Apple breaks new records with latest results

At this point, Apple posting record-breaking quarterly results almost doesn’t qualify as news. The Mac maker is riding a tidal wave of shiny aluminum and glass, and there’s little the competition seems to be able to do about it. Case in point: the company’s first 2011 fiscal quarter, ended December 25, which saw Apple enjoy record revenue and profits yet again:

   Q1FY10 Q4FY10 Q1FY11
Revenue $15.68 billion  $20.34 billion $26.74 billion
Net profit $3.38 billion  $4.31 billion $6 billion
Gross margin 40.9% 36.9% 38.5%

Gross margin shrunk a teeny bit compared to a year ago, although considering the 78% increase in net profits, that doesn’t quite appear to be a cause for concern.

What about shipment figures for Apple’s key product lines?

   Q1FY10 Q4FY10 Q1FY11
Macs 3.36 million 3.89 million 4.13 million
iPods 21 million 9.05 million 19.45 million
iPhones 8.7 million 14.1 million 16.24 million
iPads 4.19 million 7.33 million

Well, nobody familiar with Apple’s quarterly statements should be too surprised. Mac, iPhone, and iPad sales are all up, while iPod sales are slowly shrinking year over year. Those iPad shipments are quite impressive, incidentally—they’re more than twice as high as those Apple reported for the third quarter of its 2010 fiscal year.

Apple is bracing for additional record breaking this ongoing quarter, believe it or not. CFO Peter Oppenheimer says in the results announcement that he believes revenue will add up to $22 billion in Q2FY11, which would be a sizable hike over the $13.5 billion Apple posted for the same quarter last year.

Comments closed
    • moog
    • 9 years ago

    I’m envious. I just wish the leadership at MS could change the public image.

    I think we do good things but they largely go overlooked (the phones are pretty good, really). I think our marketing is a failure, I turn on the TV and I see google turning people into borg but nothing from us.

    • Jigar
    • 9 years ago

    ” There is a sucker born every minute” this saying is so wrong against Apple. (Exclude the latest iphone4 out of that list)

    • A_Pickle
    • 9 years ago

    Oh, so this is how fast consumers are throwing away their rights to their devices? Good information, thanks!

      • Silus
      • 9 years ago

      You’re holding it…er…I mean, looking at it wrong 🙂

    • StashTheVampede
    • 9 years ago

    How much hate do we have on Apple for bringing heavily consumer minded products and advancements to the consumer?

    The iPhone (which I don’t have) was so much better than any other smart phone (at the time) and is helping make competitors REALLY think about how to build the phone/OS. Microsoft finally killed Windows mobile and started fresh, HP is focusing WebOS with its touch interface and Google is definitely working on their interface toward a more iOS-like setup. The iPhone4 has a higher DPI than any competitor with a shipping product and has one of the best battery life as well.

    Apple’s notebook changes are also HEAVILY geared toward the consumer space as well: mini-displayport (which is a FREE license), Magsafe battery connectors (ask any laptop user how useful this is), multi-gesture trackpads and UBER long battery life!

    These are consumer focused items that end users care about.

    • constantine603
    • 9 years ago

    While these are impressive numbers. I doubt the growth will be sustained for more than another year.
    I only give them another year because the Verizon iPhone will bring in a whole new revenue stream.

    They are now seeing major competition to the iPhone through an array of companies and will see major competition this year when it comes to the iPad.

    They will go through the same growing pains that every company goes through. Especially after Jobs leaves and the grand vision/control is gone. (70% of why the brand got to where it is now)

      • blastdoor
      • 9 years ago

      I really hope that there are a lot of people who agree with you and put their money where there mouth is regarding the stock — I’d love to buy more AAPL at a discounted price.

      Also, I think it’s a little weird that someone voted thumbs down on your post. I voted thumbs up to negate it. Your post expresses a perfectly reasonable and understandable point of view in a totally non-trollish way. I don’t agree with it, but I don’t think it’s unreasonable.

      My hope would be that people use “thumbs up” to indicate agreement with a post and “thumbs down” to indicate disapproval of trolls. I suggest that people NOT use “thumbs down” just because they disagree with it.

    • ClickClick5
    • 9 years ago

    Heh. My profit from last year was about 2% from the year before.
    Hows that for a margin?!

    As a gamer and video enthusiast, I can not afford the hardware that apple has for my needs. I can build a pc to do what I need for two to three grand. OR I can break down, remove my balls, act like my ego just got a shot of adrenaline because I got a Mac, and worship apple by throwing out eight grand for their mac pro.

    I see apple doing very well for many more years due to their ability to market a paperweight and people buy it for “Just $499.”

    I sware, if Steve sold apple branded Bic pens for $99, they would sell millions.

    Want to save money in the resession America? Shop smart.

      • Corrado
      • 9 years ago

      What happens if you buy a $400 Asus laptop and it breaks on you in 6 months? What happens if you buy a $900 apple laptop and it breaks on you in 6 months?

      The answer is, most people with the asus laptop would go buy another laptop. Most people with the apple would bring it to the apple store and Apple would repair it.

