Apple misses....

[enzo1]

stock market probably isn't going to like this.....

[enzo1]

Apple misses estimates with $9.32 EPS on $35.02 billion revenue
Tuesday, July 24, 2012 ˇ 4:33 pm ˇ 6 Comments


AppleŽ today announced financial results for its fiscal 2012 third quarter ended June 30, 2012. The Company posted quarterly revenue of $35.0 billion and quarterly net profit of $8.8 billion, or $9.32 per diluted share. These results compare to revenue of $28.6 billion and net profit of $7.3 billion, or $7.79 per diluted share, in the year-ago quarter. Gross margin was 42.8 percent compared to 41.7 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.
The Company sold 26.0 million iPhones in the quarter, representing 28 percent unit growth over the year-ago quarter. Apple sold 17.0 million iPads during the quarter, an 84 percent unit increase over the year-ago quarter. The Company sold 4.0 million Macs during the quarter, a two percent unit increase over the year-ago quarter. Apple sold 6.8 million iPods, a 10 percent unit decline from the year-ago quarter.

Apple’s Board of Directors has declared a cash dividend of $2.65 per share of the Company’s common stock. The dividend is payable on August 16, 2012, to stockholders of record as of the close of business on August 13, 2012.

“We’re thrilled with record sales of 17 million iPads in the June quarter,” said Tim Cook, Apple’s CEO, in the press release. “We’ve also just updated the entire MacBook line, will release Mountain Lion tomorrow and will be launching iOS 6 this Fall. We are also really looking forward to the amazing new products we’ve got in the pipeline.”

“We’re continuing to invest in the growth of our business and are pleased to be declaring a dividend of $2.65 per share today,” said Peter Oppenheimer, Apple’s CFO, in the press release. “Looking ahead to the fourth fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $7.65.”

AAPL After-Hours: $566.0, -$34.84, -5.80%…

Analysts’ consensus estimates called for Apple to report Q312 earnings of $10.35 a share on revenue of $37.2 billion, according to Thomson Reuters I/B/E/S.

On April 24, 2012, Apple CFO Peter Oppenheimer provided Q312 guidance of “diluted earnings per share of about $8.68″ on “revenue of about $34 billion.”

[nostatic]

They hit their own target and had 28% unit growth on iPhones over year-ago quarter despite the iPhone5 (or whatever they'll call it) coming out next quarter.

Most (all?) companies would kill for those results. And they are going to sell boatloads of the next iPhone (though I'm actually happily using a Galaxy Nexus at the moment).

[recycled sixtie]

And on reflection the Rim Blackberry/Crackberry was all the rage a couple of years ago and now Rim stock is in the doldrums. Who would have thought?

[motion]

Time to buy more AAPL

[widgeon13]

Down 30 pts in after market trading!

Buying opportunity??

[motion]

Standard pre-new-iphone-launch effect. BUY BUY BUY.

[enzo1]

this looks interesting Patently Apple

[krichard]

I will be loading up after the dump tomorrow!

[enzo1]

starts @ bottom.....

• End of conference call.

• Cook: We’ll never stop Apple product rumors / product speculation. I’m glad there is so much interest in Apple products.
• Cook: In these economic periods, where we separate ourselves is by making the best products in the world as opposed to those who do not innovate

• Cook reiterates: “Our North Star is to manically focus on making the very best products.”
• Cook: New iPad ended quarter just over 4 week line in target 4-6 week inventory. Addition of China may challenge supply/demand balance
• Cook: We have been short with MacBook Pro with Retina displays supplies; look to supply/demand balance in August

• Cook: I love India, but I believe that Apple has some higher potential in the intermediate term in some other countries. We are growing in India, but the multi-layer distribution there really adds to the cost of the products.
• Cook: Adoption rate of iPad in education is something I have never seen in any product in history
• Passbook app a precursor to a digital wallet? Cook: No comment. Won’t speculate on where it might take us

• Cook: We are believers in Apple TV and we continue to invest in it. 4 million units is not a small number.
• Cook: Apple TV sold 1.3 million units in Q312, up over 170% YOY; 4 million units sold in fiscal 2012, so far. Still at a level Apple calls “a hobby.”

