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Apple Beats Q4 Earnings But Guides Lower On Q1 Margin Sending Stock Lower
Moments ago, AAPL beat the top and bottom line as follows:
- Q4 EPS of $8.26, Est. $7.92
- Q4 Revenues of $37.5 billion, Est. $36.84
- Q4 gross Margin: 37.0% vs Est. 36.9%
- See Q1 revenue $55-58 billion, on expectations 55.5 billion
- iPhone sales 33.8 million vs Est. 32.8 million
- Mac Units shipped 4.6 million vs Est. 4.3 million
That was the good news: the bad is as follows:
- IPad sales of 14.1 million missed estimates of 14.3 million
- Q1 margin between 36.5-37.5%, below the street estimate of 37.74%, which is what according to some is pushing the stock lower after hours
Welcome to the commodity world: after all this is what AAPL wanted with the 5C right?
The breakdown of the components - Margins:
Sales:
And sales by product:
And the after hours action: first pump, then dump.

UPDATE: You can't keep a hedge fund hotel down...

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Thats of a lot of stuff made in China.
If they're tired of being a value stock now, they just need to spend some cash and buy Twitter for $50 billion and Snapchat for about $10 billion or so. That'll fix their growth problems........If it worked for tech in 1999, then it'll work for tech in 2013.......
Some of the selling was iCohn tail riders who didnt get the stock buy back.
It was all about forward guidance for this one, and the frontrunners are sucking ****
Paging Reggie Middleton!
Welcome to the commodity world:
With 37% margins?
Stock opens flat tomorrow.
Still pretty good for a hardware seller, but it is the direction that is trobuling. The iPad Mini seems to be eating into margins. And I can't imagine they will be able to hold firm on prices for too long on the larger tablets with the new Nexus tabs coming out - they are getting a lot better, and for a lot less money.
Yeah I know but with the whiz kid gone and all the competition you have to admit sinking margins/sales isn't happening as fast as it could have.
Depends on how many are buying Apple products because it's the best bang for the buck I suppose.
I don't know anyone who buys Apple becuase it's the best bang for the buck.
I know a lt of people that try to justify it's the best bang for the buck becuase they paid $2000 more for something becuase it had a logo of an Apple with a bite taken out of it.
'Still pretty good for a hardware seller, but it is the direction that is trobuling.'
Correct. 14.1 million ipads sold in Q1 is an awful lot of lunch money. You never want a down direction (unless you 're looking to short), but Apple is still dominating tablets (among other things) for the time being.
Bulk of Apple's revenue is hardware. All hardware leads to razor thin margins.
'Bulk of Apple's revenue is hardware.'
If you think hardware is where Apple's value is, then you simply do not understand how the game works: the hardware gets people in the door (and generates some nice frontside profits), but the software keeps them there (and pays the rent longterm). Once a consumer enters Apple's walled garden, 'you can enter any time you like, but you can never leave.' Millions are inside (with an additional 14.1 million in Q1), and they ain't leavin', at least not without their iphotos, iChoons, icalendars, igames, and iEverything else they iBought and created in their iPhones/iPads/iPods/Airs, etc.
Can Nokia lock customers in like this?
Or Samsung?
LG?
Dell?
Microsoft?
How about Blackberry?
Anyone?
Apple competes against smartphone makers AND pc makers and is still handily winning their at respective games. That's still impressive. How long can they continue to do this?
iDunno.
However, there can be only one competitor. Google. Why? Because they offer a popular rival software ecosystem to go along with the hardware. Until someone else bundles in popular software to go along with the popular hardware, they're merely increasing Apple's costs on their loss leader.
You can leave; it just requires data conversion utilities.
I'm going to wait to see what icahn says! There's nothing wrong with buying AAPL on margin right?
And the prices Apple gets for old hardware. As long as it has an Apple name on it.
Say you bought MSFT, HD (Home Depot) and AAPL in 1986. If you held on to all three (I'm sure nobody did except the index funds), you made your money first in operating systems, then hammers and nails, and third place Apples and iDevices. Dividends not calculated. Talkin' about hardware.
Apple will be just fine.
$3,999 for a 6-core Mac Pro. *laff*
Oh, but it's assembled in USA.
out of Chinese made components.
That cost $39.99 to manufacture in Estados Unidos de América.
Gold iPhone 5S bitchezz
Listen..Even I bought a new Macbook Air and an iPhone 5S in the past month BUT It was my first Macbook in 4 years and 1st iPhone in 2 but I found myself seeking into other options because they are so comparable for the first time because there is serious competition out there and innovation is stagnating at Apple. I nearly bought a Surface and I know many are buying the Google Chrome cheapy laptops.
Apple is going to be dead money because the margins have to contract since endless Chinese Fox Conn labor is on a timeline that expires along with commodity costs as Tyler mentioned. They are going to have to get more competive with their pricing and that is the ballgame. The blew their chance when they did not come out with a MacTV 2 years ago LED Monitor or even this year. They could have captured the ultimate luxury TV market and allow people to have synergies with their current Apple Products (Perhaps a docking station for your iPhone on top of the LED) and went for where the real money is which would have been allowing people to amass a digitial VIDEO library akin to iPOD and they alone had the brand and resources to do it. People would have paid $1500-2000 no question for a touch screen AppleTv that had copious storage in the cloud or otherwise and one that permitted people to scan their DVD or Blurays into the memory and have them in perpetuity.
Apple is the next MSFT. I enjoy their products but the curve is chasing them down.
Hear hear on the next MSFT
Reggie... Reggie Reggie
Austrian economics shows this result is a disaster unless we all BUY GOLD.
SO what was the expectation six months ago? $10 a share'ish?
Earnings are way lower than the same period last year. Apple sold 31 million iPhones last quarter before the new iPhone came out, and with two new models they only managed to sell 33 million. That's good news? Besides the revenue is channel stuffed bullshit. Apple shipped to something like ten more countries this quarter than they did last year with the launch of last years phone.
Q4 2012
Revenue $36 billion
EPS $8.67
Gross margin 40%
26.9 million iPhones
14 million ipads
Q4 2013
Revenue $37.5 billion
EPS $8.26
Gross Margin 37%
33.8 million iPhones (two new models)
14 million iPads
Not seeing the growth story here folks.
the new models came out ~ 2 weeks before the quarter end.
and Apple's numbers count phones sold to consumers?
You obviously have no clue how corporations record revenue. Numbers sold is the number shipped to retail partners, not put in consumers hands. The phones shipped to distributors three to four weeks before they went on sale.
Apple booked every manufactured phone as sold as soon as they shipped out to retailers, all new iPhones have been recorded this quarter even if they were only available for two weeks at retail.
Macbook Pro - $2600
MSI GT-60 - $1644
Sure the MSI might not look as nice as the Apple on the outside, but it kills it in specs for $1000 less. It is also built a lot better with a full two year warranty covering everything.
That's becoming common across all their products. Eventually the build, design, and software will catch up, and those margins will be unsustainable.
Looks like the Great Halloween stockmarket crash of 2013 is still on the cards :-)
(yawn) who REALLY cares?