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

[AppliedMicro]

The iMac has been a joke for the last couple of years

"For the last couple of years"?

Why?
What's wrong with it?
21.5" and 27" are great designs that are less than three years old.
People seem to like and buy them.

A speedbump is overdue, though.

(And yes, I still believe Apple could sell lots of a reasonably price mini-tower a.k.a. headless iMac, using standard components. But apparently they don't want to - though I would tentatively attribute this to a particulary Jobsian form of stubbornness)

 

[smoledman]

"For the last couple of years"?

Why?
What's wrong with it?
21.5" and 27" are great designs that are less than three years old.
People seem to like and buy them.

A speedbump is overdue, though.

(And yes, I still believe Apple could sell lots of a reasonably price mini-tower a.k.a. headless iMac, using standard components. But apparently they don't want to - though I would tentatively attribute this to a particulary Jobsian form of stubbornness)

Pretty sure Ivy Bridge Macbooks & iMacs coming this fall.

 

[Rogifan]

IOS is anything but stale and support an ever improving stable of apps that are at your finger tips.


It sounds like you have been trained to dwell on the negative and explode out of proportion anything you dislike about a product. IOS is far from stale and is developing into a great tool for people that actually use the iPhone as more than a toy. IOS is in fact one of the only tools that Improves daily.

Sorry to hear that. Again you need to look at the big picture instead of dwelling on the minor things that bother you. IOS 6 is another great leap for developers. As such it means a steady stream of new and improved apps.

WWDC = World Wide Developers Conference. Note that it is a developer conference it isnt a platform to amaze stupid users but rather an event to encourage developer to grab on to the latest features in iOS. As a side note if you don't understand the importance of Apple deploying their own mapping technology then you are totally clueless about iOS.

iOS is far from stale? I don't think many would agree. People b*tched about the 4s looking just like the 4 yet iOS looks almost exactly the same as it did in 2007. And as an end user I just want the best maps possible. I could care less if it comes from Apple or not. And it's laughable to highlight turn by turn navigation as a big deal when Android has had it for years. One could ask why it took Apple so long to get it.

----------

I don't know how you came to that conclusion, maybe you haven't looked at the desktop lineup. Frankly it is pathetic!! Nothing in the way of an iMac, Mini or Mac Pro update, with some of these products being very old in the marketplace. More so many of these products have lost their reason for being due to neglect and not keeping an eye on the ball. The iMac has been a joke for the last couple of years, the Mini is artificially keep down and the Mac Pro is a joke at this point. I'd have to say when looking at the desktop Apple does indeed have hardware issues. Frankly I think I've is part of the problem here and to much form over function happens with respect to the desktop machines.

This is in stark contrast to the laptops. The laptops are much more balanced and actually priced more reasonably than the desktop machines.

As to the OS I really see Mac OS as a string point with Apple though I do wish more effort was put into quality control. Even on my old 2008 MBP it runs fairly decently, certainly far better than Windows would on such a machine. More so Apple has taken a very balanced approach with OS updates, Mac OS is a very strong UNIX platform for gurus and a great GUI for others. It is very much a Ying/Yang OS.

The year isn't over yet. There are rumors of iMac updates. And Mac Pro updates in 2013. Considering the Mac Pro is a small portion of Apple's sales I'm not surprised it gets less attention than other products. As far as form over function on the desktop side, care to share some examples?

 

[Dmunjal]

I think the point is that with over $100B in cash, they should be able to do more. Seems like Apple has become conservative with all their success.

 

[marcusj0015]

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.

But, will that competition matter to the average consumer? Personally, I wouldn't trust Microsoft near any of my electronics.

 

[osaga]

If i were Steve and facing my mortality.

I'd feel a little perturbed that I'd helped create the most revolutionary products in recent history and all anyone does is complain about no new products. Do you expect them to come out with something every week? Take a second and appreciate what they do.

