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Apple (AAPL) : Worth 620 Billion times more than your worthless hide

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Apple wows with record iPhone and iPad sales, largest revenues
The company 'knocked it out of the park,' one analyst said

By Gregg Keizer
July 20, 2011 06:00 AM ET3 Comments

Computerworld - Apple has reported a record number of iPhones and iPad sales in the second quarter of 2011, powering revenues of $28.6 billion, also a record.

Brian White, an analyst with Ticonderoga Securities, simply used the word "wow" in the title of a note to his clients.

"Apple deliver[ed] nothing short of a blowout performance," White said in that note on Tuesday.

Apple's revenues were the fourth consecutive quarter over the $20 billion mark, and represented an 82% increase over the same period last year.

The $28.6 billion in revenue was significantly higher than Wall Street's average projection of $25 billion, and beat the company's conservative estimate three months ago of just $23 billion by 24%.

Profits were $7.31 billion, yet another record for a quarter, up 125% from the same quarter of 2010.
ICON NOTE: So Revenues up 82% and profits up 125%. They're actually mixing UP in a down economy.

"They knocked it out of the park," Brian Marshall, an analyst with Gleacher & Co., told Computerworld after Apple's earnings call on Tuesday. "They just crushed it."

Marshall, other analysts and Apple executives all pointed to iPhone and iPad sales as the driving forces for the record quarter.

"The quarter was driven by dramatic growth in iPhone and iPad sales," Peter Oppenheimer, Apple's chief financial officer, said during the conference call.

Apple sold 20.3 million iPhones, up 142% over the same period last year and a 9% increase over the first quarter of 2011, which was the previous record. On a revenue basis, the iPhone's contribution was 46.6% of total revenues, more than two-and-a-half times that of the Mac or over twice that of the iPad.

What impressed Ezra Gottheil, an analyst with Technology Business Research, wasn't simply the strong iPhone sales, but that Apple was able to maintain its high margin on the smartphone and sell more than 20 million during the quarter even though it didn't release a new model last month, as it has done in three out of the last four years.

"The ASP [average sales price] of the iPhone hasn't moved noticeably at all, which surprised me," Gottheil said. "They keep building and building them, but the ASP doesn't move."

Apple's decision to push back the launch of the next iPhone to this fall -- most experts have pegged September as the most likely month -- didn't hurt sales of the current model, Gottheil also noted.

Meanwhile, Apple sold 9.2 million iPads, nearly triple the number it sold in the same quarter last year and almost double the 4.7 million it sold in the first three months of 2011.

Apple launched the iPad 2 in mid-March, just weeks before the start of the second quarter, and only recently has been able to meet demand, and then only in some markets.

 

 

 

Unit sales (in millions)Q3 2011	Yr-over-yr increaseiPad	9.25	183%iPhone	20.34	142%iPod	7.54	-20%Macs	3.95	14%

Source: Apple
"We were still selling every unit we could make [during the quarter]," said Tim Cook, Apple's chief operating officer. Cook runs the company in the absence of CEO Steve Jobs, who remains on medical leave. "But in the early weeks of July, we were able to increase the supply further, and some SKUs in some countries are now in balance."

At one point in the call, Cook called iPad sales a "frenzy."

Apple's U.S. online store currently shows a one-to-three business day delay between ordering an iPad 2 and the tablet being shipped. In April, when Apple last held an earnings call, the delay was between two and three weeks.


The iPhone-iPad combination clearly was the reason Apple seems to be able to make money as fast as it can churn out hardware, Gottheil said.

"They absolutely have a tiger by the tail," Gottheil said. "People love the products, they love the infrastructure that supports them. Everything is working for them, and they're in two of the fastest-growing markets around."

iPhone and iPad sales accounted for more than two-thirds of Apple's revenues for the quarter.

Most of the remainder was generated by the Mac.

Apple sold 3.95 million Mac computers, a record for the quarter that ends in June, said Oppenheimer. Mac sales worldwide were up 14% year-over-year, and up 5% from the previous quarter, with the strongest unit sales growth in Asia/Pacific, where Apple's numbers were up 57% from the same period in 2010.

Last week, Gartner estimated that global computer sales grew by just 2.3% last quarter, while rival research firm IDC pegged the gain slightly higher at 2.6%.

Apple executives cited the difference between Mac and industry sales increases several times during Tuesday's conference call. "To grow at 14% when the market is growing at 2.6% is certainly something to be proud of," Cook argued.

Oppenheimer credited strong sales of the MacBook Pro and MacBook Air for the boost to the Mac numbers. The former was last refreshed in February, while the latter will reportedly sport new models soon, perhaps as early as Wednesday.

Apple sold 2.8 million notebooks, an increase of 13% over than the same quarter of 2010, and sold 1.2 million desktops, up 15% from the year before and 14% from the previous quarter.

