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Apple Plans to Grow to $10 Billion
mattmcal writes "Fred Anderson, CFO of Apple, this week outlined Apple's strategy for returning to its former self as a $10 billion company. He cited portability, digital lifestyle, and music as the three pimary drivers of this new strategy. Anderson announced last month that he plans to retire June 1 of this year."
$5 billion of that will be from iPod replacement batteries...
[obDisclaimer: I own a 1stG iPod and a 2ndG iPod - batteries still as good as new. But the headphones......
And of course, they would get to that $10 billion sooner if they would release a G5 laptop.
I can personally guarantee them to get $3k closer when they do...]
Fred Anderson is the CFO, NOT CTO...
According to quote.yahoo.com, the current market cap for AAPL is 8.87B, so they're approaching the 9B mark already. I think Apple is well on track with the high profit margins and popularity of the iPod, and all the great things they have been doing with both Mac hardware and MacOS X the last couple of years.
The excitement that has been surrounding Apple the last couple of years reminds me of the Macintosh during the System 7 or PowerPC transitions.
Also, it should be noted that Fred Anderson is the C*F*O of Apple, not the CTO
Any idea of what Apple's current earnings are right now?
l ts .html
...
http://www.apple.com/pr/library/2004/jan/14resu
Apple Reports First Quarter Results
Revenue Increases 36 Percent Year-Over-Year
CUPERTINO, California--January 14, 2004--Apple(R) today announced financial results for its fiscal 2004 first quarter ended December 27, 2003. For the quarter, the Company posted a net profit of $63 million, or $.17 per diluted share. These results compare to a net loss of $8 million, or $.02 per diluted share, in the year-ago quarter. Revenue for the quarter reached a four-year high of $2.006 billion, up 36 percent from the year-ago quarter. Gross margin was 26.7 percent, down from 27.6 percent in the year-ago quarter. International sales accounted for 44 percent of the quarter's revenue.
It's been a very interesting turnaround in the geek/nerd market, to the extent that even CmdrTaco has a MacOS X system. It's too bad this market doesn't seem to be a significant percentage of the whole.
However, I was just managing a virus outbreak, and finally getting the Symantec Centralized Anti-Virus solution to more or less work in my company, and I can say the value of the time it took to do this would have easily paid the price difference between the PCs we have and the eMacs we could have bought instead. Add outside consultant time and Windows TCO compared to the Mac gets even more absurd.
Most of our employees use a web-based CRM system I developed for the company that's completely platform-independent, so theoretically there should be no problem at all switching.
Unfortunately, we have a phone system that forces a Windows lock-in for a variety of reasons, but if it didn't, I would think a switch to Mac for most people wouldn't be that difficult a sell. "Look, you can still get Office, and you'll have 1% of the trouble with viruses and worms. It's a no-brainer!"
If mid-sized companies like ours could be a bit more open-minded, and if they could avoid buying a phone system like we did (it was a mistake, for a lot of other good reasons), I think more companies would find major advantages in switching.
D
Earnings are pretty small, there aren't too many companies that earn more than 10 billion/year. He was likely refering to revenues, (hit about $6.2 last fiscal year, $6.7 last calendar year).
Degaussing scares the bad magnetism out of the monitor and fills it with good karma.
This guy has consistently beat the crap out of Apple management over waste. Order fulfillment has never sunk to (pre-Jobs) bad levels. Their products are competitively priced, and they sure are cool. Innovation abounds. None of this would be possible if Apple were still hemorrhaging money.
Good job, Fred! Good luck with retirement.
There exists no way of exchanging information without making judgments. --Bene Gesserit Axiom
In practice, users never need to treat it as "on" or "off", which - if it wasn't for the poor design of most units that are "always on" in some way - really ought to be the way most electronic devices work. It's more intuitive to have the thing just doing what you ask it than to have to examine what mode it's on and react accordingly.
You are not alone. This is not normal. None of this is normal.
Technically, all the current iBooks can drive an external display at a resolution above 1024 x 768. Apple just turns it off in software (the open firmware). For information on how to easily (without risk of losing warranty) turning this back on, look here:
Rute Moeller's spanning hack for the iBook
And yes, I fully agree that we shouldn't have to resort to this kind of solution, but it is a solution nonetheless, and one that has worked very well for me for the past two years on my 600 Mhz iBook. In fact, I wouldn't have bought my iBook had I not known about this.
Cheers.
(Sorry posted in html rather than plain text) here it is again... properly formatted
,is iMusic."
"Apple's only hope for such great growth, really
Thats a reaching statement considering the fact that they dont yet make such a product.
"That is the only thing they have that is truly competitive."
Apple makes iMusic? Never heard of it.
"The iPod bubble will burst as soon as someone comes out with something similar"
There are already plenty of knock-offs.... with similar features yet non have knocked apple off its high point.
"but with a battery hatch"
This would be an important feature if the iPod's battery was non replaceable (it is) and if the iPod battery was unreliable. (It's not)
and missing controls (like on/off switch)."
