83% of internet traffic for mobile devices. This is sooooo important as this is where money is made its Googles livelihood, and gives huge power to Apple to influence googles business model in the future.

How would this influence Google's business model? Their ads run on every OS.

Also Apple desktop percent is growing in the market as the overall pc sales are decreasing faster than apples decrease. Do the math that means the percent of the market belonging to Apple is increasing

From the reports I've read, Mac market share is only growing in a few countries such as the US and the UK. Welcome but hardly a sign of a major shift. As long as Apple makes the lions share of the profits I doubt they're all that bothered.

 

[pirg]

LOL @ blaming the consumer. that's my favorite anti-apple sentiment "why are people so retarded and buying overpriced apple"

Yeah you've really gotta give a hand to the people who come up with that hilarious logic. Somehow, someway, Apple is the ONLY company in the Galaxy (pun intended) to which supply and demand doesn't apply.

I don't know about you, but that alone makes Apple pretty awesome.

 

[adnbek]

You're comparing an internet company to a consumer gadgets company?

A better comparison would be

Q2 Apple profit 6.9 billion

Q2 Samsung Electronics profit 8.9 billion

Another bad example as Samsung makes products in almost every product category. When Apple starts selling fridges, TVs, cameras, audio systems and a ton of others, perhaps it'll be less an unfair comparison as the one you just criticized.

 

[FrozenDarkness]

Another bad example as Samsung makes products in almost every product category. When Apple starts selling fridges, TVs, cameras, audio systems and a ton of others, perhaps it'll be less an unfair comparison as the one you just criticized.

also when apple starts colluding with the US government like samsung does with korea then it's a better comparison

 

[echo44]

How would this influence Google's business model? Their ads run on every OS.

What if Apple decided to no longer have Google as a default search engine?
and they control 83% of mobile web traffic?

What if Apple made a decent search engine?

In other words assuming the majority of people are using google on iOS
lets assume 100% are using google. That means 83% of googles advertising profits from mobile search are coming from Apple devices!!!

This should be making Google very nervous.

This is also why google is very concerned about maps. Google generates tremendous revenue from searches through their map application. Now that Apple has their own this can create a tremendous loss of income for google.
The stakes are high that is why Apple just bought two additional mapping companies.

On tope of this numerous studies have shown iOS users are more affluent and likely to make purchases from their devices.

 

[IJ Reilly]

According to the NASDAQ Amazon's projected P/E Ratio for 2013 is 224 and for 2014 is 94. A little way short of 3500.

The share price is based on a number of factors of which P/E Ratio is just one. My principle holds true. Revenue and/or Profits Growth generates confidence which raises the share price.

PE is derived from share price, not the other way around.

The PE for AMZN is stratospheric by any reckoning. Is it justified? Future earnings will tell the tale.

 

[69650]

Yeah you've really gotta give a hand to the people who come up with that hilarious logic. Somehow, someway, Apple is the ONLY company in the Galaxy (pun intended) to which supply and demand doesn't apply.

I don't know about you, but that alone makes Apple pretty awesome.

You just have to laugh and shake your head when you read comments like this.

 

[pirg]

You just have to laugh and shake your head when you read comments like this.

Yeah I thought my Galaxy pun was pretty funny too.

 

[adnbek]

Ummmm... I clearly blamed the consumer in my post.

But you shouldn't. People aren't "dumb", as you say, for paying more when they can be paying less. This applies to every industry, not just in computers or smartphones.

By your logic, one should always buy the cheapest when presented with different choices at different price points. I'm sorry but if I choose to buy a BMW instead of a Honda, it doesn't make me dumb. Neither is the one buying the Honda instead, mind you.

People will pay premium if they perceive said product to be worth it, while others who are more price sensitive may not. That's just how the world works. I recently bought a Macbook Air. I could've paid half the price for a plastic, chunky laptop with half the battery life, with a chassis that flexes and bends when I push down on the keys, a trackpad that doesn't work well, and with McAfee/Symantic/Roxio/OEM crapware pre-installed.

