apple news/media reports
07/25/2007, 4:35pm, EDT
Wednesday, July 25th
Apple: $818m in profit, record 1.76m Macs
Apple posted revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share, compared with revenue of $4.37 billion and net quarterly profit of $472 million ($.54 per diluted share) in the year-ago quarter. The numbers were well ahead of street consensus estimates of $5.28 billion and $0.72. The company's gross margin was nearly 37 percent, up from 30.3 percent in the year-ago quarter, while international sales accounted for 40 percent of the quarter's revenue. Apple said it shipped 1,764,000 Macs, representing 33 percent growth over the year-ago quarter and exceeding the previous company record for quarterly Mac shipments by over 150,000. Apple also sold 9,815,000 iPods during the quarter, representing 21 percent growth over the year-ago quarter.
"We're thrilled to report the highest June quarter revenue and profit in Apple's history, along with the highest quarterly Mac sales ever," said Steve Jobs, Apple's CEO. "iPhone is off to a great start -- we hope to sell our one- millionth iPhone by the end of its first full quarter of sales -- and our new product pipeline is very strong."
"We are very pleased to report strong financial results including cash flow from operations exceeding $1.2 billion for the quarter," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the fourth fiscal quarter of 2007, we expect revenue of about $5.7 billion and earnings per diluted share of about $.65."
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http://www.reuters.com/article/marketsNews/idUKWEN969920070725?rpc=44
I can't tell you how unbelievable that is. What it actually means is that their products are way overpriced... but also says their marketing is so brilliant, that they get folks to keep paying the price.
Think about this... they could sell the mid range tower for 1800 bucks, a 20" iMac for 900, a 30G Pod for 150, and STILL makes large profits.
First of all, Apple is not a charity. Do you expect them to give their products away at cost? Second, Apple does their own R&D, and that costs money. A lot of money. How many man-hours do you think it took to create the iPhone? I believe Jobs said that they had been working on it for three years. Those people don't work for free either.
I'm guessing if they sold their products at the prices you mentioned, it wouldn't quite be enough to cover all their expenses. Yes, it's a lot of profit, but it also costs a lot of money do things the way they do it.
Could someone PLEASE explain this to me! Now I know why I pretty much stay away from stocks in where I keep my meager assets.
Apple has great products and they sell at competitive prices with comparable quality goods. By some numbers, its cheaper to buy and own that those comparable quality goods. But that's never good enough, is it?
And R&D isn't an easy thing to account for with profit margins. So that 37% isn't as obscene as it may seem.
That said, 37%!!! wow!