How does Apple top an historic, all-time record quarter?

“How do you follow the most profitable quarter in corporate history?” Tim Bradshaw and Charles Clover report for The Financial Times. “That is the question now hanging over Apple.”

“As Apple’s marketing tagline for the iPhone 6 puts it, the quarter was ‘bigger than big,'” Bradshaw and Clover report. “Now, with Apple’s share price heading back towards its all-time highs, it faces the greater challenge of living up to its own raised expectations.”

“Despite fielding several questions from analysts about how to sustain growth, Mr Cook said he felt ‘incredibly bullish’ about Apple’s prospects: ‘Between the switchers and the people that are new to smartphones and selected an iPhone, and upgrades… we feel very good about what’s in front of us,'” Bradshaw and Clover report. “That confidence may backfire if Wall Street’s enthusiasm starts to get ahead of Apple’s capacity to deliver… Nonetheless, experts are finding it hard to predict where Apple might slip up. ‘The momentum for them is relentless,’ says Geoff Blaber, an analyst at CCS Insight. ‘I struggle to find where they could come undone.'”

Read more in the full article here.

MacDailyNews Take: Here we go; shortest honeymoon ever.

Related articles:
Apple Inc. posts biggest quarterly earnings of any company ever – January 27, 2015
Apple destroys Street with all-time record earnings – January 27, 2015
Apple iPhone No. 1 in China smartphone market share – January 27, 2015
MacDailyNews presents live notes from Apple’s Q414 Conference Call – January 27, 2015


    1. They’ll probably try to compare Apple to Microsoft in 2000 or so. Apple with a P/E of 16 against Microsoft having a P/E of around 45 when it reached it’s market cap record. They’ll say that because Microsoft collapsed, therefore so will Apple.

      I just knew Apple’s P/E would get compressed after earnings. It always happens that way for Apple. The market simply doesn’t allow Apple’s P/E to expand to any degree.

  1. I new it would happen. I predicted this before the numbers for last quarter were released. Someone would find something negative to say. Since Apple has had a record breaking quarter, it’s obvious that they will go downhill from here. Next, the “analysts” will be advising everyone to sell their Apple stock, and get out while they can still turn a profit. Apple is doomed!

    1. Howie – you are right about the negative article however I believe you should be referring to the FUD article which Forbes produced. To me, this particular article wasn’t that “mean spirited” but asked an interesting question. I especially liked the warning in this article:

      “When they start doing well, everyone starts to expect miracles,” warns Mr Dawson.

      Full disclosure – after reading MDN’s summary of the Forbes FUD folly, I couldn’t bring myself to give the article a hit.

  2. There will be plenty of headlines by the jackass pundits saying NOW is the perfect time to sell off all of your Apple stock. They’ll claim this quarter can’t ever be topped and Apple can only go down from here. They will say this is as good as it will ever get for Apple and how Tim Cook and Apple management has run out of ideas. Those freaking know-it-all BS artists make me want to puke.

    Isn’t there some Wall Street rule or theory that says the more financially successful a company becomes the greater the chance of it failing within a short period of time.

    I’d like to know how Amazon, Microsoft and Google are seen as better investments for institutional fund ownership than Apple. What do they base their judgment on? It can’t be fundamentals. Apple beats all those companies by a long way in almost every metric there is. If all fund managers use is potential future growth then that’s just plain stupidity. There is no guarantee of any company’s future growth. It’s far better to have the cash in hand today than hope it comes tomorrow.

  3. “How do you follow the most profitable quarter in corporate history?” Tim Bradshaw and Charles Clover report for The Financial Times. “That is the question now hanging over Apple.”

    Apple doesn’t know, because trying to have the most profitable Quarter is not what drives Apple. It’s not the goal. Unless things have changed, Apple does not dictate its direction buy trying to have the most profitable quarter ever or having the largest marketshare. SJ said that himself at one point. Can you ANALyst please remember that?

  4. Why on Earth does Apple need to beat itself. Can’t they do just the same or back track a little. It’s like calling Carl Lewis a looser because he can’t set a new record. Apple is a top performer and they get to have good times and bad times. I will never judge them down because of it. We are all humans and I would hate to have to live by the standards people place on Apple. It would drive me crazy.

  5. Apple just keeps on doing what it knows how to do –– create fantastic computers, mobile devices, and services. That said, Apple can’t release amazing updated products like the iPhone 6/6+ every quarter, so naturally Q2 will not be anywhere near Q1. But I think it will be a significant increase from Q2 14.

    Watch will hit in Q3, which will be interesting to see. Basically that’s all new revenue for Apple, so Q3 15 should beat Q3 14 handily.

    But Apple isn’t about trying to beat itself, it’s about trying to release new products that beat it’s own offerings and everyone else’s stuff. And so long as Apple continues to do that, it will continue to kick ass.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.