In my eyes, paying a premium for a better quality product is worth it. To some, it is not and may have picked up that PC I described above instead. (which my friend bought actually, haha)

Call me dumb for buying the Macbook Air. Or, just get over it and stop with the hate.

 

[Glideslope]

+infinity

What about "infinity X infinity."

 

[echo44]

another "apple is doomed" fact to think about

apple's iTunes net income was 3.9 Billion up 25% from 2012

Thats huge!!!!!

So in other words iPhones, computers and all apple devices are like spoons.
These are special spoons designed to eat the ice cream that only Apple sells.

What is happening is the total number of spoons is increasing rapidly and therefore, so is the amount of Ice cream being sold and consumed.
This is an absolutely brilliant business model.

So whats Apple's future plans? To make more spoons!! In fact lets say they come out with some new products such as iWatch, new tv, cheaper iPhones
this is only going to exponentially increase the sales of apps, movies digital content. Apple's sale of digital content alone is going to increase to staggering levels.

Ok my kool aid is getting warm better go drink some more

 

[AFDoc]

But you shouldn't. People aren't "dumb", as you say, for paying more when they can be paying less. This applies to every industry, not just in computers or smartphones.

By your logic, one should always buy the cheapest when presented with different choices at different price points. I'm sorry but if I choose to buy a BMW instead of a Honda, it doesn't make me dumb. Neither is the one buying the Honda instead, mind you.

People will pay premium if they perceive said product to be worth it, while others who are more price sensitive may not. That's just how the world works. I recently bought a Macbook Air. I could've paid half the price for a plastic, chunky laptop with half the battery life, with a chassis that flexes and bends when I push down on the keys, a trackpad that doesn't work well, and with McAfee/Symantic/Roxio/OEM crapware pre-installed.

In my eyes, paying a premium for a better quality product is worth it. To some, it is not and may have picked up that PC I described above instead. (which my friend bought actually, haha)

Call me dumb for buying the Macbook Air. Or, just get over it and stop with the hate.

I love how you make an argument against something I didn't even say. Some will run to defend ol poppa apple at the drop of a hat.

 

[Rogifan]

We've seen the Mac Mini Pro - so that's not new when it eventually ships.

Sticking a Haswell in a MacBook Pro or an Imac doesn't really count as new - Apple will be trailing everyone else when they ship.

Of course it would be phenomenal if they could make the Haswell Imac 1mm thinner - that would change everyone's lives for the better.

(previous sentence does not need a <sarcasm> tag, I hope)

Ah, so basically you're defining what is "new" and if said product doesn't fit your definition then its not new. Got it.

 

[pirg]

I love how you make an argument against something I didn't even say. Some will run to defend ol poppa apple at the drop of a hat.

What you said doesn't make sense in the real world though. I hope you realize that. A company cannot just overprice a product and continue to have the success Apple does. It just doesn't happen, and unless you are suggesting that Apple has found a way to "brainwash" its customers, you are 100...nay 1000% wrong.

Apple can only sell a product at the price the market will bear. Same with Samsung, LG, HTC, Motorola, Google, insert any company in existence here.

BTW, if you are suggesting that Apple has brainwashed its customers to buy overpriced products, well.......

 

[AidenShaw]

Ah, so basically you're defining what is "new" and if said product doesn't fit your definition then its not new. Got it.

Would a red MacBook Air count as "new" if nothing else changed?

It seems that you would think so, but I wouldn't.

De gustibus non est disputandum

 

[Rogifan]

You're comparing an internet company to a consumer gadgets company?

A better comparison would be

Q2 Apple profit 6.9 billion

Q2 Samsung Electronics profit 8.9 billion

Has Samsung reported their numbers yet? Their website says July 26.

http://www.samsung.com/us/aboutsamsung/news/newsIrList.do?news_ctgry=irpublicdisclosure

Yeah their profit may end up being greater than Apple's. Not surprising considering how they've flooded the market with product. I'd love to see the number of SKU's Samsung Electronics has compared to Apple.

