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Have you been in Europe lately? In each of he countries you mention iPhones are marketed and sold like crazy. Many businesses (e.g. Accenture) are switching to Apple because of high demand by employees or fears about RIM future.

I challenge you to go to a terrace somewhere in Amsterdam and try to spot the table without and iPhone lying on it.

In addition you are comparing iPhone with Android... Different things.

Have you looked at marketshare in those countries lately?
 
8 Billion

That's a big number.

NET not Gross.


Anyone who says that its less than expected is delusional.

Profit is profit.

While a few are getting stinking rich the rest of the world doesn't have the cash in order to buy these toys in order to meet Apples sales goal.

On top of that , most who wanted an iPad have already got one. No huge compelling features means NO Upgrade ....well, for most rational people.
 
There is no dip in 2011. Q2 2011, Apple sold 18.65 million iPhones and managed to beat that number with 20.34 million iPhones sold in Q3. That's a quarter to quarter increase.

Compare that to this year where Q2 saw sales of 35.1 million iPhones vs this announced quarter's sales of 26.0 million iPhones

2011 - Q2 to Q3 saw 8.3% increase in units sales. 2012 - Q2 to Q3 saw 35% decrease in units sales. That's pretty much polar opposites. Of course, Q2 2012 was exceptional and never before seen for Apple, selling 35.1 million iPhones was quite the feat and beating that with a 8-9 months old phone was probably quite impossible.

All their quarterly reports are here for anyone who wants to look up historical numbers.

You have to take into account the rollout speed of the product which has increased considerably. Worldwide I mean. Also, the CDMA iPhone 4 came out in February. Plus the white versions which also enticed growth. They came in late April.

You can't just compare numbers without the background
 
If it comes out as is rumored with the taller and not wider design, I expect you will see iPhone sales numbers drop even lower in the next quarter. There are so many more excellent choices out there right now than there were a year ago, and with Jellybean out now, iPhone sales are going to continue to slide IMHO. You've also got Windows 8 coming out at the end of the year, and it looks really good as well.

Sure they will still sell millions of them, but I think we will see quite a drop in Apple's slice of the smartphone market, especially if this ridiculously stupid idea of making the iPhone taller and not wider happens. :rolleyes:



I'm afraid your living in the past my friend. The surface tablet looks very promising and Windows 8 mobile does as well. By the way, no one knows the price yet the keyboard appears to be great. The only way it will be a flop is if they price themselves out of the market. The Nexus 7 is a big hit and there are some really excellent new phones coming out from Samsung and the rest. Apple will continue to make tons of money, but the other boys have come light years ahead in the last year. Things should be really interesting a year from now. There will all kinds of excellent options for phones and tablets, and I think that's great.

It seems the competition has gotten a lot smarter after getting their collective butts kicked by Apple the last few years.

Yeah, very promising to land fills.
 
The question is, if Apple was leading the tech sector this past decade (hard to deny imo), who is leading now?

Is it Google? Google certainly is doing more, taking more chances.

Google? The company that scrambled a presentation of 3D map only to be able to claim "I'm the first!"? Is that the way forward thinking company behave? LOL.
 
Apple earns more than Microsoft & Google combined, & for some reason it still isn't enough.

One word: delusional
 
iOS is stale and Siri just isn't that great.

I agree with this. The future of Apple lies in Siri and iCloud. If Siri works like in the ads then Apple's future is bright. Too bad a year had passed and she didn't advance much. If Siri's doing well people will be much more excited about the new map app.
 
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There is a balance between innovation and sitting on your laurels. Apple seems to be slowing down the innovation cycle in favor of fewer evolutionary updates. Maybe they see this as a way to make the most profit. However, the risk is that they open the door to competitors. I'm sure no one on Infinity Loop is happy about the progress that Android and especially Samsung have had this past year.

They have enough cash to put out two phones a year. To add more features than Android has. This is Apple, they can definitely do it. However, they choose not to. The results of their conservative strategy is starting to show.
Why do we need two phones per year? Just to feed the media (and some fans) constant want for something new?
 
Wrong. I know plenty of iPhone users who are seriously considering Android phones. I myself am considering replacing my iPhone 4 with a Galaxy S3, instead of the "new iPhone". But, I'm waiting for the release to officially decide on what I'll do as many iPhone users I know are doing also.

But I have no issue leaving the "apple ecosystem" if they start releasing crappy products whose features have been available on Android for a year.

Honestly - as I was in the same boat as you've been - there is no need to wait for the next gen iPhone. It will receive the same Enyxos chip as the Galaxy S3 if the rumors are true.

