With another fiscal quarter now in the bank, Apple has again embarrassed Wall Street analysts. The Cupertinian juggernaut posted its financial results for its third fiscal quarter of 2011 on Tuesday, and the numbers were – to understate a wee bit – quite satisfactory. "We're thrilled to deliver our best quarter ever, with …
This company is doing very, very well. I really wish I'd bought shares instead of buying my house!
Sure, Android fans will pass this off as being fuelled by 'fanbois' and their desire to have every iteration of a product from Apple (or whatever the snide remark of the day is), but they cannot deny the fact that Apple is making a fucking shitload of cash. It is making big inroads into enterprise (my office just bought Macs for everyone); it has a strong presence built upon year after year by the iPhone/iPad/iPod/iTunes ecosystem.
Sit there and moan about Apple's stringent controls on the App Store, if you like (how many malware apps has Google removed from the Android Market?). Complain about their patent infringement litigation, etc. (didn't Google complain that Apple might leverage their Nortel LTE patents against Android, mainly because Google didn't win the auction with their 'cutesy' little bids based on special numbers? Had Google won, would they have allowed Apple to infringe their patents? Thought not.). Whatever you have to do to make yourself sleep well at night.
Regardless, Apple is a massive company, releasing products that change entire markets (anyone remember Symbian?) and create new ones. They are doing some things badly, and some things incredibly well. Their financial results reflect the fact that they are doing fucking, extremely well.
Better off with the house AC
Apple don't pay dividends on shares.
"Apple is making a fucking shitload of cash"
"Their financial results reflect the fact that they are doing fucking, extremely well."
Yeah, fleecing their customers extremely well with a 42% mark up when other companies typically only squeeze 15%.
I'm always amazed when posters like the above crow like this. You are paying for this! Don't you get it?
@ Better off with the house
Houses don't pay dividends either. Houses (generally) appreciate in value over time, so you can sell them for more money than you originally paid. Just like Apple shares.
In fact, in the past month, Apple shares have appreciated in value 25%.
@Mitchell "fleecing... markup..." and other childish idiocies.
Why don't you look at HP's fabulous new ipad clone; it can do all that the ipad can, looks a bit worse and is chunkier and less sturdy (innovative combination), but it has this fantastically low price of ... exactly the same as the ipad.
@Marvin the Martian
"Why don't you look at HP's fabulous new ipad clone; it can do all that the ipad can, looks a bit worse and is chunkier and less sturdy (innovative combination), but it has this fantastically low price of ... exactly the same as the ipad."
Not in the UK at least for comparable models when I looked last week. The Apple UK store is down today. Perhaps they are dropping their iPad 2 prices, but I suspect they will in fact be going the other way in light of recent increases elsewhere.
Secondly, unfortunately it's not just the concepts other manufacturers are copying. They are copying the prices like sheep as well. Everyone sees Apple charging these kind of sums, so they would be mad not to do it. The price of these types of devices has steadily increased due to the Apple skew that you are happily paying for. Smart phones shot up dramatically after the iPhone came out as everyone went "hang on a minute" and got their noses in the trough. You paid, we all pay.
One thing Apple has done well is secure their own supply chain. So their overheads are much lower. So once they got all this in place they could ramp up their margins.
So consider this. Apple could easily sell their stuff for less and make, say 25%. They choose not too. In fact they put are putting their prices up.
The forecast was done by the people described as "MBAs" in this article (and book it referrs to). I would actually call them "spreadsheetmongers" as this is a better description.
Marketing w*nkathlons hiding the lack of innovation like GM selling 3 cars with 20 different shells (and Ford the same) provide an excellent short term advantage against engineering.
Once that advantage has run out a company which has retained product oriented focus and product oriented innovation will eath the spreadsheetmongers' shorts. Similarly, muppets indoctrinated into spreadsheetmongering and marketing-urbation as the ultimate way of making money will never be able to guess by how much.
Apple is an example here. Unfortunately, there are not that many others to point at. In fact most of the computer industry is an an example to fit the "this one has been run off the road" description.
"they are doing fucking, extremely well"
No one ever admits to doing fucking badly, maybe they've been looking for tips on the Internet?
Do you really think that competitors have chosen not to undercut Apple simply because they think they may as well land on the same price point as the iPad, even though their products are technically inferior (e.g. smaller screen but same price)?
No way, they would love to go cheaper but cannot as their costs wouldn't allow it. Hence they charge the same but their products are inferior and consumers rightly buy the iPad.
re: @Marvin the Martian
You obviously don't seem aware of how capitalism (mostly) works.. and I assure you - smart phone prices didn't "shoot up dramatically" when the iPhone was released - the Nokia equivalents (n770/n800 et. al.) were *more* expensive than my first iPhone despite being a lot less capable (and, yes - I had one of each of them) - some of the difference was due to carrier subsidy.
