Apple celebrates another record quarter

If more money really does make Steve Jobs more evil, then his journey towards the dark side is almost complete. Apple has reported another record-breaking quarter, with revenue of no less than $15.7 billion in the three months leading up to June 26. (Those three months, by the way, correspond to Apple’s third fiscal quarter.)

$15.7 billion is a pretty sizeable increase over the previous quarter’s numbers, let alone those from a year ago:

   Q3FY09 Q2FY10 Q3FY10
Revenue $9.73 billion $13.50 billion $15.70 billion
Net profit  $1.83 billion $3.07 billion  $3.25 billion
Gross margin  40.9% 41.7%  39.1%

In terms of units moved, Apple says it also set a "new quarterly record" with Mac shipments, which hit 3.47 million in the third fiscal quarter:

   Q3FY09 Q2FY10 Q3FY10
Macs 2.60 million 2.94 million  3.47 million
iPods 10.20 million 10.89 million  9.41 million
iPhones 5.20 million 8.75 million  8.40 million

The iPad did quite well, too, with shipments totaling 3.27 million units for the quarter. As the table above attests, that means Apple sold more iPads this quarter than it did Macs last quarter—quite an achievement for the first device in an essentially new product category. (Of course, cheaper products move quicker than expensive ones, and Macs start nowhere near $499.)

Comments closed
    • jackbomb
    • 10 years ago
      • WaltC
      • 10 years ago

      Maybe I missed it somehow, but I’m wondering why this story of Apple’s record quarter got the full feature treatment here at TR, but the story about Microsoft’s record quarter was relegated to barely a sideline mention, if that.

      §[<http://www.microsoft.com/msft/earnings/fy10/earn_rel_q4_10.mspx<]§ Gotta' be the RDF at work...;) Nobody exists or *ever* has "record quarters" besides Apple, apparently. When Apple does it it is Big News, but when anybody else does it it barely registers a yawn. Very odd people, these Macolytes....:D Other interesting numbers and observations.... * Why were iPad sales for the quarter omitted from the table showing iPod, iPhone, and Mac sales for the quarter? If the iPad actually did sell 3.27M units during the quarter, why not add it to the table? *Both iPod and iPhone sales were down from last quarter *This next one is the real eye-opener for me..if we assume that last quarter Apple sold 9.41M iPods, 8.4M iPhones, 3.27M MaxiPads, and 3.47M Macs (assuming by "Mac" we mean every conceivable configuration a "Mac" can be--ie, Macbook, iMac, mini, etc.), then we are left with a grand total of 24.55M devices of all descriptions Apple sold in total last quarter. This indicates that /[

    • ub3r
    • 10 years ago

    Microsoft needs to start making mp3 players, and phones.
    Maybe they call it a MicroPod. hehe

      • Corrado
      • 10 years ago

      Microsoft DOES make MP3 players and Phones. The Zune and the Kin (that got discontinued something like 6 weeks into its life).

    • Thresher
    • 10 years ago

    Hype or not, people genuinely like and buy Apple products. PC fanboys will tell you that it’s because of the RDF or just generalized delusion. Maybe for a small, hard core group. But when a product or brand has hit this kind of mass market appeal, maybe it’s time for other companies to realize that Apple may be on to something.

    Companies that treat computers and peripherals like high technology items are going to lose. Companies that see these as lifestyle and consumer products will win. Apple has figured this out and has transformed the entire company around this thinking. Even in their Pro stuff, the limit of their technical marketing is “it does stuff faster”, not that it has so many gigaflops and doohickeys.

    The only people that care about numbers and specifications are geeks like us and IT managers. Consumers just don’t care, as long as the computer can do what they want it to do. Apple ties this all up in a nice little bow for people with peripherals and devices like the iDevices.

    • Silus
    • 10 years ago

    I guess this is the sign of “it doesn’t matter if publicity is good or bad, as long as there is publicity”…

    But then again, the Apple fans go beyond “normal” brand fan boys/girls, going as far as buying certain Apple products several times, to own or to give away, without even considering anything else in the market. I said it before but I’ll say it again, Apple is the master of PR and did it so well, that these fans are in it for life…

    I really can’t find any other explanation for the continuous record breaking quarters, when their products are average at best (considering the price) and, in the past few months, have been plagued with several issues, some of them quite serious, yet the blind fans keep buying them without the slightest consideration.

