Apple Reports Results for Q2 2012: $11.6 Billion Profit on $39.2 Billion in Revenue

[Chupa Chupa]

It is not about insuring future gadgets. Those will come regardless. It is more about certain legacy to the society and the World at large one would want to leave behind rather than just a gigantic pile of outdated and increasingly more difficult to recycle disposable electronic gadgets. There are better people to ask than myself how to positively impact the World as I am not a billionaire. At certain level it is no longer about the money, it is about "are we cool?" There is no shopping spree in mind, as with the current assets buying is irrelevant. Everything is too cheap. You may want to ask yourself how much is enough? I do not suggest a distribution to the detriment of this new shiny and faster computer you are so eager to devour with your hands full of appetite for unpacking yet another new box. Consider a wider approach outside of your personal needs, consider the impact of amassing this much cash by one entity with a clear plan to suck even more from global markets. Clearly it is no longer a purpose of continued growth, new technologies. So what is it at the end?

I don't know about Tom Cooks drinking habits. For all I care he can be as sober as a child, but I would prefer to know that he likes to get s---faced drunk often enough to have some human character.

As for the Joe subject, it is sad, that people no longer late at night at the often in the past obscure music shops are making live connections with others, rather now they download in seclusion and later listen in isolation of the earplugs. Yes, there is vinyl, there is also a niche SACD format, but more importantly there are loudspeakers. My visiting friends are always drawn to the shelves full of CDs and records, pulling something out. Joe has a computer full of some files and sure enough I will not be sticking his earphones into my ears.

Wow! My head is spinning you pivoted so much. First you complain Apple doesn't have plan to spend its reserves then you counter that Apple doesn't need to spend its money because gadgets will "come regardless," and swoon into a tirade with personal hits toward Tim Cook (never mind he initiated Apple's policy to match employee's charitable contributions, up to 10K) and how Apple is polluting the world with non-recyclable toys.

Following this you ironically lament the kids of today do not appreciate your physical CDs that will one day, maybe not while you are living, but one day, end up in the dump. Your CD player too. Meanwhile not one single AAC file from Apple iTunes will take up one mm of any trash or recycling facility, at least not literally -- Ha!

So I'd say you need to get your stories straight.

I personally still by CDs myself as I have a nice A/V system and like to rip ALACs. But so what. Most people download music today because we live in a more active world. Productive kids and adults alike have little time to loiter around record shops or sit around listening to music. It's a multitasking world, and Apple obliges us. That's how they make so much money.

 

[Frobozz]

So another 10 billion on the cash side.

The only thing I'm worried about is that they are going to give dividends. When a company thinks that I know what to do with the money better than they do, it doesn't inspire me with confidence.

My understanding is that the dividend is to attract large institutional investors in value funds. That dividend directly translates to interest in places it has not been before. This should drive the price up over time. Of course, that could be all B.S.– I'm not a financial wizard. But that is what I have read in a couple different places now.

 

[basesloaded190]

The one thing that worries me about this is that it seems like market movement seems dependent on Apples success. The market is up right now because Apple is such a large chunk of both the S&P and Nasdaq and I don't think that represents the true market conditions

 

[mjtomlin]

Ipods are 3% of revenue? Wow. Discontinuation of ipod classic and shuffle imminent?

Apple used to be known for Macs and ipods, now the company is all about ipads and iphones.

That's exactly why they are so successful. They gracefully move on into new markets before others collapse. Although, I would say the Mac market is just beginning to take off as well.

 

[Chupa Chupa]

My understanding is that the dividend is to attract large institutional investors in value funds.

That is correct. There are many income mutual funds which cannot hold any stock that does not have a dividend. With a dividend now set managers of these funds can buy into Apple which will help volume and also to normalize trading because their buying or selling trigger will be different from, say, a growth manager.