It doesn't need an on off switch. It turns off by itself.
"Likely it will cost half as much."
So, you're suggesting that this hypotheticvall competitor will ADD more and yet cost half that which Apple charges. HAH!
"Apple's desktop machine bubble already burst:"
Could have foold me. Their desktop business is doing very well.
"the Mac's appeal only to a tiny niche market"
Apple computer users make up between 10-12% of the computing market. That's hardly a tiny market by any stretch of the imagination.
You must be thinking in terms of "market share" rather than "install base". Apple's "market share" is small not because people aren't buying their computers or even because people are bying them less frequently than before. (Quite the contrary). Rather, PC users are replacing their existing machines twice as freequently. (Less longevity). Because "market share" is solely determined by quarterly or annual sales figures the "market share" number will be low while the user base continues to grow.
"which will not grow unless Apple does such things as drop the price"
I don't see how Apple could drop the price much more. They're already priced the same if not lower then PCs of comperable specs.
"and mass-market the thing."
They do this already.
A better strategy might be to simply educate the masses about business in general. If your post is an indicator or the average PC user... i'd say its an absolute necessity.
The margins are not as much as the average outraged x86 geek makes them out to be. From what I've heard, they make as much on an iPod as on an iMac. Don't forget they have to plow a lot into R&D, whereas Dell just has to order the latest chipset and case from Taiwan and load whatever MS is offering at the time and sell them together.
My hope is the next revision or two of the G5 desktop takes off like crazy, as their power and speeds will more closely match the x86 market. Motorola's inability to ramp up the G4 series fast enough was a serious blow to sales, I'm sure.
It doesn't mean much now, it's built for the future.
My screen failed when I used it to hammer stakes for my tent on a camping trip.
Imagine how dissapointed I was when I couldn't use the iPod for the rest of the trip!
Now I hear you can't easily replace the battery when it runs out of charge?
Amazing people put up with this product!
(Please note the sarcasm.)
Yeah, and you guys panned the ipod too: http://apple.slashdot.org/article.pl?sid=01/10/23
> According to quote.yahoo.com, the current market cap for AAPL is 8.87B, so they're approaching the 9B mark already.
Some random market caps for your amusement, all in 10^9 US$
- General Electric 329
- Microsoft: 284
- Exxon-Mobile: 277
- Wal-Mart: 261
- Intel: 189
- IBM: 166
- Cisco: 156
- Coca-Cola: 120
- Dell: 84
- HP: 70
- Time-Warner: 77
- Disney: 55
- Ebay: 44
- Yahoo: 29
- GM: 27
- Ford: 26
- Amazon: 17
- Sun: 17
- Apple: 8.9
- RedHat: 3.2
- McDonalds: 2.2
- Gateway: 1.9
- SCO: 0.17
Just be glad Apple is offering a reduced-price repair price for those iPods where one of the non-servicable parts can be replaced out of warranty. Because that's what the battery is.
Given the choice, I'd rather have a well designed machine with a battery designed to last years, than a poorly designed machine with a replacable battery that lasts months. Obviously, YMMV.
You are not alone. This is not normal. None of this is normal.
"The company lacks a grasp of certain basics of friendly user-interfaces for gadgets."
I would say the exact opposite. You turn the iPod on by touching any of the four buttons on the front (or the scroll wheen button), and turn it off in the same way by holding play.
The iPod has six buttons on its front surface (the trackwheel and select are two buttons.
None of these buttons has any moving parts - it's all touch sensitive. No mechanical parts to break down during use. The only mechanical switch on the whole unit is the hold switch on the top by the headphone socket.
Apple's buttons are big and easy to press. I don't have big hands by any stretch of the imagination, but I hate hate hate the current trend of manufactuers to put smaller smaller fiddly buttons on their products. You need a matchstick to press the keys on some cellphones nowadays.
I fear for the day when I dial a number on my phone and I press all the keys together and the Simpsons quote will come to mind:
"I'm sorry, your fingers are too fat to dial this number. If you would like to order a complimentary dialing wand please mash the keypad angrily now"
Or something like that.
Apple's large buttons are a joy to use, and the interface (from the way the buttons work, to the way the menus on screen work) is second to none.
Lacking a grasp of friendly user interfaces? Bollocks! It's beautifully designed from a UI perspective.
Really, I've dealt with Apple, Compaq, HP, and IBM products in the past two years and Apple's 'problem' rate is as low or lower than the next guy's, the problem is that when an Apple laptop has a minor issue (like 'white spots') the whole community bitches about it.
When an IBM laptop exhibits a problem there's no 'community' to coagulate into a problem in the first place.
The G5 is a stunningly quiet machine compared to the Dell P4 machine's we've got at my current site, but Mac users still bitch about it being so much louder than their fanless iMac when they hover around the water cooler. The PC users here just shut up and take what they get and don't complain.
"Sometimes, I think Trent just needs a cup of hot chocolate and a blankie." -Tori Amos on Nine Inch Nails