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Apple Reports First Quarter Results
- bhartzer 13y agoThat's a lot of ipads and iphones sold. Can't wait to see how many Samsung sold.
- nailer 13y agoLess than expected: http://www.businessinsider.com/apple-q1-earnings-2014-1 http://www.businessinsider.com/apple-q1-earnings-2014-1
- psbp 13y agoWe'll undoubtedly see some sort of fall for samsung. Apple is releasing larger screen iPhones, android competitors in every market are becoming more aggressive , etc.
- dba7dba 13y agoKinda ironic if apple does increase sales with bigger screen, because it means apple is a follower, not a leader.
- pezh0re 13y agoThey've been following on more than a few things already - notifications, multi-tasking, etc.
- nailer 13y agoApple 'followed' on smartphones and tablets. I'd say they execute so well it doesn't matter.
- gress 13y agoDoing something at the correct time to defeat a competitor doesn't make you a follower. It means you understand the market better.
- dba7dba 13y agoI'm assuming you are saying Apple understands the market better because they are doing something (releasing iphone with bigger screen) at correct time to defeat samsung. Isn't that what Samsung did by coming out with the bigger screened phones? Samsung knew the market was ready for bigger screens when Apple didn't think so, no?
- gress 13y agoFirstly, Samsung isn't defeating anyone. Most of the devices they ship are unprofitable low end devices. This makes for a single impressive sounding headline, but has little to do with their competitive position. Secondly - Samsung was forced to sell bigger screen phones because they couldn't achieve good battery life with smaller devices.
- dba7dba 13y agoFirst, I NEVER said Samsung was defeating anyone in my post. But come to think of it, Samsung has defeated pretty much every other Android phone makers. But again, I never said Samsung was defeating anyone. Not only that, Samsung was more profitable than apple for 2 consecutive quarters in 2013 before newer iPhones were released. Of course ton of other profits of samsung came from non-phones. http://www.businessinsider.com/samsung-is-now-a-more-profitable-company-than-apple-2013-10 http://www.businessinsider.com/samsung-is-now-a-more-profita... Second, source on that battery story?
- gress 13y agoYou may not have said Samsung was defeating anyone in your earlier comment, but you implied it, and now you have said it. Samsung has defeated all old brands that attempted to survive by adopt android, but is now itself being defeated by cheaper new Chinese brands that can steal its low end share while Apple consumes the high end. What is the point of mentioning Samsung's temporary high profits from other sources when we are discussing phone strategy?
- mkaziz 13y agoMotorola Rising
- IBM 13y agoMotorola gave up on competing with Samsung and Apple a while ago. The price cuts are a reflection of that.
- loso 13y agoApple after hours are down 6%. Analyst do not like the short term stock growth prospects.
- JonFish85 13y agoThat and the iPhone number missed analysts' expectations, apparently.
- nailer 13y agoAnalysts were all totally bullish - http://www.washingtonpost.com/business/technology/apple-shares-up-ahead-of-earnings-report/2014/01/27/047cb58a-8764-11e3-a5bd-844629433ba3_story.html http://www.washingtonpost.com/business/technology/apple-shar... and http://appleinsider.com/articles/14/01/27/earnings-preview-wall-street-expecting-record-iphone-ipad-sales-from-apples-q1-2014 http://appleinsider.com/articles/14/01/27/earnings-preview-w... and any result older than the last hour for 'Apple earnings' on Google. The iPhone numbers missed expectation, and as Apple's main product it didn't look good. http://www.businessinsider.com/apple-q1-earnings-2014-1 http://www.businessinsider.com/apple-q1-earnings-2014-1 EPS, Mac and iPad all did well.
- swombat 13y agoI agree with Gruber that the "missed expectations" expression is misleading. Analysts' expectations were not in line with reality. The iPhone numbers are what they are, irrespective of incompetent analysis. A fairer way to state this would be that analysts, as usual, were over-optimistic and this optimism caused a lot of investors to be overly optimistic too, which caused an over-inflated share price, now corrected.
- 37prime 13y agoHow in the world anyone should rely on analysts’ expectations? These analysts were just guessing and almost all of them were guessing wrong in the past. It is akin to predicting to the scores for NFL Football game.
