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iMac  (Source: Apple)

iPod touch  (Source: Apple)

iPhone  (Source: Apple)
It looks like somebody else had a great fiscal fourth quarter, besides Intel.

The latest fiscal quarter brought a mixed bag of news for major electronics and technology firms.  Intel reported its quarterly profit up 43%, as covered by DailyTech, while its rival AMD saw a far less rosy picture with a $396 million USD net loss.

Now Apple Inc.'s numbers have been released for its fourth fiscal quarter, ending September 29, and it appears that the company has overcome numerous obstacles to post massive growth.

The Cupertino-based Apple, headed by quirky CEO Steve Jobs, saw its share of troubles this last quarter.  First there was a class action lawsuit about the expensive replacement costs for iPhone batteries.  Then there was the financial burden of the cutting the iPhone's price and the discontent among Apple's usually loyal ranks, about the cut insulting early adopters.  Then came news that the new iDevices' screens were having quality issues

This news was quickly followed by reports of iFires and massive media coverage of Apple's now infamous v1.1.1 firmware update for the iPhone and iPod touch, which turned unlocked iPhones and iPhones or iPod touches with third party applications into iBricks.  Apple next saw two new class action suits over this development, along with allegations by Greenpeace that the iPhone is toxic (update).

Despite all of these problems, Apple was buoyed by a new line of iPods, which included the nano with color screen, the iPhone lookalike iPod touch and the mildly refreshed iPod Shuffle.  Apple also drew upon the new low price of its iPhone and on an active new marketing campaign promoting the iPhone on TV.

The results are enough to turn the heads of even Apple's harshest critics.  Apple recorded a whopping 67 percent increase in profits and made a net profit of $904 million USD, topping estimates. Apple stockholders made $1.01 per share in profits.

Apple sold 10.2 million iPods over the quarter and 1.11 million iPhones.  iPhone sales topped the million mark early in September and were aggressive due largely to the price cut.

Despite laying off its trademark "Mac Guy, PC Guy" advertising campaign, Apple recorded landmark sales of 2.16 million Macs.  To put the number in perspective; this is the largest quarterly sales of Macs in the company's long history which stretches over two decades.

Apple is now in third place in the domestic computer market -- behind only Dell and Hewlett Packard -- according to the IDC.

Apple is convinced its success is here to stay.  Steve Jobs released a statement, saying "We're looking forward to a strong December quarter as we enter the holiday season with Apple's best products ever."

Strong indeed.  Apple, usually conservative in its sales and profit predictions, is predicting profits of $9.2 billion and earnings of $1.42 per share next quarter, which ends in December.  Whether Apple will be able to sustain its torrid growth and meet these marks will only be revealed by holiday season sales.

Apple's recent success may even have taken the company itself aback.  Following weeks of rumors that the software and hardware giant is understaffed, particularly with the iPhone, Apple posted help wanted ads on social network Facebook, seeking an iPhone software designer.

As Apple continues to grow and transform, it will likely continue to experience some growing pains.  As a corporate leader, you often lose the "cool guy" image that has been Apple's bread and butter.  Apple will almost surely endure some more harsh press, but for now they can bask in the glory of their massive fourth quarter success.



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Apple is worth more than IBM and Intel
By Hare on 10/23/2007 1:54:36 PM , Rating: 6
The title says it all.

• Microsoft (MSFT) - $290,326,101,760
• Google (GOOG) - $206,137,075,350
Apple (AAPL) - $163,814,662,910
• Intel (INTC) - $156,278,400,000
• IBM (IBM) - $154,610,255,550
• Hewlett-Packard (HPQ) - $133,260,024,780
• Disney (DIS) - $67,680,019,880
• Dell (DELL) - $64,241,243,920
• Sony (SNE) - $45,994,645,800
• Yahoo! (YHOO) - $40,641,873,724
• Amazon (AMZN) - $39,037,267,570

Source, macdailynews.




RE: Apple is worth more than IBM and Intel
By Hare on 10/23/07, Rating: 0
RE: Apple is worth more than IBM and Intel
By Master Kenobi (blog) on 10/23/2007 2:19:57 PM , Rating: 2
Not always, I find some of my posts get a 1 rating immediately upon posting, might be a bug in the CMS.


RE: Apple is worth more than IBM and Intel
By tuteja1986 on 10/24/2007 12:36:43 AM , Rating: 1
Apple stock is so over bloated now , i am going to sell my apple stock around Q1 2008, probably after Apple yearly conferences. I still don't think Apple is bigger than Intel , IBM and half of Microsoft.

Selling iphone at 400% of its manufacturing cost at start gave em huge profit boost for this quarter and stupid AT&T giving cash to Apple for exclusive iphone deal was stupid. I don't think Apple will reach 10million iphone sales by Q3 2008.


