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Apple has another strong quarter

It's been a big few months for Apple. The company announced its iPad in early January and began sales earlier this month. The 9.7" tablet saw impressive sales during its first weekend and continues to do well. Apple also discussed iPhone OS 4.0 which will grace the iPhone and the iPod touch this summer (it will come to the iPad in the fall). In addition, Apple also announced a brain transplant for its MacBook Pro lineup with new Core 2 Duo and Core i5/i7 processors.

And of course, we can't forget the monumental iPhone 4G leak from this weekend that undoubtedly sent Steve Jobs' blood pressure sky rocketing -- we also wouldn't be surprised if he took up a Steve Ballmer pastime of throwing chairs.

Today, however, Apple is ready to discuss money and by all accounts, the Cupertino, California-based company made tons of it during the second quarter. Q2 revenue was impressive at $13.5 billion against estimates of $12.04 billion – net profit was $3.07 billion. Apple had earnings per share of $3.33 per share against a forecast of $2.45 per share. Gross margins were 41.7% versus an estimated 40%. Revenue guidance for Q3 is $13 to 13.4 billion.

When it comes to products, Apple sold 2.94 million Mac computers, a whopping 8.75 million iPhones, and 10.89 million iPods during the quarter.

“We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent,” said Apple CEO Steve Jobs. “We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year.”

In other Apple news, the company just released iPhone OS 4.0 Beta 2 into the wild.

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Oh Apple...
By MrBlastman on 4/20/2010 5:08:35 PM , Rating: 3
How ye manage to bilk thy customer and profit through might... and heft.

So my Wife's MacBook (I have nothing to do with her MacBook, it is in her name and I loathe the filthy device with all my will) nearly caught on fire the other day. Her magnetic power cord (MacBooks use a magnet to attach the cord to the computer) melted at the joint between the cord and the magnet. This is fine and dandy, but, the price to replace it is not.

It cost 80.00 to replace the darned thing, a stupid cord power adapter for her MacBook. Checking the Apple forums, thousands of users have had this same issue.

Yes, Apple, I commend your profits. Your profiting off of the naive who buy your junk and hail it as the supreme good to make them shine. Well, shine they may, as long as the money keeps glinting as it comes out of their pockets and into Apple's.

No worries, the consumer products saftey commission will be hearing about this. I'll do anything I can to bring them down, one pebble at a time if need be.




RE: Oh Apple...
By Brandon Hill (blog) on 4/20/2010 5:15:51 PM , Rating: 5
I bought a third-party MagSafe power adapter (for travel) off eBay for $18 shipped from a California company. It works just fine.

You don't have to go out and pay $80 if you just shop around.


RE: Oh Apple...
By rs1 on 4/20/2010 7:28:34 PM , Rating: 5
Or a simpler solution would be to not use an Apple laptop in the first place.


RE: Oh Apple...
By quiksilvr on 4/20/2010 9:42:09 PM , Rating: 2
It's a sad day when 3rd party parts do a BETTER job than the 1st party. The only time I've seen this to be true was with Logitech's wireless PS2 controller.


RE: Oh Apple...
By sprockkets on 4/20/2010 8:46:51 PM , Rating: 2
Most people I hear who have this issue get it replaced at no charge because it is a known issue.

Your cord may fray, but I've had more people complain about broken dc jacks than anything.

Curse apple for patenting it somehow. Then again, no laptop maker cares, because it means more business for them. They can make a simple Xbox controller disconnect for it.


RE: Oh Apple...
By MrX8503 on 4/21/2010 2:19:12 AM , Rating: 4
Wow a lot of Apple hate.

OEM replacement parts will always be expensive, Apple or not. My Dell power adapter broke and I just got a 3rd party one. I think you're goin too much out of your way to hate on a company just because they're sucessful. If you don't like Apple products, then buy a Zune, an HTC phone, and a PC laptop.