      • KoolAidMan
      • 9 years ago

      Mac Pros use Xeons, ECC RAM, and server grade motherboards. Price it against a Dell Precision or HP workstation, the prices are in line with each other. Better yet, price the CPUs on Newegg, they cost almost as much as my gaming PC.

      Don’t hate just because you can’t afford a Mac, and don’t hate because you have your head in the sand that the iPad is actually a great device. It wouldn’t have sold more units in one year than the XBox 360 sold in three if it wasn’t great, that kind of mainstream acceptance is way beyond “Mac fanboys”. Know WTF you are talking about before you post.

        • ClickClick5
        • 9 years ago

        I typed that post on my Mac laptop.

        It is mainly geared toward those who complain about the economy just after buying the 3G iPad.

        This happened to me last week: “How could you buy the 6970 man? It is like $350! I wish I could get a card for that but im stuck with my 3870.” He however owns two iPod touches, an iPhone 4 and a 3G iPad.

          • KoolAidMan
          • 9 years ago

          That’s pretty funny, I hope you pointed it out to him. 🙂

    • sbarash
    • 9 years ago

    Apple breaks its own sales records? Who cares? I’m sure hundreds of companies in the computer business break their own sales records. Why isn’t that front page news at TR?

    I used to visit TR daily for years and years. Not anymore, and this is why.

    Not trolling. Just saying…

      • jdaven
      • 9 years ago

      I won’t miss you one bit. Who are you again?

        • sbarash
        • 9 years ago

        You’re right. Thanks. Trying to figure out how to delete my account…

          • sweatshopking
          • 9 years ago

          don’t take it to heart bro. Jdaven REALLY likes apple. that’s all. I understand your point.

            • jdaven
            • 9 years ago

            SSK, the guy/gal already says he/she doesn’t come to TR anymore because of Apple stories. He/she already took it to heart long ago and is gone. I’m not sure why he/she is back to leave this comment other than to say f*** you TR. He/she is too sensitive to have a site report apple news even though it is the largest tech company in the world. He/she has no point.

            Would you leave TR because there are apple stories?

            • sweatshopking
            • 9 years ago

            well, obviously, I wouldn’t. But I try to generally be nice to other people. even if i find them annoying. Not that I find sbarash annoying, just that I try to be nice all the time. I like you, and I thought (and can easily be wrong) your post was a bit harsher than necessary. I wanted to minimize any disagreement, and though I get a lot of -‘s, i do really like this community, and enjoy seeing it flourish. you know I ♥ you j!

            • jdaven
            • 9 years ago

            You’re right SSK. Being nice is the way to go. But I just can’t stand attitudes like sbarash who can’t bear to see apple news as if that will negatively hurt him somehow. This kind of stuff brings out the worst in me because it doesn’t make any sense. TR posts the year ago quarter, last quarter and current quarter earnings for a lot of companies like Nvidia, Intel, AMD, Microsoft, etc. The table above is very familiar. Why does this guy have a problem with just posting Apple earnings?

            • blastdoor
            • 9 years ago

            My humble suggestion is to just click the thumbs down button and move on rather than reply to obvious troll bait. In my view that’s the great advantage of the thumbs-up, thumbs-down thing — it gives people an outlet to express their dislike for trolls without feeding the trolls.

            I’m sure that I will be unable to always follow my own advice, but that doesn’t necessarily mean that it isn’t good advice 🙂

            edit — one last thought — one good way to recognize a potential troll is when they feel the need to write “not trolling”. The OP doth protest too much…

            • pdjblum
            • 9 years ago

            In all sincerity, sweatshopking you are a sweet, nice guy.

            • sweatshopking
            • 9 years ago

            🙂 thanks man.

      • MathMan
      • 9 years ago

      It’s news because the year over year growth has been staggering. No other companies of this size are able to match that.

      And, BTW, Intel financial results were also on the front page.

      Did you complain about that too?

      • pdjblum
      • 9 years ago

      Jdaven has his head so far up Jobs ass he can smell his breath. His self esteem and ego are tied to apple. Please don’t leave. We need hardware enthusiasts such as yourself and not sheep.

        • jdaven
        • 9 years ago

        See SSK, this is exactly the kind of comments I mean. It’s okay to post Intel, AMD, etc. related articles and quarterly earnings but for some reason, Apple brings out the hate in people like pbjblum and sbarash. They just can’t stand it. And this hate brings out the hate in me because I just don’t understand it.

        Apple is the largest tech company in the world. And this is TECH Report. Almost all TR staffers have declared they have an Apple product through blog posts, articles, etc.

        I AM a hardware enthusiast which is why I like to see Apple related news as well as other tech related companies. I build my own PCs, buy laptops, shop for smartphones, etc. What we don’t need is for TR to leave out important information because someone can’t stand seeing X company on the front page. How would TR ever be able to cater to everyone that way.

          • pdjblum
          • 9 years ago

          If you were truly a hardware enthusiast you would not have a hardon for apple. I am sure plenty of you will say I own an apple product and I am a hardware enthusiast. If you use an apple pc as your main box, you are clearly not.

