Apple Reports Results for Q3 2012: $8.8 Billion Profit on $35 Billion in Revenue

[Rogifan]

Microsoft just had a record EBITA, so did Samsung.

Because of Ultrabook sales? Doubtful.

 

[cvaldes]

Oh? 34B forecast, 35B announced. 8,86 per share forecast, 9,32 announced. Where did they miss there predicted earnings?

Because the street's expectations are higher. Apple typically outperforms its own conservative guidance, somewhere between 20-30% higher on revenue and maybe 25-35% higher on earnings.

For Apple to come so close to their own guidance is a miss, because it has happened only like two quarters in the past ten years.

When Kathryn Huberty is the analyst whose prediction is the closest to Apple's actual results, you know they missed it.

 

[JHankwitz]

CEO Tim Cook declared himself "thrilled with record sales of 17 million iPads in the June quarter," the stock immediately dropped $30 in after-hours trading."

The quick drop in stock price has nothing to do with quarterly results, and everything to do with day-traders trying to play the market to make a few unearned bucks.

 

[Earendil]

Looking at the graph, I would be worried as a shareholder:
- iPhone revenue went down significantly for two quarters in a row, something not happening before.
- Where is the revenue increase coming from for the next quarter to top YoY? This looks like a lot to me.

Is that a trick question? There is a new iPhone coming that everyone knows about. One would expect iPhone sales in the last quarter to drop, and the iPhone sales in the next quarter to spike. Count me in as a person that is ready to help spike the iPhone sales.

 

[smoledman]

Of course Tim Cook highlighted the one product that is doing very well.

 

[50548]

Because the street's expectations are higher. Apple typically outperforms its own conservative guidance, somewhere between 20-30% higher on revenue and maybe 25-35% higher on earnings.

For Apple to come so close to their own guidance is a miss, because it has happened only like two quarters in the past ten years.

When Kathryn Huberty is the analyst whose prediction is the closest to Apple's actual results, you know they missed it.

Exactly. Something smells bad at Apple, and ML and a moronic iPad Mini will not help much.

 

[URFloorMatt]

The awkward moment when the "Other" category is higher than iPod sales....

One more reason to dump the brand and fold the surviving products (the touch and nano) into the iPad line. Leaving the iPod brand alive is just a quarterly reminder that as quickly as a product flies off the shelves, it can eventually fall into irrelevance.

I assume Other is primarily on the strength of the Apple TV? If so, then Apple's "hobby" is outselling an entire line of products featured in the main navigation on their website, and which was once the cornerstone of Apple's resurgence. It's time to retire the iPod brand and focus on getting that iTV out the door.

 

[0092762]

Microsoft just had a record EBITA, so did Samsung.

Why don't you GTFO and post in MSFT forums?

The only challenger to the iPhone is Android and Apple is feeling it this quarter, the biggest issue is screen size which is coming with iPhone 5, and LOL no one cares about Windows Phone. Similarly, no one is buying ultrabooks instead of competitively priced Macbooks, Apple has over 90% of the >$1000 PC market. Windows tablets are not going anywhere when they are priced equal to the iPad either.

 

[swingerofbirch]

Even lower earnings will be the only thing to save Apple from itself and force it to become the company it was in the late 90s and early 2000s. And I don't mean saving it from any type of financial ruin; I mean Apple rediscovering its taste, and when I say taste I don't mean it in a small way—I mean it in a big way.

 

[iMikeT]

you obviously dont know what youre talking about...

Enlighten me.

 

[Dunbar]

Learn a little about the Wall Street. Nobody cares about Apple's own expectations. Apple is well known to under-predict their sales (one average by 13%). Market sets company's stock price according to analyst expectations and when actual results miss those analyst expectations the stock will pay the price (i.e. fall)

I wanted to post something similar but you pretty much nailed what I wanted to say. All Wall Street cares about is how the earnings affect the stock price. When you buy a stock what you're really buying is the FUTURE profits of the company (since the current/past profits are already known.) Clearly the market had the higher expected earnings baked into the price before the close today.

But don't confuse the stock price with Apple's health though. Apple still grew it's revenues and profits year-over-year and their 35% gross profit margin is virtually unheard of.

