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Apple's Upcoming Product Transition
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C'mon!!
Apple has always "guided" low and looked great by blowing out the low expectations.
It's funny how people take Apple's modest guidance as a sign that hard times are a-comin'. But, those of us who have observed AAPL for a while (especially those of us with skin in the game), see the typical pattern playing out again.
Apple has always "guided" low and looked great by blowing out the low expectations.
It's funny how people take Apple's modest guidance as a sign that hard times are a-comin'. But, those of us who have observed AAPL for a while (especially those of us with skin in the game), see the typical pattern playing out again.
I don't think Apple will transit the whole line of iPod to iPhone just yet. Maybe in few years time, but right now, iPod is a huge cash cow for them and has a bigger market than iPhone. It's a recognized name and a guaranteed source of profit. In the future, mp3 players will be replaced by cell phones and Apple has realized that, thus developing iPhone. Right now, the market is not mature enough, and the technology isn't there yet to completely replace iPod.
But that's not in the September quarter, it'd have no effect.
Aye. Updating the iMac to new technology instead of year-old tech will cut into margins per unit, BUT they'll sell more units too.
But they don't announce new iMacs 6 weeks before release, they announce and release at the same time.
That is one factor but that wouldn't affect margins which is something they also guided lower this quarter.
I think the product Transition is killing the iMac and replacing it with an xMac which is risky so may reduce sales.
The reason they are doing this is that they are only selling 600k desktops, which probably equates to 200k Mac Pro's 300k iMacs and 100k Mac Mini's. Seeing as the iMac has 3 versions that's 100k each which probably isn't very profitable, especially as they all have different motherboards, they also have to use laptop parts which are more expensive.
The iPod will probably be updated in September/October for Christmas as it has in the last two years, so won't be available for much, if any, of the quarter. Especially as they are saying the iPhone is coming to Europe in October that'll probably happen at the same time as the new iPods are announced.
I doubt iLife will become part of Leopard as they make a lot of money selling it separately and MS's 'iLife' stuff in Vista is barely better than in XP so there's no competition.
The reason they are doing this is that they are only selling 600k desktops, which probably equates to 200k Mac Pro's 300k iMacs and 100k Mac Mini's. Seeing as the iMac has 3 versions that's 100k each which probably isn't very profitable, especially as they all have different motherboards, they also have to use laptop parts which are more expensive.
The iPod will probably be updated in September/October for Christmas as it has in the last two years, so won't be available for much, if any, of the quarter. Especially as they are saying the iPhone is coming to Europe in October that'll probably happen at the same time as the new iPods are announced.
I doubt iLife will become part of Leopard as they make a lot of money selling it separately and MS's 'iLife' stuff in Vista is barely better than in XP so there's no competition.
new imac??
Sales of Macs, not iPhones, drive Apple's good numbers
May Wong
Associated Press
Jul. 26, 2007 07:15 AM
SAN JOSE, Calif. - All eyes have recently been on the iPhone, Apple Inc.'s newest family member, but the company's fiscal third-quarter results showed the elder Macintosh computer was still flexing its muscles, helping to drive record profits that blew past Wall Street's expectations.
Apple shares surged $8.94, or 6.5 percent, to $146.20 in mid-morning trading Thursday after the computer and gadget maker reported that earnings grew 73 percent.
The company sold a record 1.76 million Macintosh computers during the quarter, up 33 percent from the year-ago period, far outpacing the industry's growth rate. Mac sales and services accounted for more than 60 percent of the quarter's revenue, the company said.
"Our Mac business has tremendous momentum and has grown faster than the industry for 11 consecutive quarters," Apple's chief financial officer Peter Oppenheimer said in a phone interview.
IPod music players remained a strong contributor as well, growing 21 percent in unit sales to 9.8 million.
The company also said it sold 270,000 iPhones in their first two days on the market - disappointing some who had loftier projections. The multimedia handset had little impact on the quarter's results, however, because the company plans to account for its sales as subscription revenue over two years.
"We're still at the early stage of the iPhone, but it looks like the other parts of Apple's business are still growing strong," said Caris & Co. analyst Shebly Seyrafi.
Jane Snorek, a senior analyst with Minneapolis-based First American Fund, said she thinks Apple could achieve 40 percent growth in Mac sales next year. She boosted her earnings estimates for the current fiscal year from $4.75 to $5.25 per share based on the robust Mac performance.
"The only thing that kept people from getting Macs before is that they thought it was expensive and you couldn't do some Windows programs on them," Snorek said. "But they've taken down all those barriers, and that's why you've seen it take off."
For the quarter ended June 30, Apple's profit rose to $818 million, or 92 cents per share, up from $472 million, or 54 cents a share, in the year-ago quarter.