            • jdaven
            • 9 years ago

            Guess what? I don’t have to prove anything to you nor do you get to define what a hardware enthusiast is or isn’t. That being said I will go toe to toe with you any day on my knowledge and ability when it comes to hardware and I will blow you away. Starting with a Commodore 64, I’ve owned almost every single type of PC imaginable with most being built from scratch.

            So you can take your PC elitism that you think you possess and go join sbarash in that corner of the internet where there is no Apple news whatsoever if it even exists (sorry SSK but he was asking for it).

            • pdjblum
            • 9 years ago

            lol. You are such an apple loser. Typical defensive jiberish of an apple fanatic whose self esteem is tied to ownership of apple products. Should it not be the owner of the site who tells people to go away? Maybe you should consult with Scott before you try to chase away his loyal readers of many, many years.

            • adisor19
            • 9 years ago

            I’m getting tired of this… It’s been very rarely now that i post on TR mainly cause of pple like you. It’s gotten old. Apple bashing used to be cool in the 90′ cause they deserved it. Heck, i used to laugh at Apple users constantly. Things have changed however. It’s no longer black and white as it used to be. Macs are now PCs. Very polished and very pretty PCs that also happen to do certain things extremely well : trackpad, magsafe, Firewire 800, unibody construction, high DPI displays, etc. I have yet to see/experience a trackpad on a PC that works as flawlessly as one on a Mac. I’ve had my MBP 15″ for 4+ years and tomorrow i’m actually selling it for 850$ CAD. ( bought it for 3K including the 3 year Apple Care) Try and do that with a 4 year old PC.

            The tech world is always changing and the change that is happening now is your every day consumer that is starting to dictate his/her needs. It’s not the geeks or the techies or the businesses that determine what sells and what doesn’t. It’s the consumers. Apple got that and they’re reaping the benefits.

            I obviously can’t change your opinion, but i suggest you look less at the price and more at the experience of a product.

            Adi

            • sweatshopking
            • 9 years ago

            you friggin guys. quit arguing. Let’s hug it out!!!

            • poulpy
            • 9 years ago

            I call a naked group hug, right here, right now!

            • adisor19
            • 9 years ago

            OMFG you read my mind !!!

            Adi

            • sweatshopking
            • 9 years ago

            awesome. this reminds me of the other barbecue I go to!

            • cynan
            • 9 years ago

            Yes. I more or less agree. No one can really argue that Apple isn’t a force to be reckoned with as a PC manufacturer. Likewise, they do offer very compelling products, for the reasons you mentioned.

            That said, the fact that people would actually pay $850 for a 4 year old used laptop (no matter how awsome it was when you bought it) speaks volumes about how Apple has inflated market valuation – and how much of this is a product of hype and excellent marketing. And, call me a cynic, why Apple stocks would be one of the last things I would add to my portfolio – particularly for the long term. Apple, no matter how much recent growth, can’t stay in the limelight forever.

            But what do I know?

            • NeelyCam
            • 9 years ago

            goddamn neophytes. I had a Vic-20. It took me two weeks to run out of memory, and I was 13

      • esterhasz
      • 9 years ago

      I’m a (non exclusive) Mac user and I too am sometimes annoyed by the overreporting on Apple, especially when the “news” is on the latest set of rumors. At the same time, earnings reports are extremely important as an indicator for the overall state of the industry, particularly in times of crisis. And Apple – by far the most influential tech company on the block – takes an even more central role here because everybody now tries to get some of that mojo. Apple’s sales numbers are living proof that the consumerization of computer products is working out to be hugely successful (from a commercial perspective) after having been dismissed for a very long time. Heck, Acer is babbling about phasing out netbooks in favor of tablets and that news alone is a sign for how much the whole industry now looks to Cupertino.

      So while you personally may not be interested in Apple news, there is currently no place in the world more central to the future of computing than 1 infinite loop…

      • KoolAidMan
      • 9 years ago

      Here is why this is news:

      Advanced Micro Devices: $8.40 average daily volume: $185million
      Nvidia: $23.63 average daily volume: $481 million
      Verizon Communications Inc: $35.77 average daily volume: $628 million
      Intel Corp: $21.27 average daily volume:$1.1 billion
      Microsoft Corp: $28.25 average daily volume: $1.6 billion

      [i<]Apple: $346.34 average daily volume: $5.2 billion[/i<] Even if you combined all of the above companies stock or average trading volume values, Apple would still eclipse them all. When one company alone is responsible for over $5 billion dollars worth of trade everyone pays attention to any minor thing they do. On top of that, they have more gross revenue than any of these companies and just sold 15 million iPads (holy shit) in the last year. It took three years to sell 9 million XBox 360s. If people can't recognize that this is newsworthy, then I don't know what to say.

        • Anomymous Gerbil
        • 9 years ago

        You do realise that the share price comparisons are totally meaningless without reference to the number of shares?

          • KoolAidMan
          • 9 years ago

          You realize you can get the same information by looking at total market cap? Here goes:

          Advanced Micro Devices: $5.4 billion
          Nvidia: $13 billion
          Verizon Communications Inc: $98 billion
          Intel Corp:$117 billion
          Microsoft Corp: $244 billion
          Apple: $312 billion

          Given these figures and their trading volume, my point still stands.

