Tuesday, July 22, 2008

Apple Q3 results

Via Daring Fireball, Apple have released their Q3 results, and they are pretty good.
Apple today announced financial results for its fiscal 2008 third quarter ended June 28, 2008. The Company posted revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share. These results compare to revenue of $5.41 billion and net quarterly profit of $818 million, or $.92 per diluted share, in the year-ago quarter. Gross margin was 34.8 percent, down from 36.9 percent in the year-ago quarter. International sales accounted for 42 percent of the quarter’s revenue.

Apple shipped 2,496,000 Macintosh computers during the quarter, representing 41 percent unit growth and 43 percent revenue growth over the year-ago quarter. The Company sold 11,011,000 iPods during the quarter, representing 12 percent unit growth and seven percent revenue growth over the year-ago quarter. Quarterly iPhone units sold were 717,000 compared to 270,000 in the year-ago-quarter.

FORTY ONE PERCENT UNIT GROWTH for Macs? Fucking hell! 41% growth! That's... well... pretty fucking good.

What bugs me though, is that Apple's share price has been tumbling. Despite the astonishing uptake of the iPhone 3G (still quite difficult to get hold of) and years of unprecedented growth in both unit sales and profit margins, the shares were down below $165 dollars today (lower than they were in November last year). And this is despite the fact that Apple has more cash in the bank than Microsoft and are thus unlikely to be hit by the credit crunch.

The lesson is simple, I guess: never trust an analyst.

DISCLAIMER: I own Apple shares.

11 comments:

patrick said...

It just goes to show the BS that is the current stock market Mr DK...

Patrick Vessey said...

Not all iPhone users are happy iPhone users ;-)

Blue Eyes said...

The iPhone looks cool I must admit, DK could you do a review when you get yours?

Devil's Kitchen said...

I certainly shall, Blue Eyes; I shall attempt not to be too biased. I have used other people's and the touch interface is very smooth.

I am aiming to get my bottom down to an O2 store at some point this weekend...

DK

Anonymous said...

Apple is driven , from every aspect, by one Mr S. Jobs, the Benevolent Dictator, and having survived a cancer scare a few years ago, he now looks ill again (gaunt & underweight I think is the concensus). With his PR people refusing to answer questions of the 'Is he ill again?' type, analysts are right to be concerned. Without Jobs and with nobody of any quality waiting to take over....it could all go tits up.

Adrian said...

the city cunts don't want companies to do
well. They wanna buy and sell on companies that fluctuate wildly.
That's how they gamble (sorry, make shrewd investment decisions).
That's why shares often drop when companies announce good news and
shares go up when companies do badly. Madness. But that's the 'market' for you.

poons said...

DK If your review of the iPhone is anything like my reaction having met one in the pub last night (with it's owner) then I expect a new Dk record on sweary words

cookie said...

With the current and likely continuing financial woes it is not surprising to find Apple's stock falling. Apple's products essentially do less for the buck than the alternatives, are less upgradeable and are supported by fewer products. This has always been the case. In times of financial worry many of the anti-Microsoft crowd on the Left who bleat about Apple's supposed superiority are likely to connect more with reality (if the principle holds that those who are generous with other people's money are less so with their own). As has to be pointed out endlessly to fuckwits, share prices do not just reflect current profitability, but also future profitability.

Devil's Kitchen said...

cookie,

"This has always been the case."

Please, do us all a favour and get your head out of the 1990s. This simply isn't true anymore -- unless you only use your computer for word processing and gaming, in which case you simply aren't worth bothering with.

As for future profits... well... because of the recent new regulations in the US, the iPhones are counted on a 24 month cycle.

I do wish that people who came here would actually comment on Apple now and not Apple in 1996. It's so tedious having to correct them.

DK

John A said...

On another blog, it was opined that Jobs' health and first-day iPhone woes the real reason stock is falling is that Apple is understating expected earnings for next year. As it usually does.

I used to work for a national firm, and was advised by one of the executives that I could make money by buying their stock circa February and selling it circa September because the sales figures fluctuated seasonaally and people reacted to them. I watched for a few years, and yes, year after year it held true.
---
Er, no, I did not actually buy: there was a management change around that time who thought they were doing me a favor by giving me stock options - at the highest price in the cycle: alas, I could not buy elsewhere (Government regulations) until using the options...

Mark Wallace said...

http://www.thefirstpost.co.uk/44937,features,when-steve-jobs-sneezes-apple-catches-a-cold

Re: the Steve Jobs worries - there are evidently concerns that he could do a Tito, and it'll all crumble without him...