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Apple Reports Q4 2013 Year-End Results: $7.5 Billion Profit on $37.5 Billion in Revenue [Call Concluded]
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I think Apple knew this when they changed their name from Apple Computer,Inc. to Apple Inc.
Exactly - I don't want to fool with digging my phone out of my pocket every time I hop in the car to play tunes (my car doesn't have BT).
iPhones and iPads are really computers now aren't they?
But yes, Apple is not primarily a desktop computer company anymore, and that reflects the times.
I guess because they're highly reliable, and even when there is an issue Apple replace faulty ones free of charge (my wife's year old iPod Nano failed recently, and the local Apple store swapped it!).
I've had my 120g iPod Classic for probably 5 years or so. I had another Classic before that which I gave to my son.
I also suspect most people don't have large music collections, so an iPhone has enough capacity. I've got 11,394 songs on my Classic, plus movies, TV shows, podcasts, etc., etc.
Stock is down probably because of expectations of a bigger stock buyback to be announced. AAPL even beat some updated estimates: http://www.valuewalk.com/2013/10/apple-inc-aapl-q4-earnings-estimate/
Also there's the "sell on news thing".
Also there's the "sell on news thing".
Yeah, buy on rumor-sell on news.. Apple has been good about bouncing back in the past, though.. hopefully we'll see a steady incline to 550-600 over the next few months until the next surprise is announced.
37% is their gross margin. Not their profit margin. Profit margin was 22% over the 12 months ending Jun 29, 2013.
Rather than looking at the figures for product sales, and viewing these results for what they are. Purely a fiscal report on Apples trading in the stated quarter.
There is a danger here, but doomed is hardly the word to use about the company's future.
Many cash rich companies have suffered badly, simply because there is a limit on just how much stock you can sell, and a company running overcapitalised, can spell danger if not correctly managed. R&D, Advertising ( which Apple is very selective about ) are two of the many way's a company can disperse cash, but if Apple have any issue it is just that. They are still overcapitalised.
There is a danger here, but doomed is hardly the word to use about the company's future.
Many cash rich companies have suffered badly, simply because there is a limit on just how much stock you can sell, and a company running overcapitalised, can spell danger if not correctly managed. R&D, Advertising ( which Apple is very selective about ) are two of the many way's a company can disperse cash, but if Apple have any issue it is just that. They are still overcapitalised.
iPad sales look surprisingly flat over time... I bet the retina mini turns that around!
iTunes revenue looks to have doubled from a year ago. Astonishing good for profit, as it's much cheaper to run than making hardware (and R&D new iPad/iPhone technology every year!) Of course, that revenue largely depends on people buying that tech.
iTunes revenue looks to have doubled from a year ago. Astonishing good for profit, as it's much cheaper to run than making hardware (and R&D new iPad/iPhone technology every year!) Of course, that revenue largely depends on people buying that tech.
And yet they are the most profitable PC manufacturer in the world on Mac sales alone.
Rule #515 in the I Want To Be An Analyst When I Grow Up Guide:
Record profits? Must be too good to be true, there has to be a catch somewhere. Hammer stock mercilessly.
Record profits? Must be too good to be true, there has to be a catch somewhere. Hammer stock mercilessly.
Profit from industrial dominance is the only type of profit can be easily guaranteed in a long run. None of Apple's profit come from that type. That's the big difference.
Check the projections for the holiday quarter....
Revenue: $55B to $58B
Margin: 36.5% to 37.5%
Taxes: 26.25%
On the high end:
$58B * 37.5% = $21.75B - $5.71B taxes = $16B
On the low end:
$55B * 36.5% = $20.1B - $5.27B taxes = $14.8B
EDIT: Need to subtract $4.4B to $4.5B in operating expenses.
Range is actually $10.3B to $11.6B
Revenue: $55B to $58B
Margin: 36.5% to 37.5%
Taxes: 26.25%
On the high end:
$58B * 37.5% = $21.75B - $5.71B taxes = $16B
On the low end:
$55B * 36.5% = $20.1B - $5.27B taxes = $14.8B
EDIT: Need to subtract $4.4B to $4.5B in operating expenses.
Range is actually $10.3B to $11.6B
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It's kind of amazing that the product responsible for turning Apple into the company it is today (the iPod) is now making less money for them than the "Other" category. It's only been 12 years...
You have to admit that Wall Street is schizophrenic about AAPL, though. For three months, they cry about how Apple isn't making lower cost products, they aren't expanding into new markets, they're only interested in the high-end - and then they complain if Apple's profit margins aren't higher than expected.
Which is it Wall Street? Do you want higher profit margins or lower cost products?
Ironically, Apple keeps revising and evolving their products, slowly moving costs downward while protecting a profit margin that would be the envy of any other tech hardware maker. And not giving a s*** about Wall Street.
I wonder how much the YOY comparisons are impacted simply by the change in product cycle. (Moving from Spring to Fall release.)
What makes you think so? I can't imagine it has higher margins than the iPhone.
Exactly. Apple has piled up huge volumes of cash, but failed so far to explain what they want to do with it. Their R&D spendings are traditionally low and they fall behind in many categories because there's stiff competition in phones and tablets. In desktop computing and notebooks they've more or less lost and went back to a niche position.
Still, their financials are impressive, but their future is unclear.