Apple earnings grow, still disappoint Wall Street

Reading the news headlines out there, you’d think Apple’s latest quarterly results were dismal. "Apple Inc delivered a second straight quarter of disappointing results and iPad sales fell well short of Wall Street’s targets," reports Reuters. Looking at the data, though, it’s hard to see what the Street is so worked up about. Apple’s revenue and its net profits both grew compared to the same quarter a year ago, as did iPad sales:

   Q4 FY’11 Q3 FY’12 Q4 FY’12
Revenue $28.3 billion $35.0 billion $36.0 billion
Net profit $6.6 billion $8.8 billion $8.2 billion
Gross margin 40.3% 42.8% 40.0%

Here are the unit shipment figures for iPads as well as iPhones, Macs, and iPods:

   Q4 FY’11 Q3 FY’12 Q4 FY’12
iPhones 17.07 million 26.0 million 26.9 million
iPads 11.12 million 17.0 million 14.0 million
Macs 4.89 million 4.0 million 4.9 million
iPods 6.62 million 6.8 million 5.3 million

Apple CEO Tim Cook certainly doesn’t sound disappointed. "We’re very proud to end a fantastic fiscal year with record September quarter results," he says in the results release announcement. (Remember, this was the last quarter of Apple’s 2012 fiscal year, which doesn’t quite correspond to the calendar year.)

Apple CFO Peter Oppenheimer also weighs in, saying Apple "generated over $41 billion in net income and over $50 billion in operating cash flow" in its 2012 fiscal year. Looking ahead, Oppenheimer says he expects Apple’s revenue to surge to $52 billion this quarter. That would be up from $46.3 billion for the first quarter of this fiscal year, or an increase of around 12%.

Comments closed
    • albundy
    • 7 years ago

    not enough profit? probably the beating of slave kids isn’t working enough. they should start forcing toddlers to work in their chinese apple labor camps. but dont worry, wall street will oversee that they wont get any food if they dont work 25 hours a day.

    • beck2448
    • 7 years ago

    $41 billion in net income and over $50 billion in operating cash flow in fiscal 2012.
    Wow!! The rest of the tech world can only wonder.

    • Thatguy
    • 7 years ago

    As someone who occasionally dreams of what I might do with lottery winnings. I can’t even begin to imagine what I would buy with all that money. You’ve got to imagine they have some plans to spend it on something.

      • sschaem
      • 7 years ago

      I think this is the biggest mystery around Apple future.

      120 billion unspent + ~50 billion extra each year.
      (Assuming apple doesn’t enter the automotive industry or the living room iDevice market)

      I have no clue what Apple plan to do with hundreds of billions in cash.
      Do like Microsoft in its hay days and give the cash away to shareholder ?
      That would be an easy way to burn cash.
      And with the money left over buy half a silicon valley ? including AMD , nvidia, …

        • MadManOriginal
        • 7 years ago

        Apple did finally start paying a dividend.

    • blastdoor
    • 7 years ago

    iPad growth sure has slowed down. Could be delayed purchases in anticipation of the mini, but we shall see.

    Looking past the short term, though, Apple is very strongly positioned for the future. I think the biggest potential threat is Windows tablets. If Windows tablets were to really take off, Apple will have a very tough long term fight on its hands because unlike Google, Microsoft fields a computing platform spanning all types of devices. But if Windows tablets go the way of the Zune, then the future belongs to Apple.

    • link626
    • 7 years ago

    Stupid wall street analysts. Always cheerleading and then making the most noise when earnings don’t meet.

    Others would only dream of selling 14 million ipads per quarter.

    Amazon only sells less than 1/10 of that, and they don’t even make a damn profit on their tablets.

    I have no idea how many google sells, but it surely is but a fraction.

      • sschaem
      • 7 years ago

      When the stop loss are triggered, the option out of the money, etc.. the stock will go back to 700+
      Wash, lather , repeat… If a stock doesn’t go up/down, wall street cant extract money from it.

    • entropy13
    • 7 years ago

    The Apple “apology”:
    [url<]http://www.apple.com/uk/legal-judgement/[/url<]

      • Meadows
      • 7 years ago

      But who expected anything different?

      • cynan
      • 7 years ago

      I don’t think Apple was mandated to make an apology, just to inform their customers of the outcome of the trial on their website. It will be interesting to see if the adds they are mandated to run in the UK will be of a more conciliatory bent.

      But yeah, reading the first couple of paragraphs quoting the ruling, [url=https://techreport.com/news/23749/apple-ordered-to-run-uk-ads-saying-samsung-didnt-copy?post=678217<]chuckula's commnet[/url<] on TR's coverage of the UK ruling that Apple would basically say that Samsung wasn't cool enough to copy them, was pretty much right on the money...

        • NeelyCam
        • 7 years ago

        LOL Chuckula really nailed it..