If you look at the feature list there is rarely one compelling thing to chose a phone (e.g. if you want the best camera on the market either go exotic with the PureView or go Experia).

I tried to hold out to see what Windows Phone 8 will offer (as I like WP7). Last month I got the SG3. It was a real good buying decision!

Face it - if nothing special happens, iPhone is "just another phone". And there are better ones on the market currently.
 
I agree with this. The future of Apple lies in Siri and iCloud. If Siri works like in the ads then Apple's future is bright. Too bad a year had passed and she didn't advance much. If Siri's doing well people will be much more excited about the new map app.
I'm still a bit confused why Apple is focusing so much on Siri in their ads when they still claim its beta and quite honestly it doesn't work as well as it should by now. Or doesn't do as much as it could. How many companies heavily advertise beta products?
 
8 Billion

That's a big number.

NET not Gross.


Anyone who says that its less than expected is delusional.

Profit is profit.

While a few are getting stinking rich the rest of the world doesn't have the cash in order to buy these toys in order to meet Apples sales goal.

3rd quarter revenue and EPS both below expected. Revenue $35.02B, est. $37.25B. 3Q EPS $9.32, exp. $10.37

Consumers are tapped out. Temp and burger flipping jobs won't pay for $100 cell phone bills and $2000 laptops, and the consumer credit bubble is history.

Markets are completely detached from reality and pumped up by TARPS bailouts and hopium. It's a racket and a farce. HFTs and TBTF banks are running the show manipulating interest rates and precious metals.
 
A excessively thin product line up boxes you in and also leaves you open to loss of sales due to products that better fit user needs.
Wrong.
...where by coincidence they have plenty of models...
Wrong.
but not so well on the desktop.
Wrong.
That is due in no part to the fact that they have the worst hardware lineup in years for desktop machines.
Wrong.
...they need to grab as much of the market as they can.
Wrong.
The number one reason to support 7" tablets is that people like them

Wow. Phenomenal track record there. You should be an analyst, as you clearly have no idea what you're talking about.

The problem for Apple with the European market is that they are going with the iPhone where they are currently with their Mac numbers: into single digits. In key markets like the UK, Germany, Italy, France or Spain Apple has as low as 7% marketshare while Android is going into the 70s to 80s there currently.

Not even within an order of magnitude of reality. Any source for your numbers? Because I can find _plenty_ of opposing ones.
 
Wallstreet must being crazy. Apple making so much moneys and still stock go down. I can no believing it
 
That is 8.8 billion for the last quarter which was spring and early summer. The next quarter with back to school should be very interesting.

The next quarter however will still be riding on the iPhone 4S. That's their biggest revenue generator. We'll have to wait to Q1 2013 for the new iPhone and a quarter with it. With this quarter's QtoQ drop of 35% of units sold, are we heading into another quarter where Apple won't be able to maintain iPhone sales unit growth ?

Their earnings are getting more and more dependant on iPhones, isn't that dangerous for a company ? 1 hot ticket item and if it doesn't sell as well as it should, your numbers aren't quite up to what the market was expecting.

----------

You have to take into account the rollout speed of the product which has increased considerably. Worldwide I mean. Also, the CDMA iPhone 4 came out in February. Plus the white versions which also enticed growth. They came in late April.

You can't just compare numbers without the background

All those points make it even more concerning. Will future years all be like this where they get 2 stellar quarters after an iPhone launch and 2 more tempered quarters near the iPhone refresh ?

Comes back to showing that maybe the iPhone is becoming too important for Apple, and they're losing the diversity in products they had, the balance, when the Mac was more important to their business.
 
Wallstreet must being crazy. Apple making so much moneys and still stock go down. I can no believing it
I'm sure we have had this before in this thread, but come on!
In the short term, all that matters is whether Apple beats people's expectations.

Apple always gives ultra-conservative guidance which they usually are able to beat comfortably. Expectation "on the street", that is analyst's and investor's anticipate Apple's low-balling and expect better numbers than Apple predicts. This is already priced into the stock price.

If Apple fails to meet external (!) expectations the stock will go down.
Simple as that.

Great argument!

So what's really great about Apple's desktop hardware lineup?

It's known fact that many Mac Pro users have held off from buying a Mac Pro that hadn't been updated for ages. And many still do, as the recent "update" was a joke. The Mac Pro still uses the same CPU that will soon approach its fourth year on the market, as well as a default GPU that has all but been replaced by newer products in the PC market - it isn't even sold anymore for PCs. And their other desktop lines haven't seen an update in more than a year - that is a long time!