 

[adnbek]

I love how you make an argument against something I didn't even say. Some will run to defend ol poppa apple at the drop of a hat.

So you deny stating that people who pay a higher price for something are dumb? Funny, must have been my imagination.

Oh wait.

I always LOL at these numbers you know why? It means their products are massively over priced and we, the people that buy their over priced items, are dumb.

Rest my case.

 

[Rogifan]

Would a red MacBook Air count as "new" if nothing else changed?

It seems that you would think so, but I wouldn't.

So a MacBook Air with Haswell and all day battery life that's also $100 cheaper isn't "new" just because you've decided it doesn't fit your definition of "new". Got it.

 

[echo44]

Would a red MacBook Air count as "new" if nothing else changed?

It seems that you would think so, but I wouldn't.

De gustibus non est disputandum

so what you are defining as new is what the rest of us accept as new? For you is new a new product category? What other company has released a new product category other than Apple? Do you consider Samsung Galaxy with a slightly bigger screen new?


the manipulation of binary information is basically what all these devices due and the basic manipulation of creating a state of 1 or 0 is no different than the early computers in the 1950's which ran on tubes. Its all semantics right? its also relative. For me a 1mm decrease in the iMAc thickness may be life changing, or a 20 % increase in battery life or an added 2 megapixels to the camera.
However you are placing your standards of "new" on the rest of us
this to me is arrogant assuming your perception of reality is reality.

what if my daughter's favorite color is red and everything red she loves, yes a red macbook air would be considered new and more importantly may bring joy to her life that a silver mac book couldn't .
And yes a whole team of people would have probably be involved in the change from designers to pick the color, to chemist to figure out how to impregnate aluminum to get the correct feel, shade, etc. to the people in manufacturing who would have to create a new line to produce the red mac book air.

In fact you may benefit from an article published on anatech on the engineering complexity and innovations which occurred in order to create the anodizing process used in the iPhone 5. The engineers describe how this has never been accomplished before on such a thin structure and the incredible amount of engineering that was involved. Of course to you it was just another iteration of the iPhone nothing really new.
Also love your use of quotes here is one for you

A facility for quotation covers the absence of original thought.”
― Dorothy L. Sayers, Gaudy Night

 

[AFDoc]

Rest your case all you want, you're arguing a point I didn't bring up.


As you seem a bit challenged I'll make it very simple.

Sure I'm willing to pay a premium for a product as are most. Apple's "premium" is well above and beyond what I would think and believe most would agree is typical for a "premium" product. WE, the consumer are stupid because if WE, the consumers didn't pay their extremely high "premium" then they would have to decide their "premium" is a bit to high and lower it to a more reasonable "premium". Got it now?
So yes, we the consumer are our own worst enemy and we are dumb because we continue to pay and give apple those billions of dollar profits. Wouldn't you rather pay less of a premium for your apple products? I would think a billion in profits is enough of a premium.... You obviously don't agree.

I guess you believe the billions of dollars oil companies make every quarter is cool too.... gotta pay that premium gas cost...

SO see what I'm saying compared to what YOU said I was saying.... yeah not the same now is it.
(to make it easier on you... I never said anything about people paying more when they could get another product for less)

It just doesn't happen, and unless you are suggesting that Apple has found a way to "brainwash" its customers, you are 100...nay 1000% wrong.
:

Now that's the FUNNIEST thing I've seen here on MR in a while.... naaaaa Apple's customer base isn't brainwashed..... no way no how!

 

[HiRez]

Now that's the FUNNIEST thing I've seen here on MR in a while.... naaaaa Apple's customer base isn't brainwashed..... no way no how!

All consumers are brainwashed to some extent, that's what advertising does. Pretty much all large companies advertise and Samsung massively outspent Apple on advertising last year...so why don't they make massively higher profits than Apple on phones and tablets? But it really has nothing to do with product pricing, if people want it and can afford it, they'll buy it, if they don't or can't, they won't. Something that's "overpriced" is, by definition, something that doesn't sell, that's Business 101. And last time I checked (um, today), Apple was still selling plenty.