Apple smashes Street; posts record Q3 revenue and profit

154 Comments

Apple today announced financial results for its fiscal 2007 third quarter ended June 30, 2007. Apple posted revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share. These results compare to revenue of $4.37 billion and net quarterly profit of $472 million, or $.54 per diluted share, in the year-ago quarter. Gross margin was 36.9 percent, up from 30.3 percent in the year-ago quarter. International sales accounted for 40 percent of the quarter’s revenue.

Apple shipped 1,764,000 Macintosh computers, representing 33 percent growth over the year-ago quarter and exceeding the previous company record for quarterly Mac shipments by over 150,000. The company also sold 9,815,000 iPods during the quarter, representing 21 percent growth over the year-ago quarter. Apple did not release an exact number of iPhones sold. Apple stated the company sold 270,000 units of “iPhone (4GB and 8GB models combined) and related products and services” which “consists of iPhones and Apple-branded and third-party iPhone accessories” in less than two days of quarter.

“We’re thrilled to report the highest June quarter revenue and profit in Apple’s history, along with the highest quarterly Mac sales ever,” said Steve Jobs, Apple’s CEO, in the press release. “iPhone is off to a great start — we hope to sell our one- millionth iPhone by the end of its first full quarter of sales — and our new product pipeline is very strong.”

“We are very pleased to report strong financial results including cash flow from operations exceeding $1.2 billion for the quarter,” said Peter Oppenheimer, Apple’s CFO, in the press release. “Looking ahead to the fourth fiscal quarter of 2007, we expect revenue of about $5.7 billion and earnings per diluted share of about $.65.”

Apple will provide live streaming of its Q3 2007 financial results conference call utilizing QuickTime, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on Wednesday, July 25, 2007 here and will also be available for replay.

MacDailyNews Note: Analysts’ consensus estimates for Apple’s 3rd fiscal quarter expected revenue of $5.28 billion and net income of $645.6 million, or 72 cents per share, up from $472.0 million, or 54 cents per share, for the year-ago period. Apple CFO Peter Oppenheimer’s guidance for Q3 07 expected “revenue of about $5.1 billion and earnings per diluted share of about $.66.”

5:28pm EDT: In after-hours trading, APPL shares stand at $144.83, up $7.57 from their $137.26 closing price.

Apple’s recent earnings and unit sales information:

2007:
• Q3 (ended 06/30/07): revenue $5.41 billion, net profit $818 million, 1.764 million Macs, 09.815 million iPods
• Q2 (ended 03/07/07): revenue $5.26 billion, net profit $770 million, 1.517 million Macs, 10.549 million iPods
• Q1 (ended 12/30/06): revenue $7.10 billion, net profit $1 billion, 1.606 million Macs, 21.066 million iPods

2006:
• Q4 (ended 09/30/06): revenue $4.84 billion, net profit $546 million, 1.610 million Macs, 08.729 million iPods
• Q3 (ended 07/01/06): revenue $4.37 billion, net profit $472 million, 1.327 million Macs, 08.111 million iPods
• Q2 (ended 04/01/06): revenue $4.36 billion, net profit $410 million, 1.112 million Macs, 08.526 million iPods
• Q1 (ended 12/31/05): revenue $5.75 billion, net profit $565 million, 1.254 million Macs, 14.043 million iPods

2005:
• Q4 (ended 10/11/05): revenue $3.68 billion, net profit $430 million, 1.236 million Macs, 06.451 million iPods
• Q3 (ended 07/13/05): revenue $3.52 billion, net profit $320 million, 1.182 million Macs, 06.155 million iPods
• Q2 (ended 03/26/05): revenue $3.24 billion, net profit $290 million, 1.070 million Macs, 05.311 million iPods
• Q1 (ended 12/25/04): revenue $3.49 billion, net profit $295 million, 1.046 million Macs, 04.580 million iPods

2004:
• Q4 (ended 09/25/04): revenue $2.350 billion, net profit $106 million, 836,000 Macs, 02.016 million iPods
• Q3 (ended 06/26/04): revenue $2.014 billion, net profit $61 million, 876,000 Macs, 860,000 iPods
• Q2 (ended 03/27/04): revenue $1.909 billion, net profit $14 million, 749,000 Macs, 807,000 iPods
• Q1 (ended 12/27/03): revenue $2.006 billion, net profit $63 million, 829,000 Macs, 733,000 iPods

154 Comments

  6. Expect sky-is-falling articles relating to iPod. Even though Apple sold fewer iPods quarter-to-quarter for the first time in a long time (excepting holiday quarters), they won’t mention it’s likely due to the pent-up demand for the 6G iPod.

