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Apple is practically printing money, blowing away analysts estimates quarter after quarter, and sustaining terrific growth. Sales of Macs and iPods shot up in the company's fiscal Q4, which ended September 26.  (Source: Apple Gazette)
Even analyst's raised predictions fell dramatically short

Apple is a company that continues to defy expectations.  Reporting its fiscal Q4 earnings late this afternoon, Apple continued to restore its reputation as one of Silicon Valley's hottest companies and help put a sales slump from earlier this year behind it for good.  The results for the quarter, which ended September 26, took even Apple's most optimistic supporters by surprise.

Analysts had raised their estimates in September, afraid of embarrassment from past underestimations.  Unfortunately for them, the Apple surprise was even bigger this time, and they still fell short.  Analysts had forecast $1.42 earnings per share in profit -- Apple delivered $1.82 earnings per share.  Revenue was $9.87B USD, much more than the predicted $9.2B USD.

Fueled by the 3GS refresh, over 7.4 million iPhones were sold over the quarter, nearly matching the raised estimates of analysts, some of whom were predicted about 7.5 million sales.  Fears that Apple's sales weren't on pace proved unfounded.  The sales marked an increase over analyst average estimates of 7 million phones, and a substantial increase over last year's sales of 6.9 million units.

The best news for Apple, though, was its Mac sales.  Boosted by Snow Leopard and Back-to-School specials, Apple sold 3 million Macs, much more than the analyst forecast of 2.8 million units.  This was particularly significant as Macs comprise the largest single source of Apple's income.

As predicted, iPod shipments declined 8 percent to 10.2 million units.  Still, this was slightly cheerier than the 10 million units that was the average forecast.  And the financials look rock solid.  Gross margins as a percentage of revenue are up to 36.6 percent, compared 34.7 percent in fiscal Q4 of last year.

Despite being embarrassed again, analysts lavished praise on the bullish Apple.  States Shaw Wu, who covers Apple for Kaufman Bros, "It was a strong, strong quarter.  [The] big upside was driven by Macs and iPhones. This was amazing despite very high expectations, and we're still in the middle of a recession."

Stocks roared upwards in after hours trading, gaining more than 6 percent and cracking $201/share, to tie the company's highest historic share price (Note: These were after-hours trades, the market may yet settle to a slightly lower mark).

Apple CEO Steve Jobs cheered the results and titillated Apple fans, stating that the company has "some really great new products in the pipeline for 2010".  He's likely referring to Apple's upcoming tablet PC, which is rumored to finally hit in 2010.


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Much more?
By cochy on 10/19/2009 7:30:52 PM , Rating: 1
Analysts were off by less than 10% in each case. Is that "a lot" in these types of discussions?




RE: Much more?
By walk2k on 10/19/09, Rating: 0
RE: Much more?
By Ananke on 10/19/2009 8:14:56 PM , Rating: 3
iFanatics, iTerrorists, iCook, iSleep, iFu....:):)

its obsessing :)


RE: Much more?
By walk2k on 10/20/2009 2:10:03 AM , Rating: 5
iDon't care.

iCan't use my iPod because the iBattery wore out.

iWon't spend $300 on an iPhone if iCan't replace the battery.


RE: Much more?
By SPOOFE on 10/20/2009 4:34:44 AM , Rating: 3
iGotta admit, they make a lot of money, and as a devout Capitalist that earns a twisted sort of respect from me.


RE: Much more?
By tallcool1 on 10/20/2009 7:46:34 AM , Rating: 2
It's good to see an American Company doing well...


RE: Much more?
By callmeroy on 10/20/2009 8:23:30 AM , Rating: 2
Indeed I agree.

Guys/Gals (even though for whatever reason I find it hard to believe any regulars to this site are women)....

The point is in this economy, here in the US --- I'm glad to hear we have a company knocking it out of the park financially....I wish a lot of other companies would have Apple's success --- after all folks...when big corporations make tons of money it helps the entire economy if you want to believe that or not.....

Helping the economy, creating growth --- far out paces any dislike I have for a company's over priced goods.


RE: Much more?
By EasyC on 10/20/2009 12:25:03 PM , Rating: 2
iAgree


RE: Much more?
By KoolAidMan1 on 10/19/2009 8:30:54 PM , Rating: 4
So Wall Street analysts are Apple fanatics?

