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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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RE: Competition Will be good
By robinthakur on 4/24/2008 5:11:37 PM , Rating: 2
So that makes you what? A...Microsoft fanboy? To be honest they're just as annoying (moreso if you count the console space) and MS really have dropped the ball with Vista. Not because its a bad OS, I really like it, although its not as nice as Leopard.

Its because of their attitude towards it, in letting themselves be convinced by their critics. All the organisations who were going to roll out Vista, including mine are now putting those plans on hold because of all the buzz around Windows 7 and clamouring at MS to know when its coming out. They've really shot themselves in the foot because nobody is going to upgrade their entire infrastructure to vista and then have to do the same thing all over again in 1-2 years time. It doesn't matter how easy it is to deploy. Not going to happen!

They've also revealed that they're running scared of google by attempting embarassingly to buy Yahoo and being rebuffed.

I'm not surprised that Mac's are growing in sales. They get the marketing and branding 110% right, the design's always on the money and generally the build quality is what you would expect. Mac's always get coos of delight at work whenever somebody gets a new one, because they are beautifully packaged and designed. Newsflash for you is that 99% of people don't want to know that much about computers, they see them purely as tools, and its telling that you don't seem to get that. Besides which, if everybody understood computers in the same way the Linux freetards do, alot of us probably wouldn't have jobs! OS X is a good and popular 'nix based OS mostly because its not free and there's some support structure in place which isn't a scattered assortment of internet forums filled with scary command prompt stuff and scarier users. Mac's have much nicer wallpapers also...

They are expensive (but at least they look expensive too)and maybe in my younger days (<21) I scoffed at them and built my own computers. I still do that but I also now own Macs, iPods and iPhone and they are nothing to be scared of. Their OS design could teach MS a thing or two in terms of human interfaces and keeping things simple for those who want it that way without irritating power users who know what they're doing (Networking centre in Vista and Server 2008 why, MS why?!?)


RE: Competition Will be good
By Runiteshark on 4/24/2008 5:37:36 PM , Rating: 1
quote:
They are expensive (but at least they look expensive too)and maybe in my younger days (<21) I scoffed at them and built my own computers. I still do that but I also now own Macs, iPods and iPhone and they are nothing to be scared of. Their OS design could teach MS a thing or two in terms of human interfaces and keeping things simple for those who want it that way without irritating power users who know what they're doing (Networking centre in Vista and Server 2008 why, MS why?!?)


I know what you mean, When Vista was "stealing" features from Mac OSX, mactards whined and cried about it. I don't understand that AT ALL. I view it the same as if people bitched that someone implemented mice and the other didn't support them. Great example: Macs used to only have 1 button mice, now they are Multibutton. Oh wow look at that, lets bitch because they STOLE the idea.

I think if something is a good idea, its not bad if it gets implemented across multiple platforms. If one has a better shell, and adds new features, and the other follows suit it only helps to better everyone's experience. I personally could care less about Vista's UI, or KDE or anything for that matter, but some people like the eye candy, and some people want it on their OS.


"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer














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