      • sschaem
      • 7 years ago

      So in the UK its ok to steal IP stuff as long as its not “as cool” ?

      “Judge, the fact might show that I copied the trademark design… but you see here, I didn’t make the border of the window as rounded, its not as cool, so you must acquit based on the Apple vs Samsung case precedent”.
      “Also, I want an apology in the major English newspaper””

        • ztrand
        • 7 years ago

        You can not “steal” IP. You can only copy it.

          • NeelyCam
          • 7 years ago

          Copying IS stealing, you pirate!

    • liquidsquid
    • 7 years ago

    Wall street == pathetic money grubbers.

    No, really. Disappointing Wall street because they didn’t make what Wall street wants them to make really rubs my fur the wrong way. If you want them to make more money, head over to China and help build more i-Phones. or peddle more in the streets, or… oh wait, you may have to actually WORK. OMFG the horror!

      • jossie
      • 7 years ago

      Disappointing Wall Street does not mean that bankers pass moral judgment on the company. People investing millions of dollars are rightly concerned with how many iPads Apple is going to sell in the next quarter. Analysts take an educated guess, and this guess is factored into the stock price. If the sales of iPads unexpectedly come up short, “Wall Street” is “disappointed” and the stock price falls.

        • sschaem
        • 7 years ago

        Right now Apple stock price is dictated by option trading, the amount of money traded there is mind boggling.
        So the news is to create a sell or buy mood so someone can pressure a stock via options (to trigger in the money floor or ceiling for a larger position), so you want to reduce any contrarian movement.
        WS extract money from the stock market no matter if the value goes up or down, the market just need to move. Shaping the news is a great way to do this, the bolder the headline, the better.
        “total victory” is accomplished when fear or exuberance is manufactured.

        Anyways, Apple is doing massively well in the tablet market. with a 30% growth YoY.
        While not even having ANY 7″ model to compete with the bulk of the android market.

        I think the fear is more about Apple cash. Its keeps piling on and on… thats actually a negative.

        • reever
        • 7 years ago

        Most stock “investing” is not investing in anything, it’s betting. Of course they’re disappointed.

    • sschaem
    • 7 years ago

    121 billion cash on hand, and they add ~50 billion a year to it. Thats insane…

    But what is even more out there, they will make close to 600 million of revenue a day, every single day, for the next 3 month.

    I still got S. Jobs statement about why apple keep that money on my mind, and the answer was “For something big” …

    edit: Apple like to do it all itself. So would apple use the money to build its own iptv/streaming or would it buy a ‘turn key’ business like netflix to get a jumpstart?

      • sweatshopking
      • 7 years ago

      buying the USA?

        • solo_clipper
        • 7 years ago

        They could make the interest payments on the US dept for 2-3 months.

          • sschaem
          • 7 years ago

          In 2003 the US paid $318 billion in interest, 2006 $405 billion, and in 2011 $454 billion

          The US debt increased massively, but the debt incurred during the ‘bush years” was at high rate.
          With the crash of interest bond rate the US can borrow tons of cheap, cheap money.

      • Krogoth
      • 7 years ago

      Buying Microsoft….

        • 5150
        • 7 years ago

        …Hello Linux!

        • travbrad
        • 7 years ago

        If they bought Microsoft they could copy themselves!

          • Meadows
          • 7 years ago

          Now here’s a good one.

        • Meadows
        • 7 years ago

        That’s ridiculous. Check Microsoft’s market capitalisation before you make “funny comments” like that.

          • sschaem
          • 7 years ago

          Maybe he his thinking 6 month from now? 🙂

    • sweatshopking
    • 7 years ago

    the issue was the drop in ipad sales this quarter, from the previous.

      • DancinJack
      • 7 years ago

      Thank you for that SSK. Did you originally say something trolly and decided to edit it?

        • sweatshopking
        • 7 years ago

        no, i just had a typo.

    • Musafir_86
    • 7 years ago

    -Hmm, looking at those ever-increasing devices shipment numbers, I wonder how soon it would be when (total/cumulative) it exceeds world’s human population? Putting aside those who don’t need/can’t afford/etc. these devices, does this mean each owner soon will own several iPhones at once?

    Regards.

      • DancinJack
      • 7 years ago

      I don’t know why that’d be an interesting stat to keep track off. Some people get a new phone each new release, or even at a greater frequency than that. Not to mention I assume these numbers include retailers they sold to including VZW, ATT, Sprint etc. so it’s not like you could convert it to actual phones in hand. To each his own I suppose.

      • heinsj24
      • 7 years ago

      At 14 million a quarter, it would take Apple 502 quarters (125 years), or so to provide to provide all 7 billion people one the planet a nice shiny iPad. I can now see Wall Streets concern – this is much too slow a rate. Those sla… um, workers at Foxconn had better get busy.

      Once Apple has provided everyone on the planet an iPad, their stock will drop. Apple is dooooomed.

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