    Reply

  8. This is excellent news. The iPod is rocking bigger than ever, Mac Sales are going fantastic, and the iPhone is going to be even bigger than the iPod. It’s funny how stupid people can be when it comes to the iPhones “numbers”. All you have to do to realize how unbelievable the iPhone is gonna sell is own one. Once you own one, the investment part is easy. If you don’t own one, then I guess you’ll think the “numbers” for the first year are more significant. The real investment isn’t the first year, it’s the next 5 years and having owned an iPhone for 3 weeks, I think it’s easy to say it’s gonna be HUGE.

    Reply

  9. commence stock price free fall in 3,2,1…

    Really now, it’s a $600 in a free phone world…how is having a larger weekend than any previous month for a phone bad?? Analysts seem to expect god like sales of everything apple and when they only get minor diety status, they freak out.

    Reply

  16. @Peter Lemon Jello

    In a word, yes. Apple intends to introduce the iPhone to Europe before the end of this year, and to Asia in early 2008. The market will be be much greater than just the U.S. as it is right now.

    Reply

  20. @Everyone who thinks apple is having a hard time selling iPhones

    “Apple sold 270’000 iPhone in not even two full business days. Apple expects to sell the first million by the end of September. So this is just 730’000 more in three months? I hope the iPhones will sell a bit better.”

    Wow, imagine the pain. In the middle of the summer -the electronic industries historically slowest time, Apple expects to sell over a million iPhones. Those million iPhone owners will take them to work and to school. Everyone will see that they are in fact worth that dreaded $500-600 price tag. Believe me, the iPhone will be the HOTTEST CHRISTMAS GIFT OF ALL TIME!

    10 million in two Christmas’s is not to high.

    Reply

  21. That iPhone number (270,000) reflects exactly twenty business hours in Q3 (i.e. in June). From Friday, 29 June at 18:00h through midnight (even that not all stores), then from 8:00h through 22:00h on Saturday. With the exception of the fifth avenue store, which is open 24/7, and was selling iPhones for all of the remaining 30 hours in June, all other stores had 20 hours at best to push as many phones as possible. If the combined total between AT&T’s and Apple’s stores is about 2,000, that means that each store had to push about 135 phones out the door in those 20 hours. That makes it an average of one phone every ten minutes.

    I have no doubt that Apple is way past one million mark. Several weeks ago, there was an article here (and elsewhere) about an insider from AT&T claiming that they have registered over 1 million iPhone users after first two weeks.

    The stock has plunged immediately after closing (thank you all sellers for the buying oportunity; yesterday, I had sold 450 shares; now, I bought 500 with that money). Shares are now back up and past the closing $137.26. Although still very volatile, many are getting back in, having digested the staggering numbers.

    Ultimately, it can’t go anywhere but up.

    Reply

  23. Motorola sold 130,000 Razr’s in 30 days…Apple sold 270,000 iPhones in 30 hours. Many people didn’t wait in line and bought online. The numbers have to be much higher at this point. Keep in mind Apple sold 1 million .99cent songs their first month and it was astronimical. Anyone who really used their brain can see that 270,000 iPhones in 30 days is also astronomical, in any electronic industry, must less the cell phone industry.

    Reply

  25. 270,000 phones in 30hrs = 9000/hr. Hardly poor numbers and makes me wonder how many have been sold since that cutoff point? (If I were Apple I would want to hide the true number, for no reason other than to allow competitors to maintain their false sense of security and complacency.) Can anyone name another phone that has sold anywhere near this number? The closest might be the RAZR but I’m fairly sure even their numbers would have required weeks to acheive the same. I certainly don’t recall seeing lines forming to buy any other cellphone.

    Because cellphones require a monthly/yearly commitment, most will buy when their contracts expire. The next year will show the real truth when the average person picks up the iPhone and sees for themselves what the hype is all about.

    MDN word: CAN, as in only Apple can, it seems.

    Reply

  27. BTW – The Apple stated goal is 10 million units in calendar year 2008 (the first full year in the market). The numbers now don’t count toward meeting that particular goal.

    If Apple sold 270,000 in one day plus six hours, the 500,000 number during the full weekend does not seem unrealistic. It’s likely Apple has already sold its one millionth iPhone by now, but is holding back that information for some reason.

