Tim Cook Prefers Settling To Suing and Has a Huge Quarter
An anonymous reader writes "Apple's current legal battles with Samsung encapsulate a large number of patents, innumerable suits and counter-suits, and have resulted in legal motions in 11 jurisdictions across the globe. As you may remember, Steve Jobs in his biography was quite vocal about his intent to go thermonuclear on Android, vowing to spend every last dime in Apple's coffers to destroy Google's mobile OS. But Tim Cook is a bit more level headed about things, expressing during Apple's earnings conference call yesterday that he has has always hated litigation and would much rather settle than to battle in court. The caveat, of course, is that Cook doesn't want Apple to 'become the developer for the world.'" It may not be what Jobs would do, but as zacharye notes, it doesn't seem to be hurting earnings. "Despite early-morning jitters on Wall Street, Apple on Tuesday reported yet another blow-out quarter. The Cupertino, California-based company managed the second most profitable quarter in its history, posting a net profit of $11.6 billion on $39.2 billion in sales. Apple sold 35.1 million iPhones into channels last quarter, along with 11.8 million iPads, 7.7 million iPods and 4 million Mac computers. While the firm continues to dominate the technology industry — Apple is currently the most valuable company in the world — several analysts think Apple is just getting started."
I suppose this is all necessary at some level that I can't pretend to understand. Nonetheless, I find it all quite tiring.
Vietnam Veteran / Former Postal Worker -- Use Caution When Taunting!
Developer for the world sounds like a bit of a tall claim.
Apple really don't invent much new stuff. What they are excellent at is combining existing, often poorly implemented, inventions into very well polished consumer products. That's their business and they're very good at it.
But, it shouldn't be subject to patent protection, and their patents tend to be dubious at best.
The other thing is that patents or not, it's an extremely hard thing to copy.
SJW n. One who posts facts.
Apple is successful in their hardware, but data is the future of tech money. Targeted (and automated) marketing will rule the industry while Apple produces commodity products that will be copied and copied again, destroying the margins.
To bad the summory missed the best quote of the conference call
Finally, one analyst dared ask a question about Apple's litigation battles when it comes to patents. "I've always hated litigation and I continue to hate it," Cook said, but "we just want people to invent their own stuff."
He is still an arrogant ass (yes I will probably lose some karma for that one)
That seems to be the MO over at Apple. When you don't set your target isn't as high as you know it should be, every quarter can be a blow-out.
When I saw "huge quarter" in the lead I had to ask myself "Is this still SlashDot?" Most geeks HATE the quarter-to-quarter business focus of publically-traded companies (and we used to come here to escape).
>> several analysts think Apple is just getting started
My portfolio is betting otherwise. The marketing genius that was Steve Jobs is dead.
I'm a businessman. Blood is a big expense."
“He’s not deformed, he’s just drunk!”
Film at 11.
Why are people saying "WWSJD"?
People just aren't ready to let go and see Apple as Steve's baby when in fact it's a corporation and has always been run as one even under Steve Jobs, he just had a good veil at fooling his fans to think the company really is human....
It'd be nice to see Apple let up on the Vendetta approach Jobs took to so many problems. I'd love to see them ease up on the Adobe hatred as well. Flash may have it's issues but a good share of the web uses it so it's a pain my iDevices refuse to acknowledge it. For all his pluses Jobs had an irrational confrontational approach to companies he saw as competition or even companies that resisted doing things his way.
Pfft. Batman has giant penny. http://2.bp.blogspot.com/-_r9lJ9BuMjI/TwEjK7fDBFI/AAAAAAAAGpE/PAlzTbYsqEo/s400/gp%2B1
I'll pay your ransom, but I won't use your awful products.
I'm sure that obnoxious gay barista at the Cupertino Starbucks in will be happy to spend his entire paycheck on your next shitty phone... Again.
