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Apple Reports Third Quarter Results

116 points by ssclafani 15y ago

pennig 15y ago
So many billions.
- shawndumas 15y ago
  billions and billions...
  - lancewiggs 15y ago
    their $75 billion in cash and negotiable securities compares with eBay's July 19th enterprise value of $37.5 billion, Microsoft's $188 billion, Sony's $28.5 billion and Google's $160 billion. They could buy eBay or Sony for cash. Enterprise value is market capitalization (value of all the shares) less debt. Apple's was $316 billion on the same date. Note - Apple is great at making awesome products, and most likely lousy, like everyone else, at taking over lousy companies.
    - kamagmar 15y ago
      I thought enterprise value was market cap plus debt?
      - BobbyH 15y ago
        Yes, enterprise value (EV) is equity market capitalization (stock price times # of shares) plus the market value of debt (this can be lower than the book value of debt). Financial analysts often prefer to calculate something called "Net Enterprise Value", which is EV minus "excess cash" (total cash minus "required cash", where required cash is usually calculated as a certain % of sales). Net Enterprise Value gives you the present value of all future cash flows to the firm (you are ignoring the value of today's excess cash, which doesn't come from future cash flows). This is particularly useful when looking at companies like AAPL with tons of cash.
    - ChuckMcM 15y ago
      Does enterprise value consider the uplift of actually paying cash? At $33.75 [1] EBAY has a market cap of just under $44B but to actually buy the company for cash and get everyone to tender their shares you would probably have to pay $80B+ and that would not include assumption of debt. I guess I don't get how EBAY is valued at less than their market cap. [1] http://www.google.com/finance?q=NASDAQ:EBAY http://www.google.com/finance?q=NASDAQ:EBAY
      - kcg 15y ago
        As mentioned below, enterprise value is generally calculated as equity value + debt - (excess) cash. Ebay has approximately $5 billion more cash than debt, so its EV is less than its market cap. One way to think about why cash is subtracted is that the acquirer gets to keep it. If I pay $10 billion for 100% of a company's shares, but get to keep the $1 billion in cash on the balance sheet, then the actual price of acquiring the company is only $9 billion (assuming no debt). With enough cash, it is possible to have a negative enterprise value. EV is usually calculated with the current equity value, as that is what the market "believes" the company is worth. If an acquirer comes along and wants to purchase all of the shares at a premium, you can find an implied EV from the offer price.
programminggeek 15y ago
Apple is firing on all cylinders. What is hard to appreciate is just how fast they are growing even though they are already such a big company. Can you imagine Microsoft/IBM/Oracle growing profit 125% in a year company wide when they are already as big as they are now? Most companies that get this big can't keep growing at this kind of rate. Yet, they still have a lot of room to grow in different markets - TV, PC, Mobile, Advertising, (other?) Incredibly impressive.
- Geee 15y ago
  Well, IBM isn't on markets that grow. Smartphones are obviously really hot right now, even the 'losing' players are growing. By leading the growing markets they can cut the biggest slice of the pie.
  - MaxGabriel 15y ago
    Yeah, but you could say the same thing about Apple if it had stuck to making only Macs. Also, Apple is to a great degree responsible for making some of the markets in hot. Thus the comparison is still valid
- pbreit 15y ago
  What totally blew me away was revenue moving from $15.7b to $28.6b. This is a company that was near death 15 years ago and is now within a hair of being the most valuable company in the world.
- omouse 15y ago
  did their employees all get a pay raise? are the manufacturing workers adequately compensated?
  - billmcneale 15y ago
    Apple hasn't been in the top 100 companies to work for in the past five years (probably goes back further), so... no. Several friends of mine confirm this: they're not treated very well nor recognized, they work 70 hours a week, but they love it. Obviously, it's not for everyone, you need to love the company to work there.
truthout 15y ago
Apple is an animal. Profits +125% yoy Revenue +82% yoy Stock +25$ after hours. 403$, all time high.
newmediaclay 15y ago
Absurd. It's also awesome that they continue to mock the Street by giving their ridiculously low estimates for the succeeding quarter.
- marklabedz 15y ago
  "...350 basis points higher than guidance..."
- truthout 15y ago
  Mock the street? Lol... The street loves AAPL and AAPL loves the street. Did you see the stock up 25$ after hours? Who do you think is trading that. Hint: not Joe six pack.
- JakeSc 15y ago
  I saw that - the revenue projection for next quarter is $3.5b less than revenue for this quarter. I don't understand this. Are there any rules for making accurate revenue projections?
  - krishna2 15y ago
    There is no rule that subsequent quarter revenue should be higher than the prior quarter. [For e.g. the holiday quarter is generally the highest revenue yielding one for consumer electronics companies]. That said, Apple generally sets the expectations way low. The street knows that. They figure out a higher number (based on the past) and make that their expectation and price the stock as such. The interesting thing though is that Apple has been beating that higher expectation as well.
  - CamperBob 15y ago
    I'm sure not going to buy an iPhone or iPad right now, given the heavily-rumored launch of the next-gen models in late Q3. That could be why they're sandbagging the revenue projections.
    - pbreit 15y ago
yequalsx 15y ago
I bought my first Mac on Friday at the Mall of America. There's a Microsoft store right across from the Apple store. It was amazing to me how much more crowded the Apple store was. There were a lot of people at the Microsoft store but it was ridiculous how many were at the Apple store.
- aforty 15y ago
  More importantly, how do you like your first Mac?
  - yequalsx 15y ago
    Some things I really like and some I really hate. Overall though I like it (Macbook Pro 13" base model - no upgrades). I don't know why but I thought it would load applications faster than it does. Though, the overpowered Dell I bought last December is even slower. Why do I have this feeling my Mac should load applications faster? I don't know. I don't like traversing the file system in the Mac. Perhaps its familiarity with Windows. File search on the Mac is infinitely faster though. I like that Macs are true multi-user operating systems. I can separate work and leisure better that way. I didn't think I would care but I really like that the battery lasts a long time on the Mac. I pretty never used battery power on Windows laptops because "3 hours time remaining" ended up being 45 minutes. The overall user experience is much better but I'm still getting used to it. I really hate that I can't create a folder at the time I save a document. Maybe there's a setting I don't know. The most telling thing I can say is that I'm fairly certain that I'll never get a Windows machine again. With less ram, less video card power, less processing speed, my Macbook is much more responsive and the screen is much better.
    - sid0 15y ago
      I'm not sure what definition of multiuser you're using, but all the Windows NT-based OSes meet the normal definition of multiuser.
    - aeontech 15y ago
      command-shift-n to create a new folder even in a save dialog. command-shift-g to quickly go to a filesystem path (supports tab completion. It's unix filesystem, so ~/ == your home directory. ~/Doc[tab] will take you to your Documents folder, etc). As for speed - RAM upgrade and an SSD make all the difference in the world (as they would for windows as well). Oh, also, if you're new to the mac, you might need some of these: * Quicksilver http://qsapp.com/ http://qsapp.com/ - quick app launcher and much more. * Adium http://adium.im/ http://adium.im/ - the only IM client you'll need * Colloquy http://colloquy.info/ http://colloquy.info/ - IRC client * DTerm or iTerm - somewhat better than default Terminal.app * Hex Fiend - awesome hex editor * HandBrake - video conversion * Sublime Text / Textmate - really excellent programmer editors * XLD - lossless audio conversion
marklabedz 15y ago
Oppenheimer mentioned that Apple is transitioning products and that it will impact their projected revenues. Is this Lion/MBA/MB/iPhone? If so, how would that lead to a softening of revenue?
- hkarthik 15y ago
  This isn't abnormal for Apple, they usually project lower than expected revenues every quarter. However, I think iCloud is going to require a lot of capital expenditures. It's going to be free and will likely be utilized by nearly their entire existing customer base along with any future customers. They are probably preparing Wall St. for that.
  - lucaswagner 15y ago
    It was mentioned in the call that, due to iCloud, they've started deferring revenues from Macs and iOS devices to account for the ongoing cost of the service.
- Anechoic 15y ago