    Reply

  28. I think that everyone here is missing the important number of 1.764 million Macs. This is a staggering number and the highest in company history. It blows away Q4 2006 in volume. I know everyone is concentrating on iPhone but this Mac number is the exciting one too me. The tipping point has arrived.

    Reply

  29. If I read this right:

    Q1 (ended 12/27/03): revenue of $2.006 billion, net quarterly profit
    $63 million

    Q3 (ended 06/30/07): revenue $5.41 billion, net profit
    $818 million

    So profit of 818/63=12.98412698413

    Apple closed at 21.37 on 31dec03

    $21.37x$12.98= $277.38

    Did I do that correctly?

    Reply

  31. Okay, New Macs already. What’s the fate of the Mac Mini? Were waiting to spend some money.

    Magic Word “soon” like when I wanna be buying a new Core 2 Duo Mac Mini for the Living Room (to put the G4 MM in the bedroom and get rid of the DVD/VCR combo)

    Reply

  38. @twodales
    The iPhone is irrelevant with this financial announcement. You are correct and I agree with you that the big news is that Apple is selling a whole lot more Macs then ever before. My neighbors kid bought a MacBook Pro against his fathers advice. Now he (the father), is looking in to getting one. You go to any airport in the US and you will spot at lest a couple of Apple logos on travelers laptop’s. Even though the number of iPhones is still pretty impressive, 1.7 million Macs is the real story.

    Reply

  42. @ MP: Poor iPhone sales?

    The Motorola Razr had 250,000 units shipped to vendors (not necessarily sold to customers) in 30 days, so says BusinessWeek.

    Wasn’t the Razr supposed to be one of the hottest selling cellphones in the US or something? Looks pretty weak compared to iPhone’s 270,000 unit sales in 30 hours.

    Reply

  44. > AAPL share has just it the 150.00$ in after-hours trading

    Amazing… I think those misleading low AT&T activation number articles helped lower expectations ahead of the actual numbers from Apple. Now everyone who sold (and more) are trying to buy back in. $200+ doesn’t seem so unrealistic now.

    Reply

  47. @Woody,
    Dude, retards just post and never check back. So trying to start an intelligent conversation on this site is a waste of your time.

    I guess after hours investors didn’t think the iPhone sales were too bad eh?

    Reply

  48. amazing, since the last message, I typed, 15 minutes ago, AAPL share went up 350.00$ and is now trading at 500.00$ in after-hours market! ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    Reply

  52. The fascinating thing about these results is the stellar portable numbers.

    A 41.6% rise in unit numbers and over 35.8% in terms of revenue sounds like solid evidence of the Halo effect in action.

    BTW, if anyone is interested, if AAPL consolidates on it’s after-market gains tonight, that thing you’ll see in the rear-view mirror is HP.

    My magic word for this post is “ill”, which I would have thought would sum up the condition of some of the Apple naysayers about now.

    Reply

  53. 270,000 iPhones sold in two days. That’s only two days people, hello! Sales of the iPhone did not stop after the second day so they can easily achieve a million sold by the end of next quarter.

    Reply

  55. @me: You’re right, bud. Not sure why I bother — it’s not like I have that much time to waste. LOL

    Anybody know a good Dashboard widget for watching after-hours trading?

    (I hope this doesn’t double-post. The first one went thru, but never appeared.)

    Reply

  61. You know, whether Apple sold it’s 1 millionth iPhone yet or not really does not matter. If they sell it by the end of the quarter it does not matter. What matters is that after that millionth iPhone is sold the next month ATT cuts Apple a check for roughly $11 million dollars. Then after that 10 millionth iPhone the next month that check is roughly $110 million.

    What everyone is failing to see outside of Apple and us is that Apple is a growth business. They add 35 to 40 stores a year, they double their amount of iTunes business every year. They increase their mac business upwards of 30% quarterly. They sell 20 million iPods at christmas. Every part of their business is a growth. They don’t set sales goals they can’t reach. With this management team and current business model Apple could grow their business for the next 15 years just as they have the last 2 or 3.

    So I am still pissed that I sold at $93 and $87, and wish I currently had a chunk to plunk down. The previous 140% over the last year and a half is exactly what will keep happening, only the pace will quicken.

    Reply

  65. @ hotinplaya

    http://finance.google.com/finance?q=AAPL

    Click “Settings” above the chart, select the checkbox “Extended Hours” and then select a “1d” (1 day) zoom level to see the full effect more easily. To the un-initiated, it is NOT advisable to do much trading in the extended post or pre hours unless you know what you are doing. It is easy for a stock that is tracking one direction to actually open in the complete opposite direction during normal trading hours. But .. it is QUITE fun to watch!

