backtop


Print 48 comment(s) - last by Setsunayaki.. on Apr 26 at 8:04 PM


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.



Comments     Threshold


This article is over a month old, voting and posting comments is disabled

Why I am Happy....:)
By Setsunayaki on 4/26/2008 8:04:11 PM , Rating: 2
Let people spend their money. These same people talking about how great apple is, like my father was.....one day will wake up and find out that in 10 years, they had spent enough money to buy a new car on Apple products.

I guess its youth. People want the next "cool looking thing" where appearance has a higher priority than overall performance. Sometimes the most attractive thing isn't the best.

For some reason, I've come across many lately who are falling out with Apple. They have become tired and are thinking that they want a more pernmanent solution....that doesn't cost a lot of money. A lot of these people realized that they have gone from doing advanced things to more basic things....

Thats where I step in and show them the world of open source software and Linux desktop versions. Its not a hatred of Microsoft or Apple...its the corporate ideology that Apple and microsoft hold their customers hostage.....to maximize their profits. Microsoft uses DirectX as key to hold people hostage...Apple uses software and hardware to hold people hostage.

Remember, one wouldnt spend $2000 to buy a new MAC if your existing MAC worked perfectly unless you needed something you can only get from buying a new MAC. Same applies everywhere.

You need it. Only they have it...If you don't get it, you are out of loop. Buy this new version of Else.....You are out of luck..Last I heard, that was called Extortion. If I tried to do that to people...people would revolt against me..sue me and a judge would tell me to open up to people. When a corporation does it...the judge sides with them,

The Linux versions out there....are supported by people who want a good OS for people. They work hard. They are not in it for the money. They are not in it for the fame and glory. Most are in it because they are tired of having to be in the pockets of companies that can only care about maximizing their profits every generation, while people in this world get poorer and poorer with each passing generation.

It may be trickier to set up.....but I felt a lot better when running Linux....because deep down I knew that the creators of the OS didn't put a lot of features to restrict me or try to peddle money from me.




"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson














botimage
Copyright 2014 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki