Another record profit for Apple

[Dari]

They're just dominating everybody, with enough money in reserve to rival a middle income country. I bet Samsung, which is much much larger than Apple, wishes it had these numbers. Also, unlike Sammy, I believe those numbers are sold, not shipped. Engadget is wrong on that point.

link

Apple announces Q1 earnings, sets quarterly record with $46.33 billion in revenue
By Terrence O'Brien posted Jan 24th 2012 4:32PM
Breaking News
Apple Store Grand Central
It's that time folks: time for the quarterly running of the spreadsheets. Today Apple, one the most anticipated of all, is revealing its earnings for the past three months and let's just say things are lookin' pretty good for the Cupertino crew. The company set a new record for quarterly revenue and profit in Q1 of 2012, netting $46.33 billion in total with $13.06 billion earnings -- the latter number representing about half of the company's annual profit. That's nearly twice what Apple announced for the same (at the time record-setting) period last year -- $26.74 billion and $6 billion, respectively. In total the company shipped 15.4 million iPads, 15.4 million iPods and 5.2 million Macs this quarter. That last number is particularly surprising since it represents a growth of 26 percent over last year, bucking trends that indicated PC growth would remain flat.

Perhaps more importantly, though, the company sold just over 37 million iPhones -- a 128 percent increase over the same quarter last year and greatly exceeding industry estimates. This also moves Apple back into the number one slot, ahead of Samsung which sold a stunning 35 million units this last quarter. Sales of iPhones and accessories accounted for 24.4 billion of the quarter's revenue. Apple also anticipates to have a strong Q2, though maybe not a record-breaking one, thanks to "some amazing new products in the pipeline." But even if Q2 turns out to be a slow one, Cupertino should be perfectly fine thanks to its $97 billion in cash on hand. Check out the complete PR after the break.

Developing...

 

[hans007]

im pretty sure that is shipped.

how would they know if bestb uy or target had actaully sold an ipod, or iphone. i mean they can track how many are sold in their own stores, but other places sell apple products than just apple stores.

 

[Dari]

im pretty sure that is shipped.

how would they know if bestb uy or target had actaully sold an ipod, or iphone. i mean they can track how many are sold in their own stores, but other places sell apple products than just apple stores.

Registered devices via iTunes or something else? Unlike most other manufacturers, Apple has their own ecosystem, especially when it comes to their mobile devices. But you may be right though.

 

[ponyo]

Those are mind blowing revenue and profit numbers. Oh I wish I held on to my 30,000 shares. :'(

 

[cheezy321]

Blows it out of the water.

Also, MORE THAN HALF of the smartphones verizon sold in the previous quarter were iPhones. Mind blowing considering there are a bazillion different android phones out there and verizon was the original company pushing the 'droid' phones.

Link: http://betanews.com/2012/01/24/iphone-represents-more-than-half-of-verizon-smartphone-sales/

 

[zoiks]

I think a lot of people bought iPhones also due to the hoopla around SJ's death. There was a lot of sympathy for SJ and the company he had created. We'll see if the same numbers are repeated next year.

 

[Aikouka]

I have a feeling there will be a party at PliableMoose's house tonight!

 

[Dari]

I think a lot of people bought iPhones also due to the hoopla around SJ's death. There was a lot of sympathy for SJ and the company he had created. We'll see if the same numbers are repeated next year.

Doubtful. It could be because of all the hoopla around Siri.

 

[Phynaz]

I think a lot of people bought iPhones also due to the hoopla around SJ's death. There was a lot of sympathy for SJ and the company he had created. We'll see if the same numbers are repeated next year.

End of the year you'll have the iPhone 5 sales.

Plus, there's still all the markets Apple has yet to launch in.

 

[PeeluckyDuckee]

It will be interesting to see if this level of momentum can maintain its dominating stance in the market in the next year or so. Growth in NA is saturating, Apple will have to find new sources of revenue/profit from overseas markets.

Having said that I doubt I will go back to being an iPhone owner unless they move up to a bigger physical screen, regardless of resolution.

 

[Pliablemoose]

I have a feeling there will be a party at PliableMoose's house tonight!