    Amazingly, my MMW is “stock”, as in I hope you have some for this ride!

    Reply

  68. To me, 250,000 iPhones sold on the first weekend was always going to be the realistic, respectable bottom-line figure. Anything above that is just icing on the cake.

    The one thing we should all not do after today is to get carried away by wild speculation about sales figures. So a million iPhones sold is all I’ll be looking for in the September quarter!

    But enough about the iPhone. Look how the old “daddy” product – the good, old Macintosh, the guy who started it all, the almost forgotten one among the shiny new iPods and iPhones – is once again striding out with a new spring in its step!

    Reply

  71. ” I know everyone is concentrating on iPhone but this Mac number is the exciting one too me. The tipping point has arrived.”

    Serious? up a measly 160k units on best quarter ever in a market which moves ~60 million units a quarter, and you have a tipping point?

    Even taking the iPhone numbers at face value, 270,000 phones in 2 days, that represents 6 months of demand released in 2 days, not some ongoing trend.

    Sounds like Apple is forecasting 730k iphones next quarter, give or take, to hit the million mark. That’s about 3 million phones a year.

    Reply

  72. Apple will sell 100 000 000 iPhones and another 100 000 000 iPods. That is for sure. It is though very much fun to see that Apple will next year sell over 20 000 000 macs. Leopard is the answer… Don´t forget Leopard… Don´t… it will beat the shit out of well… shit… well… Vista…

    Reply

  73. “Don´t forget Leopard… Don´t… it will beat the shit out of well… shit… well… Vista…”

    Vista has already sold more units than all Macs ever sold. Leopard making that much of an impression is unlikely.

    Reply

  74. “It has sold a grand total of (approximately) 12 million units.”

    That’s the V3 RAZR. the RAZR series has sold over 50 million phones and is still going strong.

    “best selling mobile phone EVER by the end of 2008, guaranteed.”

    OK, to beat the Nokia 1100, only 199.73 million units to go…

    11 million iPhones a month, you’re an optimist.

    Reply

  75. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

    Reply

  76. “$21.37x$12.98= $277.38

    Did I do that correctly?”

    It depends what you’re trying to do. if it’s value a company in a brainless and non meaningful way, you succeeded admirably.

    If it’s to make a meaningful comment about the value of Apple’s stock, sorry no.

    Reply

  77. Arcane, yet potentially interesting, titbit number 2.

    Apparenly Apple is taking all of the costs for an iPhone in the relevant trading quarter, but spreading the income over eight periods. By my reckoning, if you assume a 25% gross margin, it would take about six quarters for the real profitability of a customer to kick in, although – if you take into account the alleged network commissions – that figure could be pulled forward to about four quarters.

    In other words, Apple won’t actually start to see a real profit from the initial 270,000 customers until December 2008; in effect, these new rules create a gigantic forward-looking savings fund for Apple.

    Reply

  78. @octobermac

    Thanks for the info, Don’t worry, I am a very little investor, started buying 2,000usd a month last February , in for the long haul, have one more kid in 3rd year of University, when she gets out, hope to double our monthly investment,

    Reply

  84. I, for one, hope the iPhone has just average sales. I like having a device that isn’t dime-a-dozen. Although 270K units in 30 hours in such a mature market with hundreds of models to choose from is impressive. Macs will be Macs, that marketshare will always be small. Leopard will blow away Vista as the iPhone has done to WM5 and even WM6, which both have a UI that looks like it’s from the early 90’s. But it still won’t be enough for a mass conversion.

    Who cares about units sold or marketshare as long as Apple is profitable and churning out killer products that induce a lot of chair throwing activity in Redmond. Remember, the computer industry, consumer electronic industry and now the mobile phone industry all need a good R&D department, known as Apple.

    What has MS stock done in the past five years? Almost nothing.

    Reply

  85. “Was anything mentioned about the appleTV?? “

    Yes, they declined to comment on how many were sold even when pushed to. Given that they commented on how many of everything else was sold, that should tell you just how well Apple TV is doing.

    Reply

  86. If it is true that the stock is up to $150, we have indeed overtaken HP and then some.

    Next target, IBM.

    I think $177 would probably bring us in line with IBM, if their stock does not change till we get their.

    At this rate, we will be there when the next quarterly report comes out.

    Can you imagine the historical significance of overtaking IBM in market cap?

    Reply

  87. “Sorry RDF.
    Resistance is futile. YOU will be assimilated.”

