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Apple CEO Steve Jobs has reason to smile with great iPhone sales and another record-setting quarter.  (Source: Keynote2Keynote)
Apple celebrates, sees spectacular growth continue

Despite taking a beating on the stock market yesterday, Apple still has reason to celebrate.  On the heels of its Macworld announcement of the slick MacBook Air, Apple released its fiscal Q1 2008 results.

The quarter, which ended December 29, 2007, followed closely to and even surpassed Apple's record setting fourth quarter of the previous fiscal year.  Apple's revenue increased to $9.6 billion USD from $7.1 billion USD in the same quarter a year ago, up 35%.  More significantly, its net profit increased from $1 billion USD to $1.58 billion USD; a 58% increase.

One key factor was strong iPhone sales, growing a significant new business market for Apple.  Apple sold 2.31 million iPhones in the quarter, bringing the total iPhone user base up to 4 million, and raising its market share in the smart phone industry to nearly 20%.  The iPhone saw strong growth in the business sector due to the stylish design that made it the TIME magazine invention of 2007

An aggressive Apple has also made gains in the OS and home computer market segments.  Apple sold 2,319,000 Mac computers during the quarter, continuing its ascent to join Dell and HP in the elite tier of top PC sellers.  Much of these sales were driven by the continued strong sales of OS X Leopard.

The iPod lineup, which was refreshed last fall, continued to see energetic sales.  Apple sold 22,121,000 units, a modest 5% unit growth from a year ago in a market that is largely saturated.  While not earth-shaking, Apple has to feel good about this increase in sales for its line which is facing tough competition from Microsoft's refreshed Zune lineup, which also sports new flash-based players.

Apple CEO Steve Jobs was quick to pat himself and fellow Apple employees on the back, and promised good things to come stating, "We’re thrilled to report our best quarter ever, with the highest revenue and earnings in Apple’s history.  We have an incredibly strong new product pipeline for 2008, starting with MacBook Air, Mac Pro and iTunes Movie Rentals in the first two weeks."

Despite it fiscal first quarter gains, an NBC treaty impending over iTunes, and its new notebook computer rolling out, Apple will have still have to soldier through a traditionally slow first quarter (Apple's fiscal second quarter).



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Love the Article Picture
By daftrok on 1/23/2008 2:28:15 PM , Rating: 5
Powerful, young and homosexual tendencies...fitting.




RE: Love the Article Picture
By Master Kenobi (blog) on 1/23/2008 2:48:04 PM , Rating: 5
And get's beaten by an older wiser master. Yep, couldn't have said it better.


RE: Love the Article Picture
By HaZaRd2K6 on 1/23/2008 2:57:00 PM , Rating: 2
Wait... you beat him? I thought you died in one of the earlier (later?) movies.


RE: Love the Article Picture
By Brandon Hill (blog) on 1/23/2008 2:58:42 PM , Rating: 2
Yeah, didn't Vader slash Obi a few years later. Or was it suicide (the disappearing trick), I forget :)


RE: Love the Article Picture
By Ringold on 1/23/2008 3:48:35 PM , Rating: 5
He became more powerful than you can possibly imagine.


RE: Love the Article Picture
By protosv on 1/23/2008 6:38:47 PM , Rating: 2
Give this man a 6!


RE: Love the Article Picture
By Etsp on 1/23/2008 2:59:05 PM , Rating: 5
If you define "beating" someone as amputating 3 of their four limbs, and leaving them to burn to death, then yes, he beat him. Then died later in the story.


RE: Love the Article Picture
By onwisconsin on 1/23/2008 4:09:32 PM , Rating: 6
It's only a flesh wound!


RE: Love the Article Picture
By Etsp on 1/23/2008 4:52:13 PM , Rating: 2
I'd rate you up if I hadn't already posted XD


RE: Love the Article Picture
By dflynchimp on 1/23/2008 5:19:10 PM , Rating: 5
What are you going to do, bleed on me?!


RE: Love the Article Picture
By Ajax9000 on 1/23/2008 7:35:10 PM , Rating: 3
No ...

I'll bite your kneecaps off!


RE: Love the Article Picture
By Polynikes on 1/23/2008 9:33:02 PM , Rating: 2
Hahaha... Ahhh Monty Python.


RE: Love the Article Picture
By robinthakur on 1/24/2008 5:12:56 AM , Rating: 2
...and for all those reasons, my favorite character!


???
By WileECoyote on 1/23/2008 2:42:24 PM , Rating: 3
Apple is likely to see a strong second quarter as well.