"Settle" translation: We want Google to pay us lots and lots of money for OUR ideas (which we took from everyone who came before us -- and never paid for.).
several analysts think Apple is just getting started
I find this particularly interesting since I would assume that market penetration should be causing their growth to slow -- hell they did worse than they did last quarter which, although still good, is a sign they're slowing somewhat, right? So I looked it up on this BGR blog site and it appears that only one analyst thinks so, Brian White. Can anyone provide several other analysts who thing "Apple is just getting started"?
I also found some of Brian White's quotes to be less than analytical:
“Apple fever rocks on”
and
"Apple fever is spreading like a wildfire around the world and we see no end in sight to this trend"
I hate to engage in character assassination but that really doesn't sound like any of the analyst reports I've ever read. They're usually dry as hell and stick to the numbers. Numbers numbers numbers, usually that's all that matters. Anyone got numbers on market penetration instead of telling me "Apple fever has no end in sight"?
My work here is dung.
Apple sold 35.1 million iPhones into channels last quarter, along with 11.8 million iPads, 7.7 million iPods and 4 million Mac computers.
In order to maintain the growth, they would need to see:
55 million iPhones into channels , along with 18 million iPads, 13 million iPods and 6.5 million Mac computers.
approx.
So, the question is, can then do that? can the sell 55 million new iPhone in the first quarter of next year?
The Kruger Dunning explains most post on
Hard not to laugh at your assertion that since "Apple did worse than last quarter" that it's a sign that they're slowing. Maybe you forgot that last quarter included a little thing called Christmas?
Apple is going in a direction which will ultimately kill the company. Steve had one of the brightest minds in the business, possibly the world. If Steve wouldn't have done it, then that's all the reason you need to know it's a bad idea. If Apple doesn't beat Google, then Google is going to beat Apple and that's a horrendous thought.
I think Tim is going to be a very bad thing for Apple and it's already showing in that he "prefers not to litigate" - that's what every successful company does! (Microsoft and Oracle for instance). The profits Apple is claiming are what's coming in from the tail-end of Steve's leadership. Wait another year. It's all just going to fall apart and nothing we can do about it. They need a new CEO.
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People could bring up things like:
* Apple isn't big in the corporate space.
* Apple haven't released or have just recently released their phones in many areas of the world.
* Apple doesn't sell into the low-end (whatever that would improve profits is another question I suppose.)
Beyond that I guess people expect more sales to be done online and by digital distribution.
For instance what about TV from Apple instead of whatever you use now?
Wrong. The holiday quarter and quarters containing new product launches have a huge influence over revenue. You can't measure things quarter to quarter, you have to go to the year ago quarter to check growth and even then you have to take into consideration if one or the other was a launch quarter.
If you want to know why certain people (yours truly included) are betting big on AAPL, consider this:
.
And also realize that the phone market is a billion+ handsets per year. Their customers love the iPhone more than any other phone and so the growth potential is huge.
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It's clear you're brainwashed, so it must not be hard to drum up "several analysts" that say Apple is just getting started ... and yet we wait for that claim from the summary and article to be adequately cited ...
Is it anything like Batman's giant penny?
I think the part the analysts are looking at it the Asia Pacific market share. There are billions of potential customers in Chindia and surrounding villages. Even if / when the North American / European market gets saturated, you can count on sales figures from the 'developing world' to, well, develop.
Should give them a couple more years.
It's not much different from the US car manufacturers who are seeing stable to decreasing sales in NA / Europe but are busily building factories in China for domestic consumption. It's the New World Order folks.
Faster! Faster! Faster would be better!
Tim Cook Prefers Settling To Suing and Has a Huge Quarter
Is that a euphemism?
Uh, wrong. Year-over-year comparisons of the same seasonal quarter are what you want (I'll leave it as an exercise to the reader to Google up the reason why). Apple's unit sales were up YOY in every single product category (other than old-style iPods, which are clearly on the way out).
See the "data summary" document linked from this page for more info.