Sales grew to $5.41 billion from $4.37 billion last year.
Analysts polled by Thomson Financial expected Apple to report earnings of 72 cents per share on sales of $5.28 billion, while Apple itself had projected earnings of 66 cents per share on quarterly sales of $5.1 billion.
"We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever," said Steve Jobs, Apple's chief executive.
For the quarter ending in September, Apple issued what analysts predicted was a typically conservative outlook. The Cupertino-based company said it expects to earn about 65 cents per share on revenue of about $5.7 billion. Analysts were expecting earnings of 83 cents per share on sales of $6 billion.
The gadget maker's highly anticipated iPhone launched June 29 and sold out within days. Wall Street analysts and investors have had lofty expectations for the multimedia cell phone, driving up Apple's stock more than 30 percent during the quarter.
"IPhone is off to a great start," said Jobs, who added that Apple hopes to have sold 1 million iPhones by the end of the current quarter.
Apple officials reiterated the company's target of selling 10 million iPhones in 2008 but declined to elaborate on how much of a cut it will also be getting from exclusive service provider AT&T Inc. under their multiyear deal.
During the June quarter, revenue from iPhones and iPhone accessories totaled $5 million, Apple said. Shared revenue from AT&T was not included, it said.
Investors seemed uncertain at first with how to react to Apple's financial report.
"There was initially some disappointment in the 270,000 iPhone units, but as people realized the gross margins came in at 37 percent, they were very encouraged by the profitability of the company," Seyrafi said. "Clearly, Apple is a growth story."
im thinking why would they come out with a new one when this old one is still sellin?? i m gettin sick of waiting might just buy this older one
Sales of Macs, not iPhones, drive Apple's good numbers
May Wong
Associated Press
Jul. 26, 2007 07:15 AM
SAN JOSE, Calif. - All eyes have recently been on the iPhone, Apple Inc.'s newest family member, but the company's fiscal third-quarter results showed the elder Macintosh computer was still flexing its muscles, helping to drive record profits that blew past Wall Street's expectations.
Apple shares surged $8.94, or 6.5 percent, to $146.20 in mid-morning trading Thursday after the computer and gadget maker reported that earnings grew 73 percent.
The company sold a record 1.76 million Macintosh computers during the quarter, up 33 percent from the year-ago period, far outpacing the industry's growth rate. Mac sales and services accounted for more than 60 percent of the quarter's revenue, the company said.
"Our Mac business has tremendous momentum and has grown faster than the industry for 11 consecutive quarters," Apple's chief financial officer Peter Oppenheimer said in a phone interview.
IPod music players remained a strong contributor as well, growing 21 percent in unit sales to 9.8 million.
The company also said it sold 270,000 iPhones in their first two days on the market - disappointing some who had loftier projections. The multimedia handset had little impact on the quarter's results, however, because the company plans to account for its sales as subscription revenue over two years.
"We're still at the early stage of the iPhone, but it looks like the other parts of Apple's business are still growing strong," said Caris & Co. analyst Shebly Seyrafi.
Jane Snorek, a senior analyst with Minneapolis-based First American Fund, said she thinks Apple could achieve 40 percent growth in Mac sales next year. She boosted her earnings estimates for the current fiscal year from $4.75 to $5.25 per share based on the robust Mac performance.
"The only thing that kept people from getting Macs before is that they thought it was expensive and you couldn't do some Windows programs on them," Snorek said. "But they've taken down all those barriers, and that's why you've seen it take off."
For the quarter ended June 30, Apple's profit rose to $818 million, or 92 cents per share, up from $472 million, or 54 cents a share, in the year-ago quarter.
Sales grew to $5.41 billion from $4.37 billion last year.
Analysts polled by Thomson Financial expected Apple to report earnings of 72 cents per share on sales of $5.28 billion, while Apple itself had projected earnings of 66 cents per share on quarterly sales of $5.1 billion.
"We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever," said Steve Jobs, Apple's chief executive.
For the quarter ending in September, Apple issued what analysts predicted was a typically conservative outlook. The Cupertino-based company said it expects to earn about 65 cents per share on revenue of about $5.7 billion. Analysts were expecting earnings of 83 cents per share on sales of $6 billion.
The gadget maker's highly anticipated iPhone launched June 29 and sold out within days. Wall Street analysts and investors have had lofty expectations for the multimedia cell phone, driving up Apple's stock more than 30 percent during the quarter.
"IPhone is off to a great start," said Jobs, who added that Apple hopes to have sold 1 million iPhones by the end of the current quarter.
Apple officials reiterated the company's target of selling 10 million iPhones in 2008 but declined to elaborate on how much of a cut it will also be getting from exclusive service provider AT&T Inc. under their multiyear deal.