    How many Borg costumes do you own?

    Seriously, Apple hardware has been assimilated (now except for industrial design, the same as WinTel PCs)

    You can barely find a Mac user who isn’t running Windows under Parallels or Boot Camp.

    Who again is being assimilated?

    Reply

  88. I think that’s 270,000 iPhones PLUS accessories, not iPhones alone. Also, comparing sales of the iPhone to the little rinky-dink phones is just silly. You need to compare sales to the smart phone market.

    Don’t forget- the iPhone hasn’t been released in other countries yet!

    Reply

  89. At the end of after-hours trading Apple’s market cap stood at 128 billion, and HP ended up its day at 124.5 billion. Tomorrow I think we’ll officially pass HP.

    Next will be IBM.

    Poor ole Dell, left in the dust.

    Reply

  90. Hey guys, sorry I’ve been away, I’ve been busy swimming in champaign and snorting coke off of supermodels. Did I miss anything important? =)

    I kid (or do I?). Since I’d been saying “150 by earnings” and “91¢”, allow me this brief moment of hubris…

    I WIN SUKKAHZ!!!!

    Thank you.

    -c

    P.S. oh, looks like my stock went up a bit too… =)

    Reply

  95. “Can you imagine the historical significance of overtaking IBM in market cap?”

    About the same as AOL becoming bigger than Time Warner?

    Or Internet companies becoming bigger then old line bricks and mortar companies?

    Or tulip bulbs selling at huge premiums in Holland in 1634?

    or the South Sea Company bubble of 1711?

    Some people just never learn from history.

    If it seems overvalued compared to other much less ethereal businesses, it probably is.

    Reply

  96. Except…

    Sorry, but you’re wrong – there’s a very clear statement in the last ten minutes (the only bit I got to listen to, as Heroes was kicking off on the BBC tonight) of the conference call in response to a question,

    Reply

  99. so, the other day on thestreet.com Scott Moritz said that the iPhone “sales” were bad and the iPhone stumbled out of the gate.

    I emailed him this afternoon congratulating him on not reading between the lines and realizing that activations didn’t equal sales. I asked him if I could get a job there too since it seemed so easy and obviously required no credentials.

    His response:

    Thanks Shaun. Sure.

    (He probably spelled my name wrong on purpose)

    Funny shit.

    Reply

  100. “Apple will not lose the second one.”

    Good to hear. It’ll be interesting to see when Apple starts making waves (That is to say solid, consistent, world leading sales, not hype and future expectations) in any market area other than iPods.

    Reply

  103. @Imagining

    IBM, the big blue, the hardware maker to which computers were compared: remember “IBM-compatible”?

    Overtaking IBM would basically mean Apple is financially the most valuable computer hardware-maker.

    When a company thought to be on its death bed 7 years ago, becomes the leader of the industry (not that it hadn’t been the leader in design, engineering, security and OS quality), the history writers start receiving book offers, and this company’s business model becomes mandatory reading in finance and management schools.

    Reply

  104. Including what has happened in the after hours market, AAPL’s market cap has now surpassed that of HPQ!!! So now they’ve not only passed (and nearly doubled) Dell’s value, Apple is now worth more than HP. Amazing.

    Reply

  105. Some corrections –

    The RAZR had sold 50 million units according to Ed Zander in May 2007. That makes it #2 in sales behind the Nokia 1100 wish has sold around 200 million to date. The first months sales of the RAZR were 250k (the OLD first month record), and the first month for the Moto Q was 150k.

    MW: ‘forward’

    =)

    Thanks Apple.

    Reply

  107. Let’s hear it for the lame-o nay sayers who predicted Apple’s earnings would fail to meet expectations this quarter. Those people should really consider switching to a job they’re qualified for, like selling shoes.

    Reply

  108. “When a company thought to be on its death bed 7 years ago, becomes the leader of the industry “

    Dont confuse having the highest market cap in an industry with being the leader in that industry.

    Clearly Apple’s a long way away from being the leading player in any industry except mp3 players.

    Reply

  109. “The first months sales of the RAZR were 250k (the OLD first month record),”

    A record, given that Apple’s sales were of phones and accessories may even still stand.

    Lets say on average people brought one accessory per 1.2 phones sold, that would make the 146,000 number for phone activations roughly match with Apple’s numbers for phones and accessories sold.

    Reply

  111. Reality Check posted: So Apple sold 270,000 iPhones in 30 hours. That’s hardly poor. Also goes to show that far more than 2% had activation problems since AT&T only activated 146,000 of the 270,000 sold in the first 30 hours.

