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Apple Reports Strongest Ever Quarterly Earnings: $13.1 Billion Profit on $57.6 Billion in Revenue in Q1 2014
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RighteousNixon
macrumors newbie
Yeah, it is pretty f...ing stupid. Its all about growth. Corporations can NEVER be content with their current sales figures. They must always be focused on making more and selling more. The formation of the corporation is one of the biggest mistakes in human history.
That might be an interesting question if you said 55 million, without the qualifiers. How much more in EPS would the additional sales have produced?
No they don't anymore. Apple changed how they do their guidance and they're a lot more realistic than they used to be under Jobs.
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And the same will happen to Amazon sooner or later. They've been riding the future profits wave for, what, 17 years now? I'll take predictable profits from Apple over future potential anyday.
It depends. It could have been the same if they sold an extra 5 million units but at a lower ASP. Figure the 5s sells for $650-$850, while the 5c from $550-$650, and the 4s for $450. The mix is important. I asked the specific question I did because it seems to me that the market got fixated on iPhone hitting a particular shipment number, and not an EPS or even a revenue number, as EPS beat consensus and revenue was in line. So would the Street have "felt better" with higher unit shipments, because they'd see it as a sign that Apple can compensate lower margins with higher volume? Or would they have worried about margins, figuring it's impossible to out-Samsung Samsung since they don't own their own supply chain?
Personally, I'm not worried about a few million units in any given quarter. Apple is a premium player. They are BMW to Samsung's Toyota or Ford. I'd be more worried if they had released a $350 iPhone 5c and diluted the brand and destroyed their margins. Samsung's quarter wasn't so hot (they blamed "special bonuses" for their profit miss, but even that was based on already ratcheted down expectations).
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Huge drop in AAPL share price in after hours trading.
What's that all about? Somebody must be selling big time. Hopefully Icahn has jumped ship.
iPhone unit sales were 51 million vs. consensus of 55-57 million. Plus Q2 guidance was for $42-44 billion in revenue vs. consensus of $46 billion.
Icahn's probably saying Apple should buy back even more now that the stock has dropped further. He'll say the Street is nuts for wanting Apple to lower prices in search of market share, and that Cook did exactly what he needed to operationally, but doesn't know how to manage the $158 billion cash pile.
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I also mentioned larger smartphones, such as those the size of the S4 and Note 3. Given that lots of people claim the only reason they went with Samsung was the screen size, yes, that could win some significant sales for Apple.
As for the smartwatch, Apple sure was nuts for releasing the iPod in 2001, weren't they? After all, there were lots of MP3 players on the market and none had taken off.
***k Wall Street! I told you they were going to short Apple's stock. It's a game ladies and gentlemen. A flipping game.
Here is the breakdown.
Lets say you bought Apple's stock before the conference call. The numbers look good but the a** clowns on Wall Street still downgrade the stock.
Now you lost about $24 dollars of REAL money while Apple just told your a** they have just posted the greatest quarter of their existence.
You got *********!
This just goes to show you the disconnect between money coming in and rise and fall of the associated stock.
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What will save Apple with investors? WTF are you talking about. Do you understand what has happened? The stock was shorted. Besides, have you ever wondered why the FDIC doesn't insure stocks? It's a fu***** ponzi scheme.
Wall Street doesn't have a printing press!!!!
Here is the breakdown.
Lets say you bought Apple's stock before the conference call. The numbers look good but the a** clowns on Wall Street still downgrade the stock.
Now you lost about $24 dollars of REAL money while Apple just told your a** they have just posted the greatest quarter of their existence.
You got *********!
This just goes to show you the disconnect between money coming in and rise and fall of the associated stock.
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What will save Apple with investors? WTF are you talking about. Do you understand what has happened? The stock was shorted. Besides, have you ever wondered why the FDIC doesn't insure stocks? It's a fu***** ponzi scheme.
Wall Street doesn't have a printing press!!!!
AAPL is MALICIOULY MANIPULATED by VILLAIN !
