Apples Q1 2011 Results: Wow

[johnny333]

Ipad sales UP, Iphone sale UP, Ipod sales UP

Apple beat all expectations


http://www.cnbc.com/id/41137612

Apple Profit, Revenue Outstrip Wall Street Forecasts
Published: Tuesday, 18 Jan 2011 | 4:40 PM ET
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By: CNBC.com



Apple turned in results that easily surpassed what the Street expectations, with sales of its iPad exceeding the 7 million mark in the most recent quarter.


Apple reported a profit of $6.43 a share in its fiscal first quarter, up from $3.67 a share last year.

Sales for the most recent quarter jumped to $26.74, from $15.683 billion a year ago.

Both the earnings and topline beat expectations. Analysts who follow Apple forecast the company reporting a profit of $5.40 a share on sales of $24.433 billion, according to a consensus estimate compiled by Thomson Reuters.

In the most recent quarter Apple sold 7.33 million iPads, 19.45 million iPods, 16.24 million iPhones and 4.13 million Macs.

Shares of Apple, a bellwether for the consumer electronics and technology sectors, were halted in extended trading Tuesday. The stock was expected to recommence changing hands at 4:50 p.m. New York time. Get after-hour quotes for Apple here.

Apple shareholders were rattled over the long weekend by news that Steve Jobs, the company's iconic chief executive officer, is taking a medical leave of absence. The shares, which fell as low as $326 on the news, regained some lost ground later in the session.

Tim Cook, Apple's chief operating officer, will oversee day-to-day operations at the company in Jobs' absence. He's done so twice in the past, when Jobs was on leave during his battle with pancreatic cancer and after the CEO received a liver transplant.

Apple shares closed more than 2 percent lower Tuesday [AAPL 340.65 -7.83 (-2.25%) ], on volume exceeding 60 million shares, which is more than four times normal.

 

[johnny333]

http://www.appleinsider.com/article...es_of_4_1m_macs_16_2m_iphones_7_3m_ipads.html

Apple profits surge 77% on record sales of 4.1M Macs, 16.2M iPhones, 7.3M iPads

By AppleInsider Staff
Published: 04:40 PM EST


Apple said Tuesday that first quarter profits rose more than 77% to $6 billion, or $6.43 per diluted share, driven by record sales in three of its four major product categories, helping the electronics giant smash Wall Street's consensus estimates yet again.

The Cupertino-based company also posted record revenue of $26.74 billion for the three-month period ended December 25, 2010. The results compare to revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share, in the year-ago quarter.

Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The company also sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. iPod sales during the quarter totaled 19.45 million, representing a seven percent unit decline from the year-ago quarter, while iPad sales came in at 7.33 millionunits.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Apple Chief Executive Steve Jobs. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

Gross margin was 38.5 percent compared to 40.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”

 

[Dreamer1]

http://www.appleinsider.com/article...es_of_4_1m_macs_16_2m_iphones_7_3m_ipads.html

Apple profits surge 77% on record sales of 4.1M Macs, 16.2M iPhones, 7.3M iPads

By AppleInsider Staff
Published: 04:40 PM EST


Apple said Tuesday that first quarter profits rose more than 77% to $6 billion, or $6.43 per diluted share, driven by record sales in three of its four major product categories, helping the electronics giant smash Wall Street's consensus estimates yet again.

The Cupertino-based company also posted record revenue of $26.74 billion for the three-month period ended December 25, 2010. The results compare to revenue of $15.68 billion and net quarterly profit of $3.38 billion, or $3.67 per diluted share, in the year-ago quarter.

Apple sold 4.13 million Macs during the quarter, a 23 percent unit increase over the year-ago quarter. The company also sold 16.24 million iPhones in the quarter, representing 86 percent unit growth over the year-ago quarter. iPod sales during the quarter totaled 19.45 million, representing a seven percent unit decline from the year-ago quarter, while iPad sales came in at 7.33 millionunits.

“We had a phenomenal holiday quarter with record Mac, iPhone and iPad sales,” said Apple Chief Executive Steve Jobs. “We are firing on all cylinders and we’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on.”

Gross margin was 38.5 percent compared to 40.9 percent in the year-ago quarter. International sales accounted for 62 percent of the quarter’s revenue.

“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”

Wow,Steve Jobs is da man!

 

[johnny333]

Wow,Steve Jobs is da man!

