Apple could report all-time record Q2 sales, but also show first profit decline in a decade

“Apple could make history tomorrow with its biggest second-quarter sales yet, though it’s also expected to log its first decline in profit in 10 years,” Josh Lowensohn reports for CNET.

“That’s what analysts anticipate in Tuesday’s second-quarter earnings report, which will spell out the company’s performance through the end of March,” Lowensohn reports. “Wall Street is expecting Apple to post earnings of $10.12 per share on sales of $42.6 billion, based on a poll of 48 analysts from Thomson First Call. That’s down from earnings of $12.30 per share, and up from the $39.2 billion in sales from the same quarter a year ago. Apple’s own expectations for profits during the quarter came in between $9.23 and $10.23 per share on sales of $41 billion to $43 billion.”

Lowensohn reports, “The last time Apple posted decline in profit from the previous year’s quarter, it was the very beginning of 2003, and Apple was hit both by the economic downturn and a restructuring charge that ate away at its profits, and then some. Decline in profit aside, the revenue both Apple and analysts are expecting would be a new second-quarter record.”

Much more in the full article here.

Related article:
Apple’s all-time record quarterly earnings disappoint – January 23, 2013


    1. Yeah it seems the manipulation has no approved upside path the way anal-cysts re-route their rationale at every turn of possible market and profit share. As Roseanne Roseannadanna once said “It’s always something.” A no-win scenario. Argh!

  1. Until reason and reality are viewed with untainted eyes and brains,
    Apple will justbhave to rely on what always carried and motivated the company’s excellence and vision:

    Great products
    Great innovation
    Great ethic and standards
    Great Customer service
    Top shelf quality
    Loyal appreciating customers and standards.

    We got your back Apple!

    1. I agree completely 100% -have been long Apple for many years and continue to do so, here is my concern–with the stock price so low and a lot of Apple talent (employes at all levels) being compensated with salary and stock options–my hope is that they do not jump ship due to the discounted stock value, I would likely view this negatively if employed by the company.

      1. The employees are fine. The good ones are there to make great products and stock windfalls buy them expensive toys that they are similarly passionate about. The ones who are focused on stock gains leave and the company is better off for their departure. Hiring people who interview well but are just trying to get in when the company is popular are the ones HR must guard against. Steve was proud of “investing through the downturn” back at the start of the century. That included a lot of tossed-aside talent from companies who were collapsing their R&D efforts. Those engineers are the ones who will stick by Apple through the stock ride and work even harder to create brilliant and exceptional new things that we’ll see in due time — that’s their way of getting the stock price to climb.

  2. Anyone thought about what will happen when governments stop screwing with 0% to 1% interest and we get back to 5% to 12% in some countries. Apple will have $150 billion earning real interest that will be added to the regular profits. Or Apple could buy real gold at these low prices.

    I would still rather have Apple buy AAPL and take the sub $400 up to $550 or $600 this year. That alone would turn the $150 billion in the bank now into $206 to $225 billion by year end plus the $16 billion plus per quarter in the bank. So, $206 + 3 x $16 would be 1/4 TRILLION DOLLARS in the bank by end of the year!

    So, is anyone really thinking about this?

    1. Oh, and then there may also be the real AppleTV (or 3rd party apps on the AppleTV), or the iWatch, or …

      So, is anyone really thinking about this?

      PS: Notice the people backing out of the Dell deal Mr. Dell? Can’t even give the investors back the money you have. You need to close the door soon while you still can Mr. Dell.

      PS: How is IBM and HP doing?

      Really, is anyone looking at the iRoadKill yet?

    2. Then there are the 5 KNOWN server farms that we know about that NOT ONE ANALYST KNOWS WHAT APPLE WILL DO WITH. There is the 67% of the mobile market share in China when the China Mobile deal is signed this year. (Remember Timmy’s comment that China will be a bigger market for Apple than the USA is and that Apple is dominating.)

      So, again, is anyone really thinking about this?

      “Think Different”!

  3. All-time greatest revenue isn’t a surprise. All the products that were in place 3 years ago are still handsome, solid, classy products. Also, given the exponential growth in application developers for iOS. it’s a given that Apple will make money hand over fist. Even its Mac line, due to its finally maturing iMac manufacturing line and the missteps of the competition, should easily hit record sales.

    What is unforgivable, however, is that Cook could miss earnings despite having record sales. The background of this story is most likely the quality screw-ups in the iPhone supply chain. Cook had better sort this thing out fast, because investors — even the blindly emotional pro-Apple investor — will not accept repeated leadership screw-ups. The fumbled dock connector and bobbled iPad update (still precious little 3rd party support!), the totally screwed up iMac introduction with units available only after xmas, the dud of an update for iTunes (and the removal of features in other software as well), the dumbing-down of the Mac OS, Maps, the executive rotating door, the retail drama, the absolute silence while investors asked what Apple intends to do with its hoard of cash …. WHERE IS THE LEADERSHIP?

    If the last half of 2013 doesn’t impress everyone with flawless execution of excellent product updates, then Cook really does need to go. Apple should not be acting like a slow lumbering Microsoft!!!

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