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

[SpectatorHere]

People are making a huge assumption that the iPhone 5 + iPad Mini are going to drive Apple into $13 billion EBITA # again and destroy the competition. Those heady days are over. Between everything that is happening with Samsung & Microsoft, competition is here.

The mini is really interesting, I think they're going to have to gimp it in order to maintain their crazy price structuring across iPhone/iPod/iPad model lines. They could bring the mini in at 200 and still make a nice profit, but then no one will spend over 500 for a big iPad or over 200 for an iPod.

The iPhone has already seen it's best days (sadly). They've milked the current model for all it's worth, and it looks as if they're about to give it a very small cosmetic upgrade with a still too small 4" screen and 4G and assume it will sell more than the 4s.

Bottom line is that Jobs was the guy who kept Apple cool, distinct, and different than Microsoft. Now it's run by Jobs' own business nerd-Ballmer.

Apple will go the same route as all the other mega corps. Boring, committee driven, marketing focused test-grouped-to-death, quarterly profit obsessed, no vision having, management heavy idiocy.

 

[0092762]

At least Nokia is releasing Lumia phones that people actually *want* to buy, plus Elop is doing a great job of restructuring the company to become profitable soon.

LOL, could you be any more clearer on your agenda, you Zune-pass owning Lumia 900 user? How many Lumia 900's did nokia sell last quarter? A million?

Check out NOK shares after Elop got on board if you want to see exactly how bad a company can be run.

 

[Rennir]

Actually, as a consumer, wouldn't you prefer to buy a product from a well-managed, profitable company, rather than a poorly-managed one that doesn't seem to know how make money?

First of all, the profitable company has a better chance of surviving into the future, providing new and improved products down the line.

And what would you think about a company that can't run its business? Does that same management know how to hire the right people to make high-quality, attractive products and services in a timely manner?

RIM? Nokia? Palm?

I don't know about you, but $8.8 billion is the definition of knowing how to make money IMO. I'm sure Apple will survive as well. Don't you think you're being a little bit too fatalistic?

Or rather, you're going down a pretty slippery slope there

 

[iabacus]

Your Mom Maybe, My Mother is a Virgin !!!

God?

 

[gnasher729]

Palm got bought out by HP - not a company anymore. RIM is going out of business, they have little cash left and no BB 10 on the horizon. At least Nokia is releasing Lumia phones that people actually *want* to buy, plus Elop is doing a great job of restructuring the company to become profitable soon.

Elop is doing an excellent job indeed. If you think his job is to reduce the price of Nokia, so that Microsoft can pick it up cheaply with all its mobile patents.

 

[SpectatorHere]

It's not. But it might be the end of AAPL as we knew it for the last 10 years.

We've seen enough of the post-Jobs Apple to see Tim Cook is just another zombie CEO afraid to take a chance and lacking any vision.

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.

 

[mantan]

Just looking at the graph of revenue, it appears everything held steady but a slight dip in Mac sales (due to, as others have noted, no new products for the entire first half of 2012) and a shocking dip in iPhone sales from Q2 to Q3. Compare iPhone sales for prior years and you don't see that kind of dip.

It's troubling, and perhaps a reflection that Apple's release cycle for the iPhone now typically has them playing catch up to the competition.

As others have pointed out, even if the iPhone 5 brings a 4 inch screen, LTE, and NFC, those are all features that have been in the leading Android phones for the past year. The wow factor that the iPhone once had has been tarnished somewhat by a surprisingly lack of innovation on Apple's part in recent years.

The iPad mini may well be a reflection of Apple's realization that going it alone with one flagship product on a yearly update cycle isn't going to cut it.

I'd say the iPad was innovative....not no much in the product itself (which essentially is a big iPad) - but creating a market where one didn't exist.

But I agree completely on the phone front. The iPhone 4 was the last innovative jump. The 4S treaded water and there hasn't been anything released about the new iPhone that makes it a game changer. Hopefully there will be some surprises in the release announcement.

But at this point the company can be on cruise control for awhile. The iPhone and iPad have people so deeply entrenched in the Apple ecosystem they don't seriously consider other options.

 

[Jiten]

The big picture is, the economy is crap right now, yet despite of that Apple did pretty well.

 

[50548]

We've seen enough of the post-Jobs Apple to see Tim Cook is just another zombie CEO afraid to take a chance and lacking any vision.

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.

Cook is a great executor; but without vision, execution is irrelevant in the long term.

As much as I love Apple products (and I intend to continue using them as much as in the mid-90s, when everyone else was on PC), I must say this: short of a miracle, the Apple of SJ is no more...short it while you can - when dividends were announced, Apple stopped being a company based on innovation to become just another investment fund-driven MS...or Nestlé, for that matter.

