Yesterday, “CEO Steve Jobs & Co. obliterated Wall Street’s expectations, boosting sales 24%, to $5.41 billion, from the third quarter of last year. Even more impressive, net income soared 73%, to $818 million. In after-hours trading on July 25, investors’ fervor sent shares up $13, to more than $150, more than erasing the previous day’s decline,” Peter Burrows reports for BusinessWeek.
MacDailyNews Note: AAPL is currently trading around $145 in pre-market trading this morning after a pre-market high of $149.19.
Burrows reports, “The reasons for the change of heart had nothing to do with the iPhone. The company booked just $5 million in iPhone sales for the quarter, most of it for accessories. Rather, the Mac took a star turn. Despite rumors of soon-to-come new iMacs, Apple still increased its computer sales by 33% in the quarter. That’s nearly three times the 12.5% overall PC industry growth reported by market researcher IDC (IDC) on July 18. Apple increased its market share in the quarter to a 10-year high… Gross margins rose from 30.3% to 36.9%, an enormous increase for the PC business.”
“The latest quarter shows that Apple is gaining leverage from its unique cupboard of technologies. While many large rivals have scores of products with little in common with each other, Apple increasingly is creating its products from the same set of ingredients,” Burrows reports. “The result: Apple should be able to continue to boost profits faster than its sales growth, which may keep analysts scrambling for ways to justify higher and higher targets for Apple’s share price.”
Much more in the full article, “Why Apple Profits Pack Such Punch,” here.
[Thanks to MacDailyNews Reader “Michael” for the heads up.]
Wow, the day I say “I only made 5 million in the first quarter” – will be a super day.
I totally agree.
Good article…love this:
“Apple is gaining leverage from its unique cupboard of technologies. “
That says it all. Unique. A dazzling future for sure…
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Mmm he starts of saying: “Somehow, Apple’s (AAPL) trips to the doghouse don’t ever seem to last too long.”
WE all know why don’t we…
because the Apple doghouse was invented by Microsoft paid FUD-writers and only exists in their warped minds.
“scores of products with little in common with each other”
M$ business model leads to lack of choice AND lack of quality and innovation AND lack of
SHAREHOLDER VALUE!
I will never forget what happened to/with Stacker.
Bugger!
I want Apple share prices to go thru the floor, so I can get in!!
“Soon to come new iMacs”
Welcome to the computer industry. There is ALWAYS something new coming, just around the bend. If you can buy it, it’s already obsolete.
Sheesh! ANALysts!
Now Piper Jeffray’s 205 target doesn’t seem so extravagant, unreachable, does it?
@ShadowMac
It’s not tool late to get in. Jump in now before the stock is at $200+.
That’s 5 BILLION, not million
@shadowmac:
You state:
“Bugger!
I want Apple share prices to go thru the floor, so I can get in!!”
funny, People said the same thing at:
$70
$80
$90
$100
$115
$125
etc……
get the picture?
Wow, someone gets it, Apple leverages its core assets into new products, which allows it to grow income faster than sales. Now, isn’t that something! (sarcasm) Come on people, the glue that binds it all together is OS X. From the Mac to the AppleTV to the iPhone, to all the great software Apple creates, they all depend upon the Core frameworks in OS X. That’s their competitive advantage, and why they have a 5 year lead in smart phones. I’m just guessing but Steve pulled “5 year lead” out because it took Apple 5 years to get OS X to the level of maturity that they could install it in a phone. Anyone else starting today, trying to stuff a PC-based OS in a phone will likely need 5 years as well. And, what do they have to work with? Windows and Linux.
How come MDN doesn’t load on my iPhone? Safari always reports an error after the 2 side columns are loaded. I guess it’s time to get used to other Mac news sites.
What I could do with 5 million …
The price of the iphone has to come down to reach more buyers. It’s plain and simple.
I have MDN bookmarked on my iPhone and it opens just fine, no errors. You may have to delete cache and cookies, and maybe history in your settings, could be a corruption there. Or try shutting down and restarting, if you have not already.
@iPhone User
Loading MDN works fine on my iPhone here. Just tested it. Hold down the SLEEP button and the HOME button at the same time for about 10 seconds, when you see the Apple logo in white, let go. You won’t lose any data, but you will reset the device. This should fix it.
Come on AAPL, make me a millionaire. Keep that pace and I shall be in less than 10 years 😀
Do yourself a favor. Don’t wait to buy in to AAPL stock!! While it does continue to rise, you have to risk all your money to make a good profit.
Instead, consider buy a Call Option (all brokers support it) and make all your money from there. I bought a few contracts on Tuesday once it hit bottom and have already made 69% on my money in 48 hours…
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Check out our podcast where we cover the whole situation going on this week:
http://www.InvestorReviewPodcast.com
Andrew