- Perceval 13y agoThis happens every single time Apple gives an earnings report. AAPL rises before the report and falls after the report. If I had the money I would short the stock every single time.
- mdemare 13y agoI wonder how well the 5C sold. I see a lot of 5Ss in the wild, but hardly any 5Cs.
- brador 13y agoGeneral consensus in China was C stood for cheap.
- oneeyedpigeon 13y agoGeneral consensus around the world was that was what it was going to stand for, then it came out at a price point not much less than the 5S.
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- king_magic 13y agohttp://www.apple.com/iphone-5c/ http://www.apple.com/iphone-5c/
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- davidwihl 13y agoVery limited growth. Profits are flat. No wonder the stock is down 6%. Apple needs to find more competitive means in both phones and tablets - their market share will continue to erode. They are priced as a growth stock, but they are not growing.
- mdemare 13y agoThey're not priced as a growth stock. P/E is about 13, and that's including their huge pile of cash. Average P/E for the S&P is 19.
- Perceval 13y agoNot to mention that before the iPhone Apple's P/E never dropped below 20 and was usually hovering around 40.
- mdemare 13y agoApple's cash pile is 1/3 of their market cap. That means that is they'd use it to buy their own shares at the current price (they can't, they need to pay taxes on most of it first) their P/E ratio would drop to about 9.
- shovel 13y agoI've always been amazed that AAPL trades at such a low PE multiple. Can you help me understand why?
- mdemare 13y agoLive financial result earning conference call here: http://events.apple.com.edgesuite.net/14pijnaefvpijbnfdbvpijnbaefgvpjbnaef01/event/ http://events.apple.com.edgesuite.net/14pijnaefvpijbnfdbvpij... Starts at 22:00 UTC
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- austenallred 13y agoTo understand scale: Apple has given $43 Billion to investors since July 2012. Twitter's market cap is $32 Billion. Apple's net profit of $13b over the last 3 months was more than the company made from its founding in 1977 'til the iPhone launched in 2007. Last night my wife and I were organizing our room, and ended up putting our computers together, and we found three MacBooks (one is really old), two iPads and two iPhones - about $3500 worth of product. The phones are heavily subsidized by our phone bill, the computers are simply "must-haves," and the iPads are our most expensive ($350 ea.) toys. We're one year out of school and make $40,000/year.
- tcdent 13y agoNot trying to one-up you, but I have at least a dozen Apple products lying around the house. I've been using them most of my life, so some go a-ways back. Some are for nostalgia, like an SE, a Portable, a 12" PowerBook and my well-worn first-gen iPhone. My G4 tower was still getting regular use as a file server until pretty recently. Now that we just upgraded to Airs, I have a couple MacBook Pros waiting around for something creative, too. I won't drag on, but I definitely have a hard time letting some of these things go.
- groups 13y agoI think the poster's point was that he spends a lot of money on apple products, relative to his income. To understand apple's success, one should look at how much money ordinary people with ordinary jobs spend disproportionate money on products they wouldn't otherwise. There's a graph somewhere of yearly sales figures of various cars vs the cost of those cars. There's a general exponential decline from say the toyota camry, which costs reasonably and sells a lot, to a Bentley, which is the opposite. But there's an irregular data point with the BMW 3-series, because many, many people stretch to afford it. It sells disproportionately well for that reason. I'm not assigning judgment on how anyone spends their money, just pointing out that there are human reasons for business success and failure.
- tcdent 13y ago
- georgemcbay 13y agoPhones and tablets are very close to the point that desktop/laptops got to a few years back where unless there is some major disruptive technology introduced (eg. batteries with 100%+ efficiency over current ones) on top of them the one you bought this year is pretty much good enough to keep for the next many years, until it breaks somehow. There will still be a market of ultra-fashion-conscious buyers who really need this years model, just like there are people who lease brand new cars every year, but that market isn't big enough, IMO, to sustain the growth that Apple, Samsung, etc have enjoyed thus far.
- ryanhuff 13y agoNon-replaceable battery is probably a primary why this may not be the case. My iPad 3 seems to be discharging much more quickly these days, and will probably mean a replacement will be needed sometime next year.