I bet that's why Apple is diverging from naming their products 1,2,3,4... because we're focusing too much on that identifier. It's not about the newest device, but the perfect device. We're just going to get "the new iphone" "the new ipad". Mercedes doesn't name their cars with a number signifying which generation they are, no one does except software companies.

I bet it bothered Job's that people would say they hate apple products because Apple plans obsolescence. Another reason to diverge from naming products with generation numbers.

I bet it bothered Job's that people were so focused on physical updates as well. A lot of thought and energy was spent on the design, and when a design is perfect it should transcend the need for updating. I bet that's why they're not so concerned with making drastic changes. Its better to refine one design over time, than to throw **** at the wall.

Again Mercedes has produced some models for 20 years without physical updates.

Steve J, wasn't trying to appease consumers, and i doubt he gave a **** about the stockholders. He was trying to create perfect products because he knew that if he did that, everything else would take care of itself. I'm sure this isn't lost on Tim Cook.

He's been gone less than a year, the company is making ore money than ever and has the most highly anticipated products in history.... and people saying Apple is dead, that's ridiculous.

Also, Steve never cared about dominating a marketplace, just making the best products. That's why he never licensed proprietary patents, why he never licensed software, why the iphone was only released with AT&T initially and is still not as widely available as all other phones amongst carriers.

If anything Tim Cook is better apt to propel Apple to greater market dominance, and probably why we'll see an ipad mini.

 

[AidenShaw]

I think the point is that with over $100B in cash, they should be able to do more. Seems like Apple has become conservative with all their success.

And with computers only being 14% of the revenue - doesn't look like a good time for a pro shop to invest in any more Apple gear.

But we all know that.

 

[zacman]

What we really need is for the EU to get its act together. Their ship is sinking fast, and they're bailing with teacups.

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.

And that may be the same with the Asian market very soon. Samsung is all over there and I can't see it stop. Even if you have an iPhone with you people will ask you "Oh, that's the new Samsung Galaxy, right?". Only one year before people asked about the new iPhone instead.

 

[haruhiko]

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.

And that may be the same with the Asian market very soon. Samsung is all over there and I can't see it stop. Even if you have an iPhone with you people will ask you "Oh, that's the new Samsung Galaxy, right?". Only one year before people asked about the new iPhone instead.

But the Apple management seemed not to care very much about the accelerating and intensifying competition from Samsung last year. I know they were in a painful and tragic transition, but without any hardware redesign and significant feature upgrade, the 4S will sell well, but won't be as well in the latter part of its life given that Apple usually doesn't update their iPhone hardware in less than a year. It's an easy game for Samsung. You can see they've been releasing a flagship phone right in the middle of the iPhone's cycle since the Galaxy S2. If somebody really needs a new and shiny phone now, what will he or she buy?

I really wish that the upcoming iPhone can really turn things around this time. I am not happy to see Samsung dominating the market. They are infamous for after-sale service.

 

[poloponies]

Wish they would do something constructive with all that cash. It's not doing Apple shareholders much good just sitting there collecting bugger all in interest. Use it to make strategic acquisitions that will add to the bottom line and provide Apple users with more products to buy. Either that or give it away to charity.

It's not sitting in piles in a vault a la Scrooge McDuck, it's mostly in long and short term marketable investments, so it's earning money. Only a small portion is held as cash.

 

[AlexJaye]

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.

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.

 

[Rocketman]

how the iPhone has penetrated the planet

At least someone has situational awareness.

For the cash whiners, stop thinking of a trip to Victoria's Secret. It is CAPITAL. They leverage it to buy supplier factories, data centers and other investments using it as collateral to prevent ever paying interest or having to issue new stock. What is that little detail worth? Do the math.

Rocketman

 

[Chupa Chupa]

If i were Steve and facing my mortality.

I'd feel a little perturbed that I'd helped create the most revolutionary products in recent history and all anyone does is complain about no new products....

Also, Steve never cared about dominating a marketplace, just making the best products.