Apple is only taking up its long denied place where it has always belonged. Apple is the Alpha and the Omega of the computer industry. Apple defines the qualities of advanced technology, speed, security, design, and usability. Apple is what all the micro-tards and free-tards WISH they were. Apple rules the roost because Apple, and ONLY Apple, know how to build computers that people want. The rest of you just need to give up already.
Think different. Think BETTER! Think !APPLE!
I knew about Steve Jobs "last dime" (which, sadly, I guess he has indeed spent by now), and so when I read
Tim Cook Prefers Settling To Suing and Has a Huge Quarter
I figured that must be some obscure reference to the size of either his warchest (for suing) or his pockets (for settling).
Well, it did get me to read the summary, so I guess it worked as a title.
These are the same analysts who were predicting a slowdown in iPhone sales and a slow quarter for Apple Inc. right until 4 PM EST yesterday. While it's true that Apple is just penetrating the global market (especially Asia), I wouldn't read too much into most analysts' predictions who swing between opinions several times within a week.
Apple's revenue is up about $9b over the same period last year. Holiday sales probably account for the drop from last quarter.
Their press statement pretty much sums up the incredible level of growth.
The Company sold 35.1 million iPhones in the quarter, representing 88 percent unit growth over the year-ago quarter. Apple sold 11.8 million iPads during the quarter, a 151 percent unit increase over the year-ago quarter. The Company sold 4 million Macs during the quarter, a 7 percent unit increase over the year-ago quarter. Apple sold 7.7 million iPods, a 15 percent unit decline from the year-ago quarter.
Analyst are right to be bullish on Apple for the time being. Their iPhone sales are still rising despite increased pressure from Android and WM8, no one offers a competitive alternative to the iPad, and Mac sales are up despite a severe lack of updated models since last quarter. Throw on the never-ending rumors of an "iTV" frothing up speculation. And don't forget Apple started paying dividends now that Jobs is gone.
I'm confused why anyone would be bearish about Apple.
A short look at the numbers shows that their quarter actually sucked. They sold less units in this quarter than they did in the last quarter. The opposite quarter-over-quarter was true for the same period in '11. Their iPad sales dropped significantly quarter-over-quarter. Their absolute numbers are higher than they were last year because they entered new markets. But they are already declining in these new markets after being there for only 2 quarters. They have not gained any market share on Android. Everyone is trying to compare them to last year because it's something to compare to which shows an increase. But a quarter-over-quarter decrease is a very troubling sign. And they haven't quite beat the reduced market estimates. The estimates were that they would sell 13 million iPads. They sold less than 12 million iPads.
Any guest worker system is indistinguishable from indentured servitude.
Other companies must be having fits that Apple can sell shiny bits with rounded corners at high prices while everyone else squeaks by at much lower margins. When I have bought Apple products for my wife or granddaughter, it felt much more like buying jewelry or Steuben glass than a tech purchase. Beautiful and just as sensibly priced. Silly though.
Sorry, but gray text on gray background is making my eyes bleed.
They protect an implementation of an idea. If someone else can implement the idea in a way that doesn't infringe on the patent, you're good.
In Q4's, and they tend to make Q4's better than Q1's. No analyst compares sequential quarters, so keep your day job.
Their iPad sales dropped significantly quarter-over-quarter.
Again, Christmas, dude. And the new iPad was the worst-kept secret in the tech world for months, and it was only on sale for 3 weeks in Q1 and they couldn't make enough of them to keep up with demand. Apple DOMINATES the tablet space. Number 2 isn't even close.
Slashdot "libertarians": Small government for me, big government for those I disagree with. -1, I disagree with you
That is SHAREHOLDER cash, not employee cash, Mr. Marx.
Slashdot "libertarians": Small government for me, big government for those I disagree with. -1, I disagree with you
Not that you really are short Apple. Just bluster, like the two bearish Apple analysts always on CNBC, not really short. Few if any retail investors have the equity to really short stocks. But I'll happily sell you some puts on AAPL.