- georgemcbay 13y agoYeah that's a good point I hadn't thought about, and it applies to non-expandable flash ram as well since basically your data will grow to fit available space. But those issues are sort of cheating since they are basically planned obsolescence features that could trivially be solved if there were any incentive to do so. But there isn't, so more landfill generated for little actual new value.
- empthought 13y ago> could trivially be solved I'm going to guess you're neither a computer hardware nor a battery engineer.
- georgemcbay 13y agoI meant solved by making the battery replaceable, even if as a service of AppleCare or whatever if not the end-consumer. See: Teslas, which have to live by the same rules as everyone else when it comes to battery life issues but whose solution isn't 'throw your car out when it won't hold a charge anymore'.
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- pezh0re 13y agoYes, because the ~6 Million iPhones that didn't get bought were because people were freaked out by the NSA. I think it's more likely because the general public weren't that thrilled with where iOS and the iPhone 5C went.
- IBM 13y agoAnother great quarter for Apple. Growth in gross margins as well as growth in units in every product line but the iPod. China Mobile sales will end up in next quarter.
- jmduke 13y agoThe magic paragraph: The Company sold 51 million iPhones, an all-time quarterly record, compared to 47.8 million in the year-ago quarter. Apple also sold 26 million iPads during the quarter, also an all-time quarterly record, compared to 22.9 million in the year-ago quarter. The Company sold 4.8 million Macs, compared to 4.1 million in the year-ago quarter. If I were to play armchair quarterback, I'd say that iPhones are reaching saturation (which, given the 5C, is relatively surprising) and the iPad is where the majority of Apple's growth lies in the coming quarters. EDIT: Apple's trailing twelve-month revenue (credit to Benedict Evans): https://pbs.twimg.com/media/BfBIdoYCEAAzNqI.jpg:large https://pbs.twimg.com/media/BfBIdoYCEAAzNqI.jpg:large
- lstamour 13y agoI wouldn't. People have caught on that if they wait another 8 months, they'll have two new iPhones to choose from. ;-)
- swombat 13y agoTo be contrasted with Android, where they only need to wait a couple of weeks for their brand new phone to be "old". Apple buyers really have a raw deal, getting to enjoy having the latest phone for a whole year.
- lstamour 13y agoThat's not what I meant. Just as sales of new Mac hardware slow before new devices come out and surge after they do, consumers are becoming more aware of the market with each device they buy. Personally, I went 3G, 3G S, 4, 4S with Nexus 4 and Lumia 920 on the side, and now Nexus 5. I found that the Nexus 4 and Lumia adjusted me to larger screen sizes, and iPhone's doesn't cut it for me right now. I love iOS 7, but I can't carry an iPad mini in my pocket, so until they release in-between sizes (which Asset Catalogs and iOS 7 both will help prepare devs for), I'm avoiding the iPhone until I really think I'll get $600-900 of joy from it. So don't get me wrong, just because I don't use an iPhone doesn't mean I don't want one. I just don't want the specific hardware they offer today, and I suspect I'm not alone.
- john_b 13y agoThis and the levelling off of their revenue will probably increase shareholder calls for share buybacks, a dividend increase, or both.
- capkutay 13y agoTim Cook can sandbag the iPhone business all he wants. While they can still bring in a ton of cash from profits, it won't trick wall street into driving their stock price up to a $1000. Maybe that's not his intention.
- lijman 13y agoI love apple!
- squigs25 13y agoWow, investors aren't liking these numbers. The reason I recently purchased Apple stock is that I foresee a large number of users coming on board once Apple launches a larger screen size for their iPhone line up. That's the main reason I can't use an iPhone.
- sirkneeland 13y agoAs with Microsoft earnings, we will get two reactions: 1) Some people will say the sheer amount of money they are making shows they are not doomed anytime soon 2) Some people will say that making a ton of money now does not mean they will continue to do so in the future, and could still be doomed (if not to bankruptcy than at least irrelevance) in the future. Both are right. Both will argue the other is wrong.
- pcurve 13y agoCarl Icahn with $3.6 billion stake isn't probably too happy about this.
- lowglow 13y agoI'm bearish on Apple. I just don't see the leadership or focus I once saw when Jobs was still at the helm. I think they still might have a few tricks up their sleeve, but I think we're going to see less innovation as the years go on.