 

[Swift]

It's still the deflationary times

Like the Facebook launch, when the speculators were angry at not getting the "pop" they used to get off IPO's -- which Internet bubble was followed by a recession -- now they're angry at Apple for the recession, too. Sorry, buddies. Fewer people with cash that you can fleece. Apple's run ahead of earnings projections for how long? Like Microsofts first loss ever, this is probably a turning point of sorts. Apple's been phenomenal, outgrowing the often unprofitable PCs for x numbers of quarters in a row. They still did, but their estimates, which have always been conservative, were not exceeded this time. No time to cry "panic," but look, no company does well if we head down sharply.

 

[bawbac]

Inertia

 

[smoledman]

Cook is a great executor; but without vision, execution is irrelevant in the long term.

As much as I love Apple products (and I intend to continue using them as much as in the mid-90s, when everyone else was on PC), I must say this: short of a miracle, the Apple of SJ is no more...short it while you can - when dividends were announced, Apple stopped being a company based on innovation to become just another investment fund-driven MS...or Nestlé, for that matter.

Allegedly Jobs left Apple with 4 years of products designs in the pipeline. I think that's overstated. I believe he really left one product - the television.

 

[Rogifan]

Can people quit with the Apple is doomed because Steve is no longer here. It's not like they didn't have misses while he was running the ship. And it's not like Steve was the only one with ideas or vision at Apple. Get a grip people.

 

[SpectatorHere]

I'd say the iPad was innovative....not no much in the product itself (which essentially is a big iPad) - but creating a market where one didn't exist.

But I agree completely on the phone front. The iPhone 4 was the last innovative jump. The 4S treaded water and there hasn't been anything released about the new iPhone that makes it a game changer. Hopefully there will be some surprises in the release announcement.

But at this point the company can be on cruise control for awhile. The iPhone and iPad have people so deeply entrenched in the Apple ecosystem they don't seriously consider other options.

I completely agree, they are in no danger of becoming RIM (although I do wonder about Apple's iPhone strategy....conservative is putting it mildly). Apple will be a big player for the foreseeable future.

The thing is, they're now more like Microsoft...following everyone else.

Take the new iPad mini. They said they wouldn't do it. Amazon goes out and does it, and what do you know? The new iPad-mini will be out by the next xmas season.

Innovation in iOS? Stealing the notification center of Android? Integrating Twitter? Now Facebook? All the while they're gimping OSX so it's more like iOS.

 

[50548]

Allegedly Jobs left Apple with 4 years of products designs in the pipeline. I think that's overstated. I believe he really left one product - the television.

For me the "television" is a revamped Apple TV (with apps and Siri), nothing more; because product cycle is much more difficult in the case of huge, expensive TV sets; people won't change them every year or two.

But I agree with you: the incremental updates to the iPad and OS X show that SJ's only last "pipeline frontier" is probably the so-called Apple TV. The rest will be committee-designed fluff from now on.

APPLE IS DEAD.

 

[Peace]

For me the "television" is a revamped Apple TV (with apps and Siri), nothing more; because product cycle is much more difficult in the case of huge, expensive TV sets; people won't change them every year or two.

But I agree with you: the incremental updates to the iPad and OS X show that SJ's only last "pipeline frontier" is probably the so-called Apple TV. The rest will be committee-designed fluff from now on.

APPLE IS DEAD.

Apple is dead.


I'm guessing since Apple is dead you will be getting rid of that stuff in your signature ?

I'll giva ya $100 for it.
Remember APPLE IS DEAD so that stuff isn't worth much anymore.

 

[smoledman]

For me the "television" is a revamped Apple TV (with apps and Siri), nothing more; because product cycle is much more difficult in the case of huge, expensive TV sets; people won't change them every year or two.

But I agree with you: the incremental updates to the iPad and OS X show that SJ's only last "pipeline frontier" is probably the so-called Apple TV. The rest will be committee-designed fluff from now on.

APPLE IS DEAD.

Apple has plenty of momentum. That along with their $118 billion cash pile will ensure they are around for the next 50 years. The real story is they will finally get serious competition starting in Q4 2012 with the deluge of Windows 8 PCs, hybrids, tablets, ultrabooks along with the next Kindle Fire and who knows what else. Samsung is already getting ready to making flexible AMOLED screens.

 

[SpectatorHere]

Allegedly Jobs left Apple with 4 years of products designs in the pipeline. I think that's overstated. I believe he really left one product - the television.

4 years? That's a joke in the tech world. What they mean is that they had road maps for existing product lines.

Apple TV is clearly something Jobs wanted, so you're right there.

But anything else with vision? I don't see it. Google glasses came out and then Apple put something out, "we're doing that too!"

Don't underestimate the loss of Steve Jobs. He may have been one guy, but it was his company and he decided what happened. Jobs drove the market, now Apple is headless, a zombie corporation run by quarterly profits and shareholder meetings. It is HP. It is Microsoft. It is no longer the Apple you once knew.