The iMac desktop line was refreshed in early May.

Analysts on Tuesday, however, questioned Apple's executives about what appeared to be a slowdown in Mac sales growth.

Cook answered by ticking off a trio of causes, including iPad cannibalization, delayed purchases because of the impending release of Lion and a strong comparative quarter in 2010. "It's clear that some customers are choosing to purchase an iPad [rather] than a Mac," Cook said, Apple's strongest acknowledgment yet that its iconic tablet has shifted some buyers away from the more expensive Mac notebooks.

Analysts were split on how they weighed Cook's three reasons for Mac sales growing just 14% when a year ago the numbers were up 33%.

"It's all cannibalization," Marshall said.

Gottheil disagreed. "I think that waiting for Lion is the most valid," he said. "Lion has generated more interest than other OSes from Apple, especially for those more-sophisticated buyers."

Oppenheimer confirmed that Apple will launch Lion on Wednesday. The $29.99 upgrade will be available only via download from the Mac App Store.

Edited by [icon]

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They have done a great job getting lite-computers (the iPad, specifically. But also the VZW iPhone) in to the hands of the masses at a reasonable price point.

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Was the iPhone4 even out yet in last year's numbers?

If not, the comparison to this year (adding the VZW iPhone) to last year's sales of the 3GS don't seem very relevant.

Still...that company is doing a darn good job and piling up the $$$.

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Don't you fruitboys already have a thread to circlejerk over things like this? :confused:

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Don't you fruitboys already have a thread to circlejerk over things like this? :confused:

Why'd you click on the thread? Was the title misleading? :confused:From a business perspective, what they've done is remarkable considering the economy. As an owner of AAPL stock, this interests me. I'm pretty sure I'm not the only one. :shrug: Edited by [icon]

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Don't you fruitboys already have a thread to circlejerk over things like this? :confused:

Why'd you click on the thread? Was the title misleading? :confused:From a business perspective, what they've done is remarkable considering the economy. As an owner of AAPL stock, this interests me. I'm pretty sure I'm not the only one. :shrug:
Im certainly no fan of the "fanboy" attitude of some.But this is certainly newsworthy and worth posting.

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Don't you fruitboys already have a thread to circlejerk over things like this? :confused:

Why'd you click on the thread?
so he could use clever words like fruitboys and circlejerk.

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Don't you fruitboys already have a thread to circlejerk over things like this? :confused:

Why'd you click on the thread?
so he could use clever words like fruitboys and circlejerk.
all this and the best ergonomic keyboard for the mac is the microsoft 4000.

how mac doesnt make ergonomic keyboards is baffling to me.

as a family who has 2 ipads, an iphone, and an imac, i do not think i would buy another mac computer as much as i love my ipad. they will also need to figure out the flash issue on the ipads fairly soon.

ibelieve the numbers though...we had a flip video and were shocked that it went under...until my wife got an iphone that did it better with everything else it had to offer.

but seriously. ergonomic keyboard. wtf.

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all this and the best ergonomic keyboard for the mac is the microsoft 4000.how mac doesnt make ergonomic keyboards is baffling to me.as a family who has 2 ipads, an iphone, and an imac, i do not think i would buy another mac computer as much as i love my ipad. they will also need to figure out the flash issue on the ipads fairly soon.ibelieve the numbers though...we had a flip video and were shocked that it went under...until my wife got an iphone that did it better with everything else it had to offer.but seriously. ergonomic keyboard. wtf.

skyfire browser for flash. I hate ergo keyboards but I understand your frustration if you like em.

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all this and the best ergonomic keyboard for the mac is the microsoft 4000.how mac doesnt make ergonomic keyboards is baffling to me.as a family who has 2 ipads, an iphone, and an imac, i do not think i would buy another mac computer as much as i love my ipad. they will also need to figure out the flash issue on the ipads fairly soon.ibelieve the numbers though...we had a flip video and were shocked that it went under...until my wife got an iphone that did it better with everything else it had to offer.but seriously. ergonomic keyboard. wtf.

skyfire browser for flash. I hate ergo keyboards but I understand your frustration if you like em.
oh thanks for the tip regarding flash...i will check that out.

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Don't you fruitboys already have a thread to circlejerk over things like this? :confused:

Why'd you click on the thread?
so he could use clever words like fruitboys and circlejerk.
Pretty much.

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The iPhone was nothing short of genius

I still don't get the the value that iPad delivers vs. a laptop, but they are cool looking, easy to use and trendy so Mac deserve credit for that

I personally wouldn't buy apple stock at this point as I believe they'll see increasing competition in both spaces, though I must admit I just forked over good coin for the latest iPod over other, cheaper competitors simply because of familiarity with the product and brand.

