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Apple continues its upwards march in the consumer electronics business

It's should come as no surprise that Apple's latest earnings announcement once again exceeded all expectations. Apple has been on a roll quarter after quarter, and its Q2 earnings were no exception. 

The company today announced record fiscal Q2 revenue of $24.67 billion USD and a net profit of $5.99 billion USD. Those numbers are far ahead of Q2 2010 when Apple reported revenue of $13.5 billion USD and net profit of $3.07 billion USD. 

Apple witnessed a 28 percent year-over-year growth in Mac sales to 3.76 million units while iPhone sales grew 113 percent to 18.65 million units during the quarter. Apple's newest booming business sector, the iPad, had sales of 4.69 million units. 

If there was a lone cloud in Apple's sunny report, it was the fact that iPod sales were down 17 percent to 9.02 million units compared to last year.

“With quarterly revenue growth of 83 percent and profit growth of 95 percent, we’re firing on all cylinders,” said Apple CEO Steve Jobs. “We will continue to innovate on all fronts throughout the remainder of the year.”

Apple's iPhone numbers were no doubt helped by the addition of Verizon as the second carrier in the United States, and Apple's new iPad 2 was launched during the fiscal second quarter.

Apple is rumored to be readying a revamp of its popular iMac family and the next generation iPhone is set to make its debut in September.



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RE: I LOVE IT!
By robinthakur on 4/21/2011 7:17:51 AM , Rating: 2
quote:
I think the hatred is because much of their success is based on marketing, rather than a sound cost-effective product.


No, they just understand how to market their products to their target audience (the majority) and the rest of the manufacturers tend to market mainly to people that already know what the product is (the minority) It#'s not hard to see why they are successful.

In terms of being "sound" and "cost effective" these terms are vague and mean different things to different people. Initial cost is high, but total cost of ownership, useful life, build quality and product support are intangibles not always apparent in the initial cost.

Some would argue that in that sense, Apple products are actually cost effective because they hold their value far more than competing products which are worth virtually nothing once the product line is refreshed the next year (if its that long)

For example, the resale value of my iPhone 4, which I purchased on launch almost a year ago is still roughly £480. The Samsung Galaxy S by comparison is now worth as low as £180, so has depreciated more. Obviously this will change once the iPhone 4 is not the latest and greatest model, but you get the point.


RE: I LOVE IT!
By The Raven on 4/21/2011 11:41:05 AM , Rating: 2
quote:
Some would argue that in that sense, Apple products are actually cost effective because they hold their value far more than competing products which are worth virtually nothing once the product line is refreshed the next year (if its that long) For example, the resale value of my iPhone 4, which I purchased on launch almost a year ago is still roughly £480. The Samsung Galaxy S by comparison is now worth as low as £180, so has depreciated more. Obviously this will change once the iPhone 4 is not the latest and greatest model, but you get the point.

Couple things…
1) I'm not sure I believe your resale number there (at least if it was in the US) since someone could get a new improved iPhone for the same price as that. That certainly is the case with the iPhone 1. You would be stupid to by one of those used since you can buy a new one at Walmart for $50 (w/ contract)... so resale value? Really? We are talking ‘disposable’ electronics here that the naïve people out there upgrade every 2 years. Wait until that 2 year mark hits and watch the alleged resale price of yours drop like a rock. You compare something that has MANY comparable models released throughout the year and something that is only released when Jobs says so and you are comparing the price of the two. That doesn’t make sense. Again you would have to wait 2 years after the iPhone 4 release date where a) owners are out of contract and b) there is another iPhone on the market. Then the resale price of the 2 would be somewhat comparable. But still not even since there would only be the choice of a handful of iPhones vs. all the Samsungs, HTCs, etc.

And since you think that Apple is successful because they market to the technologically naïve (majority) then they will stick to the more scarce iPhones out there. Especially since they are shiny!
quote:
they just understand how to market their products to their target audience (the majority )

Since the majority doesn't follow tech trends... What does this have to do with technological advances? That is his point. That they make this money because they "fool" people to buy inferior/overpriced products (also like MS and Windows). (I put the quotes around 'fool' because these people know what they are getting when they buy it, so Apple is not doing anything ethically wrong.) As you said in so many words, many of these iPhone buyers are the naive majority unlike you or I. So the higher I see Apple stock climb and sales increase, the lower my expectation are of the future since it is the uninformed majority that are making the decisions that influence the rest of us greatly. Just like in politics lol.

So no, I don't see why anyone would be thrilled about this unless they owned stock. They are not tech leaders in the industry, they are business leaders in the industry. Hopefully they will turn into a tech leader, but when it is better to make money, why would they. Again, I'm not judging Apple, just this reaction to the news. I respect their place in the market just not the lemming mindset that fuels their growth.


"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997














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