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Print 36 comment(s) - last by ilt24.. on Jul 24 at 10:04 AM

Apple's numbers fall mostly in line with its own forecasts, analyst numbers

Another quarter is in the books, and Apple is once again rolling in cash. Apple generated revenue of $37.4 billion for fiscal Q3 and earnings of $1.28 per share. This translated into a record Q3 when it comes to profits, with the company raking in $7.7 billion. Analysts were expecting revenue of $37.99 billion and EPS of $1.23.
 
Apple issued guidance of $36 to $38 billion for the quarter, so these numbers are right in line with expectations.

Gross margins also ticked up compared to last year, rising from 36.9 percent to 39.4 percent. To go along with that info, Apple reported during its earnings call that the average selling price (ASP) for its Mac, iPod, iPhone, and iPad product lines were $1,255, $151, $561, and $444 respectively. The $444 figure for the iPad tells us that the iPad mini and iPad mini with Retina Display are accounting for the bulk of iPad sales.
 
“Our record June quarter revenue was fueled by strong sales of iPhone and Mac and the continued growth of revenue from the Apple ecosystem, driving our highest EPS growth rate in seven quarters,” said Apple CEO Tim Cook.


Apple CEO Tim Cook [Image Source: Fast Company]

“We are incredibly excited about the upcoming releases of iOS 8 and OS X Yosemite, as well as other new products and services that we can’t wait to introduce.”
 
During the quarter, Apple sold 13.3 million iPads, 35.2 million iPhones, and 4.4 million Macs. These compared to last year’s figures of 14.6 million, 31.2 million, and 3.8 million respectively.
 
iPad sales continue to be a sore point for Apple as we saw with the fiscal Q2 numbers. Apple has seen demand for its iPad weaken as newer, cheaper competition has entered the fray. In addition, the emergence of “phablet” devices have somewhat blunted the demand for tablet devices.
 
The iPhone numbers are up year-over-year, which is to be expected considering that Apple opened the floodgates to the Chinese market earlier this year. The iPhone numbers could have likely been even higher, but Apple fans are likely waiting for the larger screen iPhones (4.7” and 5.5”) to hit the market this fall.


Apple iPhone 6 render [Image Source: 9to5Mac]
 
Apple has already [internally] admitted that it has failed to deliver on bringing large-screen iPhones to its customers and it looks to right that wrong with the iPhone 6. So we’ll be looking forward to the fiscal Q4 numbers to see how iPhone sales stack up compared to last year.

Source: Apple



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RE: That's a lotta dough
By Mint on 7/22/2014 5:37:43 PM , Rating: 1
It's actually the third lowest result since FQ1 2012. They've averaged ~$10B per quarter since then.


RE: That's a lotta dough
By Acupuncture on 7/22/2014 5:57:23 PM , Rating: 3
Their margins grew 3%, and they saw a 12.3% increase in revenue from Q2 2013, all without any new product categories. I'd say that's the sign of an incredibly healthy company, and Samsung is probably crapping themselves now.


RE: That's a lotta dough
By retrospooty on 7/22/2014 6:08:27 PM , Rating: 2
Saying Samsung is in trouble is as goofy as saying Apple is in trouble. Samsung just made a 7 billion profit last quarter as well... It just wasn't quite as much as they forecasted to make. This was due to overly optimistic forecasts and lack of attention to how good their competition is... Regardless, both companies are ridiculously profitable.


RE: That's a lotta dough
By Mint on 7/23/2014 12:14:53 AM , Rating: 2
Honestly, I wasn't trying to say Apple is in trouble. I should've read my post from a different POV before posting that.


RE: That's a lotta dough
By ilt24 on 7/23/2014 1:05:15 AM , Rating: 2
quote:
Samsung just made a 7 billion profit last quarter as well...
Samsung won't release earnings until July 31st, they provided a preview a couple of weeks ago in which they said their Operating Income was $7.1B, we have to wait a another week to know their Net Income. Today Apple said it's Operating Income for the quarter was $10.3B.


RE: That's a lotta dough
By retrospooty on 7/23/2014 1:59:41 PM , Rating: 2
Yes, it was a reduced forecast, they are now expecting $7.1 billion operating profit in the current quarter. Like I said, 7 billion profit = not hurting in any way.

"It expects to make an operating profit of 7.2 trillion won ($7.1bn) in the April-to-June period, down from 9.5 trillion won a year ago"

http://www.bbc.com/news/business-28189480


RE: That's a lotta dough
By ilt24 on 7/23/2014 6:44:08 PM , Rating: 2
My point is there is a difference between Operating Profit and Net Profit and you were comparing Samsung's Operating Profit to Apple's Net profit.