RE: Oh Apple...
By FaceMaster on 4/21/2010 7:35:02 AM , Rating: 4
quote:
I think you're goin too much out of your way to hate on a company just because they're sucessful. If you don't like Apple products, then buy a Zune, an HTC phone, and a PC laptop.


You've summed this up perfectly. For a tech website there's a huge amount of hate towards Apple. They make very polished programs and hardware that appeal to the average person who cares more about looks than anything else. The elitist culture on this site sickens me just as much as the people who patronise me, claiming that Apple doesn't get viruses because they update their software (unlike Microsoft, obviously)

Just look around you, Daily Tech readers. The number of immitations of Apple products is a testiment to their success. If you don't understand why they are successful then you're totally missing the point of the Apple products in the first place. I think that Apple's influence has helped other products to become more streamlined, user friendly... and pretty.


RE: Oh Apple...
By erple2 on 4/21/2010 4:05:54 PM , Rating: 2
quote:
They make very polished programs and hardware that appeal to the average person who cares more about looks than anything else.


I don't know. The products I've recently used from Microsoft have been reasonably polished and easy to use. They don't look unattractive, either. I don't mind Windows 7 much. Office 2007 seems to work fine for me. It looks reasonably polished as far as I can tell.

As to whether the hardware appeals to the average person I'm unconvinced. Apple Marketing has done an incredible job at convincing the average public that they should like those Apple Products. Maybe they do, maybe they don't.

Apple has some good points (their marketing department is second to none, and their design is generally good), and some bad points (their hardware, while certainly good, isn't generally top tier).

Whether it's true that Apple has some magical formula for good UI design, or whether they've convinced enough people that they have a formula for good design, I can't comment. Then again, I'm also not an expert on aesthetics (not that I think someone could really be an expert on such an abstract concept).

Either way, it's very hard to argue against the financial success of a gross margin of > 40%. That's ... stunning. The company I work for (and several other Fortune 500 non-consumer based companies) is "doing well" if it's getting better than 10% gross margins.


RE: Oh Apple...
By FaceMaster on 4/21/2010 8:06:44 PM , Rating: 2
quote:
I don't know. The products I've recently used from Microsoft have been reasonably polished and easy to use.


And now I'll quote myself ;)

quote:
I think that Apple's influence has helped other products to become more streamlined, user friendly... and pretty.


RE: Oh Apple...
By Hiawa23 on 4/21/2010 4:05:43 PM , Rating: 2
How ye manage to bilk thy customer and profit through might... and heft.

got to love it. Capitalism...


PT Barnum was wrong...
By Motoman on 4/20/2010 5:21:10 PM , Rating: 1
...apparently it's more like 8.75M suckers born every quarter...




RE: PT Barnum was wrong...
By micksh on 4/20/2010 5:56:49 PM , Rating: 2
8.7M/quarter approximately equals 1 sucker per second. Well, birth rate increased quite a lot since 19th century.


RE: PT Barnum was wrong...
By darkblade33 on 4/20/2010 6:14:00 PM , Rating: 3
Truth be told the iPhone 3Gs is a good product.. Im holding out for the 4G, was going to go Droid, but looking at total apps and the specs on the new 4G coming out soon.. I changed my mind. I dont pick sides.. its like XB 360 or PS3 .. I pick what works well for now.. eventully if something else does.. Im doing it. Used to be a big General Motors fan.. now Im into Ford.


RE: PT Barnum was wrong...
By DM0407 on 4/20/2010 6:50:41 PM , Rating: 1
If this isn't enough to convince people they're overpaying for Apple stuff I don't know what is.

But thats business, sell it for what people are willing to pay.


RE: PT Barnum was wrong...
By darkblade33 on 4/20/2010 9:14:36 PM , Rating: 3
quote:
If this isn't enough to convince people they're overpaying for Apple stuff I don't know what is. If this isn't enough to convince people they're overpaying for Apple stuff I don't know what is.


