There's a conference call underway, more at the link: http://www.engadget.com/2013/04/23/apple-posts-q2-2013-earnings/
Now they "only" have enough cash in bank to buy EVERY team in NFL, NBA, NHL, and MLB
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Apple posts $9.5 billion net profit in Q2 2013
- Thread starter DrFunk
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There's a conference call underway, more at the link: http://www.engadget.com/2013/04/23/apple-posts-q2-2013-earnings/
Now they "only" have enough cash in bank to buy EVERY team in NFL, NBA, NHL, and MLB
SnakeswithLasers
Member
It's unfortunate that they don't generate more jobs.
Wafflecakes
Member
So down from last year?
Investors will not be happy.
Investors will not be happy.
They are. Revenue up, profit down. Margins shrinking.
Sye d'Burns
Member
Man, o man, that's a wad of cash. Time for Apple to buy back some of that collapsing stock.
entremet
Member
lol. Investor would be first, but they haven't paid a dividend in a bit, though.
Welp, we can expect the 5s to be rearing its head soon then.
monchi-kun
Member
(insert steve jobs joke here)
TacticalFox88
Banned
That stopped being a possibility on 10/5/11
Wafflecakes
Member
I never understood what practical goal sitting on 100 billion of cash achieves.
Sye d'Burns
Member
Like ice. They could definitely use some more of his PT Barnum-esque mojo.
They also like being the largest hedge fund in the world obviously. Gets them invited to all the nice hookers and blow parties. Well maybe Bridgewater has them beat.
jts
...hate me...
They have actually. Cook has been payin' like a mofo.
BertramCooper
Banned
Ha ha ha, that's a good one.
Guided lower than consensus too. And Apple doesn't sandbag guidance any more.
Cross-posting from the other thread: http://www.neogaf.com/forum/showpost.php?p=55117848&postcount=728
I see this as a pure shareholder play. The stock buyback is nice for current investors but has minimal effect on their long term outlook (edit: long term outlook is bad).
I see this as a pure shareholder play. The stock buyback is nice for current investors but has minimal effect on their long term outlook (edit: long term outlook is bad).
saltinekracka
Member
Looks like they're using $50bil to buyback shares.
nhlducks35
Member
Beat expectations and $60 Billion share buyback, stock will easily go up.
Things that caught my attention. (I don't care much about details of stock buyback programs)
Mac sales flat.
iPhone sales kinda flat YoY (up only 7%)
iPad sales up a lot YoY (from ~11 to ~19 million)
margins down quite a bit to under 40% (Looks to be ipad mini causing this)
The iPad is the only growing product from last year to this year. Not exactly a mindblowing quarter
Mac sales flat.
iPhone sales kinda flat YoY (up only 7%)
iPad sales up a lot YoY (from ~11 to ~19 million)
margins down quite a bit to under 40% (Looks to be ipad mini causing this)
The iPad is the only growing product from last year to this year. Not exactly a mindblowing quarter
The margins is what people should be paying attention to, especially with rumors of a new low-cost iPhone.
I think the expectations were too low going into this earnings report. Some people were expecting a total margin crash, which was totally unrealistic.
This will be the 3rd quarter for the iPhone 5 (2nd full quarter) though, while last year it was the 2nd quarter (and first full quarter) for iPhone 4S.
Actually, it's better than investors feared, so stock is up a bit (Well also caused by the buyback)
that was something I was thinking about. Will Apple be more aggressive with iPhone and Mac as they have been with the ipad to get a lower margin product out there? I'm not talking a cheap piece of crap but something that might drive sales and lower overall margins closer to 30%. more of a long term move.
or will they stick with the strategy they have now - hope that the iphone 5S and iphone 6 will boost growth as high as they iPhone 4 did - and look at the "new product categories" that Cook mentioned (we're all guessing TV and watch accessory, I suppose) for growth.
I don't think a smartwatch is anything special, to be honest. And I still don't think they will be able to change TV programming and cable to the point that buying an Apple set will make sense.
good point.
Commoditization of the smart phone. The fear is that apple cannot compete in a commodity market. All new tech markets devolve into commodities with the exception of maybe software. This is why Apple constantly plays up the software side of their business model.
Under Jobs with the track record of ipod then iphone years later then ipad investors were reassured that even as mature markets moved into the commoditization phase that Apple would open up new tech markets. I think the low cost iphone from an investor standpoint is the worse thing Apple could do for their shareprice (even if it makes tons of since from a profit standpoint). Sadly these do not align in modern markets. Perception and MOMO and QE ar ethe only thing that matters.
jts
...hate me...
You cannot pioneer markets all the time, so growth has to to slowdown and margins have to drop, as those markets mature.
It doesn't mean that it's an endangered company by any stretch.
It's a rich as fuck, ultra-successful company.
About the new product category, I can't see them pulling a relevant stunt to be honest. Watch, TV, seem like markets that are much smaller and/or with many more challenges.
It doesn't mean that it's an endangered company by any stretch.
It's a rich as fuck, ultra-successful company.
About the new product category, I can't see them pulling a relevant stunt to be honest. Watch, TV, seem like markets that are much smaller and/or with many more challenges.
grimshawish
Banned
Nooooo.
They were around 400 at the start of 2012. Their profits have fallen since.
Stop this nonsense. Being 700 was not the state of affairs, it was the blip.
Correct. We're almost a decade into the smartphone era ushered in by Apple. If the TV market is anything to go by, we could see a dramatic price decrease of smartphones (and by extension, tablets) sometime in the next two to three years.
Buying flagship smartphones off contract 3 and 4 times a year? Sheeeeeeeeeeit I'd kill for the prices to get so low that I could do that without feeling guilty.
Stop getting my hopes up bro.
I don't see 700 as being the state of affairs either, but based upon Tim Cook's earnings call he expects new products to be released this holiday season and into 2014. So I see some decent upside potential.
But I'm actually serious on that point. SoCs are going to become super cheap because of Moore's law. Displays will get cheaper and cheaper (and max out at 1080p because seriously who needs 4k on cellphones right?!). There are cell phones in China with specs that I could've only dreamt about years ago for a fraction of the price.
The only limiting factor is battery tech, which is a billion-dollar problem for all industries.
edit: I should also say that upcoming 700 MHz auctions (and subsequent baseband chips) will add to the cost of future SoCs, but I don't see it adding that much.
Prices will decrease for the devices or brands that no one cares about. Brands are important and the quality brands will always be able to charge a premium.
So Apple may not be able to get away with 40+% margins but they won't be competing with dirt cheap stuff that is commoditized.
Note how they managed to remain at the top of the mp3 player market long after it became commoditized. That market dropped when they killed it with the iphone.
So Apple may not be able to get away with 40+% margins but they won't be competing with dirt cheap stuff that is commoditized.
Note how they managed to remain at the top of the mp3 player market long after it became commoditized. That market dropped when they killed it with the iphone.
But isn't that due to them introducing new products in the low-end market that cannibalizing high-end sales (iPad Mini) rather than lowering margins on existing products?
grimshawish
Banned
Yeah and Nintendo might have a Mario game this holiday season. SHOCK HORROR NEWS
The market knows Apple will launch new products, this is not new. They just launched new products.
I mean co'mon. What you're saying is basically you think it'll be cold in the Winter so you'd better buy into energy!
As a previous poster said, look what happened in the TV market. Commoditization is an inevitability from a hardware standpoint. And that is why Apple uses software for a competitive advantage and doesn't license it out.
For Apple to be $700 and higher they need to keep having an iphone/ipad hit every 5 years.
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