    Let’s not forget all of the people who bought an extra iPhone during the first 2 days to sell on eBay or elsewhere. I’m sure that these “extra” iPhones were not activated immediately. There is no reason to believe that they were not activated due to activation problems with AT&T.

    Reply

  115. @ SlipperyWhenWet–

    Are you kidding? What do you think the whole computer industry has copied and emulated for years? There’s so much to say to rip apart your post! Oh well. Maybe someone else….

    Reply

  116. “AT&T only activated 146,000 of the 270,000 sold in the first 30 “

    Lets remember some of those 270,000 “phones” are cases, headphones, bluetooth mics etc which need no activation…

    Worst case Apple sold a little over 146k phones and 154k accessories. Best case they sold maybe 200k assuming about a 25% attachment rate for accessories, which would be quite conservative.

    There are about 550 iPhones on ebay at the moment, so lets assume that if people did buy them for that, all but 550 sold them or sent them back already, so even if they were sales last quarter they’ll be returns this quarter. And since there is no iPhone shortage, undoubtedly nobody is trying to buy iPhones to sell on ebay any more.

    You’ve got to bet that the number of accessories was quite high, otherwise they would have just reported the straight iPhone numbers without trying to fudge them by mixing in the accessories to make them sound higher. As you can see here a lot of people missed the subtlety and thought Apple said they sold 270,000 phones.

    Reply

  118. “Are you kidding? What do you think the whole computer industry has copied and emulated for years? There’s so much to say to rip apart your post! Oh well. Maybe someone else….”

    Did you forget why Apple switched over to Intel and abandoned PPC, breaking the hearts of more than a fair share of Mac afficianados (MDN included)? Apple was nowhere near an industry leader in terms of computer hardware.

    Reply

  119. “Are you kidding? What do you think the whole computer industry has copied and emulated for years?”

    Who give s a shit if people “copy” and “emulate” Apple. they’re being much more successful at selling stuff than Apple is.

    So your point is quite irrelevant.

    It’d be like coming home and telling your spouse that you’re the top performer in your company because some other guy saw what you did and emulated it got a really big bonus and a promotion, but you got nothing because while you had the idea you just couldn’t execute on it.

    Do you think they’re going to think you’re the king because the other person got the idea from you, or that you’re whining loser trying to bask in somebody else’s glory?

    in the real world results count.

    Reply

  121. “Did you forget why Apple switched over to Intel and abandoned PPC, breaking the hearts of more than a fair share of Mac afficianados”

    This is just propaganda spread by Apple’s enemies. Apple was using Intel processors before anybody else. How else would it be possible that everybody is following the hardware direction that Apple sets? If Apple didn’t use Intel processors first, then Apple would be following everyone else, and that’s just not possible.

    Reply

  122. I had the best burger in the world once. It’s by some company named McDonald’s. It’s the best because it sells a shitload.

    I drove the best car in the world. It’s made by GM. They’re everywhere.

    Same with the best music: Michael Jackson. Best shampoo: Suave. Best way to deal with stress: drug abuse. Best way to parent a child: corporal punishment. Best newspaper: The Enquirer. Best religion: Islam. Best food: pizza. Best human being: Paris Hilton. She’s everywhere. Best planet: Mars. You can’t go anywhere these days without running into red dust.

    Best stupid argument: ubiquity equals superiority.

    Best retort: Yo’ mama.

    Once.

    Reply

  123. At $157, Apple will overtake Intel.
    At $177, Apple will overtake IBM.

    In Apple’s rear view mirror are HP, Dell, Lenovo, Sony, Gateway, AT&T, Verizon, Toshiba… etc.

    In terms of market cap, Apple is now the number 2 computer maker if you count IBM, and if you don’t, it is number 1.

    The only tech company of significance that is beyond Apple’s reach at present (but perhaps not for long) is MS. AAPL would have to reach $328 to overtake MS at present.

    Reply

  124. You idiots better re-read the article. It does NOT say that Apple sold 270,00 iphones.

    It says “the company sold 270,000 units of “iPhone (4GB and 8GB models combined) and related products and services” which “consists of iPhones and Apple-branded and third-party iPhone accessories”

    The operative here is 270,00 UNITS of iphones and accessories.

    A unit is an iphone. A unit is also an accessory. Cut the number in half and you might have a closer approximation of the number of iphones.

