1. the_sleuth's Avatar
    BARRON'S
    Tuesday, July 19, 2011 ET

    Apple FYQ3 Blows Away Estimates; Rev $28.6B, EPS $7.79


    By Tiernan Ray

    Apple (AAPL) this afternoon reported fiscal Q3 revenue and earnings per share well ahead of expectations.

    Apple revenue in the June-ended quarter rose to $28.6 billion, yielding earnings per share of 7.79 per share.

    Analysts on average were expecting $25 billion in revenue and $5.85 in EPS.

    CEO Steve Jobs remarked, Were thrilled to deliver our best quarter ever, with revenue up 82 percent and profits up 125 percent. Right now, were very focused and excited about bringing iOS 5 and iCloud to our users this fall.

    For fiscal Q4, Apple sees revenue of $25 billion and EPS of $5.50, below the consensus $27.7 billion annd $6.42.

    The numbers in Q3 for Apples newer devices of the iOS platform absolutely crushed estimates, while its computers and music players fell short.

    Apple sold 20.3 million iPhone units in the quarter, it said, and 9.52 million iPads.

    The company sold 3.95 million Macs and 7.54 million iPods.

    By contrast, analysts had been modeling perhaps 16 to 18 million iPhone units, with some expecting even lower numbers than that. iPads were generally modeled at around 8 million units. The Street had been looking for 4.2 million Mac units and about 8 million iPods.

    Apple shares are halted, and are expected to resume trading at 4:45 pm, Eastern.
    Last edited by the_sleuth; 07-19-11 at 03:53 PM.
    07-19-11 03:44 PM
  2. Crucial_Xtreme's Avatar
    I'm not surprised. They make great products & have very good marketing strats. 20.34 million iPhones... That's big. 9.25 million iPads. That's big too.
    07-19-11 03:48 PM
  3. johnenglish's Avatar
    Over 50% of their revenue comes from iPhone sales.
    07-19-11 03:56 PM
  4. DX9's Avatar
    stock hit $405 in after hours trading. crazy
    07-19-11 04:01 PM
  5. ADGrant's Avatar
    They sold well over 30 million iOS devices in a single quarter but only 4 million Mac OS devices.
    07-19-11 04:07 PM
  6. andyahs's Avatar
    20.3 milion iPhone's and 9.25 million iPads says it all!

    Apple sold 20.34 million iPhones during the quarter, up strongly from an average analyst estimate poll by Fortune of 16.9 million units and representing a 142 percent increase from the same quarter last year. That's also up from the 18.65 million iPhones Apple sold in its second fiscal quarter earlier this year.
    This was the first full quarter that Apple's iPad 2 was on sale. The company sold 9.25 million iPads during the quarter. Apple's previous quarterly earnings, which tallied sales of 4.69 million iPads, accounted for just two weeks of sales that included the newer model, which went on sale in early March.

    http://news.cnet.com/8301-27076_3-20...led-by-iphone/
    07-19-11 04:12 PM
  7. the_sleuth's Avatar
    Microsoft's best revenue quarter generates about $20 Billion (in Q4). Apple has eclipsed this by a wide margin.
    07-19-11 04:12 PM
  8. Crucial_Xtreme's Avatar
    They sold well over 30 million iOS devices in a single quarter but only 4 million Mac OS devices.
    Mac sales always lag behind iOS devices. I think in part because they're much more expensive. Not everyone has $1500+ to spend on a lappy. I love my MBP and purchased it for specific reasons but I can see someone buying a decent Windows lappy for half the price of a MBP instead of kicking out $1500+. The iOS devices get subsidies which helps sales tremendously.
    07-19-11 04:14 PM
  9. AngusMcTavish's Avatar
    In 1 quarter that the iPad was in short supply! Jesus.


    Sent from my iPad using Tapatalk
    07-19-11 04:19 PM
  10. Economist101's Avatar
    The iOS devices get subsidies which helps sales tremendously.
    The iPhone gets a subsidy. The iPad and iPod Touch do not.
    07-19-11 04:19 PM
  11. Crucial_Xtreme's Avatar
    The iPhone gets a subsidy. The iPad and iPod Touch do not.
    Considering the iPhone sold double than the rest of the iOS devices, I believe my point is valid. Of course iPod & iPod Touch don't get them, but those sales only make up a fraction of their revenue.
    07-19-11 04:23 PM
  12. the_sleuth's Avatar
    The iPhone gets a subsidy. The iPad and iPod Touch do not.
    What subsidy? You are paying for it over 2 or 3 year plan my friend. The above financial results reflect this fact.
    07-19-11 04:26 PM
  13. scorpiodsu's Avatar
    What subsidy? You are paying for it over 2 or 3 year plan my friend. The above financial results reflect this fact.
    If you buy an iPhone at $200 on contract or $600 off contract you'll still have to pay data on it when activated for use on your carrier. So when you buy it subsidized you are paying a lot cheaper over the course of the contract, hence the subsidy.
    07-19-11 04:40 PM
  14. the_sleuth's Avatar
    If you buy an iPhone at $200 on contract or $600 off contract you'll still have to pay data on it when activated for use on your carrier. So when you buy it subsidized you are paying a lot cheaper over the course of the contract, hence the subsidy.
    Carriers pay Apple upfront. The financial wizards at the carriers have embedded the cost of the phone in your monthly plan (this is for every "subsidized" phone).

