“It’s pretty simple, analysts, particularly broker-based analysts have their collective heads stuck up their asses so far, they need Google Glass bellybuttons to see,” Ernie Varitimos writes for AppleInvestor.
“Apple reported earnings this afternoon and beat the street, particularly where it counted, and that’s the total number of iPhones sold, coming in at over 31 million when the consensus was just 28 million,” Varitimos writes. “How is it that all those analysts conducting comprehensive programs to count iPhone sales at the retail outlets, could have missed by over 10 percent?”
MacDailyNews Take: Because they’re sell-side bullshit artists whose sole function is to gin up “sentiment” and create action; in other words: generate trades (buy or sell, it doesn’t matter as long as the fee is paid) through their firm’s brokerage services?
“Apple had another record quarter in terms of revenue and the number of iPhones sold,” Varitimos writes. “So what should we expect tomorrow form analysts, who have egg all over their face? We should expect them to spin this earnings report every which way they can, and explain how they were right in their predictions all along, and that Apple is still faltering. Just you watch.”
Varitimos writes, “Tim Cook has been vindicated. Google reported poorly, Samsung also has reported they are hemorrhaging money. Only Apple has reported positive numbers and growing market share (62 percent in the US). Get it? Apple is the goto manufacturer in business and government.”
Read more in the full article here.
Related articles:
Record iPhone sales power Apple’s third-quarter, shares climb – July 23, 2013
MacDailyNews presents live notes from Apple’s Q313 Conference Call – July 23, 2013
Apple beats Street on record quarterly iPhone sales – July 23, 2013
It’s about time these ANALyst names who constantly bash Apple or drove down value should be published. Nationwide. Should call it the IDIOT LIST.
It isn’t just about the Analysts who bash Apple. Even the pro-Apple analysts, the one who are generally positive about Apple are all ignorant. They have no clue about how Apple manages their supply chain and we need to ignore them all.
Here’s a question: Were analysts wrong even though they knew they were lying? Even though they knew that if the majority of analysts gave aapl a big green light it do more to lift share prices than any single thing that Apple itself could do?
Is that being wrong or complicit?
“People still prefer iPhone.”
Bears still poop in the woods, and the pope still wears a funny hat.
You bullshitters.
APPLE PROFITS DOWN 21% YEAR-OVER-YEAR.
REVENUE DOWN FROM LAST QUARTER BY OVER 20%.
PROFITS DOWN FROM LAST QUARTER BY 38%.
Gotta love those shouty all caps.
Comparisons to previous quarters are not useful – there are too many seasonal factors. Try again using comparison to same quarter a year ago… And factor in other issues such as 21% decline in PC market and economic slump in Europe and consider results from samsung, google, microsoft et al… Apple is doing fine all things considered…
If you are not the BULLSHITTER here then you are IGNORANT. It’s one or the other. How do I know that? Because everyone knows you don’t compare to previous Q. If you don’t know that, then you are an IGNORAMOUS. If you do know that, then you are ofcourse a BULLSHITTER.
I also compared it to last year so shut the fuck up.
Hey, Moron, the bottom line is Apple made a figgin huge $6900,000,000 dollars in three months. The iTunes business GREW 25%. Over 31 million iPhones were sold…….on the eve of a new model with what is expected to be kick ass updates.
The rest of the industry is SATURATED. Not Apple.
Apple’s profits are down 21% year over year. It never, ever surprises me how stupid and hypocritical fanboys are. You will make every excuse possible to deflect negativity away from Apple. You’re all incredulous.
If this were Microsoft or Google u’d be sadistically laughing.
21% profit fall? Are you kidding? Wake up. This is terrible. Know idea what next quarter will be like but how can you not see this as a potential problem?
To me this is a leadership issue. Apple can’t have such looooong periods without some serious hardware upgrades, new products, etc.
I feel like with Jobs around, they wouldn’t have spec bumped the iPad 3 and we would have had an Apple event in March with a new designed iPad. No long product gap.
And we may have an Apple TV. Tim Cook may not be able to get the deals done to get these new products out the door.