      • aces170
      • 9 years ago

      Apple is one of the biggest tech companies out there. Its making truckloads of money, I hate apple products, I like AMD products. But if I had to put my money, it would be apple all the way.

      They are doing the business the right way, they do not follow the herd mentality, and they are continuously innovating their products the right way (true they might not be the first, but they are certainly the first to do it the right way).

      Apple is in the news because they are one of the few companies who have grown tremendously during the recessionary period. Their rise to success is one in a million probability, the only companies which come to mind with this kind of growth I can think of are Microsoft in the 90’s, Google in the early 2000, IBM in the eighties, and ofcourse the big investment banks in late 90’s (Goldman, and Morgan Stanley etc)

    • blastdoor
    • 9 years ago

    It won’t be long (maybe 1-2 years) before Apple’s annual revenue is at least as great as the SUM of Microsoft and Intel’s revenue. And it might not be too much longer beyond that when Apple’s annual profit is at least as great as the sum of MS and Intel’s profit. Pretty amazing.

    • TurtlePerson2
    • 9 years ago

    I read recently that Apple has the second largest market capitalization in the world. In other words, they are now only behind Exxon Mobil to be the largest company in the world. It’s amazing the kinds of margins that Apple gets.

      • ludi
      • 9 years ago

      Correct, as of 1/12/10:

      [url<]http://www.theonlineinvestor.com/large_caps/[/url<] [code<]20 Largest U.S. Companies By Market Capitalization as of 1/12/10 List includes only publicly traded U.S. companies. Foreign companies and private companies are not listed. Name Symbol Mkt cap Exxon Mobil XOM $386.2B Apple AAPL $315.9B Microsoft MSFT $244.3B Berkshire Hath. BRKA $199.7B General Electric GE $198.7B Wal-Mart Stores WMT $195.4B Google Inc. GOOG $197.3B Chevron CVX $186.1B IBM IBM $185.2B Procter & Gamble PG $184.4B JPMorgan Chase JPM $174.8B Johnson&Johnson JNJ $171.6B Wells Fargo WFC $168.0B AT&T T $165.7B Oracle ORCL $156.4B Bank of America BAC $151.2B Pfizer PFE $146.9B Coca-Cola KO $146.4B Intel Corp. INTC $118.8B Cisco Systems CSCO $117.1B[/code<]

      • jdaven
      • 9 years ago

      As far as I can tell, margins are way down from what they used to be. Look at the table above for just a snap shot. I believe a couple of years ago Apple was getting crazy high margins over 50%. Now it is just 38.9%. Look at Intel if you want to see high margins.

        • sweatshopking
        • 9 years ago

        microsoft also posts larger profits, and better margins. it’s the marketing that puts apple up there. they make less money, and spend more to make the money they get, but their stock is worth WAY more. it’s silly.

          • MathMan
          • 9 years ago

          Hint: growth rate.

          • esterhasz
          • 9 years ago

          Hint 2: expectation of future growth

            • sweatshopking
            • 9 years ago

            right. i get that. but i think it’s dumb.

            I’d like the worlds largest company to be one that solves problems, like poverty, and starvation. How about domestic violence? or maybe international violence? this is crazy to me.

            #1 oil company that makes a fortune destroying the world
            #2 “computer” company that makes expensive “gadgets”

            It’s just sad to me.

            • blastdoor
            • 9 years ago

            Fair enough, I suppose, but you’ve kind of changed the subject from questioning the valuation of Apple relative to other profit maximizing companies to questioning the whole idea of having profit-maximizing companies in the first place. That’s a very different thing.

            On that broader point, my own view is that profit maximizing companies that are “properly” regulated serve a useful social purpose, albeit not the social purposes you listed. That is, producing oil and iPhones is useful — people benefit from having them, so that is a social good. Of course, the production of these goods can have negative side effects (for example, global warming and hazardous waste), so regulation is needed to make sure those negative effects are dealt with.

            I think that the best way to address the issues you raise are through a combination of governments and non-profit private organizations (and perhaps for-profit firms that work as contractors/suppliers for the governments and non-profits). These efforts can be financed through a combination of donations and taxes.

            The only reason that I’m responding is that your post created the opportunity to point out the difference between slightly left of center moderates (like me) and true socialists (like I’m presuming you are). I think that is a distinction that more people need to understand.

            • sweatshopking
            • 9 years ago

            I wouldn’t say i’m a socialist. I believe that the profit motivation is/can be important. I just wish that people valued different things. saving lives over ipods, etc.

            • blastdoor
            • 9 years ago

            I don’t think that you can infer that people don’t value saving lives just from the fact that Apple makes a lot of money.

            • sweatshopking
            • 9 years ago

            I can infer that since apple, nor exxon, actually HELP the world, and yet are the 2 largest companies, (by market cap) that it isn’t a priority. it might not be an accurate inference, but it could still be made.

            • blastdoor
            • 9 years ago

            “it might not be an accurate inference, but it could still be made.”

            heh — well, you’ve got me there.