  If so, how would that lead to a softening of revenue? I would guess that the transition involves the iPhone 5 (or 4S or whatever you want to call it) - announcing the iPhone 5 will kill iPhone 4 sales, and Apple always seems to have trouble meeting demand at product introductions so product constraints will probably mean lower sales/revenues.
  - marklabedz 15y ago
    That makes sense. My initial thought was that iPhone "5" would lead to a spike in demand and therefore a spike in revenue. I forgot to take into account the ability (or lack thereof) to MEET demand. Thank you.
- r00fus 15y ago
  "Transitioning products" in response to a lowered guidance could very well mean that the prepaid, differentiated, iPhone for emerging markets (currently rumored) is more likely.
Anechoic 15y ago
20.34 million iPhones in the quarter comes out to about 225,000 iPhones sold per day. Google recently announced 500,000 Android "activations' Android per day. So Android still has the market share advantage?
- YooLi 15y ago
  Does that mean Android 'activations' includes only Android phones?
  - Anechoic 15y ago
    Good question, I think it also includes tablets, but I am presuming that the bulk of the numbers represents phones.
    - deleted 15y ago
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    - deleted 15y ago
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    - Tyrannosaurs 15y ago
      I think the tablet to phone ratio right now is such that it's not that big a deal which it represents. That's not to say Android tablets won't take off, just that in the numbers that have been published until now they're not selling that well and the phones are selling like hot cakes.
      - YooLi 15y ago
        The Nook runs Android. I wonder if it counts towards 'activations'. Last quarter B&N sold ~3M Nooks, which would be ~33k activations per day. Not that huge, but the difference between 465k and 500k activations. The Nook and other tablets and devices might actually end up combining to an appreciable amount (100k/day??).
        15y ago
protomyth 15y ago
and Lion comes Wed. Don't think they've ever announced a release date on a financial call.
xcode 15y ago
While Apple is doing great, I see some flatlining starting next year once the market for high-price computers start to saturate. Just an opinion.
- jshen 15y ago
  the iPad isn't high priced compared to competitors, nor is the iphone. For that matter, nor is the macbook air. PCs with the same features as the MBA are more expensive!
- arjn 15y ago
  why is this comment being down-voted ?
  - dougws 15y ago
    Probably because people have been predicting this kind of thing for years. It is also worth pointing out that only 18% of Apple's ridiculous revenue comes from Mac sales.
    - c2 15y ago
      To be fair, people have been predicting both sides of the coin for a while. People predicting success on hacker news tend to get upvoted, and people predicting failure tend to be downvoted, regardless of the reality of the situation. Right now Apple is doing great. I would still question the sustainability of this business as an investor. What's next after ipad? Long term, 5 years say, ipad/iphone margins will evaporate and Apple will need a series of "big things" to fill in the gaps to even have a flat growth curve to justify their market cap - that's my prediction.
      - bbgm 15y ago
        And if any company has a track record over the past decade of delivering "big things" it's Apple. No company in recent history comes even close. Can they? Who knows, but if anyone can, it's Apple.
kbd 15y ago
Ridiculous, Apple has nearly as much profit per quarter as Google has revenue.
- MikeCapone 15y ago
  Indeed. Though most iPhone users are Google users, so Apple doing well should also help Google grow.
steveb 15y ago
iOS is about to displace Windows/DOS as the top selling OS in the U.S. A Microsoft OS has probably been the top seller for the last 30 years. Just a rough back of the envelope calculation is 12-13 million iOS devices sold in the U.S. this quarter. (7 million iPhone, 3.5 iPad, 1.6 iPod Touch at 35% US/Global). In comparison, 2Q11 non-Mac PC sales in the U.S. were about 16 million (and shrinking). iPhone 5 on sprint/T-mobile and iPad 2 Christmas sales will give iOS a good chance to take the lead.
- ugh 15y ago
  What about Android? It seems that worldwide quite a few more Android devices than iOS devices are activated per day. Are less than 35% of all Android devices sold in the US?
  - steveb 15y ago
