Print 73 comment(s) - last by michael2k.. on Jul 27 at 1:18 PM

  (Source: Reuters)
Apple still logs record profit, but sees shareholder confidence shaken by miss

The good news Apple, Inc. (AAPL) fans is that Apple is forecast to be the most profitable American company for 2012 [source].

The company's calendar Q2 2012 (fiscal Q3) results, just reported, revealed a 20 percent spike in profits on a year-to-year basis, soaring to $8.8B USD on a revenue of $35B USD, a profit of about $9.32 USD/diluted share.

The bad news is that Apple's iPhone sales slumped, moving only 26 million units versus an analyst consensus of 28.4 million units.  Analysts had already scaled back their expectations earlier in the month from 30.5 million units.

Apple's arch-rival, Android phonemaker Samsung Electronics Comp., Ltd. (KSC:005930) is believed to have sold around 50 million smartphones for the quarter.  In other words, it is out-selling Apple -- by itself -- approximately 2-to-1 in unit sales.  In fact, Samsung's flagship Galaxy S III smartphone reportedly alone moved 19 million units.  That means that Samsung's sales of just its top model are already approaching Apple's total sales.

Analysts had expected $2.2B USD more in profit (revenue of $37.2B USD).

iPhone 4S
Samsung left Apple's iPhone in the dust in Q2. [Image Source: The Tech Journal]

The remaining good news for Apple is that it moved 17 million iPads, versus the analyst expectation of 15.4 million.

Mac sales fell slightly short of the expectation -- 4 million units versus the consensus of 4.3 million.  iPods -- largely marketed today as "kiddie iPhones" -- settled in at 6.8 million units, just above the 6.6 million unit consensus.

The good news regarding iPods and iPads was not enough to convince investors to overlook the profits and iPhone sales miss.  Stock was down $27 USD in after-hours trading and is expected to open lower tomorrow.

The sixth generation iPhone is expected to follow a pretty straight-forward formula -- larger HD screen, LTE, and faster processor.  The iPhone's current screen, processor, and modem are quite dated compared to those found in the Galaxy S III International Edition [source].  The iPhone does manage a draw on battery life, though, besting its Android rival in web-browsing life, but getting beat in talk time [source].

But the phone was a no-show in June, indicating Apple likely would continue to release handsets in October, following the slipped iPhone 4S launch.  Some analysts had hoped Apple would "catch up" with an accelerated sixth generation launch, returning to June product announcements and late June/early July product launches.

There's background noise to the investor fear as well -- some worry that the death of iconic CEO and visionary Steven P. Jobs may make Apple unable to stay ahead of the curve.  Indeed, Apple remains untested, in a sense, in that it has not released a major new product line since the death of Mr. Jobs.

Apple is relatively desperate to try to stop Samsung in court, seemingly unable to stop Samsung on the market.  It has seen some success scoring sales bans on the Samsung Nexus smartphone and Samsung Galaxy Tab 10.1 tablet.  But it failed to secure its most hoped for ban -- a kill shot on the Galaxy S III.

Apple attorney Josh Krevitt sums up his company's plight, remarking, "Samsung is always one step ahead, launching another product and another product."

Indeed, Apple looked a step behind in Q2.

Sources: Apple, Bloomberg, Reuters

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RE: Can not wait to see Q3 numbers!
By zerocks on 7/24/2012 8:21:19 PM , Rating: 2
Apple have sold 26 million iPhones since the 4S was launched 9 months ago, that's not just sales of the 4S itself, that's including the very outdated 3GS and iPhone4.
Coupled with the fact that Samsungs one flagship has sold 10 million in under 3 months since launch, that's a nail in the coffin, my friend.

If you show all of Apple's phone sales then you should also show all of Samsung's phone sales for the same time period.

RE: Can not wait to see Q3 numbers!
By artemicion on 7/24/2012 8:37:24 PM , Rating: 5

So freakin' childish. Who the heck cares whether their phone sold more than someone else's phone?

I don't even know the model of my phone, but it's one of the basic ones Verizon gives away for free, and I've seen it EVERYWHERE. So that makes me better than both of you.

RE: Can not wait to see Q3 numbers!
By dark matter on 7/25/12, Rating: 0
RE: Can not wait to see Q3 numbers!
By bupkus on 7/25/2012 8:52:04 AM , Rating: 2
I'm reading it to see who's postings sell more ratings.

RE: Can not wait to see Q3 numbers!
By spread on 7/25/2012 9:05:45 AM , Rating: 2
I'm here to live vicariously through Apple.

RE: Can not wait to see Q3 numbers!
By teldar on 7/25/2012 9:04:52 AM , Rating: 2
They sold 26M iPhones in one quarter, not 3 quarters. They may have sold 26M 4s though in 9 months. I don't track iPhone sales.

That being said, i have a sgs3 and it is the awesome. I'm looking forward to the jelly bean update in a couple months.

RE: Can not wait to see Q3 numbers!
By michael2k on 7/25/2012 1:59:56 PM , Rating: 2
Apple sold approximately 98m iPhone 4S in the last 9 months.

37m the first quarter, 35m in the second, 26 in the third.

Each and every single quarter, Apple's flagship has outsold Samsung's flagship.

You talk about 10m in 60 days as being a big deal. It isn't. It's a big deal only because it's the most popular Android flagship, but it still pales in comparison to Apple's iPhone.

Of course maybe the iPhone has plateaued. Maybe instead of selling 60m iPhones the first full quarter the new iPhone is available they will only sell 30m. It's always possible. It just seems unlikely to me, given how successful Apple has been in spite of the Android juggernaut.

Oh, and since you wanted Samsung's phone sales, it would be approximately 140m for 3 quarters, of which the "comparable" Galaxy Sales add up to about 20 S3 and 53m "to date" S1 and S2, which really means lifetime sales up till June 1st. So 98m iPhones for 3 quarters vs only 73m lifetime Galaxy sales. Including the iPhone 4 as well as the 4S increases Apple's count from 98m to about 175m or so.

RE: Can not wait to see Q3 numbers!
By Cheesew1z69 on 7/27/2012 9:05:46 AM , Rating: 2
We reported a while back that Samsung had officially overtaken Nokia to become the world's largest phone manufacturer, however, up until now, Apple still held the top-spot for smartphone sales with its iPhone. Now, however, Juniper Research has revealed, based on Samsung's second quarter earnings, that the firm has successfully sold 52 million smartphones in a SINGLE QUARTER, more than double that of Apple and its iPhone.

By michael2k on 7/27/2012 1:16:01 PM , Rating: 2
It looks like you can't read.

I clearly said Samsung's flagship, or the Galaxy lineup.

52 million S and S2, almost 2 months ago:

10m S3, 4 days ago:

Let's be generous and add another 10m S2+S1, for a grand total of 72m Galaxy Phones. If you consider they sold about 50m for the last three quarters, and 50m total the two quarters before that, then that's 72/200, or 36% of their smartphone sales.

In only the last 9 months, Apple has sold 98m iPhones (meaning that 9 months of iPhones have outsold 24 months of Galaxies):

Why is this so hard to understand?

"Death Is Very Likely The Single Best Invention Of Life" -- Steve Jobs

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