          • KoolAidMan
          • 9 years ago

          Incorrect, Apple has higher gross revenue. Net revenue is still lower because there is no way any piece of hardware can compete with the insane profit margins that software like Windows or Office can bring in. However, make enough gross revenue and it won’t really matter.

          Apple made made $50 billion in 2009. They made $25 billion [i<]last quarter alone.[/i<] That is insane growth. If Foxconn's estimates for iPad shipments over the next two years are true, they will blast past Microsoft's net revenue with no problem. This is why every consumer electronics company on the planet is desperately trying to copy them.

      • WaltC
      • 9 years ago

      Sigh…I really wish that more people actually understood what “market cap” is, and that it has no relationship to the “size” of a given company…;) Generally, the term “market cap” is a clever diversion used by brokers and other institutional stock pushers to hype the purchase of a given stock.

      The theoretical value of the outstanding shares of given company–market cap–is a theoretical value that reflects the value of the shares that shareholders own–has nothing to do with the company. For instance, Apple has nowhere near enough money, even if the company were to liquidate all of its assets tomorrow, to buy up all of its outstanding shares at their current market high…;) The irony is that Apple doesn’t own these shares–and neither does Exxon–but when the term “market cap” is used, the opposite inference is made–that the theoretical value of all of the outstanding shares of a given company’s stock (eg, shares the company *does not own*) are a measure of its “size.”

        • esterhasz
        • 9 years ago

        Right, it’s “value, as perceived by the stock market”. On the other hand side, Apple issue new shares, i.e. sell more of itself on the stock market, which means that a higher course of their stock makes them “richer” in a sense…

          • KoolAidMan
          • 9 years ago

          There’s also the fact that they grew revenue 70% year-over-year, something that “shouldn’t” happen with a company of that size, and that they just keep selling faster and faster.

          Might have something to do with it. 😉

            • WaltC
            • 9 years ago

            Again, this is all targeted advertising release (PR fluff)…;) It’s one thing for a company like Apple, or any other, to compare its quarterly sales with its previous quarterly sales. While such numbers may appear to be dramatic initially, such numbers do not contrast the given company’s sales with the sales of other companies in the same markets.

            For instance, assuming that Apple sells ~4M Macs of all descriptions in every quarter of FY11, this would put Apple on track for selling ~16M Macs in a year, which sounds impressive when contrasted to its sale of ~12M Macs the year before. Of course it sounds impressive–that is why the number is presented as it is.

            However, it wasn’t only Apple Mac sales projected to grow in FY11, but also everyone else’s sales are projected to grow in FY11, which means that the personal computer market for 2011 is projected to hit ~400M personal computers sold in the world during FY11. This brings Apple’s projected Mac sales in FY11 to ~16M Macs, a good deal < 5% of market share (5% would be 20M Macs sold in FY11). This puts the Mac right slap dab in the very same market share category it has held for the last thirty years–[i<]less than 5% of the total, world-wide personal computer market.[/i<] When you understand how much better companies can often look when compared only with themselves instead of other entities, then you can understand why these kinds of announcements are released in the forms that they take...;) It ain't rocket science--it is pure Snake Oil all the way--and Apple is by no means alone in this regard! Pretty much every company plays this kind of numbers game to attract investment. People simply need to see beyond the hype to protect themselves.

            • KoolAidMan
            • 9 years ago

            WaltC, it is amazing how you consistently manage to type so many words while saying absolutely nothing in the process.

            15 million iPads were sold in one year. If we are comparing it with other successful mainstream consumer electronics products, this outsold the number of Nintendo Wiis sold in one year and the number of XBox 360s sold in three. 20 million iPods were sold in a “slow” quarter for that product. And if you want to talk Mac sales, those grew 23% as the rest of the PC builders contracted 6%. The most important metric of all for Mac sales is that Apple isn’t participating in the zero-margin race to the bottom, and that they are the #1 seller of computers $1000 and up. There is a reason why HP and Sony are deliberately following the Macbook Pro design, they want a bigger piece of the more profitable mid-range and high-end that Apple owns at the moment.

            You want more facts? Apple’s gross revenue exceeds that of Microsoft and every other tech company out there. Net revenue will exceed everyone’s within a year. They made 50 billion in all of 2009. They made 25 billion [i<]last quarter[/i<]. For a company, any company of this size to keep growing profits at this rate is simply not supposed to happen. But call SEC filings and hard sales figures "PR fluff all you want", please. Continue living in a fantasy world to justify your ridiculous world view, and continue wasting your time writing your usual multipage essays of hot air, it is really funny. The rest of us will keep making money while you remain willfully ignorant. See you at $500.

          • WaltC
          • 9 years ago

          Still, market cap has nothing–zilch-zero–to do with the “size” of a given company. Yet we see “market cap” constantly thrown about in this careless fashion in the popular press. Why does this happen? It is orchestrated by entities wishing to hype the attractiveness of a given stock in order to get more investors to buy into it. It tells us nothing about “the size” of a given company even though it is purported to do just that. It’s clever, misdirection advertising, is what it is.