 

[Konrad9]

Perhaps apple should give some if it back. Just a little. Restoring / putting back the legendary Tower Records on Sunset wouldn't cost more than a spit in a bucket. A little fix to what iTunes so diligently destroyed.

It was YOU.

 

[cvaldes]

"You can converge a toaster and a refrigerator but those won't be pleasing to the user."

I dunno, I'd love a freezer where you could load up frozen waffles and defrost/toast a couple with one button.

I do wish I'd sold my AAPL at $640; I doubt we'll see that price again for a while.

Intraday high $618.

Looks like you'll be waiting a looong time.

 

[gnasher729]

My understanding is that the dividend is to attract large institutional investors in value funds. That dividend directly translates to interest in places it has not been before. This should drive the price up over time. Of course, that could be all B.S.– I'm not a financial wizard. But that is what I have read in a couple different places now.

Apple hasn't done anything in the last ten years to please investors. Their goal is to create the best products they can. Pleasing investors was just an inevitable side effect of being good at what they tried to achieve.

I think the dividend is just inevitable because Apple is reaching the point where they just have no need for the additional money in the bank.

Seriously? 'Maths' Its a bro slang term, ALA the streets son! Never heard that expression before?

"Maths" is proper English, also known as British English.

There is no word "Maths", you should use the word mathmatics.

See above, but there is no word "mathmatics".

 

[rdowns]

So another 10 billion on the cash side.

The only thing I'm worried about is that they are going to give dividends. When a company thinks that I know what to do with the money better than they do, it doesn't inspire me with confidence.

Nice talking point. Apple doesn't acquire large companies, a strategy that has served them very well. Even paying out a dividend, they will still have a huge and growing cash pile.

To put $100 billion in cash and short term investments into perspective, if Apple's bank account were a stand-alone company, it would be the 37th biggest company in the United States (by market cap).

 

[Taz Mangus]

thanks for the analysis. Let's do this again next quarter, k?

lol!

 

[Konrad]

Wow! My head is spinning you pivoted so much. First you complain Apple doesn't have plan to spend its reserves then you counter that Apple doesn't need to spend its money because gadgets will "come regardless," and swoon into a tirade with personal hits toward Tim Cook (never mind he initiated Apple's policy to match employee's charitable contributions, up to 10K) and how Apple is polluting the world with non-recyclable toys.

Following this you ironically lament the kids of today do not appreciate your physical CDs that will one day, maybe not while you are living, but one day, end up in the dump. Your CD player too. Meanwhile not one single AAC file from Apple iTunes will take up one mm of any trash or recycling facility, at least not literally -- Ha!

So I'd say you need to get your stories straight.

I personally still by CDs myself as I have a nice A/V system and like to rip ALACs. But so what. Most people download music today because we live in a more active world. Productive kids and adults alike have little time to loiter around record shops or sit around listening to music. It's a multitasking world, and Apple obliges us. That's how they make so much money.

Sure your head is perpetually spinning as you are not reading carefully. Ha the poor kids in asia will be dismantling the two useless iPads Apple will make sure are replaced with a better one - annually. Try taking one apart and scraping rare metals out of it. Hey, one day all will end and there will be one giant trash pile no one will ever clean. As for Tim Cook, I just find him so far rather boring.

Keep buying them, so what? The world is active downloading and sitting communicating via overused gadgets losing social skills. Sure, it is a multitasking world for college graduates to work in the service sector sending resumes all night long trying to get one job per two diplomas. There you go for so much money. Over 10K vacant houses in Vegas, scarce jobs, the USD falling again today, get a grip pal. Apple does not oblige, they tell people what they need and the populace obliges. You are forgetting about the instrumental element. Where is the fun in it all?

 

[IJ Reilly]

I think the dividend is just inevitable because Apple is reaching the point where they just have no need for the additional money in the bank.

In a business sense, the dividend was inevitable several years ago, when the cash hoard was less than half of what it is today. No significant part of it was being spent on growth at that time, either. We may have suspected then, and know now, that hoarding cash for the sake of it was Steve's thing. Changing that policy to something more normative was one of Tim Cook's first major decisions as CEO (that we know about, at least).

