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Apple’s Q1 2013: Revenue Up 17.7% to $54.5B, $13.1B In Profit
- Steko 14y agoTim Cook, from the call: "In addition to reporting changes, to further increase transparency, we're changing our guidance approach In the past, we've given a conservative estimate. Going forward, we plan to project what we are likely to achieve" And the projection for the Jan-Mar quarter: "we are expecting between $41 and $43 billion for the next quarter"
- bitcartel 14y agoHow much of the profit is trapped outside the US? It seems a tax holiday on repatriating those funds is unlikely to happen, given that Google just sunk $1bn into a new London HQ. What will Apple execs do?
- protomyth 14y agoI would imagine the same investment strategy and using the money to make huge component buys. I gotta wonder how much investment in the US is kept from happening by the US government's insistence on taxing income not made in the US.
- sthkr 14y agoYou do realize that eventually China will become a huge market for Apple! If Google and Apple spend money outside of the US, it is for tapping into international talent! And if the money was earned outside of US soil, then there's no need for it to come into the US and run through taxes.
- kevinpet 14y agoBringing the profits into the US isn't about where it's made. It's about where the company is based for purposes of dividends. Apple is a US company right now, and if they were to pay dividends, it would be the US branch (the public company) that pays them.
- pixeloution 14y agoHere's my question: Why is the stock down 5% on an announcement that beats estimates, and is a record for the company, along with positive guidance. I do not understand the markets as much as I thought I did.
- jonknee 14y agoThey did not beat estimates and their margins took a huge hit.
- Cookingboy 14y agoThey missed the revenue by less than 1% (despite stock already falling 30% in the past 3 months) and they beat on EPS. Margin was in line with expectation as well.
- zmmmmm 14y agoI think the the combo of increasing revenue but flat on profit is worrying: that tells you something is eating away at the profitability of the company. It jives with the perception that the company has "peaked" and its best days are behind it, that competition is successfully biting into margins.
- millstone 14y agoThis exactly describes Google's most recent quarter - profits up 6%, revenues up 19%. Yet investors welcomed those results.
- zmmmmm 14y agoIt probably does, but Google's current stock price isn't predicated on the same assumptions as Apples. It's seeing those assumptions threatened that is worrying, not the raw numbers.
- brown9-2 14y ago
- kryptiskt 14y agoThere's one thing that has me worried here. And it has nothing to do with EPS and profit margins and the like, let Wall Street worry about that, what I'm worried about has little effect on Apple's bottom line these days. It is that Apple sold just 4.1 million Macs, missing the estimates badly. General-purpose computing is starting to look more and more like a profitable hobby for Apple. That it is in retreat over the whole industry only makes it worse. Maybe the day when most everybody has been herded into a walled garden isn't too far away.
- jonknee 14y agoNot having iMacs to sell for most of the quarter certainly didn't help the situation (not that it's an excuse, Apple is to blame for not having iMacs to sell).
- elemeno 14y agoAt least for Apple it seems to be a profitable hobby which is more than can be said for some PC makers. It certainly seems like there's a downtick in computer buying as a whole - perhaps because its a fairly saturated market that's now driven by upgrades rather than new users combined with it's taking longer for a computer to be really out of date.
- ghshephard 14y agoApple is going to have a problem on it's hands selling Mac's moving forward - I have a 13" 2010 MacBook Air, that is currently running 27 applications (including VMware w/Windows XP). I don't really feel any pressing need to upgrade, and will likely wait another year at least. For non-gamers, the Mac's that Apple sells are now lasting three, four, and in the case of the iMac, 5+ years. That's going to kill their sales to existing customers - so they'll need to rely more on their mobile platforms (not that they don't already)
- xentronium 14y ago> I don't really feel any pressing need to upgrade Retina displays could be a driving force for selling more airs.
- Steko 14y agoArs live blog of the earnings call: http://live.arstechnica.com/apples-2013-q1-earnings-call/ http://live.arstechnica.com/apples-2013-q1-earnings-call/
- ChuckMcM 14y agoInteresting stuff indeed: Q1 2012 46.3B Revenue 13.1B Profit (28.3% net profit) Q1 2013 54.5B Revenue 13.1B Profit (24.0% net profit) So 4.3% of your net profit (2.3 billion dollars) went somewhere. Did anyone see on their balance sheet where it went? Any extraordinary items? Down payment on the new HQ or anything?