 

[Rogifan]

For me the "television" is a revamped Apple TV (with apps and Siri), nothing more; because product cycle is much more difficult in the case of huge, expensive TV sets; people won't change them every year or two.

But I agree with you: the incremental updates to the iPad and OS X show that SJ's only last "pipeline frontier" is probably the so-called Apple TV. The rest will be committee-designed fluff from now on.

APPLE IS DEAD.

Yep a company that reports 8.8B in profits and 117B in cash is dead. Not sure if you're really that stupid or just trolling.

 

[Chlloret]

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.

Typically 20-30%? Really? Must have misst something there in the last 9 years since I got AAPL. My records show about 13%, but I must say that todays result is far from disapointing for me.
Stock is normally loosing anywhere from 5-8% on the day, after all, it has been hyped for the few days before the call by at least the same.
Those are the easy and quick money makers and making 5-8% in a week is a good if risky business.
I never looked daily or hourly on share prices, I'm quite happy with Apples performance in the last 9years. And now I even get a dividend. That alone is getting me my next iPhone and iPad.

 

[tkermit]

APPLE IS DEAD.

I'd shut it down and give the money back to the shareholders.

 

[osaga]

My interpretation of this. iPod is slowly dying, Macs are stagnant and will continue to be so as ultrabooks take off. iPhone has finally met its match with the Samsung Galaxy line and Windows Phone 8 will take even bigger bite to come. The only thing that Apple is truly dominant is tablets where they have no real competition as of yet. That will change with Windows 8.

The windows 8 tablet/phone/operating system will be an gigantic flop. The tablet is too expensive, looks like a PC product (ridiculous kick-stand, pointless keyboard), and doesn't have nearly the apps. The computer operating system is a major upgrade, but who cares to upgrade their PC OS? Especially if it's a dramatic change. I'm guessing people will prefer to stick with windows 7. Windows based PC sales are declining, Apple is the only computer maker gaining sales in that category.

The android OS is fragmented between all the different makes of phones, and app developers prefer to produce apps for apple because its easier than making them for all the different android versions. Android users don't/cant easily update their OS. Something like 12% of all previous androids are running the latest version, unlike apple with is at 80%. The majority of profits in the app world are from IOS devices, despite that, IOS has just 30% of smartphone share vs. android at 55%. According to a survey, 90% of iphone users will buy another Iphone. That's no the case with any other manufacturer. If any Android user happens to switch to an iphone, there's a 90% chance they'll stay with apple in the future.

Apple Q1 2013 will be astonishing.

The apple dividend is a better return than US treasury bonds, and probably safer. Apple has no debt unlike, and a bunch of cash. The 14 P/E ratio is a value buy, yet they have lots of growth ahead not only abroad but also in the US. They're barely even available on China telecom companies.

Is there any other stock that has as much going for it at such a reasonable price?

The only problems i can see is if the itv is a disaster. Or if the cell phone carriers get together and collectively refuse to pay high iphone subsidies. Neither seem likely.

 

[50548]

Apple is dead.


I'm guessing since Apple is dead you will be getting rid of that stuff in your signature ?

I'll giva ya $100 for it.
Remember APPLE IS DEAD so that stuff isn't worth much anymore.

No, I won't - I already used Apple in the mid-90s, when everyone else was jumping ship. Please understand my statement in a context of innovation and growth instead of taking it literally. Just like MS, Apple has a few years to burn; but with SJ gone, the long-term vision is no longer there. Cook won't fill that void.

 

[smoledman]

4 years? That's a joke in the tech world. What they mean is that they had road maps for existing product lines.

Apple TV is clearly something Jobs wanted, so you're right there.

But anything else with vision? I don't see it. Google glasses came out and then Apple put something out, "we're doing that too!"

Don't underestimate the loss of Steve Jobs. He may have been one guy, but it was his company and he decided what happened. Jobs drove the market, now Apple is headless, a zombie corporation run by quarterly profits and shareholder meetings. It is HP. It is Microsoft. It is no longer the Apple you once knew.

Ironically Microsoft is showing more vision under "business nerd" Ballmer these days then Apple.

 

[Rogifan]

4 years? That's a joke in the tech world. What they mean is that they had road maps for existing product lines.

Apple TV is clearly something Jobs wanted, so you're right there.

But anything else with vision? I don't see it. Google glasses came out and then Apple put something out, "we're doing that too!"

Don't underestimate the loss of Steve Jobs. He may have been one guy, but it was his company and he decided what happened. Jobs drove the market, now Apple is headless, a zombie corporation run by quarterly profits and shareholder meetings. It is HP. It is Microsoft. It is no longer the Apple you once knew.

Just curious where I can purchase these glasses you speak of and what they're good for?