With due respect, I find it difficult to believe anyone facing their imminent demise is all that concerned something as pedestrian as customers bitching and moaning about material items, even someone as egotistical (deservedly so) as Jobs. Honestly, I don't even think the current Apple brain trust cares b/c they know these types will never be satisfied or understand the work involved to push out good products even at yearly clips.

Steve did care about dominating the marketplace -- he was know to retell how Apple squandered it's computer OS lead to Microsoft by sitting on it's laurels. But what Steve did want to do was dominating the marketplace with quality products, not just the lowest common denominator.

 

[Rogifan]

Here's something I don't get. Apple often gets knocked for alleged planned obsolescence and the guys at iFixit write letters to Jony Ive lecturing him about how good design is long lasting blah blah blah. Yet at the same time Apple is continuously hammered on when next new product are coming out. And people want this constant stream of new stuff. Its never enough. And if it doesn't look different aesthetically it's boring and not innovative. On another site someone actually said Apple should release a new iPhone every 6 months. And someone else said theyre not upgrading their MBP because the new one looks exactly like the one they have. I mean that's just ridiculous. I get that some companies throw a bunch of stuff against the wall to see what sticks but that's not Apple. I'd rather they be thoughtful about the stuff they release even if it means there's not something new being released all the time.

 

[nylonsteel]

re original article

aapl @ $567.80 -33.12 (-5.51%) 8pm pst

just like great armies of past history
I have a reserve army of funds to buy at this buying opportunity
warnings though - aapl may still dip some more over the next months
i'm not too worried
jmho

 

[Rocketman]

re original article

aapl @ $567.80 -33.12 (-5.51%) 8pm pst

just like great armies of past history
I have a reserve army of funds to buy at this buying opportunity
warnings though - aapl may still dip some more over the next months
i'm not too worried
jmho

There's a gap at 445. Recent lows are 550. You're in the buy range. At 450-495 buy on margin.

 

[Dmunjal]

Here's something I don't get. Apple often gets knocked for alleged planned obsolescence and the guys at iFixit write letters to Jony Ive lecturing him about how good design is long lasting blah blah blah. Yet at the same time Apple is continuously hammered on when next new product are coming out. And people want this constant stream of new stuff. Its never enough. And if it doesn't look different aesthetically it's boring and not innovative. On another site someone actually said Apple should release a new iPhone every 6 months. And someone else said theyre not upgrading their MBP because the new one looks exactly like the one they have. I mean that's just ridiculous. I get that some companies throw a bunch of stuff against the wall to see what sticks but that's not Apple. I'd rather they be thoughtful about the stuff they release even if it means there's not something new being released all the time.

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.

 

[cvaldes]

But, will that competition matter to the average consumer? Personally, I wouldn't trust Microsoft near any of my electronics.

Hey, Microsoft makes nice keyboards.

 

[phpmaven]

When the next-gen iPhone comes along, boy oh boy will those numbers skyrocket come Q4

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.

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.

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.

 

[iapplelove]

8.8 billion seems a little low

The company I work for isn't nearly as big as apple and we profit in the billions every year

 

[aristotle]

8.8 billion seems a little low

The company I work for isn't nearly as big as apple and we profit in the billions every year

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.

 

[iapplelove]

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.

Yeah for the quarter that's amazing lol ...posting from my phone read it too fast

 

[Ping Guo]

It certainly is for me. I’m not smart foolish enough to day trade, but I certainly know a shallow, panic sell-off when I see one.

Fixed it for you.

 

[peterdevries]

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.

And that may be the same with the Asian market very soon. Samsung is all over there and I can't see it stop. Even if you have an iPhone with you people will ask you "Oh, that's the new Samsung Galaxy, right?". Only one year before people asked about the new iPhone instead.

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.

 

[IJ Reilly]

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.

The problem with the European markets for Apple and everyone else on the planet is that they are sucking the world economy down the porcelain receptacle.