Slashdot "libertarians": Small government for me, big government for those I disagree with. -1, I disagree with you
Apple can easily step into the corporate sector for a large revenue stream any time they wanted. Right now, they are doing well as they are, but if the existing revenue streams run low, it wouldn't be hard for them to step into the enterprise. They would need to make some changes to existing machines (such as a modified Mac Pro case that is mountable on a rack drawer with all parts easily accessible), and run an "Apple means business" campaign, and they would make definite inroads into the corporate sector. Especially if Apple licensed from MS items like Active Directory functionality like domain servers and such.
This would allow Apple to get in the enterprise without having to make a specific model like the XServe (which didn't sell well when it was killed.)
I guess this is the year of the Linux desktop right? Oh, and you just keep telling yourself that Android didn't rip off iOS.
Funny stuff.
Argh. This is a problem - everyone makes that mistake. But those are Susan B. Anthony dollars - not quarters.
#DeleteChrome
Really? I know some analysts that eat their own poo. Pick anything rocketing to the top and you'll find plenty of people standing around to tell you its going to continue.
Thing is...probably not.
I was just disappointed that the headline didn't refer to him having a "huge quarter" on display in the Apple Cave below Stately Cook Manor.
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Apple will have pricing issues in India and China. Even Nokia is being chewed up from below by cheap phones.
Remember that data pricing is still exorbitant in these markets, even when voice calls and texts are not.
I can throw myself at the ground, and miss.
More like Jobs had a huge quarter. Once Tim's been in charge and the germinating seeds Jobs planted aren't still coming to fruition, Tim can go ahead and take the credit. If, in a few years, the company is still making money hand over fist, I'll salute him. Right now it's Thanks Steve. RIP
Whether it's Apple innovating, or someone else, the patent system needs some desperate repairs.
And settling with Trolls does not do this. Settlements tend to be under NDAs, and therefore nobody knows how much was bled, how little the gain was, or how much you can hold a corporation hostage for. This leads to a prospectors climate, and the only way out is to force things into actual litigation and set new precedents.
It's short sighted of Apple (Cook) to avoid such lawsuits. They have the biggest war chest (what, still the better part of a trillion USD in cash holdings?), and can fix this problem for the rest of the tech sector. I feel that Jobs did this to some extent with the RIAA, and it makes Cook look spineless and short term report focused.
Getting diabetes AND salmonella would be a bad weekend.
So Cook is not a kook. Good.
That was the point.
As in they aren't there yet but they can be and hence they can get even more revenue growth in the future.
As far as the mac pro goes though rumors are it will be scrapped.
of Google's first phone:
Google's phone concepts before and after seeing the iPhone.
Slashdot "libertarians": Small government for me, big government for those I disagree with. -1, I disagree with you
The Apple logo is an apple with a bite out of it, a reference to the Biblical Tree of Knowledge, but who suggested a bite be taken? None other than Satan, clearly Jobs made a deal with the Devil.
That's why Apple is so successful. /snark
"If any question why we died, Tell them because our fathers lied."
He prefers settling and other submissive, female ways of leadership.
Steve Jobs was a top. If he couldn't put his dick in it, he wanted to reject it wholesale.
Then again, most people in life are bottoms pretending to be tops. Happy is the bottom who simply accepts his or her fate.
Eternal sodomy!
/. is the new Yahoo Finance. Mark my word.
ROFLMAO
New Economic Perspectives
ever by your standard.
I guarantee that I can show how all they did was "combine an existing, often poorly implemented, invention into a very well polished product."
Seriously. Any invention ever. Any company ever. Go ahead, I'll be waiting.
"Who would ever want a hard drive." That's an old quote from Steve Jobs back when the Mac was created.