          Generally, when a company starts issuing new shares in addition to its already issued outstanding shares (the shares on which the “market cap” theoretical numbers are based), this is called “stock splitting” and when this happens the value per share *always* goes down–and often quite dramatically. So, in order to keep the share price as high as possible, a company wants to refrain from issuing lots of new shares in addition to those it has already issued, as doing so dilutes the current share price.

          The other way of understanding it is that any time you have a given stock–could be any stock of any company anywhere in the world–which suddenly is being sold in mass quantity (“dumped” in the popular parlance)–the value per share of stock *always* nosedives rapidly because investors perceive a problem with the company that has created the stampede to sell its shares. This illustrates beautifully that even the “theory” of “market cap” is specious and bogus, because the moment every stockholder on earth began selling his shares in a given company is the moment that the share price falls of a cliff–hence the market cap could not ever even theoretically be real–since no one would ever be able to get 100% of the maximum share price for 100% of all of his shares…;) Yet, the whole theoretical concept of “market cap” revolves around every stockholder on earth being able to sell every share he has at the same time, and receiving maximum value for each share. IE, “market cap” is a “theory” which even theoretically speaking is completely invalid and meaningless. As I said–it is a marketing gimmick designed by brokers to dupe the unwitting investor and nothing else.

    • Silus
    • 9 years ago

    It’s amazing how the majority of people go by the looks/design than anything else…

    Apple is either the master of marketing design as the best feature of their products or the “reality distortion fields” truly do affect many people. That old saying of “not judging a book by its cover” was never true to begin with, especially in a society where image and social status is everything, but this is ridiculous…

      • albundy
      • 9 years ago

      i refuse to waste countless hours re-encoding videos just so i can play them on their devices. there are better products out there.

      • gudanov
      • 9 years ago

      It’s a lot more than looks. Apple has innovated in ways that nobody has caught up with. After years, nobody has a serious competitor to the iPod/iTunes combination. The iPod Touch has no competition (though maybe Samsung will finally bring something), the iPhone had no competition for a long time and hasn’t yet been surpassed, the iPad has virtually no competition. Until someone comes up with a good alternative to the user experience of the iOS/iTunes combo Apple will continue to dominate the space. All the pieces are out there to create an alternative, but nobody has put them together in a compelling way.

      On the Mac side of things, well Apple has some great hardware, but personally I think they are starting to let OS/X wither. I use OS/X on occasion and I simply like Windows 7 better and I think the UI has surpassed OS/X in many ways. There are things from OS/X’s unix underpinnings I like, but in day to day use they don’t matter enough to me. The UI is starting to look long-in-the-tooth as well. There I can see design and perception are bigger factors than value or increasingly user experience as Windows continues to improve.

        • sweatshopking
        • 9 years ago

        no itunes/ipod alternative? the zune platform is/was better. the zune sync software is 100X better than itunes, and the zune hd is a far better media player, minus the apps.

        It’s not about competition, it’s about marketing. I disagree with that part of your post. I’m not anti apple, they have damn good marketing, and people like pretty. super. I just don’t think it’s because of a lack of competition that apple does well.

          • poulpy
          • 9 years ago

          [quote<]the zune platform is/was better.[/quote<] Sure. I've said it already but Zune was never more than a series of half baked attempts from MS and got what these weak attempts deserved: F**k all. You just have to look at the console department to see what they do when they seriously want something: they burn money like there's no tomorrow, fight real hard on specs and prices, create interesting bundles, throw in the marketing (and some chairs), etc. Zune did have a couple of novelty features I give you that but never got the software, hardware, distribution, market or apps together. Period. Even though iTunes is -IMO- a big letdown the iPod rules the roost so much that nowadays nobody even bothers in the same segment anymore. At least not at the iPod Touch level which is an excellent piece of hardware on all fronts and given the specs hardly overpriced. I dislike Apple for various reasons (their handling of Videos or sync between multiple iTunes certainly have a place in my personal hell) but I think I now hate the other players more (and MS is first in line) for backing down from a fight.. So NO there's sadly no living, let alone real, alternative to iTunes/iPod and it's sad.

            • sweatshopking
            • 9 years ago

            I agree that it wasn’t the best implementation, but I think that as a media player, it’s the best. If you’re an app whore, you’ll want ipod touch. if you’re looking for an actual PMP device, the zune hd can’t be beat.

            • Ricardo Dawkins
            • 9 years ago

            hello, where is the Zune HD custom equalizer aka EQ ?

            • poulpy
            • 9 years ago

            I thought it had potential too for a time, but when I looked for a slim touch screen media player a couple of month ago I had to go with the iPod Touch 4th gen, because it made no sense to get the ZuneHD which was beaten in every department by its competitor (bar the FM radio but I never use this)..
            And that’s coming from me who has beef with iTunes, a sweet spot for ARM/Tegra and liked the new take Zune had on the interface.

            Also all this is besides the point that not being in the USA I couldn’t actually purchase the device.

            Now that MS has merged the Zune software into its WP7 offering I think it’s more than ever the end of the line for the Zune players which is probably putting them out of their misery in a way 🙁

            • poulpy
            • 9 years ago

            meh. Double post, not sure what happened but isn’t there supposed to be a feature preventing this?