I'm sipping a victory latte as we speak :biggrin:

 

[trmiv]

Having said that I doubt I will go back to being an iPhone owner unless they move up to a bigger physical screen, regardless of resolution.

Pretty much my feeling. I really liked my iPhone 4S, but once I saw the Galaxy Nexus screen there was no going back, I had to sell the 4S and get the Nexus.. If the 4S would have been the 5 and had say a 4 or 4.3" screen, I'd still own it. I like both iOS and Android so for me it's really about what I think about the device, and the screen size difference was too much for me.

 

[StrangerGuy]

If this isn't a huge wake-up call for Android makers that throwing tons of phones on the wall to see which sticks isn't exactly working in the long run I don't know what is.

 

[WelshBloke]

Those are mind blowing revenue and profit numbers. Oh I wish I held on to my 30,000 shares. :'(

Why? Unless they start paying dividends then their profits aren't directly enriching shareholders are they?

The only time you make money on their shares is when you sell them isn't it, unlike companies that pay out a percentage of profits to shareholders.

Mind you if they don't start to use up some of that warchest they might not be able to resist demands to payout a dividend.

 

[the DRIZZLE]

The increase in market share is crazy. I wonder why the sudden change at Verizon.

 

[Pliablemoose]

Why? Unless they start paying dividends then their profits aren't directly enriching shareholders are they?

The only time you make money on their shares is when you sell them isn't it, unlike companies that pay out a percentage of profits to shareholders.

Mind you if they don't start to use up some of that warchest they might not be able to resist demands to payout a dividend.

Please understand the tone of this post, I'm not calling you stupid, I'm calling the argument about dividends stupid.

It's a stupid argument, you want a dividend, sell a share of stock, or buy bonds or another investment tool, Apple uses it's cash to leverage the supply chain and to pick up non manufacturing companies that enhance shareholder value. Do you ever hear BRK stockholders bitching about dividends? That would be a no. What they did do was devise a scheme to break the BRK A into BRK B so it would be done without giving up much.

Apple has been playing this brilliantly, the dividends/split argument is for noob investors and doesn't mean squat in the real world.

Issue #1 screen size: I got around this by getting several 7" tablets, I've had a half dozen 4.3" Android OS'd phones, I went to the iP4 because I'm in the Apple ecosystem and I like it. iP5 will very likely have a 4" screen.

Issue #2 continued growth: Apple continues to expand into other markets, like China, remember the riot when the IP4s was released in China? There will in a month or 2 be 2 major carriers selling the iP4s in China, AND, the iP5 will be that sexy larger screened device we saw prototypes of last year, think of all those folk who are going to upgrade.

 

[alent1234]

im pretty sure that is shipped.

how would they know if bestb uy or target had actaully sold an ipod, or iphone. i mean they can track how many are sold in their own stores, but other places sell apple products than just apple stores.

By serial #?

 

[hans007]

If this isn't a huge wake-up call for Android makers that throwing tons of phones on the wall to see which sticks isn't exactly working in the long run I don't know what is.

This is exactly it.

i mean how many people have you really used siri. my mom bought a 4s. it was the current iphone.

she has no idea that any of its features are much better than the 3GS she dropped on the floor other than it feels faster.

it could have been an iphone 4, a 4S and iphone 4S with a new body and called a 5. it wouldnt have mattered.

i'm doubting it even matters that siri exists much to the sales of the 4S. there are the people who are in that apple world and that is what they buy.

hell in asia an iphone is a status symbol. because it is an "iphone" . i mean a gnexus costs more money than an iphone 4. tons of phones do. but its a symbol of whatever the hell it is at this point. its momentum from all the marketing and its initial lead is huge.

the android phones are catching up and are getting their mindshare and maybe it a matter of time.

hell, my mom is having me repair her 3GS with parts from online so she can send it to her neice in the philippines. the niece specifically wanted the iphone not some other phone. A used 3GS is what she asked for (i.e. one of my older android phones or my dads left over captivate galaxy S which are all probably "better" phones and newer). the iphone 4s isnt a bad phone, but i really don't think its say miles better like the original iphone was, but it has a ton of momentum. its like the LV bag of phones. its just the default choice. Android's goal is not to be a more capable OS or surpass it in useability because argueably its already there or past there. Its convincing the public that it is just as cool, or just as stylish or whatever.

