Well, it also depends if their products can continue to be perceived as a "premium" product over their competitors.
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Apple posts $9.5 billion net profit in Q2 2013
- Thread starter DrFunk
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Well, it also depends if their products can continue to be perceived as a "premium" product over their competitors.
Cook talked about new product categories, not new products.
And they last announced new products about half a year ago, not recently. The iPhone 5 is entering its 4th quarter and the iPads are entering their 3rd quarter.
for some aspects of hardware. But not all. there are cheap laptops that feel cheap and have poor battery life and shitty screens even if they have the same CPU and memory as other laptops.
then there's stuff priced over $500 (or around $1K, where the Mac laptops start) that feel good and work well and are worth the higher price.
As for TVs, I think we're on the same page. As I said in my first post: the only reason to get an Apple TV over another brand would be for content. Apple would need to upend the cable industry. I don't see that happening so I don't see an Apple TV set being a major success - at the margins that Apple would want to sell it for - unless they can really let people get rid of cable or otherwise do something with content that Samsung, Panasonic and LG can't do.
Buy both Sony and Nintendo.
grimshawish
Banned
Fair enough. I still don't take it as a time to buy personally unless we're talking next iPad material. Maybe time to take a big risk idk
They have new products every holiday season; thats the point. Its not going to act as a sudden change to the company.
Unless its a big new category ofc.
he said new product categories in the fall and in 2014. There'll be updates to Macs and whatnot before then.
I'd still expect WWDC to be almost entirely iOS and Mac OS focused, though.
Until last holiday season, there were new products about every quarter, with the holiday quarter being just the iPod quarter.
Q2 - iPad, Q3 - iPhone, Q4 - iPod, and Mac updates would be interspersed
I don't know why you make the claim that it happens every holiday season, last season was the first time they stuffed everything into the holiday season.
Technosteve
Banned
If they put out iphone 5s i am getting a htc one tired of being on the s cycle
New product lines are exactly what investors feel like Apple has been lacking in ever since Tim Cook has taken the helm. Instead Apple has just given out updated iterations to existing products. That's why the stock has lost $300 a share, because investors felt there wasn't much potential for future growth and markets. So yes, if by this time next year Apple has launched some new product lines that generate excitement and drive sales then I definitely expect some potential for a share price increase.
I doubt that alone had much of an impact.
Unless Apple launches a new category of products they'll just be facing slimer margins as well as stronger competition from Samsung & Co. Even bigger dividends and a buyback that big won't change that fact.
The main reason Apple stock went from $425 in the immediate aftermath of the earnings report, and then gave that $20 back was because in the earnings call Tim Cook said Apple would have new product lines this fall and in 2014. Investors were hoping to see them this summer, and are disappointed it's taking so long for Apple to get back on a hot streak again. The day traders bought immediately hoping for a quicker return, and dumped the stock the second they learned the gains would be 1 year away.
grimshawish
Banned
They have new products out each year - these are new products for that holiday season even if they are released in January.
Products released throughout the year will have a better effect on quarterly earnings than products released only in the holiday quarter. Q3 used to be a huge quarter for Apple, since that was when the iPhone released, now Q3 is projected to be pretty low.
The 3rd generation iPad was released in March 2012 (Q1) but was not a new product for that holiday season. They released the 4th generation iPad in November (Q4).
It is, but the reason they introduced low end products in the first place is that Android was eating them from the bottom up.
I think everyone understands that. But I expected it to stay in the green due to the massive $60 Billion buyback. Its actually down a couple bucks now in after hours, I mean goddamn, were it not for that buyback I'm thinking it would have broken below $390.
They beat consensus analyst estimates for revenue and profit, its unlikely that it would go down for that.
The funny part is, at this point, The Iphone is a low end product.
Nothing1016
Member
The only good that came out of this call, was the creation of a new product category for Apple launching this fall. Unless Tim Cook is a lies.
Probably a smart watch
He protected himself by saying there is no specific timeframe and saying "throughout 2014."