• 5:45PM EDT: AAPL After Hours: $570.45, -$30.47 (5.07%)

• Cook: We’ve all seen many different tablets and I have yet to see any of them gain what I would call any level of traction so far; most customers feel they’re not looking for a tablet, they’re looking for an iPad. Over 84 million iPads sold in total by end of quarter. 17 million sold in quarter is up 84% YOY
• The $399 iPad 2 did very well. Particularly key in the education K-12 market where it sold about 1 million units in the quarter
• Cook: Channel inventory figures are only for indirect sales; does not include Apple Store online or Apple Retail Stores.

• Cook: Our North Star for the company is to make the very best product and thats more important and overshadows everything.
• Cook: We’re going to stick to our knitting and make the very best products
• Cook: We see China as an enormous opportunity. We grew iPhone sales over 100% in China.

• Oppy: Did not get the benefit of launching new iPad or new Mac portables in CHina during the quarter
• Oppy: Timing of Mac portable release came very late in the quarter
• Oppy: Economy in Europe not doing well; this negatively affected our results
• Oppy: Give what’s going on around us, we’re happy with our quarter. All product lines exceeded what we had factored into our guidance.

• Cook: Carrier tell me that iPhone has many advantages: Churn rate is much less, customers more likely to have a tablet and use shared data plans, iPhone is most data efficient smartphone on the market.
• Cook: We are manically focused on making the very best products in the world
• Cook: Carriers want to provide their customers with what their customers want to buy
• Cook: I will avoid talking about the “product transition.” Our role is to make the very best smartphone in the world

• Cook: 25th consecutive quarter of Mac growing faster than the PC market
• Cook: It’s clear the PC market is weak. Primary factor for lower Mac growth in Q312 is timing of new Mac portable lineup launch with less than 3 weeks remaining in the quarter

• Cook: Incredible anticipation out there for future products, as you would expect given what we have been able to deliver in the past
• Oppy: We could not be happier with our product pipeline.
• Oppy: “Fall transition” is driving most of the decline that we are forecasting in gross margin

• Cook: Europe did not do well which impacted Apple overall results; Greece, etc. especially poor

• Cook: In comparing fiscal Q2 iPhone sales vs. Q3 there is a fairly large channel inventory difference of about 3 million units

• Oppy: “Very successful” iPad 2 at $399 (did not exist in YOY quarter) will impact the ASP of the iPad line
• Oppy: Weekly iPhone sales continue to be impacted by rumors of next-gen iPhone
• Fiscal Q412 guidance is up 20% YOY. Apple not expecting economies in Europe, Brazil, Canada to improve in fiscal Q412

• Cook: We remain really confident and very excited about opportunities in China, including China-specific features
• Cook: New iPad sales not launched during Q312 – just launched recently
• Cook: Up over 100% YOY in iPhone unit sales in China
• Apple did not see anything they would attribute to the economy in China
• $2.2 billion sequential revenue decline due to iPhone unit sales in China (last quarter iPhone launched in China) and normal seasonality
• Tim Cook: 25% growth in Asia/Pacific; greater China represents about 2/3rds of Asia/Pacific
• Oppy: Apple has amazing new products in the pipeline that they will discuss at a later date

• Apple posted their best quarter ever for U.S. education

• $10 billion share buyback to take place over 3 year period and starts on September 30, 2012

• Cash hoard: $117.2 billion, +$7 billion vs. last quarter, $81 billion of which is offshore

• 372 Apple Retail Stores now open.
• Apple Retail Stores: 83 million visitors
• Apple Retail Stores: $4.1 billion revenue.

• 410 million iOS devices sold total all-time, over 45 million iOS units sold in Q312 quarter alone
• Record Mac sales to education; iPad sold just under 1 million units to education, double that of Mac (500,000 units)
• Apple iPad now sold in 97 countries

• 5:07PM EDT: AAPL After Hours: $570.30, -$30.62 (5.10%)

• 14 million downloads of new iTunes U app
• iTunes Store: Over $1.8 billion revenue

• iPod touch continues to account for 50% of total iPod sales

• Apple will release OS X Mountain Lion tomorrow

• Apple CFO Peter Oppenheimer guidance: “Revenue of about $34 billion and diluted earnings per share of about $7.65″

• Dividend payable on August 16, 2012 to stockholders of record as of the close of business on August 13, 2012
• Apple’s Board of Directors has declared a cash dividend of $2.65 per share

• IDC had estimated a 1% contraction of Mac unit sales. Whoops.

