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Apple CEO Steve Jobs holds a custom Intel Core 2 Duo processor used in the MacBook Air  (Source: Reuters)
It seems a bad move to bet against Apple when it comes to financial outlooks

Never one to keep silent of its accomplishments, Apple was quick to proclaim on Wednesday its resounding Q2 success, amid signs of a slowing consumer economy.  Analysts predicted early this year that Apple might struggle due to rising costs of flash memory, and perhaps unwillingness from consumers to pay $200+ for a piece of Apple electronics.  Unfortunately for Apple's detractors, this does not appear to be happening.

After a strong Q4 2007, and a strong Q1 2008, Apple unsurprisingly posted a stronger than ever Q2 2008.  Apple saw revenue rise from $5.26B USD in Q2 2007 to $7.51B USD in Q2 2008.  Similarly, net quarterly profit rose from $770M USD in Q2 2007 ($0.87 per diluted share) to $1.05B USD in Q2 2008 ($1.16 per diluted share).  This all bodes very well for Apple's stock shareholders.

The gross margin dropped from 35.1 percent in Q2 2007 to 32.9 percent in Q2 2008.  This was the only major negative in the report, and perhaps a sign that rising flash costs are indeed catching up to Apple.  While this may be a sign of trouble to come, Apple showed little signs of it in Q2 2008. 

A large part of Apple's gains were due to the popularity of its Mac computers, particularly the ultra-slim MacBook Air.  Apple reported sales of 2,289,000 Macintosh computers in the quarter.  This reflects a 51 percent unit growth and 54 percent revenue growth over Q2 2007. 

The company continues to do well with its iPods and iPhone, but saw largely stagnant growth.  Apple sold 10,644,000 iPods over the quarter, up 1 percent in units from last year, and 8 percent in revenue.  It sold a modest 1.7 million iPhones during the quarter.

Steve Jobs, Apple’s CEO, was quick to toot his company's own horn upon the news of the success.  He stated, "We’re delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple’s history.  With over $17 billion in revenue for the first half of our fiscal year, we have strong momentum to launch some terrific new products in the coming quarters."

Chiming in was Peter Oppenheimer, Apple’s CFO, who offered more glowing comments.  Oppenheimer noted, "We’re thrilled to have generated $4 billion in cash flow from operations in the first half of fiscal 2008, yielding an ending cash balance of $19.4 billion.  Looking ahead to the third quarter of fiscal 2008, we expect revenue of about $7.2 billion and earnings per diluted share of about $1.00."

Apple has seen strong growth in the PC industry and may soon launch its new 3G iPhone.  However, the company has been hurt by an embarrassing campaign against the city of New York and its malware-like distribution attempts of Safari, which led to the company unwittingly encouraging the massive violation of its own EULA.



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OMG hand me a tissue, quick !!
By Reclaimer77 on 4/24/2008 1:48:56 PM , Rating: 0
In all seriousness, only Apple would sell a little over 2 million computers and orgasm all over themselves in joy. Anyone can use growth percentages to make fans oooh and ahhh, but 2 million ? When you look at the net numbers that article isn't as impressive is it.

It just goes to show, really, nobody wants a Mac. All their money is made from MP3 players and phones.

By the way, they spent half a billion dollars in advertising too. Which I'm sure is way up from last year. Or did Steve Jobs think suddenly everyone got dumber and felt compelled to buy into his crap.




RE: OMG hand me a tissue, quick !!
By Reclaimer77 on 4/24/2008 4:14:49 PM , Rating: 2
If your going to rate someone down for telling it like it is, be man enough to post and say why.


RE: OMG hand me a tissue, quick !!
By robinthakur on 4/24/2008 5:28:23 PM , Rating: 2
Why would I bother, its rarely rewarding to argue with retards.


RE: OMG hand me a tissue, quick !!
By 777 on 4/24/2008 11:49:29 PM , Rating: 2
quote:
It just goes to show, really, nobody wants a Mac.


Really??? Check this out.
IBM's own staff prefer Macs to ThinkPads
http://www.techradar.com/news/computing/apple/ibms...

quote:
Why would I bother, its rarely rewarding to argue with retards.

Accurate response!


RE: OMG hand me a tissue, quick !!
By Reclaimer77 on 4/25/2008 2:15:12 PM , Rating: 2
You post that link like its a documented fact.

quote:
a leaked report suggests IBM is currently investigating the possibility of moving many of its employees from Microsoft's Windows platform to Apple's popular OS.


How many times have we bought into the " leaked report " tech site hype and it turned out being nothing substantial ?