Brofist
Member
Just add two zeros to any number to get a rough estimate of dollar to yen. It works now that the dollar is = to about 100 yen.
So 950 billion yen.
In what way?
Pristine_Condition
Member
They paid a dividend last quarter. They are increasing that dividend by approx. 2x this quarter. With this move, Apple becomes one of the top dividend-paying companies on Wall Street.
Why are you bringing that up to support a bearish thesis? Sounds like good news to me. Lower component costs = margin recovery = more profit
Not true. The dividend is increasing by 15%. What's doubling is the total payout to shareholders over three years, including share buybacks (which now represents $60 billion out of a total of $100 billion, with dividends representing the other $40 billion)
You Are Viewtiful
Member
Woah I should keep up with this stuff. Probably a great time to buy some Japanese imports.
The 4 is free on contract? /shrugs
That's the only way that post makes a lick of sense.
Ephemeris
Member
I can't speak for the retail side of things, but on the corporate side we've been hiring a crapload the last two years.
They were always going to beat the analyst estimates; some of those numbers were just unrealistic.
Stocks tumble because future growth is in jeopardy.
First time in the past decade that they had a decline in profit. You guys need to remember that investors are really looking for growth at this point- it just isn't there for everything except the iPad line. But I was expecting it, as the iPhone is definitely losing steam. An iOS revamp is desperately needed at this point.
It's also a shame that they're not investing any of their stock buyback / dividend plan into their employees. Shareholders always come first, I suppose.
It's also a shame that they're not investing any of their stock buyback / dividend plan into their employees. Shareholders always come first, I suppose.
Whose numbers are you talking about, and why are they unrealistic? The lowest revenue/EPS estimate, from Citigroup, still overestimated Mac sales and was pretty high on iPad estimates at 18 million. I'm only referring to institutional analysts and not independent analysts/bloggers, where Apple actually underperformed expectations, except with the iPad numbers.
I don't agree. The best Apple can do, assuming they continue to not create new markets ala Jobs era, is maintain what they have. If they can do that, I'll be impressed. Why? Because they're playing defense from all directions. Without something new, they're going to have to compete with similar products with razor thin margins.
In a "I'm trolling this thread with stupid statements" way.
That article is speculating about price targets for different scenarios in general, not about this particular quarter. There's no time frame provided.
Barclays' actual GM estimate for fiscal Q2 was 38.1%
No, the article is about the Tuesday (today) call (or more appropriately, his price target) and near the end of the article he mentions the 36%.
edit: ^ Saw your post above. I could've sworn I also saw another Barclay's number at 36% last week. Let me go look for it.
Nope, Ben Reitze (the analyst referred to in your link) and Barclays, overestimated gross margin for the quarter as 38.1%, versus the actual 37.5% margin:
http://tech.fortune.cnn.com/2013/04/23/apple-earnings-analysts-estimates/
You are referencing his long-term outlook for Apple as a company, not the quarterly estimate.
Yes, 36% is mentioned. Without a time frame. He's saying they're going to 36%.
He's basically saying "Apple is worth $465 if margins stabilize at 36%, but it's worth $340 if they go down to 33%"
His 36% estimate is actually realistic considering Apple guided for 36-37% for next quarter.
Ah there we go, my bad. Found Barclay's original estimates from March:
http://www.valuewalk.com/2013/03/apple-inc-aapl-ecosystem-is-solid-and-has-room-to-grow-barclays/
http://www.valuewalk.com/2013/03/apple-inc-aapl-ecosystem-is-solid-and-has-room-to-grow-barclays/
Kung Fu Jedi
Member
Mac sales being flat is actually a good thing considering how the PC market is performing right now. I know investors want to see growth of course, but considering how the bottom is supposedly falling out from computer sales a the moment, it is actually a good sign for Apple that their sales are at least holding steady.
Liu Kang Baking A Pie
Member
This complaint is short-sighted. Application development has exploded since the App Store came out, and there are thousands of new companies devoted just to that.
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