Everytime I was in a Singtel shop, I would see a sign indicating that the iPhone was sold out. With 16+ million of them being sold, I now know why

 

[Dreamer1]

Everytime I was in a Singtel shop, I would see a sign indicating that the iPhone was sold out. With 16+ million of them being sold, I now know why

I must admit that I am a stupid man,as I did not recognise such a brillaiant mind earlier.'
Stupid,stupid!

 

[johnny333]

Apple still can't make enough iPhones to satisfy demand
Now with Verizon selling the iPhone I don't know how they'll keep up with the extra demand





Notes of interest from Apple's Q1 2011 conference call

By AppleInsider Staff
Published: 05:00 PM EST



Apple on Tuesday reported its best quarter in the history of the company, reaching $26.74 billion in revenue with a net quarterly profit of $6 billion. Following the news, Apple executives participated in a conference call with analysts and the press, and notes of interest follow.

Apple crushed estimates with record sales of 16.24 iPhones, 4.13 million Macs, and 7.33 million iPads. The company also sold 19.45 million iPods in the three-month span that included the holiday buying season.

Participating in Tuesday's conference call was Apple Chief Operating Officer Tim Cook, and the company's chief financial officer, Peter Oppenheimer.

Apple's regional business segments

International sales accounted for 62 percent of Apple's revenue in the first quarter of fiscal 2011.

$9.2 billion of Apple's revenue for the quarter came from the Americas, and $3.8 billion from retail. The remainder of the $26.74 billion came from Europe, Japan and Asia Pacific.

Next to America, Europe was the second-largest region, accounting for $7.3 billion in revenue.

BRIC countries: Identified China as their top priority and put an "enormous energy" there. "The results of that have been absolutely staggering."

Viewing Greater China -- mainland China, Hong Kong and Taiwan -- revenue was $2.6 billion. Up 4X from the prior year quarter.

"We did a little over $3 billion for the entire year, in fiscal year 10," Cook said. "We're very proud of the team and the results that we've got there.

Korea is doing well, as is Japan, where revenue was up 83 percent year over year.

Apple's Mac business

Mac sales were a record 4.13 million for the quarter, with portables leading the way, accounting for $3.7 billion in revenue on sales of 2.9 million.

Desktop Macs earned Apple another $1.7 billion for the three-month period, on sales of 1.2 million.

Mac sales almost 8 times IDCs estimate for world average, fueled by strong sales of MacBook Air and MacBook Pro.

On the Mac App Store, Cook: "We are thrilled to have reported over a million (downloads) in a very short amount of time. So we're very happy with the start of it."

"We've done outstanding in our Mac business," 19 quarters straight of growing faster in the market, but still have a "very low share." Still have "enormous opportunity."

Apple's iPhone business

iPhone sales were a record 16.24 million, amassing $10.5 billion in revenue for Apple during the quarter.

The iPhone grew in sales 86 percent in the December quarter, compared to IDC's estimate of 70 percent.

The average selling price of the iPhone was $625.

88 of the Fortune 100 companies are now deploying iPhone.

Apple continues to have sizable backlog and could have sold more if they could have manufactured them faster

On Verizon, Cook: "We're going to do everything possible to get the iPhone into as many hands of those customers as possible."

"It's not enough:" their efforts to meet demand. "We do still have a significant backlog," Cook said. "We are working around the clock to build more."

Expecting "huge" results from the Verizon launch. Won't make a prediction of when supply and demand will equal.

Oppenheimer: "Demand for iPhones has been incredible, and we would have loved to have made more of them."

Apple's iPad business

Apple's sales of 7.3 million iPads accounted for $4.6 billion in revenue during the first quarter of fiscal 2011.

iPad demand is strong for consumer, enterprise and education customers.

Over 80 percent of the Fortune 100 are already deploying or piloting iPad.

The iPad has an average selling price of $600.

Supply was increased in the quarter. Channel inventory increased by about 525,000 by the end of the quarter.

iPad, increased dramatically in sales. Cook said they met supply-demand balance and expanded to a total of 46 countries by the end of the quarter. Are adding 15 countries in the month of January to top 60 total.

"We believe the market is huge," for iPad, Cook said. The market is just starting.

"We're into some great markets, some fast moving markets. We have the best products we've ever done, and an incredible product pipeline. We feel very, very confident."

Apple's iPod business

iPod sales for the quarter were 19.4 million, representing $3.4 billion in revenue. Compared to 21 million in the year-ago quarter.

The iTunes business also exceeded $1.1 billion in revenue.

iPod touch grew 27 percent year over year, and accounted for more than 50 percent of iPods sold.

Apple's retail business

Apple's retail sales accounted for about $3.5 billion in the quarter, nearly doubled -- increased 95 percent from a year before.

Record Mac quarter -- selling 851,000 Macs, an increase of 24 percent.

About half of Macs sold were to customers who never owned a Mac before.

International store volume exceeded U.S. store volume. Stores in China were most trafficked.

Average of 321 stores open in the quarter, average revenue per store of $12 million. 6 new stores opened in the quarter, 323 stores total, with 87 outside the U.S.

Apple's next (Q2 2011) fiscal quarter

Apple has projected revenue of about $22 billion and diluted earnings per share of about $4.90.

Gross margins are expected about 38.5 percent.

Taxes going forward are expected to be about 25.5 percent.

Cook: "In my view, Apple is doing its best work ever. We are all very happy with the product pipeline. The team here has an unparalleled breadth and depth of talent and innovation that Steve has driven in the company, and excellence has become a habit. And so we feel very, very confident about the future of the company."

 

[Watchman]

Brillant ! My gosh Singaporeans are sleeping all this while .

Touchscreeens are around for ages .
Just that back then they are not very power efficient .

 

[johnny333]

Brillant ! My gosh Singaporeans are sleeping all this while .

When these US companies announced their results its usually 4am or 5am in Spore. I think Sporeans need all the sleep they can get

IBM also beat expectations but I don't own IBM share anymore, so I don't track the performance of those shares.

With the illness of Steve Jobs many people were watching closely the performance of Apple. It is after all the largest tech company & 2nd largest company, making up 21% of the NASDAQ 100 index.

In case anyone is interested after the announcement the shares went up to US$350+ in after hours trading. With this type of performance, it will no doubt go up to US$400+ eventually

 

[Watchman]

Every company has its opponents, but Apple really gets people worked up. Some people hate Apple a lot, more than they hate Nazis or Smurfs. They leave angry comments on Apple blogs. Based on my extensive observations of the species, Apple-haters fall into five categories. If you're an Apple-hater, which one of these categories do you fit in?

You believe buying Apple undermines your individuality. You see yourself as making a bold stroke for your individuality and freedom by your refusal to buy Apple. You use words like "brainwashed" and "lemmings" to describe Apple fans.

These haters frequently have very poor grammar and spelling. Many of them seem to be barely literate. They also often have issues with alternative sexuality, accusing Apple fans of performing acts of love with Steve Jobs that were, until recently, illegal in many states.

Is this a good reason to hate Apple? No, it's dumb. Your choice of consumer products says nothing about your individuality. The true individual doesn't care what the herd does, he does what's right for him. Sometimes that means forging a unique path, but other times, what the masses do is just fine. If your sense of individuality is bound up in the consumer products you buy, then you have no individuality at all -- you're just one of the Body of Landru, kidding yourself that you're a unique special snowflake.

 

[tonychat]

I must admit that I am a stupid man,as I did not recognise such a brillaiant mind earlier.'
Stupid,stupid!

It is ok, There is no surprise at all that sinkies are stupid. Nothing intelligent comes from a sinkie who follow rules without using their brains.

It is good that you realise it and hopefully you will make a change in the near future.

 

[Leongsam]

Apple used to make nothing but excellent computers. Sadly, all it does now is concentrate its efforts on producing a variety of useless gimmicks that are nothing more than overpriced toys.

​

 

[johnny333]

Every company has its opponents, but Apple really gets people worked up. Some people hate Apple a lot, more than they hate Nazis or Smurfs. They leave angry comments on Apple blogs. Based on my extensive observations of the species, Apple-haters fall into five categories. If you're an Apple-hater, which one of these categories do you fit in?
.
........

The OS wars are over, but now it's moved on to the phone wars, tablet wars I find it strange that Apple products brings out such strong emotions.

No other brands: Sony, Samsung, Creative,... create such strong feelings. Shows that Apple is unique

 

[tonychat]

Every company has its opponents, but Apple really gets people worked up. Some people hate Apple a lot, more than they hate Nazis or Smurfs. They leave angry comments on Apple blogs. Based on my extensive observations of the species, Apple-haters fall into five categories. If you're an Apple-hater, which one of these categories do you fit in?

You believe buying Apple undermines your individuality. You see yourself as making a bold stroke for your individuality and freedom by your refusal to buy Apple. You use words like "brainwashed" and "lemmings" to describe Apple fans.

These haters frequently have very poor grammar and spelling. Many of them seem to be barely literate. They also often have issues with alternative sexuality, accusing Apple fans of performing acts of love with Steve Jobs that were, until recently, illegal in many states.

Is this a good reason to hate Apple? No, it's dumb. Your choice of consumer products says nothing about your individuality. The true individual doesn't care what the herd does, he does what's right for him. Sometimes that means forging a unique path, but other times, what the masses do is just fine. If your sense of individuality is bound up in the consumer products you buy, then you have no individuality at all -- you're just one of the Body of Landru, kidding yourself that you're a unique special snowflake.

Is it? I think apple stuffs are for gays and girls, that is what kassem told me last time and i tend to agree.

For me, i go for android and google.

 

[Dreamer1]

Apple used to make nothing but excellent computers. Sadly, all it does now is concentrate its efforts on producing a variety of useless gimmicks that are nothing more than overpriced toys.

​

I think APPLE is the most valuable brand in the world.

There are some who are quite hope full about ORANGE(PRC) as well,but I dont believe it!
Yes,I might be wrong again!

 

[johnny333]

Apple used to make nothing but excellent computers. Sadly, all it does now is concentrate its efforts on producing a variety of useless gimmicks that are nothing more than overpriced toys.

Apple has simply kept up with the times. There's no demand for over engineered computers. Colored plastics ones sell better. Just look at the original Imacs which saved Apple from bankruptcy

Overpriced toys are more profitable you know. Just look at the recent results.
I'm sure SJ should be amused to find that he makes toys

 

[silverfox@]

The OS wars are over, but now it's moved on to the phone wars, tablet wars I find it strange that Apple products brings out such strong emotions.

No other brands: Sony, Samsung, Creative,... create such strong feelings. Shows that Apple is unique

1 thing to note is Phones business will never prosper long term.
Motorola from its ups goes down, Nokia, from the no1 handphone maker to where it is right now? All in the past 20yrs we have seen phone makers from zero to hero and back to zero again. So today the hit is Apple, one day it will be others.

The good thing is they are still producing Macs. Macs will be the one that is going to earn it core money for the long future. Even longer than ipads and iphones. Their Imacs have been improved, cinema displays making it sharper. magic mouse.

I believe that Apple shares will hit 400USD or even more. But I also believe that when one day Steve Jobs leave Apple, the company's legacy will not be as strong as today.

 

[johnny333]

1 thing to note is Phones business will never prosper long term.
Motorola from its ups goes down, Nokia, from the no1 handphone maker to where it is right now?

...
''''
I believe that Apple shares will hit 400USD or even more. But I also believe that when one day Steve Jobs leave Apple, the company's legacy will not be as strong as today.

Without SJ Apple might take longer to reach $500. At those levels the company will have to perform to perfection. However we don't know what else Apple has up it's sleeve

Apple is building a large iDataFarm in North Carolina & many suspect it's for "future" services it's going to be offering?? It is an example of Apple not sitting on it's laurels

Apple is NOT making phones, the iPhones is a computer Apple is building an ecosystem of iPhone, iPad, Macs, around the IOS & the Apps store. As long as people are happy they will not leave this ecosystem. Which other company can offer such an ecosystem

I'm sure that Apple will face serious competition but it will be somewhere in the far off future.

 

[johnny333]

For those who still remember Nokia the following story may be of interest.


Apple now the largest mobile phone vendor in the world by revenue

By Daniel Eran Dilger
Published: 05:40 PM EST


With sales of its iPhone handset and accessories hitting $10.47 billion in the winter 2010 quarter, Apple has now surpassed Nokia to become the world's largest mobile phone maker in terms of revenue.

Nokia's most recently reported quarter saw its Devices & Services division bringing in 7.17 billion Euros ($9.7 billion), and the company projects Q4 sales of 8.2 to 8.7 billion Euros ($11.4 to $11.7 billion), but this includes more than just its smartphone sales.

Nokia's Devices & Services folds in the company's line of handheld mobile computers, tablets and other devices falling within its Mobile Solutions group, as well as its global sales of non-smart feature phones in its Mobile Phones unit, as well as a Markets unit that manages the company's Ovi-branded services ranging from email to its music and app stores.

Adding Apple's own $1.4 billion in iTunes Store revenues to its iPhone revenues tilts it ahead of Nokia's Devices & Services in the winter quarter, even before threatening to bust the scale with its multibillion dollar iPod and iPad ($4.61 billion itself) sales.

Apple began bragging last year

A year ago, Apple's chief executive Steve Jobs pointed out that Apple's then record $15.6 billion winter quarter had turned it into the "largest mobile device company" in the world, ahead of Nokia, Sony and Samsung.

"I just didn't want to let this moment pass without recognizing it," Jobs said. "It's pretty amazing."

Nokia was quick to dispute the claim, with its own chief executive Olli-Pekka Kallasvuo insisting that at the time that Nokia was still the world’s biggest mobile device manufacturer, when using a “generally accepted and stable definition of mobile devices,” which excluded notebook computers (which Nokia doesn't make in significant quantity).

This year, Apple doesn't have to include MacBook sales in a disputed definition of what a "mobile device vendor" is, and can instead simply snatch the crown of "world's largest mobile phone vendor" from Nokia. The Finnish phone giant has since replaced its former CEO with Stephen Elop, who joined Nokia last September after leaving his previous position as head of Microsoft's Business Division in charge of delivering Office.

Apple's mobile business growing fast

Apple's chief financial officer Peter Oppenheimer also pointed out Apple's mobile business is growing at a faster pace than even the fastest growing smartphone segment of overall market.

"We were thrilled to have sold 16.2 million iPhones compared to 8.7 million in the previous December quarter," Oppenheimer said in his prepared remarks. "This represents 86% year-over-year growth compared to IDC's latest published estimate of 70% growth for the global smartphone market overall in the December quarter."

Most painful for Nokia is that Apple didn't beat it by flooding the market with cheap low end phones, but rather took away its mobile bragging rights with the kind of high end, Enterprise-savvy smartphone the Finnish phone company has found hard to deliver.

Apple's American invasion of Nokia's backyard

Oppenheimer noted that "Enterprise customers continue to embrace iPhone, with 88 of the Fortune 100 companies and almost 60% of the Financial Times Europe 100 companies now testing or deploying iPhones."

That's more than just an embarrassment to Nokia, which has long owned the European market while struggling to make inroads into North America. It's a direct invasion of its home field, once unquestioning dominated by Nokia's Symbian.

"Enterprise CIOs continue to add iPhone to their approved device list worldwide," Oppenheimer said. "Most recently, Fortune 500, like Wells Fargo, Archer Daniels Midland, DuPont, Staples, Starbucks and Genworth Financial, and Global 500 accounts such as Nissan Motor, BBVA [Banco Bilbao Vizcaya Argentaria], Standard Chartered Group and Danone, have made iPhone available to their employees."

Lots of room to expand

Most troubling for Nokia, however, is that Apple is just getting started. Nokia has sat on top of a dominant position in mobile phones for years, much as Microsoft has enjoyed high market share in the PC world. Apple has outpaced both, not by seeking to just capture market share, but by capturing profit share with a limited number of high end devices that are visible and attractive to customers and easier to support.

That gives Apple vast opportunity to continue to expand its share, eating into the mobile and PC markets even as Nokia and Microsoft scramble to hold on to their existing share of those markets through a wide range of low end devices that all blur together for consumers even as they become increasingly difficult and expensive for Nokia and Microsoft to support.

In his Q&A session, Apple's chief operations officer Tim Cook explained, "We've had 19 quarters straight of growing faster than the market [with the Mac], but we still have a relatively low share of a very large PC market despite having great momentum there. And so it would seem like there's enormous opportunity still there.

"We have a relatively low share in the handset market. The handset market is well over 1 billion units a year, and the smartphone market is growing faster than a weed. And so there's enormous opportunity here, and we have incredible momentum in that space."

At the same time, Apple has also introduced iPad as a new product category in a space that neither Microsoft nor Nokia has been able to successfully target, despite years of trying with their Tablet PC and Internet Tablet initiatives.

"iPad just got started, it's a new category," Cook noted. "We sold almost 15 million through the first three quarters, and we believe the market is huge. IDC, I saw this morning, is predicting it to quadruple in two years. I don't know what to predict in terms of specific numbers. However, we believe it's a huge market, as we've said before. And so we're in some great markets, some fast-moving markets, we have the best products we've ever done and an incredible product pipeline. We feel very, very confident."