Looks like they expect things to slow a little in the second quarter

Jan. 23 (Bloomberg) -- Apple Inc. plunged the most in more than seven years in Nasdaq trading after its forecast missed analysts' estimates..... Chief Executive Officer Steve Jobs spooked investors by failing to meet the most optimistic projections for first- quarter profit and forecasting sales growth that would slow to 29 percent this quarter from 35 percent in the previous three months....

http://www.bloomberg.com/apps/news?pid=20601213&si...




RE: ???
By Brandon Hill (blog) on 1/23/2008 2:46:24 PM , Rating: 2
The article has been updated.


RE: ???
By JasonMick (blog) on 1/23/2008 3:36:03 PM , Rating: 2
I don't mind the new wording, but I tend to agree with the op below.

I meant it in the sense that it (Apple) will see a strong 2nd quarter, as far as second quarters go (which are usually very slow, as op mentioned).

As far as I know the analysts were more saying the stock is overvalued, which is a long time coming to both Apple and Google. It happens to big companies, its not the end of the world. The whole market took a pretty good sized hit 'sides, specially tech.

I still stand by that Apple's 2nd quarter this year will I believe be stronger than its one last year, something I have read several analysts state. So I stand by my original stance, which is obviously speculative and not meant to be taken as a definitive prediction.

Not trying to bash or glorify, just making a prediction based on recent trends.


RE: ???
By Ringold on 1/23/2008 3:52:39 PM , Rating: 2
Here's a question to ponder: Would $800 to tax payers equate to economic stimulus or simply a massive tax-payer subsidized blow-out quarter for Apple as everyone and their dog get a new Ipod Touch or iPhone? :P


RE: ???
By Cygni on 1/23/2008 3:18:59 PM , Rating: 2
29% sales growth isnt a strong quarter? Apples stock price fell because analysts were overvaluing and overhyping it. They are still expected to have a very strong quarter.


RE: ???
By ice456789 on 1/23/2008 3:32:22 PM , Rating: 3
29% sales growth is not strong if costs grew by 30% (for example). What the market is saying is that the 29% sales growth predicted by Apple is not enough to cover their expenses at current market cap, and that's why the company was devalued by about 13% today in the stock market.


RE: ???
By Ringold on 1/23/2008 3:55:17 PM , Rating: 2
I think we might be over-thinking the corresponding sell-off.

I think the stock got whacked because traders acted like it was the beginning of the apocalypse for equities more then anything Apple could've or did do. The opinion seems to be that slow down = bad for tech, so may be hard for Apple to do anything to avoid getting lumped in with a sector being shunned. Not that it makes any sense.


RE: ???
By Oregonian2 on 1/23/2008 7:48:42 PM , Rating: 2
Stocks are priced not upon performance but on expected future performance. So even when record sales or profits are achieved (like Intel has done as well), the stock will drop like a rock if the record isn't as good as the record that was expected. The stock's price was set based upon those previous expectations (plus the position of the astrological master plane of existence).


RE: ???
By Ringold on 1/23/2008 11:01:03 PM , Rating: 2
quote:
(plus the position of the astrological master plane of existence).


I thought you were going to give the standard textbook definition until I saw that!

That's all I was saying, that the trading environment this week has had a lot more to do with.. the master plane of existence then hard data. Basic textbook definitions can't explain the volitity of the past 48 hours, or much of the trading to the downside thats happened this month even in the absence of new data. Some times, it's just human emotion and big investors making price-moving bets, or a stock irrationally getting tanked because of its sectors performance. Look at the tech slaughter; then consider, for example, that 67% of IT spending is essentially fixed as recurrent spending that has to take place so long as the lights stay on. Take a look at EMC for example -- oww.

Just one of them weeks..

Besides. This isn't anything new from Apple; report blow out numbers, give conservative guidance, then amazingly manage to blow them out again. UPOD. Most times it's an excuse for a rally. This week, though, it's more like telling a joke at a funeral.


RE: ???
By Steve Guilliot on 2/18/2008 4:27:04 PM , Rating: 2
Not exactly,
Apple's stock price was set based on the future expectation of .35 per share. If they don't meet that, then the stock justifies a lower price. Hence, the sell off.

This is why companies such as Google are trading at crazy P/E ratios of 40+, while companies that actually make more money (e.g. Microsoft) trade at only P/E 16. It's all about future growth expectations.


ha, instinct
By BruceLeet on 1/23/2008 2:53:13 PM , Rating: 3
I knew Jason Mick wrote the article once I saw "Enjoys another Record.."




RE: ha, instinct
By Master Kenobi (blog) on 1/24/2008 10:29:11 AM , Rating: 2
Yea, Jason is the resident Apple supporter, but we love him nonetheless, even if he is the odd one out :P


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