I agree with your points, but you seem to be enjoying the combat too much to be a serious critic. The tipoff is the name-calling and the hand-rubbing.
If you’re a paid shill, forgive me; I respect that you’re only trying to make a living, underhanded or not.
If you’re not, I suggest a gentler, more persuasive tone might stand a better chance of gaining converts.
If you’re not in the conversion game, that leaves self-aggrandizement. In which case, never mind, as you and I are in the same hemisphere 🙂
Look if people are going to call others morons, etc. You fanboys make ur own beds. I’m here as an honest perspective. I don’t give a shit what any of you think of me. This is business. And for the first time in years Apple’s profits and revenues have plummeted.
The fact this isn’t being discussed is crazy.
Apple profits down 21% year-over-year.
Facts. Inescapable. Period.
The only FUD is your blind fanboy stupidity which makes you incredulous.
I think enough of you to respond honestly. I agree with your points. I only object to your belligerent attitude, which gets in the way of the points you are making. Yes, Apple has shown vulnerability. Apple fans are not pleased with that, and will naturally react defensively to anyone who highlights that. Did you expect a different reaction? Of course not. Rub it in all you want. It hurts. But we are a proud bunch, and will continue in our quest for excellence despite your gibes. slimon, insults make no one better.
hannahjs:
I like Apple myself and use their products. But I’m not a geek and at the end of the day I don’t really give a shit about them. You have the audacity to call me out when you participate in a site where the MDN takes and comments consist of sadistically revelling in the failure of other companies. People who call other CEOs fathead morons, losers, idiots… people so self-absorbed and miserable as to be blinded into some kind of cult where EVERY OTHER BUSINESS is bad, wrong, evil, and everything in between.
Where every other business copies, lies, cheats, and steals and should be killed. And that somehow Apple is different and doesn’t do this.
Well I’m here to tell you this is bullshit and to wake up. Apple is just the same. Tax havens. eBook price fixing. Copying others like the Swiss clock face in their Clock App that they got called out on and then had to pay a license fee after. The same people who copied WebOS for multi-tasking in iOS 7. The same people who have lost many patent disputes. The same people who effectively copied the entire Microsoft Metro design language for their new iOS 7: thin and flat is in? That’s Microsoft!
@slimon
Your points are well taken. Still, this is just a fan site. There will be excessive verbal jousting. It isn’t, however, going into the Congressional Record.
I’m sorry to be the first to point this out, but it is just as unlikely for hypnotised sheep (like me, I suppose) to wake up to the reality that the world is a hard place, as it is for you to realise that you have no chance to change the minds of the hypnotised. I’m so sorry you have had to waste precious time trying to convert delusional fools who cannot even appreciate the cautionary advice you selflessly advanced. But if you weren’t trying to convert us, you are a troll.
Never surprises me how much ignorant hate some people will spread.
@slimon,
in the year ago quarter Apple had launched more new products, this year new models promised more into the fall. Only major product release was the Air and it came out near tail end of quarter (new air started week of june 10, quarter ended june 29)
you can’t compare quarter to quarter until you put into consideration product launches as Apple has such a narrow product range (not hundreds like Samsung).
to be clear if Apple had launched the iPhone 5S two months ago the numbers would be skewed the other way…
When apple profits fall 21% for the WHOLE YEAR then come and talk again…
Over 4 quarters apple’s income growth is 61%
goog is 10.8
msft is – 26.7 (that’s minus… )
goog’s P.E is 26
aapl is 9
Businesses are here today, gone tomorrow. It doesn’t matter what you did a year ago or 2 years ago or even yesterday. Where are you now and what’s the future like?
Whether you like it or not it is a standard in business to compare quarters. It’s useful in that it gives investors and others regular updates on how a company is doing.
The only reason why you don’t like quarterly comparisons today is because Apple is down. If Apple was up you’d be singing Apple’s quarterly praises and saying how much they’re up over last quarter.
In other words, you’re a hopeless fanboy who’s incredulous and will say and do anything to remain in a state of disbelief and shield yourself from any negativity revolving around Apple.