      • SubSeven
      • 10 years ago

      Kind of like you and Nvidia isn’t it? Do you give ATI much thought when purchasing video cards?

      • Thresher
      • 10 years ago

      Your rationalization is naive.

      You can hoodwink or snow a certain portion of the market, but not this much. Apple is doing something right. Their PR is an important part of that, but their products have to be desireable for the PR to work.

    • pogsnet
    • 10 years ago
      • Convert
      • 10 years ago

      Personally I haven’t found their products to be all that inferior quality wise.

      As Apple is bound just like everyone else by the technology of today they are just as likely to have issues.

      That extra price you pay for their product is not because of the quality of components or durability, it’s the design and function (not so much /[

    • jdaven
    • 10 years ago

    I’ll say it again even though some here don’t think you can compare the two but Intel had almost double the gross margin as Apple. Apple component costs have been increasing while the cost of some of their products (iPad) have been priced very aggressively.

    Even with the TR fud above in the article and CW, Apple is making money only because they sell quantity. They are consistently making less and less off each sale.

      • Skrying
      • 10 years ago

      I’m not really sure you can claim the iPad is priced aggressively. You kind of need a competitor to be priced against first.

        • tay
        • 10 years ago

        Actually it is priced agressively. 30% lower than expected which is why everyone returned to the drawing board…. and there is nothing out there to compete. People have the worst internet memory these days.

          • shank15217
          • 10 years ago

          What bull, the iPAD ranges from 500 to 830, very much what people “expected”. Of course some idiots claimed that it would cost $1000+ or more but that’s part of Apple’s distortion field.

            • jdaven
            • 10 years ago

            No, there is no Apple distortion field and yes the tay is right, the general consensus was that the ENTRY product price would be higher.

            Case in point, the Kindle 2 was priced at $429. Shortly after the ipad launch, they slashed the price by half.

            Another case in point, the HP Slate was priced around $500 but only offered about 5 hours battery life and a barely customized version of Windows on a power hungry Atom platform. The product was quickly canceled just before release.

            By the way, Apple admits that their price points will not sustain the historically high gross margins they have been enjoying. They said in the conference call that they priced the iPad aggressively. Don’t take their word for it, look at gross margins!

            • Thresher
            • 10 years ago

            Profit margins on the iPad, iPhone, and iPad range from around 30% to well over 50%. Their margins are doing just fine.

      • MadManOriginal
      • 10 years ago

      Why did you feel the need to bring this up again? It’s not very meaningful to compare gross margins across industries (CE device/system integrator versus semi fab company.)

        • jdaven
        • 10 years ago

        Because you insist on making up terms like Apple tax and reality distortion field. If you want to make up economic factors, I can compare companies in the SAME industry of technology. And unless you start adding Intel Tax and the Intel distortion field to the end of your posts, then I will continue to compare the overpriced products of both companies to make a point to apple-haters.

        By the way, Apple designs chips and Intel programmed a MID, smartphone, tablet OS called MeeGo. How are they “across” industries again?

          • OneArmedScissor
          • 10 years ago

          What the hell are you yammering about? How did Intel come into this? He’s not comparing them, you are.

          Here is a rough translation of your posts:

          “WILD TANGENT WILD TANGENT WILD TANGENT”

          The Apple distortion field is real because it’s you.

            • jdaven
            • 10 years ago

            Dude, I explained why I’m comparing Intel and Apple. I never said Madman was doing the comparison. He asked me why I keep comparing and I explained. What is wrong with you today?

            • sweatshopking
            • 10 years ago

            all you dudes need to settle down. I have noticed that we seem to be getting a little bit more hostile recently, and TR was always a pretty friendly place. I will for one, make a concerted effort to be less obnoxious and more patient, and diplomatic. Let’s not forget, geeks, that this is all frivolous, and doesn’t really matter. Let’s remember we came here for the community, as much as the news.

            • jdaven
            • 10 years ago

            Okay, I’ll make the same pledge and calm down. Sorry everyone.