• Mac units sold: 4.0 million (+2% YOY)
• iPod units sold: 6.8 million (-10% YOY)
• iPad units sold: 17.0 million (+84% YOY)
• iPhone units sold: 26.0 million (+28% YOY)

• International sales accounted for 62% of the quarter’s revenue
• Gross margin was 42.8 percent compared to 41.7% in the year-ago quarter

• Apple’s highest Q3 revenue and EPS ever.

• Versus revenue of $28.6 billion and net profit of $7.3 billion, or $7.79 per diluted share, in the year-ago quarter
• Quarterly net profit of $8.8 billion or $9.32 per diluted share
• Quarterly revenue of $35.0 billion
• Apple’s fiscal 2012 third quarter ended June 30, 2012
• 4:45PM EDT: AAPL After Hours: $571.37, -$29.55 (4.92%)

[slakjaw]

Android seems like its starting to gain an edge over iOS. It's almost like people have gotten bored with ios. I guess we will see what happens.

[techweenie]

Time for a few call options on AAPL.

[nostatic]

Originally Posted by slakjaw

Android seems like its starting to gain an edge over iOS. It's almost like people have gotten bored with ios. I guess we will see what happens.

Mobile Developers Prefer iOS Over Android - Personal-tech/smart-phones - Smart Phones - BYTE

[MysticLlama]

Often times though, Android ends up being a one-cycle purchase unless it's to someone that really likes to fool around and mod their phone.

Developing for iPhone and WP7 is much better.

I used to recommend iPhone/WP7/Android and dropped company support for RIM.
Now I recommend iPhone/WP7, support Android kinda, and still no RIM.

The Android problems have ranged from not connecting to the Exchange server that works fine for everyone else - new Galaxy Note, known bug, go get such-and-such 3rd party app to fix....

...to taking down the network - LG something or other, decides to give itself whatever IP it wants, not what the server tells it to, similar to known DHCP bugs documented since 2010, this one is banned from the network now...

...to stalling outgoing e-mail messages (sent from a desktop by the same user!!) due to some weird sync problem.

The others all seem to have plenty of varying issues too. People who like their Andriods are either lucky, have custom roms, or don't try to do any real work.

[slakjaw]

Originally Posted by nostatic

Mobile Developers Prefer iOS Over Android - Personal-tech/smart-phones - Smart Phones - BYTE

And I prefer using iOS but I know a lot of people who seem bored with it. I don't know why. I just wish apple would update the Mac pro already.

[MysticLlama]

In other words after the rant, I may see a little bit of consumer boredom having people try something else temporarily, but Apple is doing a good enough job in real life to not take too many big hits from Android.

[nostatic]

Originally Posted by MysticLlama

The others all seem to have plenty of varying issues too. People who like their Andriods are either lucky, have custom roms, or don't try to do any real work.

My solution was to get a Galaxy Nexus from Google and a T-Mobile monthly contract. No carrier bloatware and the OS gets updated immediately. While I think iOS is still a better integrated experience there are some things I prefer on the Nexus (eg the calendar is better than the iOS calendar imho). I also just got the Nexus 7 for testing with our game and 3D apps. It's not a bad tablet for the price. The display isn't nearly as nice as the iPad retina but it also is half the price and is "good enough" for most things.

The biggest issue I see is Android developers not really following established guidelines (or Google themselves - eg where does the "more" button go, top or bottom?) and now the problem with varying screen sizes and resolutions causing some apps to work great on some devices and not so much on others.

[techweenie]

Android has been strong for the past 18 months, at least. But public perception of that is diluted by all the platforms that run it. Here, Apple benefits from its monoculture.

Looking forward to the next iOS release.