So the notion of a "worst hardware lineup in years for desktop machines" is certainly not far.fetched..

Wow. Phenomenal track record there. You should be an analyst, as you clearly have no idea what you're talking about.
Again: Great argumentation!

With this quarter's QtoQ drop of 35% of units sold, are we heading into another quarter where Apple won't be able to maintain iPhone sales unit growth ?
Of course. With anticipation for the iPhone 5 (or whatever it's going to be called) people will hold off from buying the 4S - especially as Apple doesn't seem to be willing to reduce the latter's price.
 
Of course. With anticipation for the iPhone 5 (or whatever it's going to be called) people will hold off from buying the 4S - especially as Apple doesn't seem to be willing to reduce the latter's price.

Considering the iPhone's importance to their revenues, that is not a good position for Apple. But what is even more concerning is that they did manage to hold up iPhone 4 sales in 2011 even with the anticipation being there for the "iPhone 5" (the iPhone 4S as shipped and marketed). This year seems different (of course, they did sell a lot more units than they ever did in Q2. Maybe that was the anamolie, not what we're seeing here. Q3 2011 to Q3 2012 was still a 20m to 26m growth).
 
Considering the iPhone's importance to their revenues, that is not a good position for Apple. But what is even more concerning is that they did manage to hold up iPhone 4 sales in 2011 even with the anticipation being there for the "iPhone 5" (the iPhone 4S as shipped and marketed). This year seems different (of course, they did sell a lot more units than they ever did in Q2. Maybe that was the anamolie, not what we're seeing here. Q3 2011 to Q3 2012 was still a 20m to 26m growth).

CDMA iPhone 4, white iPhone 4, and slower rollout throughout the world are the reason for a more polished sales curve in 2011. I already explained that, and you replied to that post, i thought you got that.

As for your other post, the iPad is there for the second two quarters of their FY
 
CDMA iPhone 4, white iPhone 4, and slower rollout throughout the world are the reason for a more polished sales curve in 2011. I already explained that, and you replied to that post, i thought you got that.

I got all of that, the fact remains that the 2011 strategy was quite healthier. Also, note that the CDMA iPhone 4 did poorly on launch and I doubt the white iPhone 4 sales really boosted it that much to go from a 35% (2012 numbers) dip to a 8.3% (2011) increase.

I think one of the major factors was the late fall release of the iPhone 4S. This created a sort of bubble and Q2 2012 is the anomalie as far as unit sales went (too many units got sold there). Q3 brought things back to their normal levels.

As for your other post, the iPad is there for the second two quarters of their FY

That didn't help them here apparently. The iPad is not as important as the iPhone in their product share pie chart.

There's tons of way to spin this, but the point remains, Apple barely beat their usual very conservative guidance and the markets didn't like this. I'd reevaluate what needs to be done to keep a better sales curve throughout the year to prevent that if I were Apple and that is probably what they are doing.
 
Is everyone aware this is 8.8B profit for one quarter, a quarter featuring an 8 month old iPhone. Sure they missed Street expectations but come on lol!

I think apple may be the only company in the world that can post a multi billion dollar profit in one quarter and still have people wondering about their future.

I for one am happy and the stock will obviously rebound as it always has. I hate and love wall street at the same time :p
 
Is everyone aware this is 8.8B profit for one quarter, a quarter featuring an 8 month old iPhone. Sure they missed Street expectations but come on lol!

Everyone is aware. The problem is we're in an economy based on constant growth and the bigger you are, the more maintaining growth is hard. Apple just had a quarter when they showed some "growing" pains. This is the reality the markets are reacting to, not that 8.8B profit isn't good (it frankly is an amazing amount of profit).
 
Is everyone aware this is 8.8B profit for one quarter, a quarter featuring an 8 month old iPhone. Sure they missed Street expectations but come on lol!

I think apple may be the only company in the world that can post a multi billion dollar profit in one quarter and still have people wondering about their future.