Whose job is it to decide whose overpaying ? Critics ? Opinionated people who hate some companies and love others?

Many of iPhone apps are free and many of the ones you buy are 99 cents. I pay more money for applications on my Samsung Blackjack 2 !

Is a 55,000 Ford Mustang Shelby with 550 HP overpaying to someone who can only afford a civic or is it a bargain for some who keeps their Porche in the garage ?


RE: PT Barnum was wrong...
By hiscross on 4/20/10, Rating: 0
RE: PT Barnum was wrong...
By Motoman on 4/20/2010 10:57:11 PM , Rating: 5
The market is paved with the corpses of superior products that lost out to better marketing. Success is no indicator of virtue.


RE: PT Barnum was wrong...
By cyberserf on 4/21/10, Rating: 0
RE: PT Barnum was wrong...
By Alexstarfire on 4/21/2010 10:37:36 AM , Rating: 2
I think you should take a look at my posts. The iPhone HD is looking to be pretty good though. Will finally have comparable specs to other phones. It's still missing some features I'd like though (missing ATM at least) like bluetooth file transfers, memory card support, and being able to use it like a storage device. I'll have to see if it's worth it though. I'm under my parents plan on AT&T (since it's far cheaper than going out on my own) so I'm either stuck with my old phone (non-smartphone), get to go pay for an unlocked smartphone (wouldn't mind but don't have the money), or I get the only smartphone that AT&T really offers.

I'd love to switch carriers but I just can't afford it.


RE: PT Barnum was wrong...
By chrish89 on 4/21/2010 3:25:00 PM , Rating: 2
yeah yeah specially those holding apple stock:

http://finance.yahoo.com/echarts?s=AAPL+Interactiv...

suck it haters.


More power to them
By Dorkyman on 4/20/2010 5:39:24 PM , Rating: 2
Hey, if Apple's making a good profit, great. I personally have little interest in their products, for two reasons. First, many of their products try to lock you into their own particular ecology and/or mindset (think: iTunes), which I find offensive. Secondly, I guess I've always been a bit of a contrarian, and want nothing of the Apple fanboy culture.

I've met and argued with Jobs. I once worked for the company for six years, back in the Lisa/Mac128k days. They are definitely "cool." Guess I'm not, and have no interest in being so. I would NOT hold Apple stock right now. But then I'm a contrarian.




RE: More power to them
By SavagePotato on 4/20/2010 6:23:28 PM , Rating: 2
Based on the fact their entire existence is based on taking very cheaply produced electronics every one else uses, packaging them in such a way as to appeal to their fanbase, and selling them for a massive increase over other integrators, I would be astounded if they did NOT post a good quarter.

When you are selling the same thing as everyone else for three times as much, you had better make money.


Gotta hand it to them
By geddarkstorm on 4/20/2010 5:05:30 PM , Rating: 2
They sure know how to get people to buy their stuff.




By jahwarrior on 4/21/2010 1:18:54 PM , Rating: 2
Apple is doing something right, I don't own an ipod, ipad, iphone or mac, but I do own the istock...and it’s been a money maker!!




Closed systems FTW
By Pirks on 4/20/10, Rating: -1
RE: Closed systems FTW
By inighthawki on 4/20/2010 5:45:56 PM , Rating: 4
Why create a new account when I can reply and let others rate you down anyway?


RE: Closed systems FTW
By Pirks on 4/20/10, Rating: -1
RE: Closed systems FTW
By yxalitis on 4/20/2010 6:23:30 PM , Rating: 2
I uprated you, so there!
COP THAT!!