    The carriers are not the United Way.
    07-19-11 04:49 PM
  15. scorpiodsu's Avatar
    Carriers pay Apple upfront. The financial wizards at the carriers have embedded the cost of the phone in your monthly plan (this is for every "subsidized" phone).

    The carriers are not the United Way.
    Yeah but your original statement is implying that a person is somehow paying more or the same for a phone that they bought on contract than if they didn't when the plan is the same for the iPhone whether you bought on contract or not. And that's why it's a subsidy because you don't have the higher cost of the phone upfront in return for signing the contract AND your plan costs are the same over the duration of the contract. The subsidy is that the overall cost is cheaper than if you didn't buy on contract. Not sure how to be more clear.

    Assuming that call plan is constant:

    Buying on subsidy:

    $200 (iPhone cost)
    $30 x 24 = $720 (data costs for 2 years)

    Total = $920

    Buying off subsidy:

    $600 (iPhone cost)
    $30 x 24 = $720 (data costs for 2 years

    Total = $1320

    So obviously, that's where the subsidy is....... the upfront cost. So to imply that there is no subsidy is not correct because if a person bought off subsidy then the cost is a lot higher because the plans are the same.
    Last edited by scorpiodsu; 07-19-11 at 05:01 PM.
    07-19-11 04:58 PM
  16. the_sleuth's Avatar
    We are both on the same wave length. just need clarification that's all.

    I am not in the States. But your $30 average monthly bill would not work in Canada or Europe.

    If you use an "unlocked" phone in Canada, you pay a surcharge to connect to carrier (some admin fee, if you are with the same carrier and use a sim card then I think this fee does not apply). Also you cannot negotiate really a lower monthly plan as carrier wants you to commit to 2 or 3 year. What tends to happen is the carrier will provide to you the monthly rate with no discount so the savings is not that great.

    People in Canada buy "unlocked" phones so if he or her switched there is not penalty in contrast to signing a contract over a fixed term.

    Europe is very different. NO subsidies for phones but plans are also much cheaper than in Canada or US. It's predominately sim card, people change carriers all of time depending upon the special rates.
    07-19-11 05:21 PM
  17. scorpiodsu's Avatar
    We are both on the same wave length. just need clarification that's all.

    I am not in the States. But your $30 average monthly bill would not work in Canada or Europe.

    If you use an "unlocked" phone in Canada, you pay a surcharge to connect to carrier (some admin fee, if you are with the same carrier and use a sim card then I think this fee does not apply). Also you cannot negotiate really a lower monthly plan as carrier wants you to commit to 2 or 3 year. What tends to happen is the carrier will provide to you the monthly rate with no discount so the savings is not that great.

    People in Canada buy "unlocked" phones so if he or her switched there is not penalty in contrast to signing a contract over a fixed term.

    Europe is very different. NO subsidies for phones but plans are also much cheaper than in Canada or US. It's predominately sim card, people change carriers all of time depending upon the special rates.
    Ok I got you. Well right now in the US, there are no differences in plan prices on VZW or ATT whether you buy an iPhone on contract on not. That's why here the subsidy does help with sales because there is no additional costs. TMO is the only carrier of the major 4 that has different plan prices for buying phones on contract vs non-contract. Only a $10 difference (data is the same). But a difference nonetheless. But they don't carry the iPhone so I was only referring to those that do carry it. So right now there is a real subsidy since VZW and AT&T still charge the same plan prices however you buy the iPhone.
    07-19-11 05:44 PM
  18. waccotobacco's Avatar
    Good thing I bought AAPL back at 359. To those who bought RIMM, how is that faring for you?
    07-19-11 09:43 PM
  19. waccotobacco's Avatar
    Americas net sales 63%
    Europe net sales 71%
    Japan net sales 66%
    Asia-Pacific net sales 247%
    Retail net sales 36%

    That's year over year in actually dollars. Yet, RIM is stating "devices shipped". Completely laughable.
    Last edited by waccotobacco; 07-24-11 at 01:07 AM.
    07-24-11 01:05 AM
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