      • flip-mode
      • 9 years ago

      I don’t own any Apple products, so I say this without being an Apple fanboy: you don’t get it.

      Apple’s products aren’t pretty objects that fail to function. They’re pretty objects that bring functionality to the level of Art. They may not do everything you want. There may be devices that do everything Apple’s devices do and then some more and even do some things “better” (. But Apple’s devices achieve a level of visual beauty and interactive beauty that no other electronics maker can touch.

      That’s it. It’s that simple. Apple’s customer’s want a piece of visual and functional art. The fact that you criticize people for going for good looks merely means that you’re not one of Apple’s target customers and you never will be.

      I may never be one of Apple’s customers either since their stuff is just too expensive, but I don’t begrudge Apple for going after the business that they have chosen to go after. The world of electronics without Apple’s influence over time would probably be much, much worse for the wear.

        • Silus
        • 9 years ago

        Where did I say they’re pretty but fail to function ?
        They do function, but definitely not better than others that more often than not, cost less, but just don’t get attention because of a lack of an Apple like marketing team.

        Criticizing people for going after looks and nothing else, is precisely why I DO get it. Many (I would dare say most) people that buy Apple products, rarely look for function. They look for brand recognition and owning an iPhone/iPad/iWhatever is a status symbol. Much like driving a 60000 euros BMW or Mercedes is, even though you can get a much cheaper car, for essentially the same function, but without brand recognition.

        And I would like to see some proof to this statement:

        “But Apple’s devices achieve a level of visual beauty and interactive beauty that no other electronics maker can touch.”

          • poulpy
          • 9 years ago

          [quote<]Where did I say they're pretty but fail to function ?[/quote<] [quote<]Criticizing people for going after looks and nothing else, is precisely why I DO get it.[/quote<] Way to go ruining your point. Again: Apple products aren't just about looks, it's a retarded statement backed up by facts pulled from the air or a some lower part of your anatomy: [quote<]Many (I would dare say most) people that buy Apple products, rarely look for function. [/quote<] Sure there's a bit of hype because they look good as objects and Apple marketing dept is clearly not as useless as AMD's but they [u<]do[/u<] function very well, most of the time actually [u<]better[/u<] than the competitor's products, especially for non IT gifted people, because the user experience is very very well crafted together. Now if you're a geek and love hacking around then you're most of the time not in their league and should look towards a PC, Android phone/tablet, or whatnot because that great user experience comes at a price: it is going to be painfully restrictive for you.

            • Silus
            • 9 years ago

            How did those two arguments ruin my point again ?

            One is related with products, that are deemed pretty, but do function (even if not better than other products that usually cost less). The other is related with the fact that (most) people that buy Apple products don’t care about said function, but only looks.

            Reading comprehension FTL…

            Also, this part is interesting:

            “Apple products aren’t just about looks, it’s a retarded statement backed up by facts pulled from the air or a some lower part of your anatomy”

            How many people do you know with Apple products ? And how many have you asked why they bought one ? You do understand that the less tech savy people are, the more likely they are to buy an Apple product ?
            I have my references at the time I was in college (and even today) and 90% of people with Macs, didn’t buy it because of function or whatever argument (this far none) you throw to make Apple products look better than they are. The answer was usually “because it’s pretty” or “because I wanted the best and it was the most expensive I could find”, but also “I know someone with one that raves about it”. None of these people were tech savy and I’m sure even you understand that number of non-tech savy people > tech savy people…

            • poulpy
            • 9 years ago

            [quote<]None of these people were tech savy and I'm sure even you understand that number of non-tech savy people > tech savy people[/quote<] What is your point, besides having a dig, Sherlock? Did you ever stop and look at it the other way, maybe -just maybe- because of the cocooned environment, because the lesser possible HW combinations, because of the lesser software catalogue, the user experience for all these lesser-tech [b<]savvy[/b<] people is such that [u<]they can actually do more with their computers[/u<]? Less time worrying about dodgy driver, less stress about that antivirus, not having to choose between 100 picture applications to retouch your holiday pictures, being able to go through all the menus and configuration settings because hours and hours of design went through the UI and tools, etc, etc. It's not your thing we get it, I haven't got one either (well I got an iPod), but I can see without a problem why some people go for it besides the "looky shiney wanty: I'm a retard, I'll buy it to look good". Anyway to each one its opinion, I'm off this one.

      • MathMan
      • 9 years ago

      I switched 3 years ago to Mac. A month after buying the first iPhone.

      Reasons:
      – Fantastic iPhone experience. I was interested to see if the Mac would give me the same feeling. (Answer: Oh, yes.)
      – Looks. Back then, my computer was standing in my living room. If I’m willing to spend $500 more on a sofa because it doesn’t look like an IKEA piece, I might just as well spend more on a computer for the same reason. Anything wrong with that?
      – Unix: no more messing around with Cygwin. Unix right out of the box.
      – Superior, superior trackpads. I can’t stress this hard enough. Nothing comes close.
      – MagSafe connector. Nobody else has it. A life saver.
      – TimeCapsule & TimeMachine. Nothing matches the backup simplicity of this combo. I’m sure you can get something similar if you know where the look, but I’m done looking. I just want things to work.
      – iTunes eco-system for everything. No more messing around with different download etc. If I want something (App, music, show, movie), I know where to get it. Easy.