So don't blame Apple for the fact that Android & WebOS tablets are expensive - they are expensive because that's what the manufacturers charge. I would bet that if the other tablet manufacturers would *love* to charge less (it would make their products more attractive!)..
As I understand it
Apple has a responsibility to its shareholders to fleece its customers out of as much as it possibly can. Other companies would be thrilled to have a 42% margin. Unfortunately, their customers are decidedly less zealous. Arguably, Apple could increase volume with lower prices, but the company has historically charged a healthy margin on a relatively low volume premium brand. The iPhone/Pad business just allowed them achieve high sales volumes on a premium brand. Even a top-of-the-line fondle-slab costs as much as a run-of-the-mill bargain to mid-grade laptop, and apparently it's more than capable enough for many consumers. Finally, iProducts are ultimately status symbols. The more portable they are, the easier you can flaunt them to friends and acquaintances. Like any Veblen good, its price has to be high as to show the owner has the excess dough to throw at it.
As the old saying goes
Money talks...asshole walks
Apple has just shown the comeptition the door.
About fanbois: Again about 50% of Mac sales was to people who never bought a Mac before.
...will either destroy humanity, or empower it to the next level of evolution.
I can't see the latter happening, however. I think we're all doomed. The church of Jobs will rise to supremacy, and their high priests will oversee the end, whilst encouraging all the faithfull to 'upgrade now - before it's too late'.
Some sceptics may survive until near the end; gathering their dwindling resources they may buy iPods, or iTVs - whatever is cheapest - to wave in front of them, hoping to forestall the anger of the iMob, but the compulsory upgrades will eventually expose them - "Hey, that guy's waving an iPad1 - GET HIM!!"
Fortunately, given my life-threatening Beluga caviar and truffle addiction, I'm unlikely to live to see the end. But I weep for the rest of you. I'm just glad I bought those Apple shares...
As one of, to quote AC@21:41, "Android fans"* I have to say I admire Apple's success in terms of marketing their products - disregarding ethics, they're really onto something.
Of course, in other contexts, my judgment may differ, but let's leave it at that.
*not only a user, but also an active developer.
While 50% of Mac buyers have never bought a Mac before, it must surely be more like 80% - 90% of iPhone and iPad buyers who have never bought a Mac.
Quite a lot of them will have owned an iPod but as cumulative iOS sales surpass cumulative (non touch) iPod sales that is changing too.
..that quality pays off..... even if some calls it "fanboism" "sheep" or anything juvenile and demeaning to people's intelligence.
Well done Apple.
Cognac v Brandy
Both will get you pissed
But it is easier to burn a cheap Spanish Brandy atop your pudding than...
Oh I don't know give a Mac Air to a tramp
(One Mac Air per A Tramp OMApAT?)
Or is it more super strength Cider versus Champagne ?
No no no, the cider will always get you laid...
The iPhone is your new right hand?
Is that what they meant by right-hand man in history lessons ?
Women are all right, but you can't beat the real thing?
I am intrigued by your ideas and would like to subscribe to your newsletter.
Is it a poet?
.. Channeling amanfrommars?
iphone - 20.34 million *units* - more like $6bn revenue.
Can't they realize they are overpaying for crap?!
*does a little dance around his AAPL stock*
I just wonder
How long are people gone put-up with the same thing year after year (I mean the same look, feel and functionality)?
Where is the innovation from Apple that they are all talking about.....no one to steal from?
Are people so dumb that innovation don't count anymore for them as long as they can play fart jokes on the bus? Play grade 2 games (Angry birds....or something like that)?
We as a humanity are going backwards and Apple is on front of it.
Let's see the earnings next year (History likes to repeat itself).
If your gona be a troll, try harder
RE: If your gona be a troll, try harder
Well first of all I'm not Anonymous Coward.
Second, I had them all and I do like to have new things once in a while cause I can.
Having iPhone all i get.....well....is the same thing to look at as the one the year before....even my wife changes from year to year...
Now go on and have some cool-aid and say your iPrayers.
Life long Apple detractor here
Can only say well done to them. It is down to design, image, marketing, fashion status and the huge margins that status brings; they are now the acknowledged masters of those games, and the rest of the CE world can only watch in awe as they go from strength to strength on the back of them.
"Life long Apple detractor here", so your the hater that hates? Maybe you should work for Microsoft and give them a clue, like, "Dont buy skype, buy Apples marketing department so we can sell shit to the world". I find it funny to hear "Apple is all marketing", if that was the case the why the fuck has no other compay hired the people who work at Apple.
I don't normally reply to apostrophe neglecters/abusers, however...
