“Apple Inc’s profits and sales streaked past Wall Street forecasts as iPhone and Mac sales hit quarterly records, sending its shares rocketing to all-time highs on Monday,” Gabriel Madway reports for Reuters. “Sales of Mac computers — the largest single contributor to Apple’s revenue — jumped a better-than-foreseen 17 percent, but shipments of the closely watched iPhone were held back by problems in producing enough to meet demand, particularly abroad. ‘The big story is the renewed ascendancy of the Mac,’ said Barry Jaruzelski, a partner at consulting firm Booz & Co.”
“IPhone sales had been expected to steal the limelight. Yet unit sales rose 7 percent to 7.4 million, just shy of Wall Street expectations of 7.5 million units. But it was the company’s venerable Mac warhorse, which has steadily expanded market share for years, that starred. The stellar shipment numbers came just days before rival Microsoft Corp was set to unveil its latest version of Windows operating system, to be followed a day later by its own quarterly results,” Madway reports. “Mac sales hit 3.05 million in the September quarter, above average estimate for about 2.8 million. Sales of laptop units alone leapt 35 percent, at a time the global PC market is stagnant.”
“‘These are huge numbers tonight. Apple is probably the best growth story in tech, maybe one of the best growth stocks in the market. I bet this stock can go to $250 in six to nine months,’ said Jane Snorek, analyst at First American Funds,” Madway reports. “‘This makes me think Apple will have a great Christmas.'”
“‘The number of Macs sold shows that Windows 7 has not been a threat to the Apple franchise,’ said Shannon Cross of Cross Research. ‘These are phenomenal results.’ …Shares of Apple jumped 7.5 percent to above $204 in extended trading. It had closed at $189.86 on Nasdaq. The stock’s record intraday high was $202.96 on December 27, 2007,” Madway reports.
Full article here.
MacDailyNews Note: AAPL shares rose $12.54, or 6.60%, to $202.40 in after-hours trading. With 895,817,000 shares outstanding, Apple’s market value currently stands at $181,313,360,800.
[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]
Let’s hope it breaks new highs tomorrow!
The best is yet to come…
In this case, I hope Cramer’s right and it goes to $265. Probably deserves to go much higher. Doesn’t AAPL make, and bank, more money than GOOG? Didn’t they pass $550? Some stunning stuff coming from AAPL real soon, and it’s gonna make a whole lotta money.
Buy more now.
@garymac
You cannot compare share prices of companies. The share price is a function of the total value of the company (market capitalization) and the number of shares outstanding.
If Apple had one share outstanding, the share price would be $181,313,360,800, and if they had 181,313,360,800 shares outstanding the share price would be $1.
AAPL and GOOG are not that far off in P/E (price/earnings) valuation, which is what you need to look at when comparing two companies. The shares of both are valued at approximately 30-35x earnings.
AAPL has split twice…GOOG hasn’t. Apple has a hardware product line you can actually touch…Google doesn’t. These are two very different companies as far as where their revenue comes from.
“AAPL has split twice…GOOG hasn’t. Apple has a hardware product line you can actually touch…Google doesn’t. These are two very different companies as far as where their revenue comes from.”
The only thing that really matters is that they both make profits, and that both their profits are growing. Dell also has a product line you can touch, but I would be much more inclined to own GOOG over DELL.
Google may be at $550 but you can’t look at just the stock price and compare. Gotta look at market cap. # of shares x stock price = market cap. In that regard:
Apple = 170 billion
Google = 174 billion
Google has never split their shares. Apple has split many times thus has more shares.
Once again, the analysts and many of the commenters here fail to take into consideration (and therefore discuss), Apple’s PILE OF CASH.
I believe Apple has about $35B in cash equivalents now. So if Apple is worth $181B, that means even at the $202 price, Apple’s on-going business is only valued at $146,000,000,000. That is relatively cheap, even with AAPL over $200 per share.
Plus, if Apple makes even a 3% return on investing $35B, Apple makes over ONE BILLION DOLLARS with zero effort – PURE PROFIT. (That’s more than Dell’s quarterly bottom line profit.)
Cash position- $34B.
Ridiculous.
“Dell also has a product line you can touch”
@critic…. PLEASE don’t make me touch a Dell!
I just pretty much look forward to what’s comin’. This tablet thing is now gonna revolutionize the education field. That’s huge. This tab will hold all textbooks for students. No more carrying loads of physical textbooks. All books loaded into the tab. Add in the ability to do, and complete, and submit homework… game over.