This is A WAR
Main Street ( Ordinary People ) VS WALL STREET ( Reckless DEMON )
That's been the game for sometime now, which is why you ALWAYS see the standard "Is apple doomed?/Apple can't innovate/Apple's best years are behind it" news stories run rampant throughout the investor and mass media. Meanwhile someone somewhere is making money off the dip in stock price, and you can bet they had a hand in making sure this same game keeps happening.
We ALL Know Wall Street is UNDER CONTROLL of Descent of SHYLOCK !
Shakespea Was Right !
And Sadly to say, Shakespea IS RIGHT EVEN NOW !!!!!!
Here's my (probably futile) attempt to clear up any of the misconceptions that go something like this: "Apple made the most money ever, why is the stock down?
"
The value of a stock is simply sum of the company's discounted cash flows. The future profits are discounted with a rate that is commensurate with the company's perceived risk. meaning that if the discount rate selected is 10%, next year's profits are reduced by 10% and added to the present. The year after that is discounted by 10% for two years, and so on infinitely into the future.
For example lets say that a hypothetical company is expected to earn $10, $11, $12, $13 for the next 4 years, and its riskiness is consistent with a 10% discount rate. That stock would be worth $36.08.
Let's say in light of new information the expectations change to $10, $10.7, $11.5, $12.5 for the next four years. These numbers are still record numbers but just not as much as the previous expectations, and the stock price would fall to $35.11, assuming no change in the discount rate.
It's senseless to assume that people are trying to punish a particular company unnecessarily. If investors actually did want to punish Apple, they wouldn't do it after the earnings are announced. If so many people actually thought "Apple is doomed," then the stock should be going up after each announcement. The fact that it falls shows that people were and have been perhaps too positive.
"The value of a stock is simply sum of the company's discounted cash flows. The future profits are discounted with a rate that is commensurate with the company's perceived risk. meaning that if the discount rate selected is 10%, next year's profits are reduced by 10% and added to the present. The year after that is discounted by 10% for two years, and so on infinitely into the future.
For example lets say that a hypothetical company is expected to earn $10, $11, $12, $13 for the next 4 years, and its riskiness is consistent with a 10% discount rate. That stock would be worth $36.08.
Let's say in light of new information the expectations change to $10, $10.7, $11.5, $12.5 for the next four years. These numbers are still record numbers but just not as much as the previous expectations, and the stock price would fall to $35.11, assuming no change in the discount rate.
It's senseless to assume that people are trying to punish a particular company unnecessarily. If investors actually did want to punish Apple, they wouldn't do it after the earnings are announced. If so many people actually thought "Apple is doomed," then the stock should be going up after each announcement. The fact that it falls shows that people were and have been perhaps too positive.
If it hits $500 I'm out, rational thinking doesn't come in to the equation with AAPL, it's basically the same as gambling. While I still believe in the company, I have lost faith in the stock and there are way better investments out there than AAPL.
Tim Cook may or may not be a good CEO but I can say without hesitation when it comes to Shareholders he is a lousy CEO, he doesn't fight or even seem to care at all about shareholders and that's not a company I want to invest in, still love my iPhone/iPads though!
Tim Cook may or may not be a good CEO but I can say without hesitation when it comes to Shareholders he is a lousy CEO, he doesn't fight or even seem to care at all about shareholders and that's not a company I want to invest in, still love my iPhone/iPads though!
Company Value
Actually, the value of a share of stock is determined by simple supply and demand. Simply stated, a share of stock is worth whatever the market will bare.
Here's my (probably futile) attempt to clear up any of the misconceptions that go something like this: "Apple made the most money ever, why is the stock down?
The value of a stock is simply sum of the company's discounted cash flows. The future profits are discounted with a rate that is commensurate with the company's perceived risk. meaning that if the discount rate selected is 10%, next year's profits are reduced by 10% and added to the present. The year after that is discounted by 10% for two years, and so on infinitely into the future.