I am looking into a tablet. One thing I absolutely require is some form of pen. Investigating I discovered that there were three companies making digitizing pen technology for tablets, Wacom, N-Trig and Antel. ICS includes API for digitizing pen input. ( For those who do not know, this technology is the same technology used in graphics tablets. ) The comment I saw most was "if the Asus Transofrmer came with a pen, I would buy it. " So far there are three tablets/phones that use the technology: the HTC Flyer. the Galaxy Note phone, the Lenovo Thinkpad Tablet. It is being touted as the next big thing in tablets. I fgiure for a very good reason. Those people who want a tablet and don't care about pens, have mostly already bought tablets. The biggest untapped market is probably people who want tablets with pens.
Back to the first quote. When the Mac came out, at first it was very popular but lost it's popularity very quickly. The main reason was not just that quote about HDs but also the mentality. It was impossible to add memory, nonAppleTalk networking, add a CD rom, add a HD, a larger monitor without voiding the warranty. It was possible if you didn't mind voiding the warranty, but it was still very hard to do. Jobs would not budge on these things, till it came to a Sculley/Jobs showdown which hurt Apple too.
While I was researching tablets I came across a new very similar quote by Jobs. "Who would ever want a stylus." When I see an article on pens and tablets, I see comments from all the Apple fanboys slamming people who want pens. Jobs would never have allowed an iPad with an iPen, or some kind of keyboard for an tablet like the Asus transformer keyboard or the Lenovo Thinkpad tablet keyboard folio. Which would have put Apple in the same situation as it wa jobs before the Jobs/Sculley battle. This way Cook has a chance to add these features to an iPad without grief from Jobs.
They might not hurt each other but they hurt everyone else in the process. This has shown how the future might turn out, with everyone using patents to keep the other side from competing and ultimately making sure that any new comer either has to buy a lot of patents OR has to spend a fortune licensing up front of any actual earnings making it again impossible for a small startup to get started.
Steve Jobs showed himself to be a really bad apple, in human society, you got to learn not to take afront of every slight against you. Imagine that every tiny little mishap in traffic was to be settled in court, we would all be in court for eternity. Often you just have to let it go and accept that shit happens. The supposed sameness of the iPad and Galaxy Tab devices showed just how far Jobs was gone. There is only so much you can do with design and Apple was NOT itself original with either its design OR in spending effort on designing the packaging. Hell, if you buy higher end products, you would have long since gotten used to the fact that not all products come in brows boxes with white styrofoam.
That they looked similar? Yes? Have you looked at other items where design plays a role? In most industries this is not just accpeted, historians and art experts point to specific periods when EVERYONE did EVERYTHING in the same style. Sometimes one person leads and the rest follows. Imagine if Picasso was to have sued every other painter who copied his style of Cubism. Unthinkable right? And it is not like in paintings that design is dictated by functionality. You can paint any style you want. Just how many shapes can you make a tablet before you end up with something unusable?
And that was Jobs entire plan, to stop ANYONE else from making a tablet without having to make a device because sooner that could function. Oops, no rectangular screen for you. Rounding of the corners? no no. It would be fine if Jobs had designed the very first tablet or made it unique but the iPad was far from the first and hardly original in its design.
For the average civilian out there, competition is not just a good thing, it is essential. We have seen what happens in IT land without competition. IE and Intel are prime examples. MS did nothing with the browser when they had no competition and Intel just stopped innovating until AMD kicked their asses and forced them to get serious again.
Perhaps what is needed is something kind of law similar to FRAND patents but now for design. The official regoniztion that sometimes function influences design to such a degree that it is silly to award a single design to a single company.
All slab phones will look similar simply because they are a rectangular screen with a speaker, a mic and a button. About the only thing you can change is the font of the logo. Yes, putting a lighted pear symbol on the back is a bit to far but rounded corners? Dimensions? Why not try to trademark a screen resolution and be done with it.
Sometimes the world needs innovators who push things and are filled with fire to get things done. And then the suits need to take over to avoid everyone constantly challenging everyone else to duels. It is the reason diplomacy is done by diplomats, NOT politicians. Diplomats are generally soft spoken individuals who think in decades rather then next weeks poll. And they mostly spend their time trying to downplay the latest politicians gaff. Steve Jobs put Apple in a bad position. Did he really think he was going to fucking bury Android? He did it before and he can do it again? Gosh, someone else said something very similar and HE is a figure of ridicule in IT and especially on this site.
