like someone said earlier "people thought it was a buying opportunity when it dropped from 700 to 600."
It's getting hard to believe in the long-term prospects after all of these "bad" earnings calls.
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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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like someone said earlier "people thought it was a buying opportunity when it dropped from 700 to 600."
It's getting hard to believe in the long-term prospects after all of these "bad" earnings calls.
It does, but the analysts seem not to have noticed that Apple has a pretty good pattern of predicting its earnings in the new era (of not sandbagging expectations). They have been within range, and usually the high end of the range each quarter. This time around, gross margin was higher than their own forecast (and the Street's). So what it seems to indicate is that the 5C was a dud, but the 5S was right in line with or even exceeded expectations. If they had sold 55 million iPhones, they'd probably have had lower earnings than what they reported (or at best the same). I.e. the 5C could have met "expectations" if it were $100 less, but it would have netted Apple nothing.
So if there is a lesson here, it's the opposite of what "conventional wisdom" would say. Apple should keep aiming higher, and forget about "cheap iPhones." If the market is saturated, then just take market share from Samsung by releasing a larger screen phone. It's obvious with Samsung's disappointing results last quarter that it isn't "competition" that's the issue anymore.
So a healthy robust company with a great quarter gets it's stock hammered because of .... analysts?
And what precisely is the value of an "analyst"?......crickets
And what precisely is the value of an "analyst"?......crickets
I wasn't arguing with a claim by Wall Street. I was arguing with claims made by posters in this forum.
They want profits to grow. Stocks go up based on profit, not iPhone sales. Profit was flat. It only increased a bit because of share buybacks. Sell more widgets but make the same amount of profit? Not the hallmark of a growing business.
Negative $46.28 as of 5pm central time. Messed up part is that they don't have a new phone for another 7 months.
Really funny
From ArsTechnica's liveblog:
"Cook: Innovation has never been stronger, I think our customers are gonna love what we're gonna do."
He keeps saying this every quarter (especially at the beginning of the year). Everybody starts thinking iWatch, iTV or whatever and at the end of the year they release iPad Mini with new screen.
From ArsTechnica's liveblog:
"Cook: Innovation has never been stronger, I think our customers are gonna love what we're gonna do."
He keeps saying this every quarter (especially at the beginning of the year). Everybody starts thinking iWatch, iTV or whatever and at the end of the year they release iPad Mini with new screen.
And if profit was up but revenue was flat (or down) the stock would be tanking because or no revenue growth. Wall Street wants the impossible - higher revenue, higher margins, higher profits, higher market share, cheaper prices.
Silver lining here: Carl Icahn just lost almost $250 million; sorry other investors, but Apple is better off if he gets out.
Profit actually beat expectations, and revenue was in line with expectations. Plus, relative to Samsung (which actually saw profits shrink), Apple handily outperformed.
What seems to be the concern is the iPhone unit shipment number, which came in at 51 million vs. expectations of 55 million. So it's actually the complete opposite of what you said. What it seems the Street is concerned about is that between Samsung's results last week and Apple's today, the smartphone market is saturated, and that all the "growth" in volume shipments are at the low-end where Apple doesn't compete and where there's no money anyway. What it discounts is that Apple is actually outperforming at the high end, and still has some headroom because it can take more of the high-end by releasing a larger iPhone and taking back some of the market share that the Galaxy and Note lines have taken.
So a healthy robust company with a great quarter gets it's stock hammered because of .... analysts?
And what precisely is the value of an "analyst"?......crickets
you don't need to be an analyst to see it was not a great quarter....
No. July 2012, Apple stock is at 600$, Apple announces 35 billion revenue and gives guidance for the next quarter, 34 billion. And the stock rose another 100$ until then. They didn't give guidance for a growth in profit, at least not for the next quarter, which is the holiday quarter, yet the stock grew.
So the growth in profits certainly does not correlate with stock growth or fall, not 100% at least. There are other factors in this.
it was definitely a great quarter, just not what wall street wanted. how many companies can make $13.1b in 3 months?
it was definitely a great quarter, just not what wall street wanted. how many companies can make $13.1b in 3 months?
Only four, one in tech.
http://en.wikipedia.org/wiki/List_of_largest_corporate_profits_and_losses
it was definitely a great quarter, just not what wall street wanted. how many companies can make $13.1b in 3 months?
Its not what apple wanted either...its the quarter that saw so many new products hitting stride...air, rmini, new notebooks, mac pro...the holiday quarter and it was flat....sorry..i don't care what the sales number were...it was far from a great quarter.
But they aren't really that bad. Even with stagnant earnings Apple trades ridiculously low. Amazon has virtually NO earnings and yet its stock keeps going up. Apple seems to be handling the maturation of the market a lot better than Samsung, which saw both revenues AND profits fall significantly. The worst thing Apple could have done was to try to "meet" iPhone shipment expectations by cutting the iPhone 5C price.
If you listen to the call, Tim Cook is basically saying they underestimated the market. IOW, they thought there would be stronger demand for the 5c and weaker demand for the 5s than what actually happened. So had they not actually built the 5c or made fewer of them and had more 5s on hand, they'd have made even more money. So for the current quarter:
Greater China sales topped expectations
They took 69% of the Japanese smartphone market
Profit beat expectations handily and stopped the fall from the past 4 quarters
Revenues were in line
But because analysts were fixated on iPhone sales they missed the bigger picture. Had Apple managed to hit the estimate, one of two things would have had to have happened:
- Apple would have handily beaten their own guidance, prompting a revision (which didn't happen), or
- Apple's margins would have taken a huge hit.
The figures could be stronger, much much stronger, if had been offering iPhones with various sizes over the last 2 years. Mind blowing how they let other phone manufacturers grabbing the market (big screen phones) without an own product.
But this year should be interesting. If is really releasing *finally* a 5"+ iPhone then we are going to see exploding sales figures, especially in Asia. And worrying for Samsung, as those who wanted a bigger screen phone with is smooth and reliable, will be switching.
Can't wait to ditch my Note. With Cyanogenmod it is a bit more usable speed and UI wise , but very unreliable
had been offering iPhones with various sizes over the last 2 years. Mind blowing how they let other phone manufacturers grabbing the market (big screen phones) without an own product.But this year should be interesting. If
is really releasing *finally* a 5"+ iPhone then we are going to see exploding sales figures, especially in Asia. And worrying for Samsung, as those who wanted a bigger screen phone with is smooth and reliable, will be switching. Can't wait to ditch my Note. With Cyanogenmod it is a bit more usable speed and UI wise , but very unreliable
What I'm not quite clear on is that Apple seemed to not project any revenue boosts for next quarter due to new product category launches (Tim reiterated in the call that several would be coming in 2014). This seems to suggest that if an Apple watch or other new products are coming, they will probably be shoved into the last part of 2014.
You really think mac pro should have given the quarter a boost? Considering it started shipping the last week of the quarter?
It's better than what Apple projected would happen during last quarter's call, so I'd say it is what Apple wanted, or even better. They predicted revenue of $55-58 billion (vs $57.6 billion actual) and margins of 36.5%-37.5% (vs 37.9% actual). So their actual profits were higher than the would have been at $58 billion and 37.5% margin.
But yet many call for them to make an even cheaper device, cut their margins and sell even more (for no more or possibly even less profit)!
The Mac Pro has as much to do with Apple's bottom line as that shiny quarter you found on the sidewalk has to do with your retirement fund.
The figures could be stronger, much much stronger, if
Yes but would the gross margins be the same? Would the profit be higher or lower? Selling more phones doesn't mean making more money.