      So, yes, looks/design had definitely something to do with it. But it’s only one thing. As for price: I’m willing to pay extra for something that makes me satisfied.

      Social status? Trust me, at 40y old, an iPhone more or less is not going to make cool.

      YMMV.

        • indeego
        • 9 years ago

        iPhone experience: I digress, but having a large corporate entity decide what I can and can’t do with my hardware AND software drives me up a wall. I find the walled garden far more invasive to freedom than any form of Microsoft’s Genuine Advantage.

        Don’t understand the looks thing. You are buying a device that has zero customizability that [i<]someone else[/i<] designed. It has a huge logo of a global company on it. I cover the logos on my PC's, rip off the stickers, turn off the stupid startup sounds. I would think after age 30 we stopped caring what people think of what we wear/tout? Unix: You mean BSD, right? You want Unix, Linux is there for you. Having dealt briefly with the idiosyncratic anomalies of OSX, (i.e. random window behavior, bouncing dock icons) I would be pained to have to deal with OSX to get that flavor of "Unix". Trackpads: I guess. Every mac I've seen (White) has ugly smudgemarks within the trackpad area. Much prefer a small external mouse to trackpad or clit. I'm scary fast with mouse+KB versus any form of multitouch. You should see my girlfriend in Autocad with KB+Mouse. I've never seen anybody rival the functionality she pulls out of that thing... "MagSafe connector." - True, slick idea, and really one that is deserving of a Patent (i.e. physical object design). I've yet to knock a laptop off anywhere by tripping on a cable. I've heard many of the magsafes fray. iPhone cords fray very easily, we replace them about every 9 months around here. "TimeCapsule & TimeMachine." Prefer acronis/rsync in the windows/linux world. I will admit that Windows native backup is not user friendly, and is still borked on 7 (has issues with libraries on remote networks/drives, and some AV programs locking files.) iTunes ecosystem. This is a love/hate this for many people. I personally hate it, I find the startup abyssmal, the interface unintuitive, media management is Apple's way ideally or you will fight to control it. Other people like to have Apple decide for them how best to manage, so I can't fault that laziness or desire. I think iTunes could be tweaked for much more responsiveness on the Windows world but Apple has no interest (as is their right.) Ultimately it comes down to choice. I never want to feel like a platform [i<]limits what I can do[/i<] with computing, and the mac/iPhone ecosystem definitely gives me that vibe. I have for several years been [b<]recommending mac products to people,[/b<] because I literally want them out of my hair. "I don't support mac products, but I hear they are good." Gets about half out of my hair. Fine by me, I've long since stopped caring what other people do with computing. What I find ultimately strange is I dislike Apple more than Microsoft now. I don't trust Apple or Google. Facebook is a joke and I would never consider, that is a serious disaster waiting to happen. offtopic...

        • blastdoor
        • 9 years ago

        I switched 4.5 years ago, and I’ll throw in three more things to your very solid list:

        1. Spaces. Yes, virtual desktops have been around for a long time, including some implementations on Windows. But Apple made it standard and made it work

        2. Zoom. I have bad eyesight, and so having built-in system-wide zoom is a real win for me. Far better than the goofy little magnifier strip that comes with Windows. Yes, you can buy third party add-ons for Windows, but they are expensive while Apple’s solution comes at no extra charge. Plus, since it’s built into the OS, Apple’s solution *always* works (the goofy little magnifier in Windows often crashes, but I can use Apple’s Zoom feature even when I’m playing 3d games)

        3. Malware. I have yet to be affected in any way by malware on the Mac. That was not true of my PC.

        • jdaven
        • 9 years ago

        More reasons:

        -Unibody/Aluminum construction: I languished for years with poorly constructed PC laptops that constantly broke because of poor cheap plastic designs. I really enjoy the solid construction of Apple laptops.

        -Battery life: As a scientist, I really appreciate the intimate wrapping of hardware around the software control. In the computer world, this translates to better performance sometimes, but longer battery life definitely. Apple knows exactly how its software and hardware interacts which translates into optimized battery life.

        -App stores/Software updates: A little controversial for sure but I like having all my software, driver updates, patches, etc. come from one source that makes sure I’m up to date without having to scour the internet. This is why I like Steam and why I like the App store. I use to use the Google Pack for this same reason because I could launch one utility to check and see if a number of programs were up to date.

          • blastdoor
          • 9 years ago

          Regarding construction — I’ll second that, but add the Mac Pro as an example. The inside of my Mac Pro is a dream to work with. I’ve installed RAM, a blue-ray drive, multiple hard drives, and a new graphics card and it was soooo much easier than on any PC I had ever owned. The Mac Pro case really feels like it was crafted with professional pride and deep respect for the customer. Meanwhile, every time I’ve opened a PC case I feel as if some a-hole cut me off on the turnpike and then flipped me off as if it were my fault.

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