          • MadManOriginal
          • 10 years ago

          You are really retarded if you think they are in the same industry. Just because some of the things they do is similar, but far from the same, doesn’t make it so. Their business models are completely different – designer which contracts out manufacturing and licenses IP versus semiconductor fab owner and CPU IP holder.

            • jdaven
            • 10 years ago

            Whatever it takes to justify calling Apple out on high prices but NO ONE else. Whatever it takes, huh, Madman?

            • MadManOriginal
            • 10 years ago

            Haha, no. More like whatever it takes to call you out on the foolishness of comparing gross margins across industries that are very different. (btw gross margins != product price.) Perhaps you should inform all the people in the financial industry that CE/system integrators are the same industry as semi fab companies, I’m sure they’ll do an immediate about face after the lightbulb goes off above their heads.

    • tanker27
    • 10 years ago

    WOW I would never have guessed that iPods sell that much? Do people always go out and buy the newest one out? Heck I still have my Gen 2 one that I use as a USB HD.

    I just wish their entry prices for their laptops werent so steep. But then again their laptops have a longer lifespan than that of any other company.

      • Convert
      • 10 years ago

      I will say it again; Apple does not have magic dust they sprinkle on their hardware to make it do something that it otherwise couldn’t.

      There is no reason that their hardware would last any longer than any other offering within the same class.

        • OneArmedScissor
        • 10 years ago

        There are reasons it would last less, like not being able to swap the battery.

        • SubSeven
        • 10 years ago

        Absolutely true. I still have one of the first generations 40GB creative jukebox players. It’s still essentially new and works just fine. If a person is an idiot and drops his electronics/takes poor care of them, they will not last long. Apple’s products, though some are of higher build quality, are made of the same crap components/insides fabricated in taiwan/china/singapore/whatever that you will find anywhere else. Apple products lasting longer is just a wonderful illusion Apple’s marketing team has fabricated and got the average moron to accept as fact.

          • tanker27
          • 10 years ago

          So I’m a moron….riiiiiiight. In case you didnt hear my eyes click that them rolling.

          In my experience here at work, we have higher hardware issues with our HP/ Lenovo’s than our Mac’s. And let me tell you Joe Schmo is a monkey and since its not his money he treats it as such. I have seen laptops come in non functioning because it was left in a hot car here in the southeast and a MacBookPro take the same beating and it works like a champ.

          No matter what Apple advertises and no matter what anecdotal evidence I can provide, all I can say is that Apple’s products survive.

          But there will always be the naysayer. Hell I was at one time until we started giving them out here at work and I started to use one on a regular basis.

            • OneArmedScissor
            • 10 years ago

            The last round of Macbook Pros were heating up to over 100C. Then there’s the yellow 27″ monitor debacle.

            Maybe at one point they were somehow built “better,” but their track record as of late has been increasingly strange issue after issue with the updated versions of even their most expensive things.

            • 5150
            • 10 years ago

            I had a Macbook at work with a battery that was bulging out so far it popped out of the laptop. The lady at Apple told me it was a feature to let me know the life of the battery was depleted. ROFL

            • SubSeven
            • 10 years ago

            Yes, you are indeed a moron. Let me have your address, I’ll UPS you a cookie to make you feel better for paying god knows how much for hardware that is the same elsewhere at half the price.

            • Corrado
            • 10 years ago

            Except when you compare like configurations and lines, its not more expensive. Compare the MBP to an HP Envy or a Dell Adamo. You know, the ones that also feature metal casing instead of flimsy plastic. The ones that include an IPS screen instead of a TN. Ones that have a GOOD trackpad and keyboard, and not some ALPS junk like the Dell Latitude my work gave me that doesn’t recognize multi-touch at ALL and its only a 3 month old laptop.

            People often forget the superiority of the IPS panels Apple uses compared to the competition, and the proper glass trackpad.

            • A_Pickle
            • 10 years ago

            Yes, because a MacBook Pro is comparable to a Dell Adamo or HP Envy.

            • Corrado
            • 10 years ago

            How is it not? Are you saying a macbook pro, which is all aluminum, and has a superior ips screen, is comparable to an all plastic Dell Inspiron or an HP Pavilion?