Funny you should mention it - I did once work for Microsoft.
I didn't say it was all marketing.
Fail on you son.
Greece, Italy, Spain, Portugal and Ireland
With all those money Apple is making per quarter, I guess it could finance all those countries instead of EU...
On the other hand... maybe all these countries could build an iPhone of their own and save themselves?
"...revenue up 82 per cent and profits up 125 per cent ..." says Mr Jobs.
The price of UK apps has bee raised by Apple in the last few days!
(p.s. Guess who is NOT going to buy from the App store?) This is a fanboi saying "Stuff'em".
RE: All the above shareholders
You keep celebrating your business acumen that caused you to buy Apple shares. Now tell me - how much money have they made you?
Answer: Nothing, nada, not one bean
Apple don't pay dividends. What you have effectively done is hand a very rich man even more money so that it can sit in the bank and earn him and the company interest. How much do you get of that? Nothing.
How much are you going to see of the record amount of money Apple have in the bank? - Nothing
Apple shares are worthless until you sell them. Do it right and you can make money as the speculators are seeing them do really well at the minute and pushing the share price up. How many people are going to sell though? They all seem to think that Apple can do no wrong and will keep hold of those shares. I see Apple as being at the top of its curve and will start on the way down very soon. The problem is they have targeted the fashionable market and that is notoriously fickle. Now the fact that so many people have them begins to make them unfashionable. If those numbers continue to grow they will lose any fashion status at all because they won't be anything special. Then sales begin to fall, the share price falls, if Steve Jobs dies just watch the price tumble. You will fell pretty silly if you are still holding shares then.
I watched a friend of mine do something similar. He had a LOT of shares in the dixons group and watch them rise year on year. He didn't take my advice when the group started to have problems insisting they would recover and that he wanted the share price back to its previous levels before considering selling them and as a result he has now lost well over £100000. At least he did get dividends from his shares so made something from them over the years which is more than any Apple shareholder can say.
All I am trying to say is don't feel so smug about rising share prices, especially when they are returning nothing to you. Keep an eye on your investment and don't count on the price to continue rising.
Urgh what a pointless post.
As any investor knows, companies only pay significant dividends when they are generating good cash flows and don't have any strategic plans to use the cash. E.g., they've run out of ideas. That is why utility companies are good shares to hold if you value dividend income.
However other things being equal, the value of all the shares = the value of the company. If the company pays a dividend of £1m, their cash balance falls by £1m, value of the company is £1m less and share price falls per share by the dividend paid. The shareholder is no more or better off.
No of course, if your 'friends' are not sophisticated enough to realise their gains when the going is good, then woe is them. My heart bleeds.
To say an investor will see nothing of the cash Apple hold is at best ignorant and at worst a lie. The share price of Apple reflects the view of investors as to the long-term value that Apple can generate. That is a reflection of the huge cash balances Apple hold. It is a huge strategic advantage to Apple to hold that cash. It would appear institutional investors better than you or I concur or they would be putting pressure on Apple to return some of that cash.
Dividends are the last refuge of a company with low growth. What else have they got to tempt investors.
While Apple is going gang-busters with profit and growth, why pay a divvie? It suggests they have no other ideas for their massive pile of cash (I hope they do have some good ideas, other than getting huge bargains on their supply chain).
Can you tell me how many other companies with >100% profit growth are paying out a divvie?
I remember the days when Apple users would recognize another Apple user by their white headphones, when I was a student walking down the high street, The day i received the email that "Hell had frozen over" (for the people who do not know, it was the day Apple made software for the PC sorry I meant windows) and thus the war was over for the competition.
As for their quality how many Apple users still have old imacs, cubes, and mac mini's around their house?
They controlled the music market, by creating a the download market when other companies treated their users like common crooks, Yes there are plenty of better players but their software is clunky to use at best. And finally they managed to move on from the click wheel which we thought was the best thing since sliced bread to touch screen..... Nothing new here but the software that went with it was again the killer blow. Some people hate the control Apple has regarding its software, but after the malware issues of Android etc, Apples control is more like user experience. I will leave flash alone for now.
Everywhere i look its Apple this and Apple that, and people who know me is saying look what i can do with my new iphone
Judging by these figures, the term "Think Different" is history well done Apple or Steve Jobs it should be interesting to see what happens when he's gone. i must admit Im real glad Steve Jobs returned to Apple and created this new monster of a company.
Its the software which is the killer product here, Bill Gates new it too.
It'll be interesting to see what impact Android has on their next year of figures.
Android seems to be taking off now as people become more aware the phones are cheaper and offer similar functionality. I'll definitely look into buying one when my iPhone contract finishes as the iPhone is too expensive in comparison.