I for one am happy and the stock will obviously rebound as it always has. I hate and love wall street at the same time :p


growth is slowing. last year apple was growing at 80%, now it's 20%. everyone on wall street knew it which is why the PE has been so low. i used to get access to full analyst reports and they go 2 years out on predictions. apple stock now is priced for 2013 growth at the minimum and most likely 2014. and every year there is less and less new smart phone customers.

look at M$. last 12 years they grew revenue and profits very nicely but the stock has gone no where. that's apple for the next decade

smart phones are at 50% penetration in developed countries, at least in the USA. there are less potential new customers here than there were a few years ago. most of the people that are left don't have any interest in paying $199 for a phone or $30 a month for a data plan.

for current owners they will upgrade only when their contract is due. my wife's iphone 4 contract is up next month and she's been eligible for months but no point going to a 4S now. and we're going prepaid so she will probably keep her phone at least another year.

there is very little difference every year and even then its cheaper to buy an app than a new phone for new functionality. and with software support going 3 generations back there is very little point in buying the latest and greatest right away

europe is about to go bankrupt. no one is going to be buying $650 plus 20% VAT plus included warranty phones
 
growth is slowing. last year apple was growing at 80%, now it's 20%. everyone on wall street knew it which is why the PE has been so low. i used to get access to full analyst reports and they go 2 years out on predictions. apple stock now is priced for 2013 growth at the minimum and most likely 2014. and every year there is less and less new smart phone customers.

look at M$. last 12 years they grew revenue and profits very nicely but the stock has gone no where. that's apple for the next decade

smart phones are at 50% penetration in developed countries, at least in the USA. there are less potential new customers here than there were a few years ago. most of the people that are left don't have any interest in paying $199 for a phone or $30 a month for a data plan.

for current owners they will upgrade only when their contract is due. my wife's iphone 4 contract is up next month and she's been eligible for months but no point going to a 4S now. and we're going prepaid so she will probably keep her phone at least another year.

there is very little difference every year and even then its cheaper to buy an app than a new phone for new functionality. and with software support going 3 generations back there is very little point in buying the latest and greatest right away

europe is about to go bankrupt. no one is going to be buying $650 plus 20% VAT plus included warranty phones

Valid points from you and knightwrx. My whole thing is, I'm attributing this slow growth to the "old" 4s. Wall Street had bullish expectations which weren't met but if you examine why they weren't met you may find its not as bad as you think.

IPhone grew 20% year over year when the latest iteration is eight months old. There are undoubtedly ppl waiting on the next one.

Apple will be late to the LTE party but when the LTE iPhone is released and if it has a bigger screen (though not a requirement for success) it will easily destroy any previous record.

If I ran a company that experienced 20% growth with an old device and still made billions in profit I wouldn't get caught up in the wall street crap. I own aapl stock and this will NOT be the reason I start selling off. AAPL will be at 900+ if not more by next year.

Incidentally when apple sold 40 million 4s's at launch ppl said it was no surprise and still gave them no credit lol. Now when they're still selling 26million eight months later ppl say they're declining. Go figure :)
 
So it only takes Apple three months to make 8.8 billion dollars in PROFIT! That's ~3 billion a month on average, or ~100,000,000 every ten days or ~10 million dollars every single day or ~420,000$ every single hour or 7,000$ every single minute or ~116$ in PROFITS for every single second of the past quarter. Holy crap! :eek:
 
So it only takes Apple three months to make 8.8 billion dollars in PROFIT! That's ~3 billion a month on average, or ~100,000,000 every ten days or ~10 million dollars every single day or ~420,000$ every single hour or 7,000$ every single minute or ~116$ in PROFITS for every single second of the past quarter. Holy crap! :eek:

In EVE Online most people have a side profession to "print" money. Apple literally prints it.
 
Valid points from you and knightwrx. My whole thing is, I'm attributing this slow growth to the "old" 4s. Wall Street had bullish expectations which weren't met but if you examine why they weren't met you may find its not as bad as you think.

IPhone grew 20% year over year when the latest iteration is eight months old. There are undoubtedly ppl waiting on the next one.

Apple will be late to the LTE party but when the LTE iPhone is released and if it has a bigger screen (though not a requirement for success) it will easily destroy any previous record.

If I ran a company that experienced 20% growth with an old device and still made billions in profit I wouldn't get caught up in the wall street crap. I own aapl stock and this will NOT be the reason I start selling off. AAPL will be at 900+ if not more by next year.

Incidentally when apple sold 40 million 4s's at launch ppl said it was no surprise and still gave them no credit lol. Now when they're still selling 26million eight months later ppl say they're declining. Go figure :)

except for china most iphone customers already own an iphone and aren't going to switch until their contract is up or they decide to pony up $650 and up.

the people who don't have a smart phone like my mom and in laws don't care, don't want to pay $30 a month data, don't want to pay the $199 price, or don't have the money. choose any of the above. its like when cell phone penetration reached 50% a decade ago, the carrier stocks tumbled.

at this point there is less new customers and you have to fight for the customers of your competition. this means more advertising and specials. in wall street speak it's gross margin and profit growth compression. the Galaxy S3 is selling and carriers are tired of paying apple's high subsidies. and they have a competing product they can offer
 
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