    Reply

  126. Maybe it is better to read the actual transcript of the Apple conference?

    On whether 270,000 iPhone shipments include those to AT&T stores, and how many were in inventory at the end of the quarter:
    Yes, that includes the AT&T number. (Apple doesn’t answer the inventory question, exactly.)

    270k iPhones it is! not iPhone and accessories. Financial analyists would have trounced Oppenheimer and Tim Cook if that was the case, even remotely the case.

    http://blogs.business2.com/utilitybelt/2007/07/live-apple-fy-q.html

    Reply

  127. in the conference Tim Cook said Apple and AT&T sold 270,000 iPhones in the first 30 hours — AT&T told Apple it sold more iPhones sold in the first weekend than it had ever sold of any other wireless device during an entire month.

    Again, 270k iPhones!

    Will the idiots still trying to spout the idiotic FUD “nahhh, it is more 270 / 2 iPhone, the rest is earbuds”.
    You trolls are never resting. Tools.

    Reply

  129. 270,000 units sold. This number includes units of accessories. So maybe the actual number of iPhones sold is somewhat lower.

    It doesn’t seem as if Apple are bragging about these numbers, but I didn’t listen to the conference call with financial analysts.

    John

    Reply

  130. Sold a couple of options yesterday for a good profit (just in case earnings weren’t great) but kept a couple of options as well (just in case earnings *were* great), and also kept my stock (in at $65.7). Kicking myself for selling the options, but that’s human nature – seemed like a good idea at the time. If I kicked myself for every dumb thing I did, I’d have a very sore butt by now.

    Reply

  131. Regarding that Laura Goldman quote—and I don’t know if this is true—but I found this tidbit as one of the entries on http://www.popmatters.com/pm/comments/news/41455/

    “Laura Goldman had a series of jobs on Wall Street but was thrown out of the US after a failed blackmail attempt against Thomas H Lee (the last in a long line of similar cases she brought) and she now runs LSG Capital from a seedy 2-room apartment in Tel Aviv. “Insightful”?? Yeah, right!”

    Given how boneheaded her analysis of Apple and the iPhone was, it wouldn’t surprise me if this were true.

    Looking forward to MDN quoting her once again tomorrow!

    Reply

  132. Just found this on http://www.percywalker.com

    “…Laura Goldman was successfully charged with blackmail and false allegation against Thomas H Lee and was subsequenly barred from the US. She’d made other attempts to extort money under threat of false allegation against many others including Peter Kaplan and the entire management team at Paine Webber. All fact, all public record. Now she runs “LSG Capital” which is basically just her and run from her two-bit apartment in Tel Aviv from where she recently issued a sell call on Apple at the same time as it was making repeated record highs. This disgraced and deranged individual should not be given a voice on sites such as these.”

    What a sad little woman she must be.

    Reply

  133. ONCE AGAIN FOR THE HARD-OF-HEARING, OR THE UNWILLING-TO-LISTEN!

    The results announced yesterday included 270,000 iPhones and approximately $5M of revenue accruing from the iPhone and related accessories.

    In fact, the $5M comes almost completely from accessories because all of the expenses for the 270,000 phones were accounted for in Q3 (possibly around $114 million) whilst only 1/8th of the income (let’s say $18.9 million) was realised in the period.

    For around 40% of customers – the ones who are new to AT&T – Apple will start to realise genuine profit in the Q3 of FY2008, the others are all contributing profit by Q1 of 2009. If you ever wanted to know how Apple would exploit its mountainous pile of cash, you’re seeing it now – Apple is basically using that money, as well as the profit generated by the Mac and the iPod, as a financial “shock-absorber” for iPhone.

    Reply

  134. “Best stupid argument: ubiquity equals superiority. “

    You see, you’re not listening to the argument. The argument is ubiquity equals success.

    Just like telling your spouse that you would have done things better than the guy who actually implemented and made money from the idea, it doesn’t matter because you were not able to do anything significant with the idea.

    In some other post you’ll be claiming that Apple’s domination of the mp3 market makes them geniuses and proves that the iPod is the best mp3 player ever.

    Reply

  135. Quotes from the call:

    “The iPhone was on sale for the last 30 hours of the quarter ending June 30th. During the quarter we sold a total of 270,000 iPhones to AT&T and through our Apple retail stores; and 146,000 iPhones were activated by Apple and AT&T.”

    The exact words were, “270,000 iPhones to TO AT&T and…”, 146,000 activated. That leaves 124,000 sitting in AT&T warehouses or in the hands of customers. it really doesn’t seem credible that about half the people who brought iPhones wouldn’t activate them, since you can’t do anything useful with your new toy until you do. So that means quites some stock sent out to AT&T (so can be booked as a sale) but which were not sold to customers those days. That’s a great way to juice up first weekend numbers.

