“Apple sold a staggering 6.9 million iPhone 3Gs in the quarter, more than the 6.1 million total first-generation iPhones sold. The iPhone launched July 11 and is available in more than 50 countries,” Jessica Mintz reports for The Associated Press. “Research in Motion reported it sold 6.1 million BlackBerry smart phones in the quarter that ended Aug. 30. Edward Jones analyst Bill Kreher said overtaking RIM in such short order was a ‘jaw-dropping’ accomplishment.”
“Apple also set quarterly records for Macintosh and iPod sales. Apple said it sold 2.6 million Macs and 11.1 million iPods, further allaying fears that the sluggish economy would weigh on Apple’s back-to-school sales,” Mintz reports. “Records notwithstanding, the Mac division dragged Apple’s revenue below the Street view. The company said Mac sales growth took a hit as educational institutions cut back on computer purchases.”
“For the current quarter, which ends in December, Chief Financial Officer Peter Oppenheimer gave a wide range he described as ‘prudent,’ saying Apple expects to earn $1.06 to $1.35 per share on sales from $9 billion to $10 billion. Analysts surveyed by Thomson Reuters had been expecting a profit of $1.65 per share on sales of $10.57 billion,” Mintz reports.
Mintz reports, “Piper Jaffray analyst Gene Munster, speaking in an interview, called the guidance Apple issued ‘comical,’ saying it calls for results that are flat from a year ago and ignores the explosive iPhone 3G debut. ‘It’s mathematically almost impossible,’ he said.”
“In extended trading after the earnings report, the stock leapt $13, or 14.2 percent, to $104.49,” Mintz reports. “For the full fiscal year, Apple’s profit climbed 38 percent to $4.83 billion, or $5.36 per share. Revenue increased 35 percent to $32.5 billion.”
Full article here.
Munster is right. It’s almost mathematically impossible for Apple’s numbers to be as low as Oppenheimer guides. They’ve got $3.5B in current deferred revs due to the iPhone. That means that $900M of that amount will be recognized in the Xmas quarter. Last year, they only had $350M in current deferred revs, meaning they recognized about $90M of that in last Xmas quarter.
That $900M is BANKED, and will be counted in the Xmas quarter’s income statement. In other words, if Oppenheimer’s $9 to $10B revs number is correct, that would mean, actual sales would be $900M less, or about $8.1B to $9.1B. Compared to last year’s $9.6B means Apple revs would fall, 5 to 16% from last Xmas. Seeing as Apple revs just went up 27% from last year’s Fall quarter, and Apple has yet to show any hint of slower growth, it’s ludicrous for Oppenheimer to guide 5 to 16% lower sales in Xmas.
Analysts also say Apple is doomed because no one will buy their expensive products in this economic climate.
Draw your own conclusions.
i was hoping this rally on the stock would happen tomorrow. Oh well. another lost opportunity. In general, the street punishes Apple, then come to their senses. It seems as though they came to their senses quicker than normal. i missed what could possibly be a 200% gain on call options. If they spike tomorrow, i might as well buy some puts just for those profit takers.
KenC has it right.
Ordinarily Passerby might have a point, but Apple knows and SJ said on Tuesday, that Apple’s market is not ‘everybody’. It will be in time but only when Apple is ready to offer a true entry level MAc that is not fatally compromised. SJ said that too. He said there is no way to buld a computer for $500 that isn’t total crap. You’d be surprised at the costings. Even as little as $502 might allow for an OK keyboard rather than a lousy one and so it goes. Even poor people know that quality has a price.
Apple-Apple-Apple!
Steve Jobs ’08!
How much do you want to wager the reason stocks and currency are going down globally is that the powers that be want a new global monetary system? Probably the crisis Biden was talking about when he asked for people to stick with them if they are elected and they make a decision that “tests” Barry Soetoro. Who know, that might even precipitate a war that kills two billion people. How is that for soothsaying?
Apple’s excessively low guidance really does nothing to help them except maybe keep their stock at a reasonable price, allowing it to grow at a more controlled pace.
everyone is overlooking the obvious; steve has studied the economic philosophy of Juche.
steve is to be commended for his implementation of this philosophy, but i’m peeved that no credit is also being given to the Great Juche
god bless Juche……..and the son of Juche!!!!!!!!!!!!!!!
BAD HEADLINE
Analysts: Apple’s iPhone unit sales ‘jaw-dropping’ but company’s ‘prudent’ guidance ‘comical’
Only one Analyst said it. Makes a lot of difference
Not at all surprised that 2008 was a bad year, especially when Wall Street backstabs the company into higher expectations and when everyone is broke technically.
@Gabe
Are you serious? “not suprised 08 was a bad year…”
Did you read the summary of there numbers for Q4??? Looks to me like it was one of their best years to date. You, sir, suffer from HIA. (head in a$$) Lets try to read before we post. K, Gabe?
What he meant was that 2008 was a bad year for the stock. (So far.)
Munster is the Wall Street analyst with the best record of predicting Apple’s sales, etc.
If it weren’t such a crazy idea, I’d suspect Apple’s bean counters of setting a bear trap for the shorts: Get them to hang on to their positions, or add to them, with low-ball guidance, and then torpedo them with with boffo earnings in January–nearly $2, say. The stock rockets up 50 points at the opening, and the bears, once burnt, learn a lesson: don’t mess with Apple.
link
<a href=”http://en.wikipedia.org/wiki/Buddhism”>link</link>
(a href=”http://theurltomypage.com/index.html”)link(/a)
Buddhism
@ British Mac Head:
Thank you for the tutorial. I am a Wikipedian (User:Greg L). Some of what we do there is HTML, but other stuff is Wikilinking. So… (*with my tongue slightly sticking out*)…
Greg’s link to Buddhism
Hah! There it is.
I appreciate your words about Buddhism. My gay friend (a Mac nut) said much the same of the Thai people; that Buddhism teaches them to accept all that life throws at you with peace and tranquility. He says they are a profoundly gentle people. When he and another friend of mine (who is decided not gay, went to Thailand and traveled to remote, inland villages, the people were quite unabashed about their curiosity with their body hair; never seen it.
Jobs is my age. I’ve always been quite fascinated with him because he made something in 1984 that blew me away. “Someone my age thought of this?”
Greg L