By spluurfg on 10/24/2007 8:31:14 AM , Rating: 2
Market capitalization isn't really a direct measure of the size of a firm. Stocks are traditionally valued based on the future (and potential future) dividend payouts. Hence a company will have a higher total capitalization than another firm if it is expected to distribute more earnings to shareholders.

A small firm (by measure of assets, revenue, employees, etc) that is highly profitable can have a much higher capitalization than a massive corporation that has very thin margins.


RE: Apple is worth more than IBM and Intel
By James Holden on 10/23/2007 2:25:13 PM , Rating: 2
There's some "background noise" when it comes to ratings. Don't take it all personal.


By MADAOO7 on 10/23/2007 2:34:49 PM , Rating: 3
I'm sorry, it was my fault, I left a "hanging chad"......lol


By scrapsma54 on 10/23/2007 4:19:50 PM , Rating: 3
It happens, Don't worry, there are also people who don't act very professional.


By Aerius on 10/23/2007 7:26:05 PM , Rating: 2
I didn't star you, but your title is wrong. The market capitalization is higher, but the value of the company (EV) is not. Apple is not worth as much as IBM and is about tied with Intel depending on what numbers you want to use.

Thus you either introduced bias due to you misconstruing the data, or your source was biased. If that was the title of the article you sourced, it once again shows how misleading those fanboy mac sites are. Same sites who are arguing that macs are cheaper than PCs, no?


RE: Apple is worth more than IBM and Intel
By Mitch101 on 10/23/2007 2:25:39 PM , Rating: 2
I can never understand why google is worth so much.

There isnt a single product in my home that has google on it. Yes I use thier search engine from time to time however I dont ever recall paying them a penny. All the other companies on the list I have purchased something from. This cant be all google ads.

I guess I need to write my own search engine.


RE: Apple is worth more than IBM and Intel
By cochy on 10/23/2007 2:32:03 PM , Rating: 2
Google makes mountains of money from their ads. They don't sell anything to consumers which explains why you haven't bought anything from them.


RE: Apple is worth more than IBM and Intel
By Mitch101 on 10/23/2007 2:41:35 PM , Rating: 3
That I know but does google ads really make that much coin to be worth so much? To me search engines come and go. AltaVista was my original king of search then Yahoo was popular yesterday and google is most popular today. Who is next dogpile?

MSN will never be as popular because its name is lousy. Try using MSN in a sentence. If they change the name to something catchy I believe it would make a world of difference for them. Same for AOL search but that is google now.

I have been finding that google page ranking isnt what it used to be as a lot of searches I do dont return valid information im searching for instead I get a lot of ad sites that just contain nothing but just that ads. Its either they have figured out googles rank system and are exploiting it or google's page ranking isnt what it used to be and may be taking a turn for the worse.

Turn me on to another search engine. Who does everyone use beyond Google today?


RE: Apple is worth more than IBM and Intel
By TomZ on 10/23/2007 2:46:57 PM , Rating: 3
quote:
That I know but does google ads really make that much coin to be worth so much?

Yes, they do, because the popularity of google gets your ads exposed to a lot of viewers who click through to your site.
quote:
Who does everyone use beyond Google today?

Don't ask us - use google to find some other search engines. :o)


By Mitch101 on 10/23/2007 4:35:54 PM , Rating: 2
quote:
Don't ask us - use google to find some other search engines. :o)

LOL.


By euclidean on 10/23/2007 5:16:27 PM , Rating: 2
Ads and Corporate search engines....they sell their technology all the time. Plus they do a lot of R&D for other software companies and such.

And I believe the issue with the adsense and the reason it's not what it use to be is because people got a hair up their ass when they found out how long they kept your search information stored for you... cut half of it away and you loose a ton of data that helped it find what you wanted...though, that's just my thought.


By fk49 on 10/23/2007 3:52:29 PM , Rating: 2
They have mindshare -- I think that's pretty valuable. Can't really put a price tag on information right?


RE: Apple is worth more than IBM and Intel
By Hase0 on 10/24/2007 11:18:45 AM , Rating: 2
I also agree with your opinion on the current MSN never being popular because not only is the name not very catchy, but i think the user interface is far to cluttered compared to Google, one of Google's key advantages is it's sheer simplicity, making it one of the most user friendly search engine.


By TomZ on 10/24/2007 11:23:31 AM , Rating: 2
Are you sure about that?

http://www.live.com/

Looks pretty simple to me. I don't think you could reasonably call that "cluttered."

Remember msn.com is a portal (like aol.com), while live.com is a search engine interface (like google.com). You just need to compare apples-to-apples.


RE: Apple is worth more than IBM and Intel
By retrospooty on 10/23/2007 2:57:29 PM , Rating: 1
Cool. I really hope they do well. We need a viable alternative product that people are willing to buy to keep MS pushing things. We have not had that the past decade and look what we got... Vista. Blah.

I hope people start massively defecting and buying Macs. It will help drive prices for PC's down (as well as Macs) and force MS to re-prioritize thier OS direction (reduce the bloat)