If Apple went out of business tomorrow, with a clearly defined timeline of destruction showing how Tim Cook and others were responsible for basically fucking up Apple’s product management and cycles… and who failed to get any real deals done which ended up delaying new products for too long… that basically was the undoing of Apple… you’d be in disbelief and blame your neighbour’s dog.
So forget the quarterly comparisons: Apple’s profits are down year-over-year 21%.
Instead of arguing and saying everything is cool and making excuses… what can Apple do to keep growing?
1. Not have such long gaps in between product cycles. I’ve said this a million times: spec bumping the iPad 3 was the dumbest thing they’ve done because it eliminated an iPad event in March and it fucked up people’s trust and understanding in a 1-year product cycle. Not putting a Retina on the iPad Mini was the second dumbest thing they’ve done. iPad sales last quarter? 5 million less than the previous quarter. If they had a brand new iPad 4 in March… not the bullshit PC style spec bumped one… one that’s redesigned… they would have NOT had such a dip in iPad sales but it would have been higher than the last quarter.
2. Get the fucking Apple TV out the door. This is absurd the amount of time it’s taking!
And lots of other things…
John:
I would actually like to. It’s a goal of mine to be the CEO of Apple. Right now I’m the CEO of a software company. If you haven’t noticed, I’m focused on pragmatic things, trying to deal with the fanboy stuff on here at the same time.
Nobody cares how much we all like/love Apple. I’m trying to say, in spite of what you all think, that I’m not convinced Tim Cook is the right guy for the job. What will happen in a year… let’s say if Apple’s quarters kinda just slide all over the place but with a downward trend. What will you say to people like me who were saying from the beginning that the problem with Apple is leadership?
I think Apple has a great group of people working for them. But a business is ZERO without an intrepid leader with a real vision. Apple was particularly built on this and as I’ve said in the best… Apple’s greatest strength and weakness was Steve Jobs. Because without him the vision is gone.
nothing in your post contests the logic in mine
apple is unique company with a handful of products, judging quarters without consideration of product launches is moronic. The iPhone for example makes around 50% of apple’s profit.
but if you want to stick it with judging it like any other company (like Pepsi cola) it so be it, just shows how little you know about apple.
arguing with you is waste of time, I had a polite factual post WITHOUT A SINGLE DEROGATORY REMARK , yours is just gibberish filled with personal attacks : “you’re a hopeless fanboy” etc.
So a factual argument = fanboy, so I guess I won’t be polite any longer:
You ‘re a fuking piss ass stupid no facts apple hater retard.
One more time one year income growth apple 61%
goog is 10.8
msft is – 26.7 (that’s minus… )
IS THAT CLEAR ENOUGH FOR YOU???? moron?
lol.
@slimon
you say “I would actually like to. It’s a goal of mine to be the CEO of Apple. Right now I’m the CEO of a software company”
I GET IT NOW!!! Slimon….
you are writing SATIRE!!!
by your arguments you couldn’t be the CEO of a lemonade stand so I realize all you writing is just a big joke…
fuk me man, you almost got me there!
after being CEO of apple you will also solve global warming, the energy crisis and world famine! And finish off like the beauty pageant contestants always say “I just want world peace”.
lol, man you are good.
fuk me satire…
You people… “Screw you!” Slimon, “You SOB!” “You Apple hater!” “You jerk!” “You loser!”
You’re no better than peasants lynching someone because you think they’re possessed by a fairy tale evil spirit.
In other words, there’s something called delusional thinking. It clouds your rationality and makes you do and say things as a derivative of a warped sense of reality. Of a reality that doesn’t exist.
I probably like Apple more than most of you. I probably have owned more of Apple’s products than several of you combined. But I’m not so deluded and nerdy to ignore facts and become entranced in some fanboy world.
Imagine you people working at companies with other people. Or even at Apple. Imagine the decisions you’d make based on this delusion. The interactions you’d have with others. The way others would feel and think about your actions.
Companies need rational people who are able to recognize the faults in themselves. The inherent shortcomings in the company. And not to sit around eating the fat off the overstuffed turkey’s and revelling in the past, telling each other that everything is great. Great companies recognize their faults and weaknesses and work to get stronger in those areas. Arrogance and stupidity doesn’t work.