            You’re probably the same type of person that says that theres no way a BMW should cost as much as it does when you can get a Hyundai Sonata for 1/2 the price. Its just… not the same. Build quality, materials, and overall driving characteristics are just that much better.

            • crazybus
            • 10 years ago

            I’m not aware of any current notebook that uses an IPS screen. The Macbook Pro’s do have better than average TN displays, but they’re not IPS.

            • Corrado
            • 10 years ago

            My bad. Apparently the next revision will have IPS screens in them. The rest of my points still stand. The materials, keyboard, trackpad and battery life are all far superior to the consumer and business lines of most other mainstream manufacturers.

            • SubSeven
            • 10 years ago

            You are right, Apple does make some solid gadgets and some of these have better functionality/quality/design than other company equivalents. I like Apple products, I’d get me the Iphone 4 in a heartbeat if it was priced reasonably. What I really don’t like are Apple’s ridiculous pricing and their endless efforts to keep their products as difficult to interface with non-apple products as possible. Often times (at least in my opinion) the benefits/better build quality that Apple offers is just not worth the price they are asking. Better and cheaper alternatves usually exist.

            • Thresher
            • 10 years ago

            Wait, $200 for an iPhone is too much? Have you SEEN the prices for other smartphones? Even at full retail, smartphones all seem to be priced in the same ballpark.

            • SubSeven
            • 10 years ago

            Have you seen the plan prices?

            • cygnus1
            • 10 years ago

            You should clarify then. You don’t have a problem with the iPhone price, you have a problem with AT&T service prices…

            • tanker27
            • 10 years ago

            I am pretty sure Gizmodo ran a graphic that stated over the life (2 years) of any smart phone the AT&T plan was the cheapest including the price of the phone.

            oh [url=http://www.gizmodo.com.au/2010/06/iphone-4s-real-cost-versus-other-top-smartphones/] Here [/url] it is.

            As for getting the Apple’s to play right on the network, there were some initial troubles but nothing that couldnt be overcome. Most of the perceived issues were just that people didnt know/ understand the Mac side of things. All of which was rectified quite quickly with training.

            As for the comparison to other laptops, it may not be a true….everythings equal test but just dont underestimate the normal user who can break anything. Our Macs have held up way better than any other laptop we have provided. In fact I use a 15″ core 2duo that has probably been in at least 10 peoples hands before mine, it may look a little rough but runs well.

            • Skrying
            • 10 years ago

            Your statement wasn’t misleading at all. Not at all…

            That graphic shows AT&T has the cheapest MINIMUM plan. That’s limited data. They’re the second most expensive Unlimited Plan. I’d venture to guess most people considering a modern smartphone want the unlimited plan.

            • Corrado
            • 10 years ago

            There is no more unlimited plan from AT&T and Verizon is about to follow suit.

            • MadManOriginal
            • 10 years ago

            There’s a difference between more expensive components and ‘better’ ones in terms of longevity, durability etc. They aren’t automatically mutually exclusive but neither are they automatically inclusive. There’s a trail of the ‘better’ Apple products having problems just like other less expensive ones. The design and ‘sizzle’ (versus steak – you sell the sizzle) is what differentiates Apple not the quality as in durability of components.

        • travbrad
        • 10 years ago

        No magic dust should be required for an mp3 player to last a few years. I don’t think he was commenting on how great iPod’s reliability is, just wondering why so many people are buying a product that should last a good 5 years at least. I was thinking the same thing, and can’t figure it out either.

          • Kharnellius
          • 10 years ago

          Easy. There are over 300 million people in the US of which a lot have not bought one yet. Each time a new model comes out or price drops they reach a segment of the market that hadn’t really been tapped yet. Add to that the group that are replacing old iPods and you could almost be surprised the numbers aren’t higher.

            • travbrad
            • 10 years ago

            I guess that’s true, plus they sell them all over the world. They’ve “only” sold about 250million worldwide according to the wikipedia. Obviously not everyone in the world is going to be able to buy one, but even just the “first world” countries have well over a billion ‘potential customers’.