 

[SBlue1]

Wow, very impressive. Just sad to see the iPod going down. I am so happy with mine. I could imagine there is still a lot of potential for ipods in the low income countries.

 

[NewbieCanada]

So, Mac sales were below estimates as were iPad sales. Q3 guidance is below consensus and below Q2. I think aftermarket action is way off (it often is for many companies on the day when they report quarterly results). It does not look like AAPL is going up from now. It looks like it will go down.

You were saying?



Hint for life: If you're going to act like an ass, it's a lot easier to get away with it when you're not talking out of one too.

 

[srxtr]

A faceless company getting richer makes you happy? I would rather have money in my pocket.

No, the fact that I have AAPL stocks

 

[wovel]

Playing back compressed digital files via a cheap set of earphones by masses has little to do with listening to music as intended by their creators. You are comparing yakking on the phone, or better, text massaging vrs a conversation over a bottle of wine.

Since engineers have been mastering for the compression and headphone for the better part of ten years, it is in fact the way it is intended to be listened to by its creators..Good music is good wether or not you can perceive every nuance.

Getting overly caught up in the delivery method is just pretentious and has nothing at all to do with with music. A scratchy old Robert Johnson 78 pouring out of a portable record player is as much music as the London Symphony pouring out of a pair of B&Ws or Wilsons.

Like music, conversation is also about content and not methods.

----------

You were saying?



Hint for life: If you're going to act like an ass, it's a lot easier to get away with it when you're not talking out of one too.

He was really just trolling. (Or shorting, but that seems a bit sophisticated). I am sure I will now get a warning message even though he called the whole forum stupid about a dozen times yesterday.

 

[iMikeT]

All the doom and gloom idiots sure showed Apple who is boss


As my dear, departed friend used to say ' ...it's because they're stupid...'


Wall Street is really silly

Yeah for real. To be honest, I was a little fearful that the street would punish AAPL yesterday because they didn't beat some boneheaded analyst's expectations but I'm glad that didn't happen. AAPL FTW!

---

Full disclosure, I am currently holding a long position in AAPL.

 

[IJ Reilly]

Yeah for real. To be honest, I was a little fearful that the street would punish AAPL yesterday because they didn't beat some boneheaded analyst's expectations but I'm glad that didn't happen. AAPL FTW!

Apple beat street consensus by over 20% on earnings. No stock is ever going to get punished for that kind of performance unless something else is very wrong in the bigger picture.

 

[Taz Mangus]

You were saying?



Hint for life: If you're going to act like an ass, it's a lot easier to get away with it when you're not talking out of one too.

Imagine that Apple stock up nearly $50/share to $610. Apple stock sure is in a death spiral. At this rate it will be given Junk status like Nokia

 

[reedmartin]

Thanks for the analysis. Let's do this again next quarter, k?

Haha! That was awesome!

 

[milo]

It does not look like AAPL is going up from now. It looks like it will go down.

It's just an after-market speculation. We'll see what happens tomorrow (or even in one hour)

I have no doubt it will open higher. Maybe not 7% though.

No posts since last night...did i call it or what?

So tomorrow when it opens up 5-7 percent or more, are you going to be here eating crow, or slink off to hide?

 

[fertilized-egg]

Hint for life: If you're going to act like an ass, it's a lot easier to get away with it when you're not talking out of one too.

Well, it's lilo777.

Seriously, here are his wisdom over the years:

- 2012 iPhone Represents 55% of Verizon's 4Q 2011 Smartphone Sales

... It's just a pent-up demand (given the fact that iPhone 4 for Verizon was released late into IP4 life cycle). And it's Apple. Nobody will be buying iPhones for the next three quarters waiting for iPhone 5 and Android will be outselling iPhones by a huge margin (remember Q3 data?). The overall trend is that iPhone will become about as marginal of an item as Macs. As they say, it will get "Samsunged".