Besides, even if that article is true, do you think thats earth shattering or something ? For a company as huge as IBM, them planning on buying a paltry 50-100 Apple laptops doesn't exactly strike me as anything to be impressed about. Unless, like you, a fanboi is reading it.


RE: OMG hand me a tissue, quick !!
By 777 on 4/25/2008 4:55:28 PM , Rating: 2
quote:
You post that link like its a documented fact.

Uhhh, that's because it is. Some IBM employees prefer the mac to a pc is a fact. My point was simple: to say 'no wants a mac' is wrong, to say 'a small percentage of people prefer a mac' ok that is accurate.

quote:
Unless, like you, a fanboi is reading it

Real mature.


RE: OMG hand me a tissue, quick !!
By Reclaimer77 on 4/25/2008 5:08:31 PM , Rating: 2
Dude come on. Its a " leaked " source. At this point its just a rumor. If its true, it still means nothing really. In the grand scheme of things, do you really think a few hundred people switching to Apple laptops is killing MS ?


RE: OMG hand me a tissue, quick !!
By 777 on 4/25/2008 7:43:06 PM , Rating: 2
That article was not the only place I read about this, IBM employees were asked and SOME wanted a mac over a pc.

Did I say anything about Apple killing MS? Anyone who would believe that would be a idiot. I'll repeat my point a 3rd time, there are those who prefer a mac to a pc a very small percentage, so to say no one wants one is wrong.

If mac's are just overpriced pc's that are no better than a pc, why do you pc diehards get so worked up over any news positive or negative about Apple? Just go enjoy your lower priced pc and let it go!


RE: OMG hand me a tissue, quick !!
By Enigmatic on 4/24/2008 4:43:52 PM , Rating: 2
I didn't rate you down, but I can see why someone would. Likely you've never been on a college campus recently but when I'm at school it seems like the MacBooks outnumber all other computers 2:1. Especially surprising considering it's from one manufacturer. Most people I know (I'm an exception here), are generally satisfied with their MacBook. It doesn't seem unreasonable that then they would then decide to get a Mac for a desktop as well. Thus, the Apple's growth continues.

Obviously Apple computers are yet to make a dent in overall Windows PC sales. But this is really the first time I'm seeing Apple make clear and noticeable sales in the mainstream with a product that isn't some iteration of an iPod. So it's no surprise to me that Apple is experiencing financial success in which what many consider an economic recession.


RE: OMG hand me a tissue, quick !!
By Reclaimer77 on 4/24/2008 7:00:22 PM , Rating: 2
quote:
Likely you've never been on a college campus recently but when I'm at school it seems like the MacBooks outnumber all other computers 2:1. Especially surprising considering it's from one manufacturer.


How can you really quantify a statement like that ? I mean, honestly. Yeah I'm sure you went to every college in the country and got an accurate count. Besides, if I still cared about mimicking what college students do, I would be too high or drunk right now to type.

Advertising works wonders with the youth. Apple is the " cool " thing right now. I'm sure we've all seen the infamous commercials feature the boring old suit and tie PC guy versus the young and hip poorly dressed slacker type. Apple has been selling a social movement for years now, not just electronics. The poor slumbs think they are a " part of something " when they invest in Apple products.

My point was their sales increase is simply directly proportional to their advertising budget. Theres really nothing to see here folks.


By Enigmatic on 4/24/2008 11:34:31 PM , Rating: 2
I guess us young-uns are just mindless slaves submitting to the ever present Apple Incorporation and their damn "cool" commercials. How could a pot smoking drunk ever resist?


RE: OMG hand me a tissue, quick !!
By lightfoot on 4/25/2008 7:35:29 PM , Rating: 2
A lot of things happen on college campuses that don't occur in the real world. It's interesting to consider a few aspects of the college demographic - they are young, have large amounts of disposable income, and they are unemployeed. They have never paid a bill in their life, and likely bought that Macbook with a student loan (assuming that mommy and daddy didn't pay for it.) In polls they are not considered "college educated" because they don't have a degree. Not to be overly insulting, but this is the same demographic from which 29% can't locate the Pacific Ocean on a map.

http://news.nationalgeographic.com/news/2002/11/11...

Trends and fashion do not constitute an informed consumer.

It's funny how often college students are held to be an "enlightened" demographic, when usually they simply don't know any better.


By Enigmatic on 4/26/2008 7:33:37 PM , Rating: 2
Your post doesn't make any sense. How would you have large amounts of disposable income when you're unemployed?


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