    Based on U.S. market share, Android would be selling about 10 million a quarter in the U.S., so depending on growth they may or may not be the ones to displace Windows first. In order to get to 15 million this quarter, Android would have to be outselling iPhone over 2 to 1 in the U.S. to make up for the iPad/iPod Touch. Android will get a good boost if the rumored Amazon tablet comes out. It's just a matter of time.
  - gte910h 15y ago
    Where do you get that number?
    - ugh 15y ago
      From Apple’s and Google’s Q2 quarterly earnings call, respectively. Google just announced that they activate 550,000 Android devices per day. That’s in all likelihood (and considering the language) not an average value for the whole quarter but only the most recent value (that must have been rapidly growing during the last quarter). Still, the average for the last quarter is probably over or around 500,000. Apple doesn’t publish any such numbers but it’s easy to estimate them. Apple sold 20m iPhones, 9m iPads and 8m iPods. Tim Cook said during the earnings call that about half of those iPods run iOS. That’s about 33m iOS devices altogether for the whole quarter, for an average of 360,000 sold devices per day.
MaysonL 15y ago
$11.1 billion cash flow from operations for the quarter, $76 billion in cash and marketable securities.
aforty 15y ago
Absolutely absurd and amazing at the same time. Tip your hat to Apple, nothing else to do in this case.
- guelo 15y ago
  Or you can marvel in amazement at their greed in suing their competitors.
  - sigzero 15y ago
    Please...take your trolling elsewhere.
    - guelo 15y ago
      Please explain how I'm trolling. aforty said that there was nothing you could do but admire Apple, I have a different yet valid reaction.
      - pbreit 15y ago
        You do realize that the actions Apple takes are what is responsible for its success?
    - bdr 15y ago
      I don't think you should use the accusation of trolling to silence unpopular opinions, or even wrong ones.
  - ceejayoz 15y ago
    All the major players in the mobile space are suing each other. http://thenextweb.com/mobile/2010/10/08/whos-suing-whom-in-mobile-infographic/ http://thenextweb.com/mobile/2010/10/08/whos-suing-whom-in-m...
    - guelo 15y ago
      That's a pretty disingenuous thing to say since Google, HTC, LG and Samsung are being sued, they're not doing the suing. Also, that graph is outdated, Apple is now also suing Samsung and Motorola... their other big smartphone competitors.
hackermom 15y ago
Bombastic numbers as usual. So, when can I get an MB Pro 13" with an up-to-par screen resolution? :)
- rexf 15y ago
  A matte screen without having to choose an upgrade on the 15" MBP please.
  - jarek 15y ago
    Would you like an ExpressCard slot with that?
- jarek 15y ago
  Realistically, when OS X gets resolution independence Steve likes. So, not until the next OS after Lion at the earliest.
  - hackermom 15y ago
    What's realistic about that? The 11" and 13" Air both got bumped over the 13" "pro", but I'm still stuck with my pricier 13" "Pro" model with screen real estate below what consumer grade PC laptops offer for half the price.
    - jarek 15y ago
      This is a good point. I guess the only explanation that doesn't involve cheaping out or questionable market segmentation attempts is that they don't see a jump to 1440*900 / 128 DPI as worthwhile and would prefer something more. Me, I like my 133 DPI Thinkpad for when I need screen space, so I'm pretty neutral on this :)
AndrewZ 15y ago
The nice thing about this is that they sold 20 million iphone 4, which is actually over an year old now ...
- j79 15y ago
  Exactly! I think a flood of new iPhones owners will be hitting this fall. I know plenty of iPhone 3GS owners waiting to pick up the rumored iPhone 5. By that point, I may even be ready to replace my iPhone 4 with the 5...
  - mitchty 15y ago
    Chalk me up as one of those 3gs owners. I was originally waiting for the white iphone 4, but, well by the time April rolled around there didn't seem like much reason to bother with it anymore.
offshore_guy 15y ago
I think we need a windfall tax on Big Apple.
- jacques_chester 15y ago
  Will you offset the windfall tax with payments when Apple makes losses?
pbreit 15y ago
Apple is in a position now where it could shave off some margin on the Mac side and try to bump that share number up to 10% or 20% or even 30%. The world would be a better place.
shriphani 15y ago
Have to hand it to Apple leadership. How much has he accomplished in 12 years? Taking leadership, turning the org around, the iPod lineup, building a super-strong brand, then iPhone, iPad and now the Mac sees a healthy resurgence. I am sure that if he has to start afresh, Mr. Jobs will do it and build another apple.... what a fantastic leader.