The htcs of the world need to make less phones even if the phones you have now are already great and market the shit out of the ones you do. having 75 great phones (and im not saying android phones are great, but even fi they all were) you couldn't market them all. the samsung Galaxy 2 ads are what the android world needs more of sadly. its not more features, or faster cpus or whatever. Its crap like beats marketing, or when motorola was basically giving xoom tablets to celebs. its stuff like that sadly. if they gave little android mini dolls out with the htc rhyme i bet you it would sell better.

beats headphones are a microcosm of apple's success. the beats studio pro headphones are mediocre for the price. they are probably ok headphones. but they sell a hell of a lot more headphones and make a ton more money than sennheiser probably does selling HD280s

 

[Patranus]

So Apple sold more iPads than HP, Dell, or Lenovo sold computers.

That iPad fad is sure looks like it is fading..........

 

[alent1234]

It will be interesting to see if this level of momentum can maintain its dominating stance in the market in the next year or so. Growth in NA is saturating, Apple will have to find new sources of revenue/profit from overseas markets.

Having said that I doubt I will go back to being an iPhone owner unless they move up to a bigger physical screen, regardless of resolution.

China

 

[ponyo]

Why? Unless they start paying dividends then their profits aren't directly enriching shareholders are they?

The only time you make money on their shares is when you sell them isn't it, unlike companies that pay out a percentage of profits to shareholders.

Mind you if they don't start to use up some of that warchest they might not be able to resist demands to payout a dividend.

Why? Because if I still had them, it would be worth $13.5 million. I paid around $210,000 for 15,000 shares back then which has since split 2/1. But that was over a decade ago. Back when Apple was $4 billion dollar company with $4 billion in the bank. You talk about hated company and hated stock. Wall St valued Apple at $0. Only their cash value. Now Apple has ~$100 billion cash and growing. That's ridiculously awesome and gives them pretty much unlimited power and options.

 

[Dari]

Why? Because if I still had them, it would be worth $13.5 million. I paid around $210,000 for 15,000 shares back then which has since split 2/1. But that was over a decade ago. Back when Apple was $4 billion dollar company with $4 billion in the bank. You talk about hated company and hated stock. Wall St valued Apple at $0. Only their cash value. Now Apple has ~$100 billion cash and growing. That's ridiculously awesome and gives them pretty much unlimited power and options.

It helps not to think about what could've been...

 

[ponyo]

It helps not to think about what could've been...

I got over it long ago. I made decent money when I sold them. It's all good. And I kept the smaller shares in my retirement account for many more years. Still not long enough looking back but I sold it to diversify.

 

[WelshBloke]

Please understand the tone of this post, I'm not calling you stupid, I'm calling the argument about dividends stupid.

It's a stupid argument, you want a dividend, sell a share of stock, or buy bonds or another investment tool, Apple uses it's cash to leverage the supply chain and to pick up non manufacturing companies that enhance shareholder value. Do you ever hear BRK stockholders bitching about dividends? That would be a no. What they did do was devise a scheme to break the BRK A into BRK B so it would be done without giving up much.

Apple has been playing this brilliantly, the dividends/split argument is for noob investors and doesn't mean squat in the real world.

I have no problem with the tone of your post, don't worry.

I'm not talking from a personal point of view, I have a bloke that handles stuff like that. As long as his figures look good I don't care where he puts the money.

Surely though Apples profits mean nothing to shareholders as they don't have a direct link to shareholders wealth. Yes they may have an indirect effect on market confidence but that's affected by many things.

Getting a dividend is not the same as selling off part of your holdings.

 

[Red Storm]

If this isn't a huge wake-up call for Android makers that throwing tons of phones on the wall to see which sticks isn't exactly working in the long run I don't know what is.

Verizon Activated 10.8 Million iPhones, 15 Million Androids in 2011

Doesn't really seem like they need a wake up call, both sides are doing extremely well.

No Android manufacturer is going to reach parity with Apple's numbers. That's pretty obvious as Apple is the lone source for iOS, a completely different scenario than with Android.

Verizon may have had a net loss, but they are going to make a killing on all those smartphone contracts...