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I still don't get the the value that iPad delivers vs. a laptop, but they are cool looking, easy to use and trendy so Mac deserve credit for that

Portability, battery life, browsing capabilities...simple and effective.I don't yet have one...have 3 friends (2 iPads 1 Xoom)...all 3 say they rarely get on their computers or laptops anymore. Only reason they do is if there is something that requires a lot of typing.

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I haven't used any of their products since the Apple II computer when I was in grade school, nor do I plan to anytime soon but they have done an impressive job with their business.

Can't help but feel like the company will take a big hit when Steve Jobs passes away though... and unfortunately i'd put him pretty high up in my death pool given his health.

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I still don't get the the value that iPad delivers vs. a laptop, but they are cool looking, easy to use and trendy so Mac deserve credit for that

Portability, battery life, browsing capabilities...simple and effective.I don't yet have one...have 3 friends (2 iPads 1 Xoom)...all 3 say they rarely get on their computers or laptops anymore. Only reason they do is if there is something that requires a lot of typing.
:goodposting: Our iPad gets a LOT of use at the house. It's just a simple means to quickly access information. The "Instant on" aspect is a huge boost... although most of Apple's laptops now wake instantly and boot in 10-15 seconds so it's not as much of a gap as before.

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Anyone invested in apple scared that almost half of their profits is tied to the iPhone. I know, I know. It's inconceivable that the iPhone will ever not be the most popular phone, but in technology things can change quickly especially with Android as a legitimate contender and a bunch of big manufacturers left to battle.

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Has anyone checked in on goonsquad lately? 18 posts in and no sign of him?

Something must be terribly wrong......

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I'm not scared of half their profits coming from the iPhone; I'm scared that 90% of their profits come from 'cool' and design and the cult of Steve Jobs and other things that aren't tied to your base business practices. It's different from being invested in Exxon, that's for sure.

I'm loving that $90 entry point on the stock more with every passing day...

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Anyone invested in apple scared that almost half of their profits is tied to the iPhone. I know, I know. It's inconceivable that the iPhone will ever not be the most popular phone, but in technology things can change quickly especially with Android as a legitimate contender and a bunch of big manufacturers left to battle.

That's my problem. I've been scared for awhile now, and losing money b/c of it. Riding the Apple wave at this point is the play, but it's too late for idiots like me who looked too far into the future instead of investing short term knowing that Apple would be strong at least for the iPad's initial couple of years. :doh:

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Was the iPhone4 even out yet in last year's numbers?If not, the comparison to this year (adding the VZW iPhone) to last year's sales of the 3GS don't seem very relevant.Still...that company is doing a darn good job and piling up the $$$.

The iPhone 4 launched June 24, 2010. It was sold for only three days during their Q3 2010 and sold 1.7 million units during those three days. Looking at the Q3 2011 numbers, the amazing part is that they sold 20.34 million iPhones for the quarter even though the iPhone 4 is now one-year old technology. That is a massive win for Apple and shows that the average consumer really doesn't care about having the latest/greatest technology in their phones as long as the user experience is remarkable.

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Has anyone checked in on goonsquad lately? 18 posts in and no sign of him?

Something must be terribly wrong......

:bye:

Had to actually work at work this morning. Really puts a crimp on my FFA time. :angry:

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Has anyone checked in on goonsquad lately? 18 posts in and no sign of him?

Something must be terribly wrong......

:bye:

Had to actually work at work this morning. Really puts a crimp on my FFA time. :angry:

whew

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Don't you fruitboys already have a thread to circlejerk over things like this? :confused:

Why'd you click on the thread?
so he could use clever words like fruitboys and circlejerk.
all this and the best ergonomic keyboard for the mac is the microsoft 4000.

how mac doesnt make ergonomic keyboards is baffling to me.

as a family who has 2 ipads, an iphone, and an imac, i do not think i would buy another mac computer as much as i love my ipad. they will also need to figure out the flash issue on the ipads fairly soon.

ibelieve the numbers though...we had a flip video and were shocked that it went under...until my wife got an iphone that did it better with everything else it had to offer.

but seriously. ergonomic keyboard. wtf.

Honestly, it's ALL on Adobe to figure out the Flash issue. 230MM+ iOS devices with no Flash and counting. Don't think Steve is really worried at this point. :shrug:

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Has anyone checked in on goonsquad lately? 18 posts in and no sign of him?

Something must be terribly wrong......

:bye:

Had to actually work at work this morning. Really puts a crimp on my FFA time. :angry:

whew

:lmao::thumbup:

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all this and the best ergonomic keyboard for the mac is the microsoft 4000.

how mac doesnt make ergonomic keyboards is baffling to me.

as a family who has 2 ipads, an iphone, and an imac, i do not think i would buy another mac computer as much as i love my ipad. they will also need to figure out the flash issue on the ipads fairly soon.

ibelieve the numbers though...we had a flip video and were shocked that it went under...until my wife got an iphone that did it better with everything else it had to offer.

but seriously. ergonomic keyboard. wtf.

skyfire browser for flash.