Things that you are talking about don't matter to them, hard numbers do. iPod sales have been flat since 2007, something that makes sense since the mp3 market is saturated. How much more can you grow from complete dominance? It is the same reason why you don't see massive growth in Windows sales, that story has been done since the late 90s when they hit over a 90% share in desktops. The thing is that flattened iPod sales don't really matter, not when year-over-year growth in Mac and iPhone sales is so fast and so much more profitable.

That's what matters to Wall Street, not any "Apple fanaticism" or whatever.


RE: Much more?
By walk2k on 10/20/09, Rating: -1
RE: Much more?
By KoolAidMan1 on 10/20/2009 2:28:52 AM , Rating: 3
What a crap post. You ignore hard numbers so you can make a stupid LOL RDF joke.

Step out of your own RDF field and pay attention to facts for a moment.

Q408 - 2.61 million Macs, 6.89 million iPhones
Q409 - 3.05 million Macs, 7.4 million iPhones

Q408 - $7.9 billion revenue with $1.14 billion net profit
Q409 - $9.87 billion revenue with $1.67 billion net profit

Gross margins remain at ~35%. This is amazing growth, I think even the most bullish AAPL investors were caught off guard by these figures. On top of that, non-GAAP accounting for the iPhone and AppleTV would put the Q409 figures at $2.85 billion net income on $12.25 billion revenue (Sarbannes-Oxley rules make it so that iPhone and AppleTV must account for income over the course of its first two years instead of reported quarterly with everything else).

Now, if you're talking about overall market share, it is really quite irrelevant. All that matters is that Apple have continued to grow sales at a continually accelerating rate, and at a healthy profit.

Looking at market share alone is short sighted and is something that Wall Street really doesn't care about, otherwise the resulting flattening or drop in expected future earnings would drag the share prices down. HP will sell 16 million this quarter but it doesn't mean nearly as much to their bottom line because almost all of it are in low-margin sales, nor does it mean much for their potential for future growth because their sales are relatively saturated. This is why you have companies like AAPL and RIMM trading at higher PE ratios.


RE: Much more?
By SPOOFE on 10/20/2009 4:38:47 AM , Rating: 2
Talkin' about Reality Distortion Fields, how come everyone ranting about Macolytes and Cult Followings have to simultaneously assert such ridiculous things that are completely contrary to actual events? Even if you don't like Macs, iPods, iTunes, or turtlenecks, there's no denying that Apple makes piles of sweet beautiful money... even in a nasty recession. Clearly they're doing SOMETHING right...

... And yet, those ranting about RDF's often have a hard time admitting it, despite all the evidence. The irony almost makes me wanna buy a Mac.


RE: Much more?
By KoolAidMan1 on 10/20/2009 3:38:15 PM , Rating: 2
Fanboys on any side bug the crap out of me, be they Mactards, Wintards, or Linux zealots. It is ridiculous how hard Walk2k is fanboying it up right now.


RE: Much more?
By Alexstarfire on 10/20/2009 4:51:24 PM , Rating: 2
Why are you so defensive against a non-fanboy post?


RE: Much more?
By KoolAidMan1 on 10/20/2009 5:45:13 PM , Rating: 2
I'm agreeing with SPOOFE!


RE: Much more?
By walk2k on 10/20/2009 12:24:32 PM , Rating: 2
Yes profit wise they have done well in a recession, nobody's arguing that. The simple fact you keep ignoring is that the VAST majority of their profits come from iPhones and iPods. If you took the time to actually read for once you might notice we were talking about Mac market share.

So again, what does the RDF have to say about maketshare?

Reality: "Mac market share still only 5-6%% despite the fact that Apple was able to take advantage of the worst period in Windows recent history (the whole Vista debacle)."

RDF: "Market share is irrelevant!"

LOL exactly. You just don't get it do you? Well nevermind you can't argue with certain people about their religion I guess.


RE: Much more?
By KoolAidMan1 on 10/20/2009 3:33:26 PM , Rating: 2
The bulk of Apple's profits are from Mac sales. Not the iPhone, not the iPod. Mac sales. Repeat it again.

Your posts are based on fabrications that come out of a fanboy mentality. Step out of that and pay attention to hard numbers for a moment.