- 2011, Sprint Commits to Buying $20 Billion Worth of iPhones, To Get Redesigned iPhone 5 Exclusively?

Yeap. Sprint is down 10%. AAPL to follow.

- 2011, 1/3 of Non-AT&T Smartphone Customers Would Have Purchased iPhone on Their Carriers

But would you keep (the iPhone) after a hundred or so dropped calls?

- 2010, Apple Edges Out Research in Motion in U.S. Smartphone Market Share

Only AAPL shareholders are interested in profit share. Phone users are more interested and concerned about hand set share because this is where app developers will go.

And those are just a few of his comments after a quick Googling. You can read his comments here and other sites, and almost without failing, he persistently injects negative spins anything Apple, even when the company has been one of the most successful businesses in the world for a while. Scary part is, there are actually some who think lilo777 represents objectivity, which says something.

 

[reedmartin]

Well, it's lilo777.

Seriously, here are his wisdom over the years:

- 2012 iPhone Represents 55% of Verizon's 4Q 2011 Smartphone Sales


- 2011, Sprint Commits to Buying $20 Billion Worth of iPhones, To Get Redesigned iPhone 5 Exclusively?


- 2011, 1/3 of Non-AT&T Smartphone Customers Would Have Purchased iPhone on Their Carriers


- 2010, Apple Edges Out Research in Motion in U.S. Smartphone Market Share


And those are just a few of his comments after a quick Googling. You can read his comments here and other sites, and almost without failing, he persistently injects negative spins anything Apple, even when the company has been one of the most successful businesses in the world for a while. Scary part is, there are actually some who think lilo777 represents objectivity, which says something.

There are many lilo777s out there. They'll be quiet for a couple of days, then return on full force until the next earnings report. Entertainment for all!

 

[Konrad]

Since engineers have been mastering for the compression and headphone for the better part of ten years, it is in fact the way it is intended to be listened to by its creators..Good music is good wether or not you can perceive every nuance.

Getting overly caught up in the delivery method is just pretentious and has nothing at all to do with with music. A scratchy old Robert Johnson 78 pouring out of a portable record player is as much music as the London Symphony pouring out of a pair of B&Ws or Wilsons.

Like music, conversation is also about content and not methods.

Retina is pretentious, so is HD, diamonds as well, real sex, airborne travel, a bottle Lafite or Chateau Mouton, Beluga, 6 months in Tahiti, THX, a Ferrari Lusso, a beautiful woman, climbing Everest, Paris, the Moon...and the list could go on to no end, but what is not pretentious are your dead senses. That is a sad tragedy.

 

[Taz Mangus]

Well, it's lilo777.

Seriously, here are his wisdom over the years:

- 2012 iPhone Represents 55% of Verizon's 4Q 2011 Smartphone Sales


- 2011, Sprint Commits to Buying $20 Billion Worth of iPhones, To Get Redesigned iPhone 5 Exclusively?


- 2011, 1/3 of Non-AT&T Smartphone Customers Would Have Purchased iPhone on Their Carriers


- 2010, Apple Edges Out Research in Motion in U.S. Smartphone Market Share


And those are just a few of his comments after a quick Googling. You can read his comments here and other sites, and almost without failing, he persistently injects negative spins anything Apple, even when the company has been one of the most successful businesses in the world for a while. Scary part is, there are actually some who think lilo777 represents objectivity, which says something.

Posted on Oct 28, 2011, 11:21 AM:

What's your point? Everybody knows that Apple is a one trick pony. That's the way they do business and it's their choice. If Samsung continues to make progress at the pace they did it last year people will forget what iPhone is in a year or two.

Posted on Mar 19, 2012, 06:22 PM:

Of course I was exaggerating. There are two main categories of iDevice buyers: the fans (buy on release day) and X-mass shoppers (4th quarter)