116 points by ssclafani 15y ago

pennig 15y ago

So many billions.

shawndumas 15y ago
billions and billions...
- lancewiggs 15y ago
  their $75 billion in cash and negotiable securities compares with eBay's July 19th enterprise value of $37.5 billion, Microsoft's $188 billion, Sony's $28.5 billion and Google's $160 billion. They could buy eBay or Sony for cash. Enterprise value is market capitalization (value of all the shares) less debt. Apple's was $316 billion on the same date. Note - Apple is great at making awesome products, and most likely lousy, like everyone else, at taking over lousy companies.
  - kamagmar 15y ago
    I thought enterprise value was market cap plus debt?
    - BobbyH 15y ago
      Yes, enterprise value (EV) is equity market capitalization (stock price times # of shares) plus the market value of debt (this can be lower than the book value of debt). Financial analysts often prefer to calculate something called "Net Enterprise Value", which is EV minus "excess cash" (total cash minus "required cash", where required cash is usually calculated as a certain % of sales). Net Enterprise Value gives you the present value of all future cash flows to the firm (you are ignoring the value of today's excess cash, which doesn't come from future cash flows). This is particularly useful when looking at companies like AAPL with tons of cash.
  - ChuckMcM 15y ago
    Does enterprise value consider the uplift of actually paying cash? At $33.75 [1] EBAY has a market cap of just under $44B but to actually buy the company for cash and get everyone to tender their shares you would probably have to pay $80B+ and that would not include assumption of debt. I guess I don't get how EBAY is valued at less than their market cap. [1] http://www.google.com/finance?q=NASDAQ:EBAY http://www.google.com/finance?q=NASDAQ:EBAY
    - kcg 15y ago
      As mentioned below, enterprise value is generally calculated as equity value + debt - (excess) cash. Ebay has approximately $5 billion more cash than debt, so its EV is less than its market cap. One way to think about why cash is subtracted is that the acquirer gets to keep it. If I pay $10 billion for 100% of a company's shares, but get to keep the $1 billion in cash on the balance sheet, then the actual price of acquiring the company is only $9 billion (assuming no debt). With enough cash, it is possible to have a negative enterprise value. EV is usually calculated with the current equity value, as that is what the market "believes" the company is worth. If an acquirer comes along and wants to purchase all of the shares at a premium, you can find an implied EV from the offer price.

programminggeek 15y ago

Apple is firing on all cylinders. What is hard to appreciate is just how fast they are growing even though they are already such a big company. Can you imagine Microsoft/IBM/Oracle growing profit 125% in a year company wide when they are already as big as they are now? Most companies that get this big can't keep growing at this kind of rate. Yet, they still have a lot of room to grow in different markets - TV, PC, Mobile, Advertising, (other?) Incredibly impressive.

Geee 15y ago
Well, IBM isn't on markets that grow. Smartphones are obviously really hot right now, even the 'losing' players are growing. By leading the growing markets they can cut the biggest slice of the pie.
- MaxGabriel 15y ago
  Yeah, but you could say the same thing about Apple if it had stuck to making only Macs. Also, Apple is to a great degree responsible for making some of the markets in hot. Thus the comparison is still valid
pbreit 15y ago
What totally blew me away was revenue moving from $15.7b to $28.6b. This is a company that was near death 15 years ago and is now within a hair of being the most valuable company in the world.
omouse 15y ago
did their employees all get a pay raise? are the manufacturing workers adequately compensated?
- billmcneale 15y ago
  Apple hasn't been in the top 100 companies to work for in the past five years (probably goes back further), so... no. Several friends of mine confirm this: they're not treated very well nor recognized, they work 70 hours a week, but they love it. Obviously, it's not for everyone, you need to love the company to work there.

truthout 15y ago

Apple is an animal. Profits +125% yoy Revenue +82% yoy Stock +25$ after hours. 403$, all time high.

newmediaclay 15y ago

Absurd. It's also awesome that they continue to mock the Street by giving their ridiculously low estimates for the succeeding quarter.

