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In this quarter AAPL have made more profit than AMAZ has ever made in its entire lifetime as a company, and probably for the next 5 years too. AAPL also has ab

In this quarter AAPL have made more profit than AMAZ has ever made in its entire lifetime as a company, and probably for the next 5 years too. AAPL also has about the same revenue growth as FB/GOOGL, while trading at about 1/10th the PE. Man, Wall Streets really, really hate this company.

austenallred 11y ago
To be fair, Amazon is a pretty bad company to compare to with regard to profit; Amazon intentionally tries to have 0 profits while increasing revenue. Apple is literally running into the, "How much more money could you possibly make?" problem.
- deleted 11y ago
  [deleted]
- r00fus 11y ago
  Which is ridiculous on the face of it - why would Wall St. subsidize Amazon's quest for 0 profits while spurning Apple's kingly quarterly earnings? The reason is that Wall St. is threatened by Apple because they cannot control them.
  - what_ever 11y ago
    I disagree. The only point people on Wall St pay attention to is how to make more money. Apple depends a lot on iPhone for it's profits to trading at other companies' P/E.
  - s73v3r 11y ago
    Because they keep growing revenue. It's not that they want to not have profit, it's that they're wanting more to reinvest in the business than just have profit sitting around, or returning it to the shareholders. If it wasn't for that attitude, we wouldn't have AWS. We also wouldn't have the Kindle Fire Phone, so take that statement as you will.
nickbauman 11y ago
Amazon has always positioned itself for the long term, so it intentionally plows money back into staying ahead of competitors. As a result their competitors for their core business (cloud properties and technology) are far behind. By stacking up the dollars, Apple is positioning itself to be defined by its profitability. The have an innovative edge right now, but with increasingly less differentiation technology-wise, this positioning will be hard to turn against when they need to invest in reinventing themselves. If they don't plan to reinvent themselves, they face becoming another HP down the line.
- serge2k 11y ago
  > their core business (cloud properties and technology) not their core business.
  - nickbauman 11y ago
    The core business is their most relevant line of business. Again if you're defining Amazon's core business as the largest percentage of their revenues, you're missing the point.
  - nickbauman 11y ago
    I just checked: Cloud computing represents only 8% of their revenues but one half of their profits. So even from a purely monetary perspective, it's an easy case to make that Cloud Computing is indeed their core business.
- Cookingboy 11y ago
  Apple re-invest a ton into their business, both in R&D and manufacturing and supply chain. It's just that the amount they invest, even though in the billions, are still too small when compare to their profit and cash reserve. They literally can't spend that much money, nobody can, Apple has enough cash reserve to fund NASA for the next 12 years for a literal moonshot project. Meanwhile Amazon's positive cash flow is less than one billion dollars per quarter and it's much easier to reinvest that much. Even if Apple fund the entire Google X, it won't register as much bigger than a blip on their cash reserve.
jusben1369 11y ago
Wall Street is never about the now it's about betting on the future. Apple has a single, massive, product. But growth is slowing due to saturation and they don't have anything else. Amazon meanwhile is gobbling up commerce and has now become the dominant player in cloud infrastructure which still has massive upside. They would appear to have far more upside than Apple today.
- mikeyouse 11y ago
  Just to be clear, this is the chart that shows how much the growth of Apple's 1 product is "slowing".. https://twitter.com/BenedictEvans/status/659107811549274112 https://twitter.com/BenedictEvans/status/659107811549274112
  - jusben1369 11y ago
    "Our early take is that the guidance seems to imply flattish (74-76 million) iPhones for December," wrote Apple analyst Gene Munster in a note shortly after the numbers were released. He added, "This would imply iPhone units down 1% to up 2% year-over-year. We view this as a relief given investors were bracing for the start of the 6S cycle to be down meaningfully (down 5-8% y/y)."
    - mikeyouse 11y ago
      They made like $240B revenue in the quarter.. 30% of new iPhone sales are to people switching from Android. That second paragraph is key, iPhone sales are very uneven given the Apple upgrade and refresh cycle. Even Gene Munster, who you're quoting, is expecting them to sell ~242 million iPhones in CY2016, which is a 5% YoY increase on an absolutely massive base. From a summary of his research report; Finally, Munster is also bullish on Apple's anticipated "iPhone 7," which he believes will begin driving investor hype in the coming months, despite not being expected to debut until September of 2016. With a so- called "iPhone 7" expected to introduce a revamped design, he believes next year's upgrade will be a "more revolutionary cycle," driving sales of the blockbuster handset even higher. I guess technically, 5% YoY is slowing growth since their earlier performance was absolutely insane, but their iPhone ASP is still increasing to ~$675, so with 40% margins, 10 million incremental phones is another $2.7B in profits.

