“To get an idea of how deeply Apple continues to penetrate the market, last year the company produced 50% less in sales and over 71% less in earnings than it will this year. That means the 2010 Apple is nearly 50% larger than the Apple of 2009 – almost an entirely different company,” Zaky writes. “If this growth continues into 2011, Apple will surpass Exxon (XOM) to become the largest corporation in America. Not to mention that it already has more cash than any other company in the United States – $41 billion.”
Zaky writes, “I’m expecting Apple to report $15.51 in earnings per share (EPS) on an explosive $63.409 billion in revenue in 2010. That compares to $9.08 in EPS on $42.9 billion in revenue in the fiscal year ended 2009… “
There’s much more in the full article – highly recommended – here.
[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]
Always a pleasure to read someone who knows what they’re talking about and does real research.
Exactly, breeze.
Over at the Apple Finance Board, we follow all of the leading independent analysts closely. Rollercoaster fun.
Other companies would kill to get inside Steve’s brain
Eventually Apple will have some down quarters simple because the economy is circling the drain and ppl won’t have the money to spend. But Apple’s products and customer service will continue to get even more usable and exciting, and Apple’s trajectory into the high delight stratosphere will not stop.
Forty-one Billion Dollars. That’s a lot of wampum.
How amazing that Apple has resisted the urge to bloat; growing to 88,000 people like Microsoft has.
If you asked Steve, I bet he would say it is not important.
How big does it need to be before it is important for something.
Think of the markets Apple COULD penetrate more if they really wanted to, specifically business and education. With their cash-on-hand, they could make major moves and inroads into those arenas, but are barely trying. And why should they? They’re doing everything that they currently do very well and making people happy and making good profits. That’s a good business strategy. But when profits start leveling off, they certainly have plenty of other targets to aim for.
I am equally bullish, but I am sure he got those tax numbers wrong:
For Q1 2010, Apple expected a tax rate of 29%. After Q2, they said that they’d now expect 27% for the year. To account for that change in estimation, they calculated with 23.7% for Q2 (and an unchanged 29% for Q1). But for the rest of the year, 27% are to be expected (unless anything else changes).
cheers
Turley Muller, Andy Zaky and Deagol are the ones to follow.
@Cascadians – Maybe not so much for Apple. Apple computer users and probably iPhone users are probably not a proportional share of the terrible 10% unemployment rate, so they may still have money to spend. You can still buy a new iPod for $59. Even those who are cutting back may opt for quality over cheap glitz.
Yawn. Another day, another golden age.
“I never imagined that it or any other company of its size would be able to consistently grow its earnings by well over 50% a year”
Keep in mind folks that this occurred during an economic DEPRESSION. (Yes, a long recession such as this one is correctly called a “depression”).
Apple have never been perfect. But we the ‘fanbois’ have been smart enough to know for decades now that this is THE company to bet on, that gets things inevitably right. Apple makes the corporations that CAUSED the ongoing depression look like blithering idiots.
It also makes typical MBA mill schools look like TardFarms. I’m to the point of calling MBAs “Moronic BasTard Assholes”, they are so detrimental to today’s business world. Note that it’s not fair to point and laugh at every MBA graduate. The source culprits are:
(A) The out-of-touch and moronic business schools
(B) The out-of-touch and moronic businesses that fund the out-of-touch and moronic business schools and hire their resulting out-of-touch and moronic MBA graduates.
I PREDICT–> An overhaul this century of the entire concept of business management in favor of, guess who…
THE CUSTOMER EXPERIENCE. Imagine that. It will combine premier R&D;innovation with premier customer care. Marketing will be tethered to the real world of honesty and never allowed to enter into company management, not ever. See if I’m correct!
And Apple will be held as THE example for other companies to emulate. Well… maybe not their crappy employee benefits. But just about everything else!
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$41 billion.
i can haz, anything?
Tyoung sez: “Other companies would kill to get inside Steve’s brain”
Be careful there. Steve Jobs has not been perfect and he often talks about it.