During the June quarter, revenue from iPhones and iPhone accessories totaled $5 million, Apple said. Shared revenue from AT&T was not included, it said.
Investors seemed uncertain at first with how to react to Apple's financial report.
"There was initially some disappointment in the 270,000 iPhone units, but as people realized the gross margins came in at 37 percent, they were very encouraged by the profitability of the company," Seyrafi said. "Clearly, Apple is a growth story."
im thinking why would they come out with a new one when this old one is still sellin?? i m gettin sick of waiting might just buy this older one
The difference is that a floppy drive doesn't come with a $60/80/100 a month or more requirement, where as an iPhone does. The two lines will never be combined.
Yeah that sort of makes sense to us that we know about Leopard.
But the average Joe walks into an Apple store and buys a Mac, period.
Not everyone is as educated as we are, not everyone knows that there's a new OS in the pipeline.
Enthusiasts know it mostly, end users I highly doubt they do - and if they do, they may not even care.
I know people still on Windows ME and Mac OS 10.1
Ick. The G5's are painfully slow. And dont try to argue with me.
Smaller Cache
Less IPC
Ridiculously high memory latency
um the iphone didnt do anything to stunt the R&D of anything, they were using leopard as a front for the iPhone and tested leopard software on the iPhone, which is why the iPhone is a little more advanced than tiger, but less advanced than leopard. Don't worry, apple will be fine in the long run. Leopard and other products will be better because of the iPhone, not stunted.
This sadly to say, fits with where the company is headed. All other development screeches to a halt for the iPhone?.. not good. I just bought a MacPro, but I would not be suprised that in 10 years there isn't a workstation Mac anymore.
No, the stevePhone didn't stunt R&D (that we know of), but it DID stunt development of Lepoard.
Do you REALLY want a cell-phone UI dictating your workstation OS?..
They aren't cutting the MacPro, it is essential for high margin sales to Creatives. If they kill the Mac Pro they are killing Final Cut/CS3 etc. etc. which is simply NOT going to happen.
But, doesn't Leopard come in this quarter?
or maybe that's just it? Leopard doesn't come until late in the quarter, and thus they expect the Mac sales to go down until it comes?
P.S.: The new iMac should be able to be used as a screen for Xbox 360 etc. If it does, I'm sure to buy (even if I do have the latest one right now)
P.S.: The new iMac should be able to be used as a screen for Xbox 360 etc. If it does, I'm sure to buy (even if I do have the latest one right now)
True, they won't cut it.. yet. But, looking at the 10 year picture, I can see an Apple the is strictly a consumer device vendor. But, we're likely not going to see a MacPro update until 08, even though it's long overdue.
Yep, but when I went to the last MacWorld keynote, and heard NOTHING for the pro market, that really signaled a change for where they are headed.
Leopard doesn't come this quarter at all, it comes next quarter. Unless Apple has something up their sleeves....
I can definitely see Apple doing something like rolling iLife and .mac into Leopard and charging more for the OS, like $149 or $169. I don't really buy that iLife has something so Leopard-unique that it couldn't have been released by now. And Jobs has basically said "we know .mac is going nowhere, be patient and you'll like what's coming."
But as someone above mentioned, Leopard is not getting released in this quarter, so if we take the call comments at face value, "product transitions" does not refer to this.
I think it most likely refers to the 6G iPod. The reason it will "disappoint" is because it won't be the phoneless iPhone that so many people are aching for. That might come NEXT year. The 6G iPod will just be a tiny evolutionary advance, shrinking the case size and changing some UI elements (maybe going all flash for a 16 or 32 GB size, and retaining a huge 80 or 100 GB hard drive model). People will bitch about the 6G iPod because it is not wifi or touchscreen of have OS X.
It could also refer to the updated iMac, though I don't see why that would be a negative transition (not that the 6G iPod is negative, it's just not what a lot of people are looking for). I bet an updated iMac would sell very well actually.
But as someone above mentioned, Leopard is not getting released in this quarter, so if we take the call comments at face value, "product transitions" does not refer to this.
I think it most likely refers to the 6G iPod. The reason it will "disappoint" is because it won't be the phoneless iPhone that so many people are aching for. That might come NEXT year. The 6G iPod will just be a tiny evolutionary advance, shrinking the case size and changing some UI elements (maybe going all flash for a 16 or 32 GB size, and retaining a huge 80 or 100 GB hard drive model). People will bitch about the 6G iPod because it is not wifi or touchscreen of have OS X.
It could also refer to the updated iMac, though I don't see why that would be a negative transition (not that the 6G iPod is negative, it's just not what a lot of people are looking for). I bet an updated iMac would sell very well actually.
If they were going to do that, they would have called it the "macphone", as they would love to transition all their products to mac____ and they would def want to do that with the first model of their "game changing" cellie