            I still don’t see why people would be replacing their old iPods though. Most of the iPods sold were sold since 2005-2006 or LATER: §[<http://upload.wikimedia.org/wikipedia/commons/3/34/Ipod_sales_per_quarter.svg<]§ Do iPods normally fail/break that quickly? I have one from late 2005, and a few friends have iPods even older than that which are still working. I go running with mine (even when it's only 30degrees or so) and have dropped it several times, and it still works fine despite having a mechanical HDD.

            • Kharnellius
            • 10 years ago

            Not really but keep in mind people do own multiple. The original models didn’t have the storage capability they have now or the functionality. Original models had 10gb and only played music.

            Throughout the years they added photos, movies, smaller versions, storage up to 120gb, apps, touch screens, flash memory, etc…

            I know a lot of people who own both a classic and nano since nano is so much better for shuffle. Right there you can double or triple the market if people have multiple ipods.

            Also, where I work shuffles were sometimes sold in bulk to companies as employee gifts or prizes. These numbers probably include the shuffle.

            Lastly, don’t forget the touch. Once that came out people just wanted the apps and replaced their old ipod for one (plus enormous screen for movies).

            EDIT: The cost of replacing the battery sometimes prompts people to buy a new one also. (~$99 if I recall correctly)

          • Convert
          • 10 years ago

          According to the second half of his post he made the statement that their laptops last longer than other offerings, that is what I was commenting on.

      • can-a-tuna
      • 10 years ago

      i<insertRandomWord> stuff sells well. Nokia should start using i-prefix. “I” makes people crazy.

      • jstern
      • 10 years ago

      I was just thinking last night about how I would never buy another Apple product, simply because of how expensive and how absolutely shitty my macbook is. It’s a pretty, piece of shit hardware. Typical annoying problems, when it gets too hot, the sound starts skipping, cracks from cheap plastic on a laptop that I don’t even move because the screen is so shitty that I mainly connect it to a monitor. Swelling battery, that presses against the keyboard and track pad, makes it impossible to type, because it makes the track pad ultra sensitive, so it always takes your current typing position to another spot on the page. But don’t worry Apple says, the fact that the battery is swollen means that it’s working the way it was designed, so that it won’t explode. And then there’s Apple themselves, can’t just go to their page and upgrade my bootcamp drivers to work under Windows 7, because the way they do business is to in a sense not focus on the older hardware to make their users upgrade. My macbook is from 2007, all of the problems I mentioned happened withing the 1st few months.

    • Caveira2099
    • 10 years ago

    kudos to all those who kindly delegated the control of their minds to Apple…. You should be very happy, you’re part of it after all!!

    • tay
    • 10 years ago

    iPhones went down in Q3Y10 than in Q3Y09? Hmmm Android ruining Apples plan?

      • blastdoor
      • 10 years ago

      Yup, apple is doomed. You should short the stock.

        • PerfectCr
        • 10 years ago

        SELL SELL SELL!

        • tay
        • 10 years ago

        Why are you such a tard… There are 2 iphones, 2 ipods, and 2 macs and 2 PCs between my wife and I. No stock though (all money gets spent j/k). I’m not saying they’re doomed, I’m wondering if iphone growth is stagnating because of Android. Mac vs PC again, just different. It could happen….

          • NeelyCam
          • 10 years ago

          I’m wondering why people always feel the need to announce that they have company X’s products before they are allowed to say anything (negative or positive) about the company…

          It’s not like owning a gadget gives you a hugely better insight on this company’s business, or lesser bias towards it, compared to an average joe six-pack

            • tay
            • 10 years ago

            Well, did you see the responses to my post? Asking a normal question, getting ridiculous answers. Although others pointed out the iphone4 leak to be the likely culprit.

            • OneArmedScissor
            • 10 years ago

            The iPhone 4 leak is just an excuse. How many people do you really think keep up with that stuff? They still sold an insane amount of them right at the start.

            There are more Android phones selling than iPhones, constantly more of them coming out, and iPhones have already been around several years, stuck to AT&T all along. I think you had it right to start with.

            • jdaven
            • 10 years ago

            Man, people just like to ignore reality. APPLE STOPPED SELLING IPHONES FOR TWO WEEKS. This is why the number of units dropped. They ramped down production of the 3GS and stopped taking orders. The buy buttons were removed, I’ll say again, removed from Apple.com and buyers could only get phones that were already in the channel which is significantly less than when the phones are actively being sold.

            Now back to reality. Android has been doing extremely well and the competition will keep both companies innovating and honest. And hopefully HP will turn Palm IP into a market force and MS will release an awesome Windows Mobile Phone 7 OS. Go Google! Go Apple! Go Microsoft! Go HP/Palm!

            • OneArmedScissor
            • 10 years ago

            Yes, there is someone here who likes to ignore reality, alright.

            • jdaven
            • 10 years ago

            Why is it so hard to understand that if you stop selling a product for two weeks, sales go down?

            I guess you need some proof:

            Here Apple stopped selling the iPhone before the release of the 3G back in 2008.

            §[<http://www.betanews.com/article/Apple-stops-selling-current-iPhone-as-3G-speculation-grows/1210609570<]§ Here Apple stops selling the $99 3G before the release of the Iphone 4. §[<http://www.nextiphonenews.com/2010/05/walmart-cuts-iphone-3gs-price-and-apple-stops-selling-iphone-3g/<]§ Here's a story about the white iphone 4 not being available yet which could also hit sales for those willing to wait for white. §[<http://newzcurrent.blogspot.com/2010/06/hite-iphone-4.html<]§ Here is a story that puts iphone estimates for the next quarter at greater than 10 millions units once supply constraints are alleviated. §[<http://sanjose.bizjournals.com/sanjose/stories/2010/07/05/daily11.html<]§ Discontinuing sales mid-quarter, constrained supplies, unavailable models, etc. will impact sales during a transition. Once all this is alleviated sales will jump as predicted in the next quarter. Now reality can continue.

            • OneArmedScissor
            • 10 years ago

            §[<http://news.cnet.com/8301-30686_3-20004585-266.html<]§ 160,000 Android phones being activated per day, with the amount increasing every month, is not exactly inconsequential to Apple.

            • derFunkenstein
            • 10 years ago

            Yeah, I’m seeing alot of Androids in the hands of friends, anecdotally speaking, who are exactly the market Apple targets – the non-corporate smartphone Facebook/Twitter/4Square crowd.

      • Corrado
      • 10 years ago

      Either that or, no one bough 3GS’s because they knew the iPhone 4 was coming out, and the 3GS price drop only happened a week or two before the 4 launched.

        • PixelArmy
        • 10 years ago

        If you were holding off your earlier iPhone 3GS purchase due to the iPhone 4, presumably you were getting the iPhone 4 on release day (6/24) or pre-ordered it. Which I believe barely squeaks into the Q3 time frame…

        Though this is just a guess at the buyer’s behavior.

        • jdaven
        • 10 years ago

        For two weeks during the quarter, Apple stopped selling the iPhone. This 2 weeks was between WWDC and the release of iPhone 4. This is why the sales are a tad lower. It’s pretty simple really.

      • End User
      • 10 years ago

      Compare iPhone units moved Q3FY10 to Q3FY09 – a big jump.

      • can-a-tuna
      • 10 years ago

      No, its because of this: §[<http://www.youtube.com/watch?v=PNPQMMO428s<]§

    • lycium
    • 10 years ago

    that’s about 1954 dollars per second.

      • Meadows
      • 10 years ago

      You could drown a WoW boss in that.

        • ironoutsider
        • 10 years ago

        PFFT with a merely 1954 dollars per second? (DPS) Its fairly obvious this guy’s a noob with low level gear. Come back when you’ve got 10k dps.

          • 5150
          • 10 years ago

          3P1C L00T2!!!1!

          • derFunkenstein
          • 10 years ago

          I only need 5 or 6 seconds of their time. :p

    • djgandy
    • 10 years ago

    They could make a trillion and they still wouldn’t give their Foxconn workers a pay rise.

    Ironic considering the image Apple has.

      • tay
      • 10 years ago

      “DJ” do you know what a corporation is? They make contracts for supply of goods with unrelated corporations. One such contract is between Apple and Foxconn.

      Now drop it…

      • Corrado
      • 10 years ago

      They don’t own foxconn, or the employees. Do you give the McDonald’s worker more money because you buy from them and that guy is underpaid?

      • jdaven
      • 10 years ago

      If Foxconn wants to pay its workers more, Foxconn has to increase the cost of its contracts. Why would Apple be responsible for the salaries of employees in another company?

      In fact, my Vietnamese friend, says that China companies ARE increasing contract costs and now some American companies like Nike are moving to Vietnam.

      Remember its not China, its not Foxconn, its not Apple, its US, you and me the consumer that is responsible for the salary situation. Our insatiable desire for prices to be lower than the product can sustainably account for has caused companies to compete on a level that makes them move to the country with the lowest salary requirements.

      If you want these workers to make more money, be willing to pay more for products.

        • NeelyCam
        • 10 years ago

        ^ This. American consumers have been voting with their dollars, and the votes are counted: one’s own wallet means more than human rights in some distant country.

        • blazer_123
        • 10 years ago

        Your completely missing the point. Economic theory suggests that the market theory behind apple is _[

          • jdaven
          • 10 years ago

          Wow, okay I defer to the guy with the big words. So in other words, What he said.

          • Thresher
          • 10 years ago

          If you are inferring that Apple has a contract of adhesion with Foxconn, that’s just crap. Foxconn does a lot more than just contract manufacture. They can take or leave this business and if Apple wasn’t willing to pay them enough to pay their employees well enough, they could do something else. Certainly Asustek and others had the chance to bid on production.

    • blastdoor
    • 10 years ago

    I wonder if a company of this size has ever continued to grow this quickly. It’s amazing. And they still have so much more room to grow! Any stock predictions for the future? I’m guessing $500 a share by the end of 2012.

      • sweatshopking
      • 10 years ago

      uhhh. yes. microsoft grew faster than that back in the day. considering how influenced people are by marketing, it really isnt THAT amazing. what is amazing is the fact that after all these years, he still doesn’t have nicer clothes. those glasses are so 1980’s.

        • blastdoor
        • 10 years ago

        I’m talking about the growth rate for a COMPANY OF THIS SIZE.

      • tay
      • 10 years ago

      Many people suggest that future growth is already factored into the stock price. You’re right though they can’t grow quickly, indefinitely.

        • blastdoor
        • 10 years ago

        Was future growth factored into the stock price when the stock price was $10 a share?

        If future growth is factored into the stock price, why does the stock price ever change?

          • Skrying
          • 10 years ago

          Growth can occur faster than predicted. At the $10 point one wouldn’t be insane to guess that potential bankruptcy was factored into the price. Things change…

          • tay
          • 10 years ago

          I meant currently. As poster below said, there was a huge risk of failure when AAPL was $10. I didn’t think I needed to clarify to that degree.

            • blastdoor
            • 10 years ago

            So how is today different than the past? Why would today’s stock price factor in future growth but stock prices of the past did not?

            I think the notion that current stock prices “already factor in” X, Y, or Z is often overstated by people who think markets have magical properties. Markets can get prices radically wrong for extended periods of time.

      • SubSeven
      • 10 years ago

      Sell like your life depended on it. Apple is priced at the moment assuming absolutely ridiculous growth projections, far higher than any company of its market cap has ever been priced at. I don’t care if their Iphones and Ipads and whatever are the greatest thing since sliced bread but sooner or later (and you can see it happening slowly) market saturation will occur. Furthermore, Apple cannot keep it’s prices on its products so high for eternity; sooner or later pricing pressure will occur from competition. This doesn’t bode well for them because as you can already see, their current margins (40%) aren’t all that hot and any prices decreases will hurt them significantly. Apple stock price is holding on at the moment because of fantastic momentum and financial success and a fair dose of irrational market exuberance; but nothing lasts forever, this you can be certain of. If Apple breaks through 300 it would be impressive. Rest assured that the slightest bit of negative news will send this stock crashing down.

        • pedro
        • 10 years ago

        I generally agree, altho’ you have to admit these antenna stories were bad news and they didn’t really send the price tumbling.

        If anything, bad news tends to get more people out there buying this crap.