Apple is at a major crossroads as far as I can see. As much as we make fun of Android it has a boatload of smartphone marketshare. Apple’s smartphone marketshare is stubbornly stuck. They don’t necessarily need 90% marketshare but they can’t afford to lose very much…
There’s no easy answers for Apple.
Make a cheaper smartphone and go against your company’s overall values and strategy of making the best products you know how in order to penetrate poor markets like India, where they’ve so far failed? Not surprising they failed: Who in India could afford $200 for a phone anyway? It’s niche. I think this is a blunder and something Jobs wouldn’t have done.
Apple selling a whopping ~5 million less iPads this quarter compared to last? That is an incredibly large number. That’s about a 26% drop in unit sales over just 1 quarter. It supports the hypothesis that spec bumping the iPad 3 last year was the wrong thing to do. The right thing would have been launching a newly designed iPad in March/April. You get the holiday steam from the old model as it ends its 1 year product cycle, and the back to school crowd from January until near the end of the semester, and then bang, blitz the market with a new model to carry you through the summer and into the holiday season.
There’re many examples of this and it comes down to leadership.
@slimon
“You people… “ etc etc.
what a long post!
outstanding, satire at the best!
you kill me, slimon babe,
a follow up to
“It’s a goal of mine to be the CEO of Apple.”
ha ha ha ha ha
enough already! haven’t laughed so much since Moe poked curly joe in the eyeballs.
@slimon: “Businesses are here today, gone tomorrow.”
Apple’s been around for 37 years, has an installed base of almost a half a billion users, and has almost $150 billion in “the bank”. They are not just going to disappear tomorrow.
“It doesn’t matter what you did a year ago or 2 years ago or even yesterday…like it or not it is a standard in business to compare quarters””
Trends are measured year over year, not quarter over quarter, which should only be compared within the context of product and market seasonality.
If it doesn’t matter what happened yesterday, why are you using last quarter’s and last year’s numbers? You even go on to state that it is possibly a fluke due to the fact that they didn’t release any new products to bolster the numbers for the quarter.
And while I agree, they should’ve held off the iPad 4 (or released an iPad 5) for the Spring quarter, your entire argument is full of contradictions.
“Get the fucking Apple TV out the door. This is absurd the amount of time it’s taking!”
Maybe you should consult at Apple since you seem to know what their strategy is and that they must be going about in the wrong way, since it’s so damned easy to design and build a television set that you and everyone else expects to disrupt an industry that has gone unchanged since subscription cable arrived in the early 70’s?
Micheal:
Nice try. I replied to someone and you’re picking it apart, taking it out of context.
I posted the year-over-year as another look, particularly as people are screaming not to compare quarter-over-quarter. But both metrics are there. Yes, of course they matter, but the comment about not caring what happened yesterday stands. What that actually means is that you can’t ride off of the coat tails of your past success because things can change very quickly. Especially in the tech industry. That’s it. That’s what it means. Businesses can be doing well and then 3 or 6 months later be approaching debt. Apple future is not secured based on what it did yesterday.
What matters is what Apple does today, and where they’re headed. And this comment is especially made because Steve Jobs is no longer running things. Cook had had some Steve Jobs runway… products and R&D established and set from Steve Jobs… but those coat tails… those training wheels… are running out, fast. And the true test will be Tim standing on his own. What vision does he have? What products will he help cook up? Where will he take Apple? Wearables? Post-multi-touch?
“And while I agree, they should’ve held off the iPad 4 (or released an iPad 5) for the Spring quarter, your entire argument is full of contradictions.”
Ok Micheal, let’s have some fun, what contradictions?
As for the Apple TV, it’s going on 2 years since Steve Jobs has died, and in his biography, in which he said he finally “cracked the TV”… was said to his biographer well before he died and well before the book was published.
When you couple this with the fact that they’ve had an Apple TV out for years… that they’ve had a team of people on this for years…
The question of what’s taking them so long now to release it is valid. And the answer, part of the answer… and what’s been trickling out in the media… is trying to get deals done with media. Which leads me right to Tim’s doorstep in that can this guy make deals and get products out the door…
@slimon
1) you keep harping on Apple TV is a failure BUT:
Apple TV TODAY (even before what they have in the labs) has 56% of the Streaming Device Market with Roku in distant second place at 21%.