For example lets say that a hypothetical company is expected to earn $10, $11, $12, $13 for the next 4 years, and its riskiness is consistent with a 10% discount rate. That stock would be worth $36.08.
Let's say in light of new information the expectations change to $10, $10.7, $11.5, $12.5 for the next four years. These numbers are still record numbers but just not as much as the previous expectations, and the stock price would fall to $35.11, assuming no change in the discount rate.
It's senseless to assume that people are trying to punish a particular company unnecessarily. If investors actually did want to punish Apple, they wouldn't do it after the earnings are announced. If so many people actually thought "Apple is doomed," then the stock should be going up after each announcement. The fact that it falls shows that people were and have been perhaps too positive.
Actually, the value of a share of stock is determined by simple supply and demand. Simply stated, a share of stock is worth whatever the market will bare.
that because of AAPL it is very likely that the entire market will probably go down tomorrow (as will our 401Ks)
The only people who should care about that are day-traders.
What goes down with Apple will go up.
SHORT SELL, SHORT SELL, SHORT SELL !
Do You Remember German Chancelor Angela Merkel & Her Government Tried HARD to ban " Reckless Evil-like Mal Practice " SHORT SELL in Her Country Several Years Ago ?
That is WHAT OBAMA SHOULD HAVE DONE as soon as He Took Office !
But As Not Only economy of The World but Politics of Major Nations of The World are Controlled by VILLAIN NowaDay, Chacellor Merkel's Challenge was Miserably UNDERMINED & JEOPADIZED Completely by The HEDIOUS NEGATIVE CAMPAIGN for VILLAIN's SAKE by VILLAIN's LACKAY GUTTER PRESS such as " BLOOMBERG " and So On against German Government SO HARSHLY claiming " Their Intention Are OBSTACLE for WIDE OPEN CAPITALISM ", HA, HA !!!!!!
What They Mean " WIDE OPEN CAPITALISM " is NAMELY " RECKLESS EVIL-ORIENTED COLOSSAL PROFIT PURSUIT TOOL " Only PRIVILLEGED BY THOSE in Their EVIL CIRCLE !!!!!!
Bingo. There are many forces at play in the market and its not a perfect discounting of cashflows. There are people taking gambles with large volumes of options and shorts every day. They do not care about the long-term, they care about the short-term and mid-term. Even discounting cashflows requires huge guesses regarding future performance which inevitably is influenced by human judgement and emotion. We also have to deal with limited information, and large financial institutions that can manage to move the stock price if they make large enough trades or even hint at it.
Only on Wall Street is it a disappointment when Apple sells an all-time record number of iPhones (51 million) in a quarter.
Can't imagine how these guys ever wrecked an entire planet's economy. "Record number of devices sold? OH MY LORD THIS IS AWFUL. SELL, SELL, SELL."
And as a consequence the market expects, volumes to increase, making it harder and harder to manage the supply chain, average sell prices to decline, resulting in lower GM's........this is why the stock declines. The Apple "model" for PROFIT growth is seriously under pressure and that scenario spooks the market.
Apple makes other products other than the iPhone.
For you. Your opinion.
Utility based on your usage, not the op or those that use or are interested.
"don't get a note 3", is hardly advice. Normally when someone gives advice they ask what's important to that person. They then list pros and cons based on that information and their own relevant experiences.
Seems to me he challenged your stance because you did not provide any real world examples or knew enough about the op to form an educated opinion, and you took it personal calling him a korean shill which was both racial and uncalled for.
From some looking in from the outside.
Hmm, this is why I sold off every last share a while ago. Not because I didn't believe in Apple's ability to remain successful, but because I couldn't take the irrational sell-offs and "disappointment" in Apple's earnings every quarter.
I found my fanboyism influencing my sanity, and so I took my money and ran to other opportunities
I found my fanboyism influencing my sanity, and so I took my money and ran to other opportunities
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I think the Nexus 5 is proof that you can get a great phone with zero compromises for $350. I think people are slowly starting to see that we are getting fleeced by signing these 2 year contracts.