I am no MAC fan, but I appreciate aspects of their design, I own an iPhone, and love it, their PC designs do nothing for me (read: gamer) BUT the MAC book is carved from a single slab of aluminium, say what you will, but that's an expensive way to build a computer, and you end up with a very solid, reliable device.
Yes! Apple's closed systems suck, YES the refusal to allow any app in their store that doesn't pass the "think of the children" test sucks, yes their products ARE expensive, overpriced, and force you to return to them for service.
Like my BMW, it's expensive (some would say overpriced) parts for it are exorbitant, I have to take it to them for repairs because the whole system is closed..but I still love my car!
My point is that the needless MAC bashing on DT has become over the top, nothing Pirks said in this post is controversial, inflammatory, or wrong, yet it still gets marked down. MAC sales are strong, but the product will remain a niche in the computer space, a niche Apple are happy to fill, even if their quality is an illusion, it's a strong illusion, and Apple live and breathes on that perception.

I am indifferent to MAC products some are good, some are bad, but I HATE fanboyism, I HATE MAC lovers, who deride ANYTHING PC or PC related (we have a few here at work, one was moaning about his IBM thinkpad, and how he wants to throw the damned thing out a window because, get this, he forgot his RSA password!)...
BUT I hate PC fanboyism just as much, PC's aren't perfect, Windows has releaed some dire products in the past, and DT readers should be above such mindless, knee-jerk reactions to any "Apple is doing well" articles, it reflects poorly on your ability to differentiate between Apple being bad (locking app development to a particular coding system), and Apple just being another computer manufacturer targeting a different segment of the market.


RE: Closed systems FTW
By Pirks on 4/20/10, Rating: -1
RE: Closed systems FTW
By petrosy on 4/20/2010 8:38:51 PM , Rating: 1
Yeah... not matter how pavlovian your mark down of Pirks response maybe. Do take time to read first.

On the odd occasion he does make some sense ;)


RE: Closed systems FTW
By kmmatney on 4/20/2010 8:47:41 PM , Rating: 1
yep - love my iPhone as well. At least one iPhone bought last quarter was because I recommended it, although now I'd probably recommend holding out for a 4G.

I bet a lot of the people bashing Apple hardware for being overpriced are also going out and buying $400 video cards. I'd call those overpaying for video cards sheep - its all about what you value in a product.


RE: Closed systems FTW
By themaster08 on 4/21/2010 2:16:17 AM , Rating: 2
I agree entirely with your post. Fanboyism is the most juvenile and pointless reality distortion field.

I've seen middle aged men, blindly supporting a product and bashing whatever the competition releases. It's so pathetic, it's laughable, but in such an irritating way. You want to put them in their place, but it's impossible.

Obviously, the Mac vs. PC is where most of this fanboyism lies. At times, you're made to feel as if you're siding when in fact you're just debating, because of the mere fact that fanboys take your comments out of context.

As for Apple, I have no issues with their devices or anyone that purchases them. I think they're excellent for the most part. It's no surprise they sell so well. The reason I don't purchase their devices is more to do with their business ethics/practices, not their products.


RE: Closed systems FTW
By Alexstarfire on 4/20/2010 7:43:11 PM , Rating: 1
In other words exactly what can be done on regular web pages? I fail to see how that makes app web pages better. Only thing copying Apple says about MS is that they are just as out of tune with the consumer as much as Apple.

It has little to do with how much money they make of course. People would rather bitch about something, while using it of course, than actually take action.


RE: Closed systems FTW
By Tony Swash on 4/20/2010 8:42:50 PM , Rating: 2
quote:
Only thing copying Apple says about MS is that they are just as out of tune with the consumer as much as Apple.


Do you think that there is just the hint of a disconnect between your statement and the title of this article?

Here is a hint - if Apple reports the following its hard to see how one could (even with the help of some strong drugs) say that it was out of tune with consumers:

- PC industry grew 24% year-over-year, while Mac grew 33%.

- iPod touch grew 63% year-over-year, with iPod revenue up 12%. Apple maintains over 70% share of MP3 player market.

- iTunes Store brought in $1.1 billion, with over 4 billion App Store downloads so far.

- iPhone sales, 8.75 million is most ever. Year on year increase of 131%. Growing at three times the overall market rate.

- Strong iPad sales. 3G on track for April 30th in U.S. Nine more countries coming in late May.

- Retail store sales up 22%, and 50% of retail store Mac purchasers continue to be new to Mac.

- Apple on track to open 40-50 new stores this fiscal year.


RE: Closed systems FTW
By gralex on 4/20/2010 10:07:17 PM , Rating: 2
What some call "consumers" others call masochists...

I'm seriously... iTunes!? You have chosen to self-inflict this nightmare?


RE: Closed systems FTW
By FaceMaster on 4/21/2010 7:36:40 AM , Rating: 2
quote:
What some call "consumers" others call masochists...


Only unreasonable people who can't fathom Apple's success.


RE: Closed systems FTW
By amanojaku on 4/21/2010 9:24:39 AM , Rating: 3
quote:
PC industry grew 24% year-over-year, while Mac grew 33%.
Apple's growth is not unusual; it had nowhere to go but up, or disappear. The only market Apple is strong in is portable devices, namely the iPhone and iPod.
quote:
iPod touch grew 63% year-over-year, with iPod revenue up 12%. Apple maintains over 70% share of MP3 player market.
The iPod isn't doing as well as you think. It's sales are in a decline thanks to the iPhone and the iPod revenue has actually DECREASED. Sales peak in Q1 because of the holiday season, then decrease throughout the year. Year over year analysis shows the iPod's quarterly revenue has dropped since 2006, and unit sales have decreased since 2008.

http://tech.fortune.cnn.com/2009/08/05/goodbye-ipo...
http://en.wikipedia.org/wiki/File:Ipod_sales_per_q...
quote:
iTunes Store brought in $1.1 billion, with over 4 billion App Store downloads so far.
What do you expect? You buy an iDevice and the average user is locked in. The only place to buy stuff is the App store or iTunes. Now, if Apple opened up the device to 3rd parties the story would be different. And app download figures aren't a good indicator of success; many apps are free.
quote:
iPhone sales, 8.75 million is most ever. Year on year increase of 131%. Growing at three times the overall market rate.
This is the only thing keeping Apple afloat. Mac sales have increased, but overall the company's sales aren't impressive when compared to non-Apple alternatives. And Mac sales account for around 2/3 of the PCs over $1,000. Most PC owners wouldn't spend more than $1,000 on a PC, but only a few Macs are cheaper than $1,000. That implies the people buying Macs are folks with more income than the rest; the Mac is a status symbol of how much money they earn, or want you to think they earn.

http://blogs.eweek.com/applewatch/content/channel/...
http://www.apple.com/getamac/whichmac/
quote:
Strong iPad sales. 3G on track for April 30th in U.S. Nine more countries coming in late May.
Define strong, meaning "show me your sources", because there aren't any accurate reports of sales figures, and it's not like the product has been out for a year yet.
quote:
Retail store sales up 22%, and 50% of retail store Mac purchasers continue to be new to Mac.
Sources?


RE: Closed systems FTW
By Alexstarfire on 4/21/2010 10:21:54 AM , Rating: 1
Ok, I'm only talking about the iPhone here chief. Don't really care about their other products at this time. Though I will take a shot at your iPad remark. If by strong sales you mean selling less than half of what was predicted then yes, they have strong sales. I never thought I'd see a product fail to meet expectations and still be called a success. That's Apple buyers for ya though.

If you've never heard anyone with an iPhone say "I only wish my iPhone had _____" then you'd be in the minority. What people don't realize is that other phones have _____. As I said in my OP, people would rather use a product that they think is "cool" and then bitch about it because it doesn't have what they want. I can't blame Apple for cashing in on the suckers, but damn. At least some people should realize this is what's happening.

Ohhh, and looking at percentages when comparing PC growth to Mac growth is a common tactic to make them look better. 33% of 5% of the market is still a lot lower than 24% of 94% of the market. Just saying.


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