RE: Much more?
By FITCraparo on 10/20/2009 6:24:53 AM , Rating: 2
mac sales up by 3%

my question would be, how much of that 3% are going to schools, do they count their "Donations" as sales. i have a few friends that work in I.T departments in schools and they say that mac reps have been feverishly trying to get them to upgrade all their macs either offering free or large discounts on Macs, iphones and AT&T phone plans, and sadly their schools are buying them so that the schools budget doesnt get cut, (NICE USE OF TAXPAYERS MONEY).


RE: Much more?
By Shadowself on 10/20/2009 12:49:38 AM , Rating: 4
In that world being off by 5% is considered a lot.


RE: Much more?
By Strunf on 10/20/2009 7:46:53 AM , Rating: 2
Not really and the recent events are the proof analysts sometimes get it wrong and not by just a few percent.

Even this news is the proof they aren't that much on target, but hey since what analysts say can radically change the stock value on the market most people "want" to believe they speak the word of god (or something like that).


Second Paragraph has a type
By PhatoseAlpha on 10/19/2009 6:55:30 PM , Rating: 2
Revenue was $9.87B USD, much more than the predicted $9.2B USD per share.

$9.2B per share? Man, forgot iPhones, I want iStock.




RE: Second Paragraph has a type
By Alexstarfire on 10/19/2009 7:26:06 PM , Rating: 2
Your title has a typo too.


RE: Second Paragraph has a type
By PhatoseAlpha on 10/19/2009 8:30:33 PM , Rating: 4
Damnit, they're contagious. Call the cdc.


Nice photoshopping
By carniver on 10/19/2009 7:03:00 PM , Rating: 2
LOL@the Steve Jobs money bills




RE: Nice photoshopping
By Ananke on 10/19/2009 7:13:39 PM , Rating: 5
I like the dollars picture there...lets get rid of the ever devaluating American dollar and replace it with iDollar :).

Steve for president, Steve for president!!!!!


good job Apple
By KIAman on 10/19/2009 6:14:48 PM , Rating: 5
In other news, Apple's legal team receives a substantial bonus this year!




RE: good job Apple
By lightfoot on 10/19/2009 6:51:22 PM , Rating: 1
So does this make Apple Stock (should it be called iStock?) Apple's most successful product? Although overpriced (aren't all Apple products?) it actually seems to meet (and exceed) analyst expectations.

As an added bonus, it won't even delete your personal information or drop your phone calls!


By Fenixgoon on 10/19/2009 6:47:22 PM , Rating: 2
It's not like the CEO of a company is going to badmouth their own products unless it's "Yeah, v1.0 wasn't that well received, so v2.0 is going to kick major ass, and we're going to make sure of that."

And especially considering it's Apple. You'd think the new products would have 6.022 x 10^23 new features that will change humanity in ways not thought possible. All for the meager sum of $100 of course (but it still runs the same OS, but a new feline-based name must mean it's entirely new!)




By sprockkets on 10/19/2009 7:15:01 PM , Rating: 2
There have been reports of new upcoming imacs and a new mac mini, since resellers have been told no new orders will be filled. They might feature the new i5 processors. In the conference call, they also said they were going to lower margins and part of the reasons was to debut cheaper hardware.

Mac minis right now either are sold out or on 2 to 4 week notice from Amazon.com.


By damianrobertjones on 10/20/2009 8:20:26 AM , Rating: 2
Probably sold out due to the fact that G4 owners are SOL upgrading to the latest OSX release..

Hence a crap load of G4 minis on ebay.

Yet.. people will still but them knowing that apple with screw them over down the line.


hummm...
By QueBert on 10/20/2009 10:47:20 AM , Rating: 1
Never owned a Mac, only 2 Apple products I've owned are an iPhone and an iPod Touch. Over the years I've had dozens of cell phones, I use to get a new one every 4-5 months. The iPhone is EASILY my favorite, it's not even close. And the fact I can use LogMeIn on my Touch while I'm on the shitter makes it the coolest PMP I've ever owned. Not everyone who fills out Apple customer satisfaction surveys is blinded by some nutt-hugging auto love for all things Apple. My iPhone is far from perfect, but at the same time there's not another phone even in the same league as it IMHO. When I have to use my GF's LG Dare or her sons ENV2 I cringe. Pretty much the same can be said for any other cell phone out there today.