Not everyone is equally good at everything and Apple should just have left this to a suit who knows spreadsheets. The spreadsheet after all shows clearly that copy or not, the galaxy tab is no threat. Why ruin your good name and risk legal battles that could (and have) gone against you when the boring sales figures show that there is no reason to fight. The only reason f
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.
35.1 million iPhones sold...
Let's review what Steve Ballmer thought about the iPhone... http://www.youtube.com/watch?v=eywi0h_Y5_U
How's Windows Phone 7 working out...
Oolite: Elite-like game. For Mac, Linux and Windows
Erm, that doesn't mean the iPad sales were some miracle, merely that Mac sales were always lacklustre due to Windows PC's dominating the industry, and that iPod and iPad sales were always overhyped.
The original iPhone for example only shifted a mere 6million units, and the iPhone 3G little more han that. Both devices were outsold by Nokia's relatively lacklustre N95 and N96 devices at the time.
"And also realize that the phone market is a billion+ handsets per year. Their customers love the iPhone more than any other phone and so the growth potential is huge."
If by iPhone you mean every model of iPhone combined vs. non-combined models then sure. But Apple only hold around 15% of the Smartphone market and Android holds around 50%. Even if you discount the budget Android smartphones and focus on their expensive models that are equally as expensive as the iPhone these still greatly outnumber sales of iPhones. Even Samsung alone outsells the iPhone range with their range now. For what it's worth, for cell phones in general, i.e. including non-Smartphones, Apple's marketshare is no more than around 2% but Apple wont compete in this arena because the margins for most of the 4.5billion cellphones in the world are simply too low for Apple to waste their time on.
I'm not saying Apple is doomed or any such thing, I think they'll still grow some yet, but I think you need to becareful about your reasoning - it's exactly the type of reasoning that leads to people getting hurt when the bubble inevitably bursts - which history has told us, it always does. Indefinite perpetual growth is a fantasy.
"I think the part the analysts are looking at it the Asia Pacific market share. There are billions of potential customers in Chindia and surrounding villages."
But how are they going to tap into this market? These low margin markets (plus the one you forgot - the continent of Africa) are precisely where Nokia screwed up - they ended up spending too much time chasing volume in these markets, and neglected their high margin markets. This is before you factor in the point that at least some of Apple's success is based on it's image as a fashionable brand - can it really retain that whilst producing budget cut down versions for China and India?
People see China and India as magical markets, and they are for some things - the cheap and bare essential products that everyone can buy, where volume matters, but Apple's not about volume - this is why they only have 17% of the smartphone market vs. 52% for Android yet still make most of the Smartphone profits. Consider this - China's economy is less than half the size of America's, yet has more than 4 times the population, now consider how many Americans as a proportion of the population can't afford or can't justify the expense of an iPhone - it's no small amount, and imagine how much worse that must be in China. The story in India is even worse - it's economy is even smaller again yet has a similar multiple of America's population.
The problem is best illustrated by these lists:
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita
If you're a company like Apple, focussing on the high end, your best opportunities are to work down this list top to bottom, or alternatively to try and steal back marketshare from the high end Android devices like the Samsung Galaxy SII though I suspect that wont be easy - in some high end markets like the UK, the Galaxy SII alone actually has a healthy lead over the iPhone.
Apple just doesn't have the type of business model that can realistically benefit from the large populations of China and India -that isn't to say there aren't segments of these markets that are worth going for, but still less so than most Western markets, some Middle Eastern markets, and so on, and still arguably much less so than just trying to claw ground back from the competition in existing markets.
AAPL $12B profit versus XOM $9B Q1. The two generally go in hand-in-hand in market valuations, despite being substantially different businesses: valuable commodity versus high end electronics.