Add to it the medical field. All doctors and nurses carrying one of these… they have access to anything and everything about a patient on record, with a tap on the screen. Prescriptions sent with a tap, in legible english, instead of the doctor scribble we take to the local Walgreen’s or Rite Aid or CVS Pharmacy on a crumbled piece of paper, hoping they can decipher. Again… game over.
This will dwarf the iPhone. And the iPod. But not the Mac or OS X.
And now, just to justify my personal vision of this ultra revolutionary product with a design point of view…
This new tablet will not just be a tablet.
It will dock in an iMac styled frame (rotatable, landscape for 16 x 9 screen ratio, portrait for all things logical portrait) for power charging, and function (when docked) as an iMac Mini with a corded or wireless keyboard. When ejected after charging, the on screen multi touch functions kick in (keyboards, etc.).
And just for fun, it’ll be “the best iPod we’ve ever made” with increased ability for higher resolution movies and TV shows.
God, I hope I’m right.
Hmm, now where are those jokers who keep insisting that Apple should license OS X to PC box assemblers? Seems like Apple’s doing mighty fine sticking to their current business model.
And it’ll be compatible with the app store.
Game over.
Again.
Ballmer…
sucks to be you, huh?
We’ll see your competition product in early 2012… right?
Yeah knowing Microsoft it have Windows Mobile 7 and MSN Direct with MapPoint oh yeah you gotta Bing plus connect to your Xbox 360 with MSN Messenger to see what friends you got that Red Rings of Death, today! Man, ALL I can say is thank God for Garbage Dumpsters
roundoff error
So is that guy doing cartwheels did all that for nothing? Ahahahaha
Apple has only to announce that their new data centre will be for a search engine data centre and MacOS 10.7 will offer it as default (along with Google) and Google’s share price would plummet. Given Google’s Android moves this is not impossible.
Apple’s market cap will exceed MSFTs by July 2010. Then its game over.
I agree the tablet could revolutionize education and medical markets. Being able to go through text book pages with finger gestures would be priceless!. They need a hand writing application though so math majors, etc. can write down equations in electronic notes. (can’t use the keyboard for this, I’ve tried. Takes way too much time in class.)
I don’t agree with Gabriel though, one or two good licensee’s with “certified” hardware systems, would open the door to the enterprise. With the enterprise services available through HP, having HP as a licensee, with all of the enterprise services available that they crave, the Mac could just storm that market. This would overcome the aspects of the business market that have not developed for the Mac, i.e. CAD, ProE, etc.
A few days ago IDC released market share standings for the top 5 computer companies, for the world and the U.S. Their figures for the number of Macs sold last quarter were obvious estimates, since I’m sure Apple isn’t in the habit of supplying that info direct to IDC.
Anyway, their chart showed Apple at #4 with 1.6 million Macs sold and a 9.4% market share. If you plug in 3 million where it should be, that brings Apple to #3 at somewhere around 16% market share (U.S.).
Will IDC update their charts now that they know the rest of the story? (Nah.)
Wingsy, I think you are mixing worldwide numbers with US numbers. Apple sold 3 million Macs worldwide, and most likely about 1.6 million of those in the US.
Yawn. Savor it, MAC lemmings. In two days it’s all over. Windows 7 will surely crush MAC’s miniscule gains and reduce market share for the toy computer maker back down to 2%.
Your potential. Our passion.™
The revolution is now and it will be…..broadcast over audioconference. Gee, “televised” does sound more dramatic…
And don’t forget “non-GAAP” revenue/profit. In the next quarter or two Apple will start recognizing most of their iPhone revenue in the same quarter as the sale. When you take that plus their cash pile into account, Apple’s p/e ratio is much smaller. Way more attractive than Google.
chaz writes, “I don’t agree with Gabriel though, one or two good licensee’s with “certified” hardware systems, would open the door to the enterprise.”
Apple would have to consider benefits of entree into the Enterprise provided by such licensing against the resulting “brand dilution”. Two alternative solutions come to mind:
One simply involves partnering. Enterprise contracts often provide many components – desktops, monitors, servers, service, laptops, etc. – and Apple branded products could be part of that mix.
The alternative involves custom Apple kit to, say, HP or IBM. (Perhaps this is the only way we’ll see that “missing Mac” desktop.) Its label might say “HP by Apple” or include a prominent “Apple Inside” logo. But Apple would still control the hardware/software integration.