RE: hummm...
By Alexstarfire on 10/20/2009 3:26:51 PM , Rating: 2
No offense, but if the Dare and Env2 are the best phones you've had/played with apart from the iPhone then it's no wonder. I would never argue that it's a bad subsidized cell phone from the cell phone companies, but if you compare it to the dozens, if not more, phones that cell phone providers don't offer at their store or online then you might understand what we mean. For some reason they just don't want to provide subsidies on most of the good phones. As a result they suffer because that adds at least $100 to the price of any phone.


only way...
By meepstone on 10/19/2009 6:45:39 PM , Rating: 2
to titillate me mr jobs is to make a device that cleans my house like rosie in the jetsons!

So no teasing titillating to tantalize my imagination!




let's cut to the point
By mydogfarted on 10/19/09, Rating: -1
RE: let's cut to the point
By Alexstarfire on 10/19/09, Rating: 0
RE: let's cut to the point
By FATCamaro on 10/19/2009 7:15:14 PM , Rating: 4
The problem with your statement is that they are also at the top of satisfaction surveys. Which means people are liking what they are trying.


RE: let's cut to the point
By Alexstarfire on 10/19/2009 7:24:27 PM , Rating: 1
Which I've also pointed out doesn't mean it's the best product either. I guess people fail at reading on here. Though perhaps you just haven't seen the NUMEROUS other posts I've had on that subject. Of course not all people are the same too. Could be that those inclined to purchase a mac will like it more than those who don't purchase one. Which again says nothing about the quality of the product itself, just the way it's perceived.


RE: let's cut to the point
By Pneumothorax on 10/19/2009 8:13:59 PM , Rating: 2
After spending >$5000 in MBP's in the last 2 years, I'm bittersweet with my Apple experience. On one hand, PC users don't have a laptop with the speed(with a caveat), 15" screen size, battery life (without a heavy/ugly lump of an extended battery sticking out the back), weight/build quality in one laptop. OTOH my ~$500 X25M 160gb will constantly freeze (beachball) or I can choose to cap it at SATA I speeds. 1 laptop swap and motherboard swap later, I'm still running at 1.5gbps speeds to keep it from freezing.


RE: let's cut to the point
By Alexstarfire on 10/20/2009 1:51:17 AM , Rating: 2
I really don't know why I got down rated for my last post, because what I said is true? If people don't believe that the way you perceive an object affects how much you like it then they are living in a fantasy world. What I said applies to far more companies than just Apple so it's not like I'm some Apple basher doing it because everyone does.

I'm sorry you bought a crappy laptop, but there isn't anything I can do about it. I can say that one thing I have found interesting is that it's not so much the laptop as it is the OS that affects battery life. I'm not sure if you remember the article that Anandtech did comparing Windows to Mac OS in battery life on notebooks. Windows laptop did crap, Macbook did great. Then they put Windows on the Macbook and watched the battery life fall right in line with the Windows laptop. Seems that either Apple is crippling Windows on it's laptops or that its own OS does something to improve battery life. I couldn't say without knowing the ins and outs of both OSes.

I'm also glad that you have >$5k to spend on laptops alone, but most don't have that kind of money. People seem to be insulted when others tell them they can't afford a Mac, IDK why though. I've had my $400 laptop for about a year and it's great. No problems with it at all. Doesn't play games that well, but I didn't buy it to play games. Everything else it is just fantastic for. Can't say much about build quality since this is the only laptop I've owned, but since I don't treat it like crap it pretty much looks brand new. The top cover has some scuffs and is worn a bit, but that's it. No scratches, chunks, or pieces broken off. Keys work perfectly and everything else is exactly the same, including the screen. I simply never could have afforded to get Macbook even if I wanted one. Yes a Macbook is far better than what I have, but it really doesn't matter. This suits my needs pretty much perfectly. Only thing I'd change is putting in a dedicated graphics card. Integrated GPU FTL.


RE: let's cut to the point
By PrinceGaz on 10/19/2009 7:37:48 PM , Rating: 2
Most Apple owners are very satisfied with what they bought because they perceive it as being the best available product. Whether it is the best or not is irrelevant; they believe because they spent a lot of money on a recognised brand that they have the best product available.

Having bought what they see as the best brand, one which is recognisable among all their peers who also view it as the best brand makes them happy with their purchase. It doesn't matter if they are selling over-priced junk, or genuine high-quality products. Apple is now associated with quality and people like to be seen with it.


RE: let's cut to the point
By Alexstarfire on 10/19/2009 7:51:50 PM , Rating: 2
Exactly. I think if they actually used all the products available and then voted I think we may end up seeing things in a bit truer light. Although what he says may still stand. It's one of the reasons why Sony is still pretty dominant in the TV sector even though there are other TVs that are better and cheaper than them. Perception is everything, which is why I said they aren't bad businessmen or marketers.


