Apple Announces Most Profitable Quarter in History
zacharye writes with an except from an article over at BGR about Apple's quarterly results: "'Disappointing' though it may have been to some, the iPhone 4S propelled what is now confirmed to have been the most profitable quarter any technology company has ever recorded. Apple on Wednesday reported record earnings for the December quarter, revealing a profit of $13.06 billion on revenue that surpassed $46 billion. Among technology companies, Apple's fiscal first quarter represents the most profitable quarter ever recorded. Only one U.S. company has ever posted a more profitable quarter — Exxon managed a profit of $14.8 billion in the third quarter of 2008 — and the driving force behind Apple's record-setting performance was quite clearly the iPhone."
Nokia and RIM should read and weep. This should have been them.
As a WebOS fan, this makes me sad. Why would HP give up on such an incredibly profitable market after only investing $3.3billion http://techcrunch.com/2011/11/21/hps-failed-webos-experiment-cost-them-3-3-billion-but-whats-next/ ? The iOS and Andriod user experiences still have not passed WebOS smoothness, in my opinion, though the notification systems are catching up.
Although HP's management style of WebOS reminded me of: "They say you gotta spend money to make money. I don’t know what went wrong. We spent all our money." - Tom Haverford
I'll have to disagree ...it's tech worthy news. The more money Apple gets, the more money they have to influence the shape of things to come.
It's good to be aware of the shifts in power and the current status quo regardless of whether you are a fanboi or not.
It shows that nerds are wrong and Apple is right.
Seriously, you're confronted with an existence-proof.
Everybody gets what the majority deserves.
And yet Apple couldn't manufacture iPhones in the US because they couldn't afford the extra $49 it would cost to make iPhones here. It might shave a few millions off of those billions. Can't have that happen!
They make very little from the software/media sales. Gross margins on the hardware are huge though: 44.7%. Tim Cook indicated in the conference call that that's probably not a sustainable number (their margins are typically in the high 30s). But the raw numbers of devices they sold grew by stunning amounts. Even Mac volumes rose by more than 25%, and that's in a PC industry that's not doing that well in aggregate.
Say what you want pro or con about their products, but they know how to make stuff that people want to buy.
Case in point: Verizon reported that iPhones accounted for 55% of their smartphone sales last quarter. That's against how many different models of Android phone?
They are building all their products in China. What's so hard to figure about this?
So is everyone else. Everyone else is not enjoying this level of increase in profits quarter after quarter, or the same margins that Apple has.
Only Apple as far as I know has started moving any production (the A5 chip) back into the U.S.
OK, Foxconn will now pay the workers a few Renminbi more
They already do, and yet Apple's sales surge.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
Cause...
I'm a bass player
Meet effect...
it's now considered fortunate to have a shitty McJob
When Exxon posted those profit numbers people were screaming for a windfall profits tax. Where are those people now? Probably listening to their iPod, tuned out to the world.
Learning HOW to think is more important than learning WHAT to think.
This would not only restore manufacturing, but it would also improve our tax base, rather quickly. Finally, it would force nations that we have supposed open markets with that manipulate against us to change their behaviors.
So, for our top 20 nations that we trade with, this would punish the following:
While giving other nations like Canada a pass:
Interestingly, this is legal PER WTO. WTO's position is that when a nation's trade deficit is larger than 10% with another, than you may take action.
The trick here is to convince the neo-cons that are attached to China's pants to let go and back America instead. Right now, far too many neo-cons are the ones blocking efforts at a balanced trade. In addition, without a budget deficit below 500 billion (or so), this probably becomes impossible to do.
I prefer the "u" in honour as it seems to be missing these days.
abusus non tollit usum
: abuse does not take away use, i.e., is not an argument against proper use
That is, fanboyish reactions do not strip the relevance of one of the largest players in a tech industry making more money than ever before, or prevent sane discussion of the fact.
This post contains no rudeness or derision of any kind. All arguments are friendly. Terms and exclusions may apply.