    “As a result, we have adopted subscription accounting for the iPhone handset sales and are recognizing the associated revenue and cost of goods sold over 24 months. “

    here they clearly state they are recognising what it costs them to build and sell an iPhone (cost of goods sold for the laypeople like MCCFR) over 24 months.

    “Total revenue recognized from iPhone and iPhone accessory sales during the June quarter was $5 million”

    That means, MCCFR that they recognised for accounting purposes 5 million of revenue total from iPhones, not including that which comes from ATT, not that they sold 5 million dollars of accessories.

    “deferred revenue related to iPhone and Apple TV sales was $180 million at the end of the June quarter”

    Here they tell you exactly that they have another $180 million in revenue coming from the iPhones and Apple TVs already sold. Coincidentally this is $666 per iPhone sale claimed.

    “However, there would have been some inventory in transit to AT&T at the end of the quarter.”

    Clearly states some of those 270,000 iPhones “Sold” had been Sold by Apple to AT&T and were being shipped to AT&T.

    With all that information, AT&T’s claim of 146,000 actually activated is not starting to sound unreasonable as about the number customers actually brought on those days.

    Reply

  136. First day of sales:

    There are no activation problems la la la. They only affect a few people. la la la.

    Day of AT&T activations announcement:

    Massive activation problems are the reason for the apparently low number la la la.

    Reply

  138. “Those people should really consider switching to a job they’re qualified for, like selling shoes.”

    And you will know who they are.

    “Yes, I would like a pair of these Keens”
    “Wouldn’t you prefer the Buster Browns?”
    “Well,I’m going canoeing”
    “The BBs are cheaper! And everyone’s heard of them.”
    “Do you really work here?”

    Reply

  139. The classic logic of the r for all to see.

    Apple let’s loose the information that it sold 5 times more iPhones in a few days than Motorola sold Razrs in a month and the iPhone is somehow some kind of failure.

    Idiots.

    Reply

  140. TowerTone: Hi, Welcome to the TowerTone shoe store, What are you looking for?
    Customer: A pair of running shoes
    TowerTone We have two kinds of running shoes here. They’re both made to exactly the same spec in exactly the same factories, but this one has a little Apple logo on it and costs twice as much.
    Customer: Ill take the pair without the Apple logo.
    TowerTone: But the Apple logo is so pretty, you really want the other pair.
    Customer: No thanks, I’ll take the one without the logo.
    TowerTone: But an Apple logo makes the shoes magical.
    Customer: What?
    TowerTone: Yes, even though they are in fact exactly the same as the other shoes, they’ll make you think that they’re much better shoes.
    Customer: Just the ring up the normal shoes you freak.

    Reply

  141. BustingBrownSpots

    Thanks for making my point.

    When you say they are made exactly the same, then you show the lunacy of when things are NOT the same, and yet some people can’t tell the difference.

    So, what was your point again?

    Reply

  142. “you show the lunacy of when things are NOT the same, and yet some people can’t tell the difference.”

    But I do point out there is a difference, one has an Apple logo the other does not. Most people can see that’s all that’s different.

    P.S. keep the boy grooming tips off this board you sicko.

    Reply

  143. Oh, yessir!!! Anything else I can do for you?
    I guess I should go ahead and blindly apologize for offending some inner code of conduct that you have and that I have violated.

    My God, what was I thinking, posting a semi-humorous response to Alansky’s post
    “Let’s hear it for the lame-o nay sayers who predicted Apple’s earnings would fail to meet expectations this quarter. Those people should really consider switching to a job they’re qualified for, like selling shoes.”

    Thank you for setting me straight, and helping the world.

    BTW, who the fuck are you? And, also, who do you think you are?

    Reply

  145. Got it! Thanks again.
    I guess I have some explaining to do to my girlfriend.
    Wow, I didn’t even know myself!
    What gave it away? Canoeing? Or using a Mac?
    And which one of these, that your mother doesn’t allow, made you jealous?
    BTW, would you happen to be a shoe salesman? That would explain a lot…….

    Reply

  149. @ A Nameless Dickweed
    “Setting you “straight” would be helping you to stop the boy buggering. Most people, not just me find that offensive.”

    Most girls don’t seem to have a problem with it. Gay boys are keen on it as well, but I’m guessing you don’t consider them ‘people’.

    Reply

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