I hate ergo keyboards but I understand your frustration if you like em.

oh thanks for the tip regarding flash...i will check that out.
FYI- Skyfire doesn't actually support Flash. It's a workaround where the browser will send the Flash object back to the Skyfire server, convert it to another format and then stream it back to the device. It works in a pinch, but is rather slow and buggy. Only works with Flash video, IIRC.

There is another app named iSwifter that works much better with Flash apps. It is iPad-only, though. Big drawback is most Flash apps (games, sites) don't support touch so most don't run well.

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I haven't used any of their products since the Apple II computer when I was in grade school, nor do I plan to anytime soon but they have done an impressive job with their business.

Can't help but feel like the company will take a big hit when Steve Jobs passes away though... and unfortunately i'd put him pretty high up in my death pool given his health.

Are you referring to the company itself and their products, or specifically AAPL? I think worries over Steve have been already accounted for in the value of the stock over the past year.

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I haven't used any of their products since the Apple II computer when I was in grade school, nor do I plan to anytime soon but they have done an impressive job with their business.

Can't help but feel like the company will take a big hit when Steve Jobs passes away though... and unfortunately i'd put him pretty high up in my death pool given his health.

Are you referring to the company itself and their products, or specifically AAPL? I think worries over Steve have been already accounted for in the value of the stock over the past year.
I think that the company itself can overcome Steve's death. I don't think he was the ONLY vision of the company.

Once Steve goes into a terminal phase expect AAPL to drop though.

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I haven't used any of their products since the Apple II computer when I was in grade school, nor do I plan to anytime soon but they have done an impressive job with their business.

Can't help but feel like the company will take a big hit when Steve Jobs passes away though... and unfortunately i'd put him pretty high up in my death pool given his health.

Are you referring to the company itself and their products, or specifically AAPL? I think worries over Steve have been already accounted for in the value of the stock over the past year.
I think that the company itself can overcome Steve's death. I don't think he was the ONLY vision of the company.

Once Steve goes into a terminal phase expect AAPL to drop though.

I expect a short-term fall on that news but think the stock has been held much lower than it should be due to investor fears over his health so I don't anticipate a massive plummet.

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THANKS GOONSQUAD!

:lmao:

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AAPL still pretty much owning everyone else. Sort of amazing.

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Are there any AAPL owners here. If so, when did you first purchase shares?

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And the one fun fact I don't see anyone discussing here: Apple is now up to $76.2 BILLION in cash and equivalents. :eek:

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How much of those sales are mac freaks buying each new version of the iPad, iPod, iPhone, etc that comes out every other month?

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How much of those sales are mac freaks buying each new version of the iPad, iPod, iPhone, etc that comes out every other month?

Nailed it! :thumbup:

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How much of those sales are mac freaks buying each new version of the iPad, iPod, iPhone, etc that comes out every other month?

Nailed it! :thumbup:
Money is money.

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How much of those sales are mac freaks buying each new version of the iPad, iPod, iPhone, etc that comes out every other month?

Nailed it! :thumbup:
Money is money.
I'm not knocking it... they have an extremely loyal base which buys everything they produce and thinks it is the best thing ever before they even see it. I say that all with extreme jealousy that I do not own the stock. (will not buy now because when Steve Jobs bites it.... that stock is going to plummet faster than a lead bowling ball thrown out of an airplane)

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Can't say their sales are so strong just because the fanboy geeks buy every new version. They sold 20+ Million iPhones in the quarter, even though it had been out for a year. The fanboys already had theirs. Now, everyone is buying them and not just the "loyal base".

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Can't say their sales are so strong just because the fanboy geeks buy every new version. They sold 20+ Million iPhones in the quarter, even though it had been out for a year. The fanboys already had theirs. Now, everyone is buying them and not just the "loyal base".

I have seen a shift among people I know from iPhone to other smart phones. At first, everyone wanted an iPhone but I have heard more and more friends get rid of theirs to get an android or whatever else. Sure, the sales are not just from their ultra insane loyal fans but competition for their iPhone and iPad products is heating up. The best thing that Apple has going for them is the loyal fanbase... not just for their multiple repeat buying of the products but for their impassioned proselytizing for those products to the rest of the world. If I go on Facebook and posted "I am thinking of getting a new smart phone- what should I get?" I know exactly who will jump on and preach the gospel of Jobs. Other than one exception of a tech guy who is anti-apple, I am not sure if anyone would really passionately push anything else- what I would expect to get is a whole lot of 'I have this... it is nice.' vs the apple freaks 'you have to get an iPhone, it is so much better than....'

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HAHA Apple customers are stupid and buy bad, overpriced products only because they've been fooled. HAHAHHAHAHA

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