marklabedz 15y ago
"...350 basis points higher than guidance..."
truthout 15y ago
Mock the street? Lol... The street loves AAPL and AAPL loves the street. Did you see the stock up 25$ after hours? Who do you think is trading that. Hint: not Joe six pack.
JakeSc 15y ago
I saw that - the revenue projection for next quarter is $3.5b less than revenue for this quarter. I don't understand this. Are there any rules for making accurate revenue projections?
- krishna2 15y ago
  There is no rule that subsequent quarter revenue should be higher than the prior quarter. [For e.g. the holiday quarter is generally the highest revenue yielding one for consumer electronics companies]. That said, Apple generally sets the expectations way low. The street knows that. They figure out a higher number (based on the past) and make that their expectation and price the stock as such. The interesting thing though is that Apple has been beating that higher expectation as well.
- CamperBob 15y ago
  I'm sure not going to buy an iPhone or iPad right now, given the heavily-rumored launch of the next-gen models in late Q3. That could be why they're sandbagging the revenue projections.
  - pbreit 15y ago

yequalsx 15y ago

I bought my first Mac on Friday at the Mall of America. There's a Microsoft store right across from the Apple store. It was amazing to me how much more crowded the Apple store was. There were a lot of people at the Microsoft store but it was ridiculous how many were at the Apple store.

aforty 15y ago
More importantly, how do you like your first Mac?
- yequalsx 15y ago
  Some things I really like and some I really hate. Overall though I like it (Macbook Pro 13" base model - no upgrades). I don't know why but I thought it would load applications faster than it does. Though, the overpowered Dell I bought last December is even slower. Why do I have this feeling my Mac should load applications faster? I don't know. I don't like traversing the file system in the Mac. Perhaps its familiarity with Windows. File search on the Mac is infinitely faster though. I like that Macs are true multi-user operating systems. I can separate work and leisure better that way. I didn't think I would care but I really like that the battery lasts a long time on the Mac. I pretty never used battery power on Windows laptops because "3 hours time remaining" ended up being 45 minutes. The overall user experience is much better but I'm still getting used to it. I really hate that I can't create a folder at the time I save a document. Maybe there's a setting I don't know. The most telling thing I can say is that I'm fairly certain that I'll never get a Windows machine again. With less ram, less video card power, less processing speed, my Macbook is much more responsive and the screen is much better.
  - sid0 15y ago
    I'm not sure what definition of multiuser you're using, but all the Windows NT-based OSes meet the normal definition of multiuser.
  - aeontech 15y ago
    command-shift-n to create a new folder even in a save dialog. command-shift-g to quickly go to a filesystem path (supports tab completion. It's unix filesystem, so ~/ == your home directory. ~/Doc[tab] will take you to your Documents folder, etc). As for speed - RAM upgrade and an SSD make all the difference in the world (as they would for windows as well). Oh, also, if you're new to the mac, you might need some of these: * Quicksilver http://qsapp.com/ http://qsapp.com/ - quick app launcher and much more. * Adium http://adium.im/ http://adium.im/ - the only IM client you'll need * Colloquy http://colloquy.info/ http://colloquy.info/ - IRC client * DTerm or iTerm - somewhat better than default Terminal.app * Hex Fiend - awesome hex editor * HandBrake - video conversion * Sublime Text / Textmate - really excellent programmer editors * XLD - lossless audio conversion

marklabedz 15y ago

Oppenheimer mentioned that Apple is transitioning products and that it will impact their projected revenues. Is this Lion/MBA/MB/iPhone? If so, how would that lead to a softening of revenue?

hkarthik 15y ago
This isn't abnormal for Apple, they usually project lower than expected revenues every quarter. However, I think iCloud is going to require a lot of capital expenditures. It's going to be free and will likely be utilized by nearly their entire existing customer base along with any future customers. They are probably preparing Wall St. for that.
- lucaswagner 15y ago
  It was mentioned in the call that, due to iCloud, they've started deferring revenues from Macs and iOS devices to account for the ongoing cost of the service.
Anechoic 15y ago
If so, how would that lead to a softening of revenue? I would guess that the transition involves the iPhone 5 (or 4S or whatever you want to call it) - announcing the iPhone 5 will kill iPhone 4 sales, and Apple always seems to have trouble meeting demand at product introductions so product constraints will probably mean lower sales/revenues.
- marklabedz 15y ago
  That makes sense. My initial thought was that iPhone "5" would lead to a spike in demand and therefore a spike in revenue. I forgot to take into account the ability (or lack thereof) to MEET demand. Thank you.
r00fus 15y ago
"Transitioning products" in response to a lowered guidance could very well mean that the prepaid, differentiated, iPhone for emerging markets (currently rumored) is more likely.