You should learn a few things about investing before making a fool out of yourself. The fact that AAPL shares are above 400$ bares no meaning at all on whether the price is "sky high" or not. Berkshire Hathaway class A shares are over 100,000$ each and their price is not "sky high" either. It's all about the actual valuation metrics of the company relative to the share price and according to them, AAPL was actually pretty fairly priced before the earnings release.
Or are you going to be making even more of a fool out of yourself by sticking to your guns and saying that a PE of 15 for a company with projected 30% revenue growth is "sky high"? Except that it was actually even cheaper then that, because the revenue growth ended up being twice higher.
The Foxconn factory complex in question has a lower suicide rate than the overall suicide rate for China. When you have half a million employees in the same city, some of them are gong to commit suicide. If you have half a million humans in the same city, some of them are going to commit suicide.
Damn you, dnaumov, now I have to open at least 5 Wikipedia tabs so I can later pretend I understand something about investing.
Lessee... "PE".... 41 matches. This is gonna take a while...
And the number of "fanboys" appear to grow exponentially each quarter, judging by the financial results. How exactly do you imagine that Apple manages to keep on getting all these new fans?
WARNING: This question actually requires you to think. Be careful. Do some warm ups first.
Of course some people seem to think that Windows and Android are winning.
It all depends on your definition of winning. One of the analysts covering the mobile industry was being interviewed on CNBC after Apple reported their quarterly results. This analyst claimed that 94% of current iPhone users would buy another iPhone but only 47% of current Android users would by another Android device.
I'll have to disagree ...it's tech worthy news. The more money Apple gets, the more money they have to influence the shape of things to come.
It's good to be aware of the shifts in power and the current status quo regardless of whether you are a fanboi or not.
Speaking of which :
@fmanjoo : "Apple's profits ($13 billion) exceeded Google's entire revenue ($10.6 billion)."
Thought that was pretty mind-blowing since we're all used to thinking of Google as some kind of juggernaut.
If all else fails, immortality can always be assured by spectacular error.
I completely agree. Having used Android, iOS and WebOS I agree that WebOS was a superior platform to both of them. However, WebOS failed on two fronts:
WebOS failed where Apple succeeded because WebOS didn't have the cult following, and WebOS failed where Android succeeded because many hardware manufacturers made Android devices.
Everyone has to admit that the flagship WebOS device, Palm Pre, was a beautifully designed device. It even made the iPhone look like an eye sore, but it was clear from day one that without the support of the fanboys and without the blessing of the hardware manufacturers it was just not going to go anywhere.
None of the other phone or tablet makers have this kind of profit margin, yet their products easily match the iOS products
in quality and ease of use.
1) "match the iOS products in quality and ease of use." We'll have to agree to disagree on that one. Most Android phones I've seen (with some very few exceptions) feel cheap, they feel much cheaper than they are in fact.
2) Android makers get the OS for free, remember Apple does more than just sell the hardware. There's R&D, software development, patents to be bought, etc.
3) Even with a free OS, show me the phones and tablets significantly undercutting iOS devices while providing the same quality. And the "going out of business, please buy our inventory" sales don't count.
If apple cut their prices the "cool factor" would be diminished, and the fanbois would move onto something else. If they aren't over paying top dollar its just obviously not the best thing ever.
To me calling people "fanbois" and looking down on them because they think "the mainstream is so cool but they don't know what's cool, I know what's cool" just makes you another hipster. Just accept there are people who like something different from you, is that so difficult ? I can see why people like Android or Windows Phone, that doesn't make them idiots or "fanbois" just people with other needs.
If all else fails, immortality can always be assured by spectacular error.
If who makes the most money is what decides what is "right," then I guess McDonald's is the best restaurant in America.
That'd be a great point, if customer satisfaction surveys and analysis of support call center numbers didn't suggest the exact opposite of what you've just claimed.
Here's what's funny: the iPad has been competing with similarly priced competitor devices for a while now - devices from Motorla, Samsung, Dell... how is it that those other makers have lower profit margins on their devices (by your own claim), yet Apple could cut the price of the iPad in half and still make a profit?