austenallred 11y ago

To be fair, Amazon is a pretty bad company to compare to with regard to profit; Amazon intentionally tries to have 0 profits while increasing revenue. Apple is literally running into the, "How much more money could you possibly make?" problem.

deleted 11y ago
[deleted]
r00fus 11y ago
Which is ridiculous on the face of it - why would Wall St. subsidize Amazon's quest for 0 profits while spurning Apple's kingly quarterly earnings? The reason is that Wall St. is threatened by Apple because they cannot control them.
- what_ever 11y ago
  I disagree. The only point people on Wall St pay attention to is how to make more money. Apple depends a lot on iPhone for it's profits to trading at other companies' P/E.
- s73v3r 11y ago
  Because they keep growing revenue. It's not that they want to not have profit, it's that they're wanting more to reinvest in the business than just have profit sitting around, or returning it to the shareholders. If it wasn't for that attitude, we wouldn't have AWS. We also wouldn't have the Kindle Fire Phone, so take that statement as you will.

nickbauman 11y ago

Amazon has always positioned itself for the long term, so it intentionally plows money back into staying ahead of competitors. As a result their competitors for their core business (cloud properties and technology) are far behind. By stacking up the dollars, Apple is positioning itself to be defined by its profitability. The have an innovative edge right now, but with increasingly less differentiation technology-wise, this positioning will be hard to turn against when they need to invest in reinventing themselves. If they don't plan to reinvent themselves, they face becoming another HP down the line.

serge2k 11y ago
> their core business (cloud properties and technology) not their core business.
- nickbauman 11y ago
  The core business is their most relevant line of business. Again if you're defining Amazon's core business as the largest percentage of their revenues, you're missing the point.
- nickbauman 11y ago
  I just checked: Cloud computing represents only 8% of their revenues but one half of their profits. So even from a purely monetary perspective, it's an easy case to make that Cloud Computing is indeed their core business.
Cookingboy 11y ago
Apple re-invest a ton into their business, both in R&D and manufacturing and supply chain. It's just that the amount they invest, even though in the billions, are still too small when compare to their profit and cash reserve. They literally can't spend that much money, nobody can, Apple has enough cash reserve to fund NASA for the next 12 years for a literal moonshot project. Meanwhile Amazon's positive cash flow is less than one billion dollars per quarter and it's much easier to reinvest that much. Even if Apple fund the entire Google X, it won't register as much bigger than a blip on their cash reserve.

jusben1369 11y ago

Wall Street is never about the now it's about betting on the future. Apple has a single, massive, product. But growth is slowing due to saturation and they don't have anything else. Amazon meanwhile is gobbling up commerce and has now become the dominant player in cloud infrastructure which still has massive upside. They would appear to have far more upside than Apple today.

mikeyouse 11y ago
Just to be clear, this is the chart that shows how much the growth of Apple's 1 product is "slowing".. https://twitter.com/BenedictEvans/status/659107811549274112 https://twitter.com/BenedictEvans/status/659107811549274112
- jusben1369 11y ago
  "Our early take is that the guidance seems to imply flattish (74-76 million) iPhones for December," wrote Apple analyst Gene Munster in a note shortly after the numbers were released. He added, "This would imply iPhone units down 1% to up 2% year-over-year. We view this as a relief given investors were bracing for the start of the 6S cycle to be down meaningfully (down 5-8% y/y)."
  - mikeyouse 11y ago
    They made like $240B revenue in the quarter.. 30% of new iPhone sales are to people switching from Android. That second paragraph is key, iPhone sales are very uneven given the Apple upgrade and refresh cycle. Even Gene Munster, who you're quoting, is expecting them to sell ~242 million iPhones in CY2016, which is a 5% YoY increase on an absolutely massive base. From a summary of his research report; Finally, Munster is also bullish on Apple's anticipated "iPhone 7," which he believes will begin driving investor hype in the coming months, despite not being expected to debut until September of 2016. With a so- called "iPhone 7" expected to introduce a revamped design, he believes next year's upgrade will be a "more revolutionary cycle," driving sales of the blockbuster handset even higher. I guess technically, 5% YoY is slowing growth since their earlier performance was absolutely insane, but their iPhone ASP is still increasing to ~$675, so with 40% margins, 10 million incremental phones is another $2.7B in profits.