Anechoic 15y ago

20.34 million iPhones in the quarter comes out to about 225,000 iPhones sold per day. Google recently announced 500,000 Android "activations' Android per day. So Android still has the market share advantage?

YooLi 15y ago
Does that mean Android 'activations' includes only Android phones?
- Anechoic 15y ago
  Good question, I think it also includes tablets, but I am presuming that the bulk of the numbers represents phones.
  - deleted 15y ago
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  - deleted 15y ago
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  - Tyrannosaurs 15y ago
    I think the tablet to phone ratio right now is such that it's not that big a deal which it represents. That's not to say Android tablets won't take off, just that in the numbers that have been published until now they're not selling that well and the phones are selling like hot cakes.
    - YooLi 15y ago
      The Nook runs Android. I wonder if it counts towards 'activations'. Last quarter B&N sold ~3M Nooks, which would be ~33k activations per day. Not that huge, but the difference between 465k and 500k activations. The Nook and other tablets and devices might actually end up combining to an appreciable amount (100k/day??).
      - 15y ago

protomyth 15y ago

and Lion comes Wed. Don't think they've ever announced a release date on a financial call.

xcode 15y ago

While Apple is doing great, I see some flatlining starting next year once the market for high-price computers start to saturate. Just an opinion.

jshen 15y ago
the iPad isn't high priced compared to competitors, nor is the iphone. For that matter, nor is the macbook air. PCs with the same features as the MBA are more expensive!
arjn 15y ago
why is this comment being down-voted ?
- dougws 15y ago
  Probably because people have been predicting this kind of thing for years. It is also worth pointing out that only 18% of Apple's ridiculous revenue comes from Mac sales.
  - c2 15y ago
    To be fair, people have been predicting both sides of the coin for a while. People predicting success on hacker news tend to get upvoted, and people predicting failure tend to be downvoted, regardless of the reality of the situation. Right now Apple is doing great. I would still question the sustainability of this business as an investor. What's next after ipad? Long term, 5 years say, ipad/iphone margins will evaporate and Apple will need a series of "big things" to fill in the gaps to even have a flat growth curve to justify their market cap - that's my prediction.
    - bbgm 15y ago
      And if any company has a track record over the past decade of delivering "big things" it's Apple. No company in recent history comes even close. Can they? Who knows, but if anyone can, it's Apple.

kbd 15y ago

Ridiculous, Apple has nearly as much profit per quarter as Google has revenue.

MikeCapone 15y ago
Indeed. Though most iPhone users are Google users, so Apple doing well should also help Google grow.

steveb 15y ago

iOS is about to displace Windows/DOS as the top selling OS in the U.S. A Microsoft OS has probably been the top seller for the last 30 years. Just a rough back of the envelope calculation is 12-13 million iOS devices sold in the U.S. this quarter. (7 million iPhone, 3.5 iPad, 1.6 iPod Touch at 35% US/Global). In comparison, 2Q11 non-Mac PC sales in the U.S. were about 16 million (and shrinking). iPhone 5 on sprint/T-mobile and iPad 2 Christmas sales will give iOS a good chance to take the lead.