RE: let's cut to the point
By dark matter on 10/20/2009 2:33:35 AM , Rating: 2
Erm, don't Apple place gagging orders on customers who have problems with their product in order for them to get a refund?

"What's the matter sir, your iPod exploded and took out your car"
"Yes, and I am going to tell everyone"
"Actually Sir, you're not allowed to, Lawyers are already onto you, if you dare speak about this to anyone you will get a knock on your door in the middle of the night"
"Oh, I see"
"Yes, you better had"


RE: let's cut to the point
By sprockkets on 10/19/2009 8:39:51 PM , Rating: 2
Yeah, and this is the second stupid knockoff name that's come up in the past week. Can't you come up with something better than a "FITcamaro" sound alike?


RE: let's cut to the point
By Pirks on 10/19/2009 6:47:27 PM , Rating: 2
No, you forgot "MACS ARE OVERPRICED!!!" part :P

Also there's a part about Jobs's new liver too.

Man, you suck at it :P


RE: let's cut to the point
By walk2k on 10/19/2009 7:26:06 PM , Rating: 1
10 million iPods 7 million iPhones vs 3 million Macs... how is this a win for the Mac again? It may be good financially for Apple but not much of a threat to MS/Windows.

It's real easy to exceed expectations when you set them so low.

ZOMG WE DOUBLED OUR MARKET SHARE... from 3% to 6%.... HOORAY FOR US!!!


RE: let's cut to the point
By captainBOB on 10/19/2009 10:23:59 PM , Rating: 3
You forget that those same overpriced Macs and iPhones also generate a lot of profit per unit sold so while Apple could sell 5 million Macs @ $200, they prefer to sell 3 million Macs at the $1000+ price range, effectively earning more for less.

Its not about who sells the most, but who gets the most money out of it, and Apple wins in that regard.


RE: let's cut to the point
By damianrobertjones on 10/20/2009 5:46:32 AM , Rating: 2
You may not realise, but apple have captured the imagination or should I say stupidity of the young generation. With them eventually growing older, earning more money, apple sales will grow and grow.

I don't really like this situation as it's all down to the 'cool' factor, not the 'our products are better'. They're not. Never will be. Inovation, yes, better, no.


RE: let's cut to the point
By KoolAidMan1 on 10/20/2009 6:21:59 AM , Rating: 2
Nope, some of their products are actually better. The only other notebook I would think of owning are mid and high end Lenovos, everything else doesn't measure up to the Macbook Pro. I've used Windows for over a decade longer than I've used OS X (got my first Mac for Final Cut Pro back in 2002), I know both operating systems backwards and forwards, and I believe that OS X has a much better UI for multitasking. My Mac is my work/general purpose machine while my Windows PC is for games, basically a very expensive console.

This isn't a bad thing btw; if it wasn't for competition in the OS space then Microsoft wouldn't have such a fire under their ass to make Windows 7 as great as it is. The result is the best version of Windows so far. See, not bad. The only thing that is "bad" is when a single corporation has complete dominance and gets lazy as a result. Everybody is competing hard right now and we all benefit from it.


RE: let's cut to the point
By damianrobertjones on 10/20/2009 8:22:29 AM , Rating: 2
True, true. Good points there. Competition = good. Intel/amd etc.

I just wish apple would be straight with their adverts instead of 'cheating'... ish. Apple = cool, pc = sad, lonely guy, with bad haircut. Doh


RE: let's cut to the point
By n0ebert on 10/20/2009 10:13:27 AM , Rating: 2
They should grow. They need to grow to a level where they will be brought under the same scrutiny and criticism as Microsoft is by the governments. It seems they go largely ignored because of their much smaller market share. I hope to one day see the EU fining Apple some stupidly large sum of money like they did Intel and Microsoft.


RE: let's cut to the point
By hiscross on 10/19/2009 9:24:52 PM , Rating: 2
Apple can't be the anti-christ because Steve is sort of a Buddhist or something. Maybe we are seeing Henry Reardon before he leaves and relocates at Galt's Gulch. Producers won't be around much longer. When are leave, you'll know "Who is John Galt". Nice piece of work Apple.


“We do believe we have a moral responsibility to keep porn off the iPhone.” -- Steve Jobs














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