(go internet search that if you don’t believe)
i.e Apple Sells More and Has more market share than ALL the other TV streaming devices put together!
and you paint that as sort of failure..
that’s enough to show your wonky logic.
Also did you notice how much money (billions) iTunes made and apple TV today is key part of Apple’s itunes strategy.
2) your bashing on iPad numbers.
Did you actually listen to the conference call about the iPad?
It is due to the draw down of sold inventory (probably because updates are imminent) –
last years quarter inventory were larger because THEY HAD A NEW IPAD (I already mentioned it’s stupid not to take product launches into account when comparing apple quarters)
IF YOU TAKE THAT INTO ACCOUNT INVENTORY DIFFERENCES THERE IS A 3% GROWTH!
Conference Call transcript:
“iPad, we sold 14.6 million iPads during the quarter compared to 17 million in the year-ago quarter. The tough year-over-year comparison was driven by both the significant channel inventory increase and the first full quarter of the availability of the 3rd generation iPad in the year-ago. We built 1.2 million units of iPad channel inventory in the June quarter last year, whereas we reduced channel inventory by 700,000 units in the June quarter this year.
Factoring in this 1.9 million unit channel inventory swing, iPad unit sell through was down 3% year-over-year.”
—
I can beat down the rest of your moronic arguments piece by piece but I won’t bother because you are stuck in the anti apple mode and call any body refuting your claims with facts as ‘fanboys’ etc.
TYPO:
“F YOU TAKE THAT INTO ACCOUNT INVENTORY DIFFERENCES THERE IS A 3% GROWTH!”
should be “3% Negative growth .”
which is still a lot better than the – 26% you’ve been touting Slimon,
and like i said the 3% drop is due to the new ipad launched in the quarter last year.
two-plus-two:
To you, 2+2 = 5 because you’re delusional. Nobody cares about excuses. Do you care about Dell’s excuses? Microsoft’s? Nobody cares.
Let me say this again:
Nobody cares about excuses.
Apple’s revenues are FLAT YOY.
Apple’s profits have sunk from $8.85 billion to $6.9 billion YOY.
Apple’s gross margins have plummeted from 42.8% to 36.9%.
It’s these latter two metrics that are vital to understanding what’s going on. And that’s that Apple is starting to have trouble at the high end, as the Android junk swarms the market… ruining the value of the higher end products and sucking up customers. And now Google comes out with a new Retina type tablet for $250 or whatever… it’s this junk… even though people may not be on the web using them as much, that’s sucking some of the life out of Apple.
Only fanboys will try to make excuses and not accept the massive decline across most of Apple’s business. If this was just a few things in Apple’s product line, like declining iPod sales, fine. But overall the decline in profits and gross margins is a fact. And most of Apple’s company is affected and in decline. And it’s impossible to ignore.
I still like their strategy by making great products at the high end but from this earnings report it’s clear customers are opting for older phones and promotions may be moving phones as well. No easy answers for Apple.
Later today, Rob Enderle will update the “Apple Death Clock” to one second before midnight. Wait for it…
heh. that one second has kept that fat bastard afloat since ’94.
Yeeesss! Slimon… what is it about this company and its beleaguered, failed CEO that you people on this site can’t see? Call me a troll is your ONLY answer. I’m not a troll. I’m a faithful customer who owns multiples of just about everything Apple makes and I’ve been a shareholder for a decade. Tim Cook keeps uttering lies about “great products” just on the threshold of being released and you guys keep swallowing that crap talk. When will you realize where this company is? I’ll tell you, it’s nowhere, stuck with a big bag of nothing. Wall Street sees it clearly. Apple, under Tim Cook, is a pitiful remnant of what it once was and will never be again until we get new leadership in Cupertino.
You bought AAPL at $700 and are expecting Apple to bail you out? Try learning about stock markets first and remember to buy low and sell high. Now go away.