(A) He did some crazy things in Apple’s early days that were detrimental. His worst decision was to hire Sculley, who was such a dumbass that he in turn fired Jobs then proceeded to tank the company.
(B) He has utterly mishandled the iPhone 4 ‘Death Grip’ hardware bug, leading to incredible and needless annoyance and contention in the computer and customer communities.
There is an ideal business system with people acting with ideal behavior. It does not exist in reality and never will. Human failings are part of all of our experience. Part of working toward an ideal is knowing how to handle the inevitable failures. Don’t create a Jobs ‘Cult Of Personality’ and miss the forest for the tree.
What is sad is that the stock price doesn’t even closely reflect what it’s value is compared to others. Any company with that much cash and their P/E rating should be much higher.
It is without merit that Wall Street Mafia network keep dumping peoples money in companies that don’t show any profit or have millions in debt. It’s a scam and the goverment allows it. Matter of fact they just backed off their reform bill. I guess someone got paid off and it’s business as usual.
AAPL should be double price/share as it is now.
America in a depression?
Cheer up, the rest of the world will bail you out again.
Juxtapose Exxon and Apple; one is about the road and the other, the living room.
In the last few years, Apple has provided a comfortable pit stop for those growing weary of travel.
As more and more chose to remain closer to home, they discovered
Apple in its ascendency and a brand that made life pretty interesting.
I find it extraordinary, Apple saw “road trip” on the horizon and provided the means to take your stuff with you.
They didn’t invent the Carry-all, or the briefcase, or the megapurse, they returned the usefulness of the pocket.
Soon they will introduce a universal, centralized storage facility that will follow you around the world. No matter where you land, there will be private “phone booths” for all your online needs.
Perhaps retina scanning will afford you access to these public booths in order to affect financial transactions, do mail, make calls, check reservations, etc., while sync’ing your hand-held via wireless connectivity.
Explosive growth is right. Soon Apple will partner with clothing industry to produce fabrics containing a microweave of circuitry that contains the contents of our handheld devices, as well as providing health and comfort through a thermostatically controlled atmosphere in our underwear!
But before it comes to our Hanes, only those who buy five-hundred-dollar suits and dresses will be able to take advantage of such things. Them, and those who only have one good suit, and comes in black.
If a company’s sales last year were 50% of this year’s, it’s sales are not up 50%, they are up 100%. That’s old math.
And what’s great is that Apple earned every bit of this through releasing great products, not through dishonest, uncompetitive, tricky bullsh*t.
——RM
“AI” sez: “America in a depression? Cheer up, the rest of the world will bail you out again.”
Please don’t. All bailouts do is enable the addiction to dopiness.
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Actually, most of the world, except apparently Australia, is suffering from an overall economic depression. That’s what you get with a ‘New World Order’, aka Bush League bozosity. (And some people want to re-elect the Neo-Con-Job clowns! HAHAHAHA! Honk honk!)
I’m pretty good with math, and Zaky’s math does not “add up.”
If Apple produced 50% less in sales last year than it will this year, then it grew 100% (doubled) in 2010, and is not “nearly 50% larger.”
Example:
This year sales = 100 Simoleons, means that last year’s sales = 50 Simoleons (50% less last year than this year). That translates to 50 Simoleons (100%) increase in 2010 relative to 2009, or 2010 sales are 200% of 2009.
It really bugs me when people get percentages wrong – growth, decline, more, and less – it really isn’t that difficult. If you don’t agree, then I’ll sell you a stock for $100. It will go down by 50%, then up by 50%. Then you can cash it in. Thanks for the $25.
When everyone is saying that a stock is going to explode, it means it’s time to sell that stock.
@chief
You would sell before the stock took off like a rocket?
I think what he means is that 2010’s sales are 50% of what 2011’s sales will be. He’s measuring the 50% just from the wrong direction–backwards (in the past).
It would be nice to see Apple finally refresh the Mac Pro line. It has remained unchanged for over a year! This would add additional revenue for Apple in the coming year.
I think you are right about the data center. I’d say Apple likely has something big in mind…
custom bedroom furniture