And the profit levels absolutely do say something about the shape of things to come: the person with the thinnest profit margins is the one who has to start cutting corners on build quality and components to be able to make a profit. The person with the biggest profit margins has some room to reduce their per-unit profit without sacrificing build quality, allowing them to maintain their market share in the face of competitive pressures.
Everyone I know has gone Mac in the last 2-3 years, and most have a story like mine. I was committed hardcore to another platform, though I had more than a few complaints. Still, no expectation of ever switching.
But the iPhone was a quantum leap in consumer technology. I was using a Palm, which was "not a bad smartphone" the month before the first iPhone announcement was made. Then iPhone was released and after 10 minutes using it I knew it was a completely different class of device. Within a few months I had realized that I couldn't keep my hands off one and bought it. Rather than let me down and gradually disappoint me, leading to rationalization and acceptance (the usual model for technology buys of all kinds), it continued to impress weeks and months into ownership and I have had no desire to switch—only to upgrade—ever since.
When iPad came out, I was absolutely sure I didn't need one, but ended up using one regularly for reasons unrelated to my own consumerist impulses. But boy did it drive those consumerist impulses... Again, within months I had bought one and it has becomemy most used and relied upon work device.
After those two experiences, Mac OS didn't seem far off, and already being in love with iPhone/iPad based on my own use of them, the one annoyance I had with them was the way that they seemed not to mesh as well with other platforms (in my case, Linux, but the same goes for Windows) as they do with Mac OS. So I resolved never to spend Mac-level money, but to buy a very old old used Mac and a Mac OS update pack, and get the OS X pack running on a hackintosh machine to "test the waters." I built a hackintosh box for $250 or so with a dual core mainboard, Firewire-800, and a RAID-1, and within a week of using it I knew I would soon migrate my life from Linux (where it had been since 1993) to Mac OS.
Within six months of going "Mac OS only," though, the difference in quality and hardware/software integration between my iPhone/iPad and my other technology devices (a hackintoshed desktop and a hackintoshed Thinkpad) was painfully obvious and I knew that I was done for—I really, really wanted access to true Mac hardware to avoid the niggling little issues and flaws of PC world hardware that seemed increasingly apparent to me.
Got a MacBook Pro 13" machine last January, finally.
It is the best computing device I have ever owned, bar none. Build quality is exceptional, fit and finish are so precise and refined that you feel as though it wasn't made by humans, but by perfect machines. Even the ThinkPads I'd always owned had little things that I'd never noticed. For example, I would never have said that the power switch was slightly crooked or that there was a little key vibration and noise in some keyswitches, or that the hinge had uneven tension throughout its range or that the display was a bit uneven in its brightness UNTIL getting and really using a MacBook Pro. The build quality is measurably better. It has raised my expectations for technology goods.
Aside from that, the ergonomics are also much better. Apple's touchpad and keyboard, though very foreign to me at first, have now enhanced my work speed considerably. For example, the key travel distance and key "give" on the chicklet keyboard has given me another 10-15 wpm in typing speed with no loss (indeed, a gain, thanks to keys not touching each other) in accuracy.
And of course beyond all of these things, there are just fewer fatal flaws. No BIOS to worry about. Exceptional battery life. No need to fuck around with drivers. No "update hell" in which the latest round of absolutely necessary updates kill some functionality in your system that you rely upon, leaving you installing/uninstalling/tweaking in a desperate haze for hours or days (problems seen both in Windows and in Linux). Just massive, massive piles of It Works Without You Having to Think About It, and It's Tough as Nails to Boot.
My parents and siblings' families have gone Mac (something I never thought would happen, an
STOP . AMERICA . NOW
The number of iOS devices (iPhone and iPod Touch) sold last quarter exceeded the number of Android units
Just barely, and only if you believe that overtly biased analyst's estimate. And why would you count the Touch as a phone? Apples to apples please :-)
More to the point, there is no guarantee of a repeat next quarter, far from it.
Have you got your LWN subscription yet?