Where do I send the large slice of humble pie you’ll be forced to swallow? If I were you, I’d sell my Samsung shares now before they become nowt more than arse fodder. There’s clueless…and then there’s you!
=:~)
Childish remarks… You think Apple’s board would allow their CEO to lie to the market? There are huge penalties for doing so. Think before you express itter nonsense…
People who buy stocks at $700 shouldn’t be telling CEOs how to run their business. You’re not a troll. Maybe a tool…
sure we need a guru like steve balmer to design us a perfect device like the slate and convert more mall space into virtual bowling alleys. you should get rid of your phone and pick up a motarola razor get rid of your radial tires and go back to the good old days. apple changed everything and they don’t have an obligation to change it again to entertain troglodytes like you. the products are the best made and the existing customer base would be enough to keep the company profitable for the next century . wall street seems to feel getting someone to pay a couple of bucks for a pop up ad that nobody in their right mind would click on just shows that wall street knows nothing ! investors valuation do not affect a company like apple in operations and they have no obligation to keep day traders and option peddlers happy . If you look at the 100 billion dollar pile of cash on hand you will know right away they are not putting up shares as collateral for loans any time soon .
This attitude is beyond ignorant. Apple is a company of over ten thousand people. So Steve Jobs is gone, and suddenly those ten thousand employees, including Tim Cook, are worthless and incapable of achieving anything? Get a grip.
Duh
It just seems like getting bashed on this site if I don’t say thing positive about apple! Btw, I have been an apple user since early days! Plz don’t bash me.
Dumb-Ass :/
heh.
goodness, no…it was that known communist, Seamus.
look, pal, me and Charles Darwin both are ecstatic that you don’t reproduce. Keep up the good work!
oh, thank you for the cordial invitation…however, gotta stay close to the house, the little woman’s contractions are two minutes apart.
you are forgiven, but not your mom.
I think these two boneheads are taking the “life” out of lifestyle, John.
We can always rely, however, on exemplars like botvinnik to preserve the “style” in lifestyle. If by style one means distinctive attitude.
They must be punished !!!
How come no writers are expected to fact check these days?
Samsung hemorrhaging money? They just reported a profit of $8.3 billion. Stock got slammed because analyst estimate was $9 billion, so Samsung missed
Its from $50b revenue and they only earn $8b
It’s amazing how these analysts just keep making their work Proust up out of thin air, NO fact-based materials, no research on reality, no data from sources that have proven themselves above reproach, and they do it every day – AND clowns continue to listen and loose more money…
The ultimate example of this is the King Clown, Jim Cramer… IF you watch his lie hour, on ANY DAY AT RANDOM, and do EXACTLY THE OPPOSITE OF everything he recommends, you’ll be a millionaire in a month.
All liars all the time… Paid to lie and take your money.
all the comments posted on this site tend to reflect topics about stocks, predictions on earnings, law suits, or negativity towards the competitors
the majority of members here seem to only care about the stocks, and far less about truly great products, wonderful ideas, innovations, patients and technological advancements, interesting rumours or comments from other members
and fore the most part, topics commented on – go far too away from the topic that the article was about
As John said, you can always leave. Don’t, though. Lots of interesting stuff goes on, and you can never tell when someone might come up with an idea that propels the conversation into another dimension, or the gutter. Good fun all around
But the signal-to-noise ratio on this thread is off the charts! My low pass filter needs to be changed right now as it’s so clogged up…
Slimon and Jay Morrison,
Forget comparisons quarter-to-quarter or even to a year ago — look at the revenue increase over the last five years. What business wouldn’t love to have 36-37% PROFITS every year? Apple is still THE tech company to beat, the innovator, the benchmark of all other tech companies.
It’s silly to assign blame or give credit to just the CEO of Apple, SJ before and TC now. Sure, as the CEO they help guide the direction of the company, but they’re not single-handedly making all the decisions.
Untl I see better opportunity in another tech company, I have and will continue to put my money on Tim Cook and Team Apple.
How refreshing. A decent reply without name calling, profanity, childish crap, and mindless comments. You, sir or madam, are to be commended. You will never convince me that Tim Cook knows what he is doing but I respect your opposite opinion.