          • SubSeven
          • 10 years ago

          Actually they did, it wasn’t just immediately dramatic. If you recall the day when consumer reports did not endorse their latest iphone, the market was up some 270 points and apple was down like 10bux

            • pedro
            • 10 years ago

            Granted. It’s all been made back mind you in just a few days.

        • blastdoor
        • 10 years ago

        Apple’s P/E is 22. Amazon’s is 53. Google’s is 21. Microsoft’s is 13. IBM’s is 12.

        So Apple’s is high compared to other companies of its size (except Google, which is in the same ballpark), but Apple is also growing much faster than those companies.

        But still — I strongly urge you to short the stock. Don’t just sell it, SHORT it. I dare you.

          • SubSeven
          • 10 years ago

          Comparing company PEs in the way you are doing is like taking two pieces of used toilette paper, smelling them, and seeing which one smells better… a really stupid activity. PE ratios though useful at times are among the most misleading and useless metrics that exist. Just because AMZN PE is 52, it doesn’t say that AAPL isn’t overpriced. It may perhaps suggest that AAPL is overpriced and so is AMZN, just maybe more so. Furthermore AAPL is 5X larger by market cap than AMZN, something you should account when looking at cross company PEs.

          Lastly, why are you telling me to short the stock when you were making predictions that AAPL will hit 500 by 2012 in the post above? Furthermore, I have every intention of shorting AAPL though I do not believe the time has come yet as the stock still has too much positive momentum.

            • blastdoor
            • 10 years ago

            I’m telling you to short the stock because I believe it will reach $500. I suggest you short at $300 and cover at $500.

            • SubSeven
            • 10 years ago

            Oh I see, so you want me to lose 200/share. How mighty noble of you. Well I’ll tell you something, if Apple hits 500 it will be half a trillion dollar company…. that will happen in your dreams. Jesus will be here long before Apple hits 500 and you can quote me on that.

            • blastdoor
            • 10 years ago

            I just want you to put you money with your mouth is. If you are anything other than a big mouth blow hard, you will short the stock. I’m long with 400 shares (bought at 160). So, will you do it, or are you all talk?

            • SubSeven
            • 10 years ago

            First I think you are full of sh*t; if you want me to believe that you have $64K invested in Apple then you are out of your mind. But I’ll give you the benefit of a doubt. With that said, all I’ll say is that you are in for some pain boy. With respect to putting my money where my mouth is, please read the second paragraph of #39 again.

            • KoolAidMan
            • 10 years ago

            Actually he has just over $100000 in AAPL.

            And I agree, you should short it, short the crap out of it. I know fools online that have been trying to short it since $120, $150, $170, $200 and if they’re lucky they just keep continually getting stopped out. If they aren’t then they’re hoping they don’t get a margin call.

            You should short it, seriously, don’t do what most internet commentators do and actually put your money where your mouth is.

            • blastdoor
            • 10 years ago

            Well, you’re both right. Started off as $64k, now it’s over $100k.

            I plan to hold on until it’s at least $200k. It doesn’t take much imagination to see how it can get there. Apple has expanding shares of expanding markets. They could double their PC market share and still be a relatively small player with room to grow. They could double their iPhone sales and still have less than half of that (rapidly growing) market. The iPod is in decline, but the iPad will more than make up for it.

            I’ve put my money where my mouth is and I’m doing just fine. SubSeven has a big mouth and excuses for why he’s not backing it up with money. I say put up or shut up. Short it now, or stop yapping.

      • PixelArmy
      • 10 years ago

      Just curious, what are we looking at when we quantify and compare “growth”?

        • blastdoor
        • 10 years ago

        I was thinking of revenue and profit growth. The year-over-year percentage growth in those two things is really large for a company of this size.

          • PixelArmy
          • 10 years ago

          What do you think of the record Microsoft and Intel quarters recently? Would you count those as “growth”? Is there a distinction between growth and just doing really well? Or is that the definition of growth?

            • khands
            • 10 years ago

            I think doing really well consistently is the definition of growth, doing really well in just a quarter or two gives the appearance of potential growth.

      • Thresher
      • 10 years ago

      People forget that Dell grew like this early on.

    • ub3r
    • 10 years ago

    Its all part of the evil master plan!!

Pin It on Pinterest

Share This