 

[btcutter]

Apple didn't miss. But it did not BLOW away it's own estimates as usual.

Let's point out the very obvious White Elephant that many do not want to see.

There's MUCH BETTER competition for iPhone, iPad and Macs. People have options.

iPhone: We are seeing HTC, Samsung delivering products that people want. Like it or not I see people holding other smartphones besides iPhone 4S with regularity. Telecoms are pushing their customers to Android and Windows phones so they don't have to pay heavy subsidies to Apple.

Ipad: Amazon kindle, Fire, Nexus 7....it's coming....unless iPad mini can hold them off...

MacBooks: Everyone is now building Ultrabooks...They are catching on...Not quit MacBook quality or OS but competition is there.

This maybe the first sign of a chink in Apple's armor. Better step up or be caught up....

 

[lilo777]

Is that a trick question? There is a new iPhone coming that everyone knows about. One would expect iPhone sales in the last quarter to drop, and the iPhone sales in the next quarter to spike. Count me in as a person that is ready to help spike the iPhone sales.

You forgot that there is another quarter left before iPhone 5 release. What do you think iPhone sales will look like next quarter?

 

[smoledman]

Apple's desperate legal trolling of Samsung all over the world tells me that the iPad fad might be just about up, and I say that as an owner of 2 iPads. Only because there isn't anything better at the moment, until Window 8 tablets come out.

 

[basesloaded190]

Enlighten me.

Good numbers compared to the conservative estimates always given by Apple, but not good numbers to the realistic estimates Analyst were thinking. Thus, a sell off.

 

[danielwsmithee]

So what's in "other"?

Apple TV
Software
iCloud
... Accessories?

It probably also includes interest on their investments from cash on hand.

 

[chrisbru]

Who was predicting an Apple television in this quarter, or even in 2012 for that matter. The biggest pusher of this iTV rumor is Gene Munster and he's not predicting anything before 2013.

I was just responding to the "next big thing" comment - There ARE rumors about a next big thing coming, just not quite yet.

 

[CheesePuff]

Apple's desperate legal trolling of Samsung all over the world tells me that the iPad fad might be just about up, and I say that as an owner of 2 iPads. Only because there isn't anything better at the moment, until Window 8 tablets come out.

What? They sold more then predicted and was the reason for 26% of their profits... 26% for one product.

 

[lilo777]

As consumers

we should not really care about Apple profits. The good news is that average selling prices of iPhone, iPads and Macs fell during this quarter.

 

[GfPQqmcRKUvP]

The quick drop in stock price has nothing to do with quarterly results, and everything to do with day-traders trying to play the market to make a few unearned bucks.

What are you talking about? So any time Apple goes down it's the "evil speculators" and every time it goes up it's due to Apple's merits? And besides, if the day traders are playing the market, and that strategy is so apparent to you, take the opposite side of their trades. Easy money, right?

Or maybe you could consider that stocks should trade lower when expected results don't come to pass and should trade higher when beating expectations.

 

[irnchriz]

Even lower earnings will be the only thing to save Apple from itself and force it to become the company it was in the late 90s and early 2000s. And I don't mean saving it from any type of financial ruin; I mean Apple rediscovering its taste, and when I say taste I don't mean it in a small way—I mean it in a big way.

Apple are more consumer focused, maybe you should try Linux ?

 

[petsounds]

Perhaps Apple should've actually given pro/institutional users a Mac Pro they'd be willing to upgrade to. Yes, that segment is small compared to iDevices, but sales are sales, and most of us are still holding off on purchases.

 

[daneoni]

Blah blah blah we made a ****-load of money and we're still awesome.

Thank you and Goodnight.

 

[wovel]

Apple's desperate legal trolling of Samsung all over the world tells me that the iPad fad might be just about up, and I say that as an owner of 2 iPads. Only because there isn't anything better at the moment, until Window 8 tablets come out.

Plenty of things to think about from this call. I doubt 85% y/y growth of the iPad is something to worry about.

 

[smoledman]

Apple are more consumer focused, maybe you should try Linux ?

Apple killing the XServe is proof enough that they gave up on the enterprise market. Of course iPads are the leading BYOD tablet into the enterprise until Windows 8 hits.