Apple’s holiday quarter net income will be close to Google’s net income for the entire year

“It’s that time of year again. We are just a couple of days away from Apple (AAPL) releasing its quarterly earnings report, which will be its fiscal first quarter.,” Bill Maurer writes for Seeking Alpha. “Apple will report after the close on Monday, January 27th.”

“Each quarter, I provide an extremely detailed preview of Apple’s completed quarter and a brief discussion of the quarter to come,” Maurer writes. “Each time around, I try to highlight one central theme as the key for both the reported quarter and the one Apple will be providing guidance to. It may not be much of a surprise, but the most important part this time around is China, and not just because of the China Mobile (CHL) deal.”

“On Monday, Apple will report its fiscal first quarter results, likely to be the greatest sales quarter in the company’s history,” Maurer writes. “The company will potentially sell more than 55 million iPhones and 25 million iPads. Apple’s net income for the quarter will be close to Google’s net income for the entire year. I expect it to be a solid quarter, but I wouldn’t be surprised if guidance is a little light as Apple starts to digest the early China Mobile results. I’m also sure that the “Apple is dead” bear crowd will probably nitpick at something in the report that’s not 1000% great, just because that crowd cannot handle Apple’s success. China will be the key in both Q1, through the pull-through of results, and Q2, thanks to the China Mobile deal.”

Read more in the full article here.

MacDailyNews Note: As usual, MacDailyNews will cover Apple’s conference call with live notes. After we bring you Apple’s Q114 results right around 1:30 p.m. PST/4:30 p.m. EST, check our home page around 1:45 p.m. PST/4:45 p.m. EST for the link to our live notes.

Related article:
Apple to hold Q114 earnings results conference call on Monday, January 27th – January 23, 2014

16 Comments

    1. This only goes to show how poorly Apple is perceived by Wall Street. With all that revenue, reserve cash, dividends, buybacks and profits, Tim Cook can’t get investors to buy into the company. Apple is still being perceived as a company not worth investing in. Apple’s institutional ownership dropped about 8% and hasn’t budged since the Apple share fiasco took place in late 2012. No major funds want to take a risk with Apple and that’s scary considering Apple is one of the wealthiest tech companies on the planet.

      Potential investors realize that Apple is simply a tight-fisted company when it comes to sharing its wealth or increasing the company’s revenue to any degree. Apple isn’t hungry enough and won’t devour rivals which it easily could. Compared to Google or Amazon, Apple is a boring investment run by a boring CEO. Apple as an investment is about as exciting as eating cold oatmeal. Google teases investors with driverless cars. Amazon teases investors with flying drones. Apple teases investors with… nothing.

      Right now, it all boils down to Apple constantly losing market share to Android and this alone is perceived to be Apple’s downfall. Apple could certainly inflict damage to Google if it really wanted to by building its own search engine but there’s no indication Apple will do so. Apple’s increasing loss of smartphone and tablet market share is the only thing I see that turned Apple’s potential trillion dollar market cap into half that amount in less than a few months. Shareholders got scared, dumped Apple and the rest is history. Those once trusting investors are not going to get back on what they see as a crippled horse.

      It’s very likely “Apple is dead” meme will continue. It won’t hurt Apple because revenue and profits don’t lie, but Apple shareholders will continue to lose out to less wealthier companies’ shareholders because that “Apple is dead” perception will persist and Tim Cook doesn’t have the ability to change it.

      1. I invest in several companies that are far more ‘boring’ than Apple. However, their fundamentals are what motivate me. Apple’s fundamentals are exciting but Wall St. morons don’t seem to care. The market is more important than the CEO, and Apple excites the market with their products.

    2. Doofus investors? Please. I do not like Google any more than you, but surely you cannot be serious calling anyone who owns stock that has appreciated 4 times faster than AAPL for the past 14 months.

  1. In future news, Google decides to change it’s business model to that of Apple’s and align their software and hardware to more closely work together. Describing the shift away from the declining revenue of an advertising model to a physical solutions and services model, company executives, who declined to be named because they aren’t authorized to discuss such matters, told us, “By melding together the phenomenal hardware from our Motorola division with our industry-leading Android operating system, our focus on M•anDroid will allow our customers to experience the best mobility solutions possible. M•anDroid is not your father’s smartphone!”

  2. Tim Cook will probably make note of the millions of last minute 5c/5s sales in China causing a major spike that won’t be fully evident until Apple’s 2nd Qtr report in April.

    We could actually see a dip in Apple’s overall satisfaction as a company just on the sheer strength of the Chinese population.

    Now that this door is open, listen for the giant sucking sound when that country buys up all of the world’s online inventory of products.

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