ugh 15y ago
What about Android? It seems that worldwide quite a few more Android devices than iOS devices are activated per day. Are less than 35% of all Android devices sold in the US?
- steveb 15y ago
  Based on U.S. market share, Android would be selling about 10 million a quarter in the U.S., so depending on growth they may or may not be the ones to displace Windows first. In order to get to 15 million this quarter, Android would have to be outselling iPhone over 2 to 1 in the U.S. to make up for the iPad/iPod Touch. Android will get a good boost if the rumored Amazon tablet comes out. It's just a matter of time.
- gte910h 15y ago
  Where do you get that number?
  - ugh 15y ago
    From Apple’s and Google’s Q2 quarterly earnings call, respectively. Google just announced that they activate 550,000 Android devices per day. That’s in all likelihood (and considering the language) not an average value for the whole quarter but only the most recent value (that must have been rapidly growing during the last quarter). Still, the average for the last quarter is probably over or around 500,000. Apple doesn’t publish any such numbers but it’s easy to estimate them. Apple sold 20m iPhones, 9m iPads and 8m iPods. Tim Cook said during the earnings call that about half of those iPods run iOS. That’s about 33m iOS devices altogether for the whole quarter, for an average of 360,000 sold devices per day.

MaysonL 15y ago

$11.1 billion cash flow from operations for the quarter, $76 billion in cash and marketable securities.

aforty 15y ago

Absolutely absurd and amazing at the same time. Tip your hat to Apple, nothing else to do in this case.

guelo 15y ago
Or you can marvel in amazement at their greed in suing their competitors.
- sigzero 15y ago
  Please...take your trolling elsewhere.
  - guelo 15y ago
    Please explain how I'm trolling. aforty said that there was nothing you could do but admire Apple, I have a different yet valid reaction.
    - pbreit 15y ago
      You do realize that the actions Apple takes are what is responsible for its success?
  - bdr 15y ago
    I don't think you should use the accusation of trolling to silence unpopular opinions, or even wrong ones.
- ceejayoz 15y ago
  All the major players in the mobile space are suing each other. http://thenextweb.com/mobile/2010/10/08/whos-suing-whom-in-mobile-infographic/ http://thenextweb.com/mobile/2010/10/08/whos-suing-whom-in-m...
  - guelo 15y ago
    That's a pretty disingenuous thing to say since Google, HTC, LG and Samsung are being sued, they're not doing the suing. Also, that graph is outdated, Apple is now also suing Samsung and Motorola... their other big smartphone competitors.

hackermom 15y ago

Bombastic numbers as usual. So, when can I get an MB Pro 13" with an up-to-par screen resolution? :)

rexf 15y ago
A matte screen without having to choose an upgrade on the 15" MBP please.
- jarek 15y ago
  Would you like an ExpressCard slot with that?
jarek 15y ago
Realistically, when OS X gets resolution independence Steve likes. So, not until the next OS after Lion at the earliest.
- hackermom 15y ago
  What's realistic about that? The 11" and 13" Air both got bumped over the 13" "pro", but I'm still stuck with my pricier 13" "Pro" model with screen real estate below what consumer grade PC laptops offer for half the price.
  - jarek 15y ago
    This is a good point. I guess the only explanation that doesn't involve cheaping out or questionable market segmentation attempts is that they don't see a jump to 1440*900 / 128 DPI as worthwhile and would prefer something more. Me, I like my 133 DPI Thinkpad for when I need screen space, so I'm pretty neutral on this :)

AndrewZ 15y ago

The nice thing about this is that they sold 20 million iphone 4, which is actually over an year old now ...

j79 15y ago
Exactly! I think a flood of new iPhones owners will be hitting this fall. I know plenty of iPhone 3GS owners waiting to pick up the rumored iPhone 5. By that point, I may even be ready to replace my iPhone 4 with the 5...
- mitchty 15y ago
  Chalk me up as one of those 3gs owners. I was originally waiting for the white iphone 4, but, well by the time April rolled around there didn't seem like much reason to bother with it anymore.

offshore_guy 15y ago

I think we need a windfall tax on Big Apple.

jacques_chester 15y ago
Will you offset the windfall tax with payments when Apple makes losses?

pbreit 15y ago

Apple is in a position now where it could shave off some margin on the Mac side and try to bump that share number up to 10% or 20% or even 30%. The world would be a better place.

shriphani 15y ago

Have to hand it to Apple leadership. How much has he accomplished in 12 years? Taking leadership, turning the org around, the iPod lineup, building a super-strong brand, then iPhone, iPad and now the Mac sees a healthy resurgence. I am sure that if he has to start afresh, Mr. Jobs will do it and build another apple.... what a fantastic leader.