I agree with the two of you. As long as we have command of our own minds, we can draw conclusions which may differ, but employ logic and are aimed at the general good as opposed to ratifying someone’s political slate.
So you don’t think it’s relevant and important that Apple has had a massive drop in profit this quarter as well as revenues?
You don’t think it’s relevant that, for the first time ever really, iPad sales have declined? And not by a little, but by an absolutely massive amount to the order of a 26% drop in unit sales compared to last quarter.
Of course they declined – there wasn’t a new product released. It didn’t decline because people are losing interest, it declined, because there were no pre-order sales or back orders to fill – this has defined iPad sales for Q2 and Q3 for the passed three years.
Furthermore, it’s not relevant. Apple’s sales have always been bolstered by product releases for any given quarter. Last year, they went through changes in their release schedule that will undoubtedly affect traditional sales figures the rest of the year. Until they can complete whatever shift they’re undertaking, we won’t really know how they are doing.
Since numerous bellweathers from Samsung to McDonalds are seeing lower profits… No we don’t think it’s as relevant and important and relevant and important as you do.
By the way slime-on, what software company to you run and what are your financial results?
By the way warinmybutt, what do you do for work? My company and my life… I’ll remain anonymous like you and everyone else here. At least I put out a gain of what I do. Unlike the many of you who are completely anonymous sitting in your basements pontificating.
Slimon, let me help you understand this year over year drop in profits.
When the iPad mini came out, the whole world was told that the mini was going to lower profits while displacing the larger iPad’s sales. Cook told everyone there would be lower profits in the future.
Didn’t you get that memo?
Oh my god here we go.
So the iPad Mini is the reason why Apple’s profits and gross margins have plummeted $2 billion on the same revenues YOY? Right.
You cannot read or understand reality. It is NOT because of the iPad Mini. It is because Apple’s profits and gross margins have fallen across most of its business. The iPhone particularly hurt it.
Apple’s profits are down a whopping $2 billion on the same revenue compared to last year. Their profit has fallen over 20% on the same revenues as last year, where profits were $2 billion higher.
This is a result of Apple’s gross margins falling ~6% ACROSS many parts of their business. The iPad Mini accounts for roughly 20% of total iPad sales each quarter. If Apple sold 15 million iPads this past quarter, that’s 3.5 million iPad Minis sold. The revenue on that, assuming an average sale of $400 per Mini = $1.4 billion in revenues. With profits of 36% on this we’re looking at $500 million. $500 million of $7 billion works out to roughly 7%. So 7% of Apple’s total profit could be the result of the iPad Mini.
If the Mini is a lower margin product… ergo Tim’s warning… and it’s something like 6% less in profits, it would reduce Apple’s profit by something like $60 million for every $1 billion in sales of that item. So on $1.4 billion in sales of the Mini, it could be something close to $100 million less in profits in a quarter.
So we have $100 million. Apple’s profits plummeted $2 BILLION. You’re $1.9 billion short.
I’ll stop here fanboy, but thanks for helping me “understand”, idiot.
crickets
Christo
Even in a world with miracle products, such as Apple’s, there will exist an emotional residue from a largely non-miracle life and that means contentiousness, no matter what.
So because Mac, iPod and iPad sales are down, does that mean they don’t prefer them over others? Surely!
Revenue was flat. Profit was down.
Not a good quarter whatsoever. Poor in Apple standards!
Only thing decent was iPhone sales… and that wasn’t stellar by any means.
Guys, congratulations for some of the most interesting and soul stirring arguments ‘for’ and ‘against’ the status quo at Apple Inc., it’s direction and leadership. Only time will tell as to who has the stronger argument is ‘right’ or ‘wrong’. In the meantime I will continue to live in hope and to continue to enjoy the free flow of opinion you all provide.
Maybe it is more than that. They are obsessed that any company other than Apple is the way to go. I hoped that when Steve Jobs past away that this would end. So, maybe it never was about Steve Jobs. Most of the “ANALysts” will push any turd pile as long as it isn’t Apple!