- Steko 14y agoiPads are lower margin than phones so a higher mix of ipads would give a lower profit percent. Fundamentally though they sold a lot more phones and a lot more ipads which are the big ticket items so you'd think total profits would go up but they are the same 13.1 bln so maybe there is some big investment made.
- corresation 14y agoNeither investments nor dividends impact net profit.
- jdthomas 14y agohttps://www.sec.gov/Archives/edgar/data/320193/000119312513020783/d453749dex991.htm https://www.sec.gov/Archives/edgar/data/320193/0001193125130... Dividend perhaps? edit: I suppose that doesn't come out of operating expenses
- alwaysinshade 14y ago
- porterhaney 14y agoFYI: Q1 2012 = 14 weeks Q1 2013 = 13 weeks Q1 2012 profit/week = $0.93B Q1 2013 profit/week = $1.00B
- ambirex 14y agoOne of the more interesting parts of the call is them saying they are abandoning their conservative guidance for a more "likely" one.
- OGinparadise 14y ago$13 Billion in profit a quarter and Wall Street slams their stock. I guess they expect 20% growth year to year on a company valued at $500Billion.
- nirvana 14y agoDespite the quarter being a week shorter, YoY growth on the iPhone and iPad unit sales was around %30. So, even if that's what Wall Street expected it seems ... off... to be down so much. I think the reality is, some people expected %50 growth, and Wall Street doesn't like the fact that the margins are smaller. The margins being smaller, however, goes hand in hand with what it takes to produce the massive growth... and the margins will improve. Which is why markets aren't perfectly efficient... and people have an opportunity to profit from this kind of nonsense.
- OGinparadise 14y agoI understand the reasons, just don't agree with them. Google is meanwhile at 24 PE (~double AAPL') simply because they ruined their product by introducing "pay to play." What's going to happen a few quarters down the line when everything is pay-to-play and maxed out? But I guess they can sell the shares
- 6thSigma 14y agoWith a company as big as Apple ($485B market cap) you can pretty much throw out the fundamentals. The question is, can they continue to grow? I personally don't think they can grow to be much bigger than they already are.
- OGinparadise 14y agoThere must be some unwritten law about not growing above $500 Billion market cap, at last not staying there for any long durations. Makes sense, especially in tech companies; an investor has a lot to lose and less upside given the current market cap.
- jpxxx 14y agoTL;DR: -- Music players remain a shrinking niche. -- Mac sales have (at least) plateaued and are likely sinking in lockstep with the rest of the classical PC industry. -- Apple is doing fine. 75%+ of their revenue is now from iOS. -- China is important.
- pooriaazimi 14y ago(to save others the trouble of doing the math themselves) It means 6 iPhones/second and (almost) 3 iPads/second.
- nodesocket 14y agoNice graphs, courtesy of TechCrunch for visual people. http://techcrunch.com/2013/01/23/apples-record-first-quarter-of-2013-in-charts/ http://techcrunch.com/2013/01/23/apples-record-first-quarter...
- Steko 14y agoStrange this article has 30 pts, is 1 hour old and is at the bottom of page 2. A 3 year old article with similar pts is in the top 20. Does Apple take 30% of the HN points too? Techcrunch penalty?
- msbarnett 14y agoIt's probably being flagged down by the Android fanboy contingent more than anything else.
- positr0n 14y agoOr by people who don't wear their hardware choice on their sleeve and don't think a corporation's quarterly earnings are interesting to hackers.
- Steko 14y agoHow is that not an egregious misuse of the flag button. Do people just go down the list and flag every article they aren't personally interested in?
- msbarnett 14y agoI'm not interested in Lemmings, Python, or the fate of THQ, but I don't flag those stories down simply because they're not of interest to me or do not fit what I personally imagine "hackers" should care about.
- epistasis 14y agoWhat a shame if anybody does that. Hacker News, for me at least, has always been about business as well, and the size of the iOS market is constantly changing and of interest to many hackers that have sharecropped the App Store.
- Steko 14y agoOh I didn't realize that impacted it. Seems like a dodgy use of the flag button.