RE: That's a lotta dough
By Monkey's Uncle on 7/23/2014 8:42:48 PM , Rating: 1
And picking nits doesn't change the facts that Samsung is no more hurting than Apple is.

I would not call $7B operating or net profit 'hurting' in any way.


RE: That's a lotta dough
By retrospooty on 7/24/2014 8:33:46 AM , Rating: 2
Exactly... Just a few years ago before Samsung and Apple's consistent multi-billion dollar quarters, companies were jumping up and down to make a couple hundred million in a quarter. Now, both companies growth rate is slowing and we act like its a bad thing. They were both growing so insanely fast, they cant possibly keep growing at that pace. If they did, the entire planet would be owned by the 2 companies by 2025. They are both stabilizing at or near record profit levels... That's a win win.


RE: That's a lotta dough
By ilt24 on 7/24/2014 10:04:35 AM , Rating: 2
quote:
I would not call $7B operating or net profit 'hurting' in any way.


I not saying Samsung is in financial trouble, they are a very profitable company. I was just saying that his comparison was wrong and trying to say profits for the two companies were about the same is also wrong.

A valid comparison that can be made with the pre-release numbers from Samsung is:

Samsung:
__Revenue = $50.3B
__Operating Profit = $7.1B
__OP/R = 14.1

Apple:
__Revenue = $37.4B
__Operating Profit = $10.3B
__OP/R = 27.5


RE: That's a lotta dough
By Shadowself on 7/22/2014 6:12:31 PM , Rating: 2
Wow. An interestingly negative way to say something that is meaningless.

Traditionally, Apple's FQ3 is its softest. This is the third FQ3 since FQ1 2012. Since this is the third lowest quarter since FQ1, that means that it is the best FQ3 with the other two (FQ3 2012 and FQ3 2013) being lower. AND, all the other quarters (non FQ3 quarters) are better than this one. So Apple's financials are getting better for the FQ3 periods and all the other quarters are even beating this one.

So, in reality, Apple's posting the best financials ever no matter how badly and negatively you want to spin it.

I just want to know why the iPad numbers are so soft for this past quarter. Are people migrating to other tablets? Are people waiting on the next generation? Are people buying Mac laptops (which went up significantly) instead of tablets (and the "post PC era" is not really here yet)? Are people realizing that the screen real estate on the iPad Air and the iPad mini is just not large enough to get real work done (and thus the IBM deal won't pan out like Apple would like)? Lots of questions that need to be answered just with respect to the iPad.


RE: That's a lotta dough
By Acupuncture on 7/22/2014 7:07:46 PM , Rating: 2
Tim Cook mentioned that iPad penetration for businesses is at a very low 20%. That's an area that Apple may seen incredible growth if their IBM join-effort works out.


RE: That's a lotta dough
By Mint on 7/23/2014 12:13:47 AM , Rating: 2
I'm sorry, I wasn't trying to say anything negative.

I was just pointing out that $7.7B isn't spectacular for them. It's like being wowed by LeBron scoring 20.


RE: That's a lotta dough
By robinthakur on 7/23/2014 4:04:16 AM , Rating: 2
I was musing about why iPad growth is slowing this morning and I personally haven't refreshed my iPad or iPad mini this year, but probably will this new season or I might try a Surface Pro 3 and see if it's improved. I find my current iPads good enough currently for what I use them for. I put the weak sales down to a very low profile ad campaign for iPads currently ("What will your verse be") which is far from punchy or memorable, as much as it is tasteful. I enjoyed the campaign but it wouldn't make me pull the trigger on a purchase. It is clearly aimed at the more well-healed parts of the market, as a lifestyle accessory rather than a tablet computer and I think this approach won't win them many additional sales as this particular market already buy iPads and Macs in droves. They would be better off doing something more comparative that shows off the gorgeous design in a punchy way. This is a great shame as the hardware is incredible for the iPad air and the mini retina, and seems like a bit of an oversight from Apple treating it like an end of line that they don't need to advertise as strongly, much like the Apple TV. By contrast the "Gigantic" and "You're more powerful than you think" campaign really helped move inventory of the 5S before the 6 hits, and the ads for the iPhone 5C are ubiquitous to say the least. I think they need to be a bit smarter in their ad spend, though obviously, they do make the most profit from iPhones and the halo effect of owning an iPhone is hopefully the purchase of other Apple products. To be fair, the extremely underwhelming Galaxy 5 launch has probably helped Apple more than anything else. I upgraded from an IP5 to a galaxy 5 and the galaxy 5 is infinitely less responsive for some reason I can't quite fathom.


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