Apple posts record quarterly earnings again: is it pure magic?
The earnings call detailed the results and acting CEO Tim Cook along with CFO Peter Oppenheimer answered some of those questions. We have the highlights with per case analysis below:
- iTunes revenue hit $1.4 billion. iBookstore offers more than 100 million books. The wowing 27 on the year rise shows that Apple is on the right track, but while the company doesn't break down how much of that stunning number comes from apps and how much comes from music, we can be relatively confident that software made for a large chunk of the sum. Cupertino is expected to introduce subscription plans this year, which might further boost this number and give the company one more reason to pride over Android.
- iPhone sales revenue surged 113%, while total revenue from handset and accessory sales increased by 126%.
- 88% of Fortune 500 companies are testing or deploying the iPhone. 75% of them consider the iPad. That's arguably one of the most important announcements made in the earnings call as it shows that the business is replacing BlackBerries with iPhones and the mobile landscape is changing with a rapid pace. If this trend progresses, we'll certainly see Apple cement its positions, while Nokia with its E series and RIM with its 'Berries will be the biggest losers.
- Apple added three major carriers supporting the iPhone this quarter: Verizon, SKT and Saudi Telecom. Cupertino is constantly looking to add more, but even now the iPhone is available on 186 carriers across 90 countries. Tim Cook said that while Verizon was a key element of the handset's success in the quarter, AT&T reported incresed activations as well.
- LTE iPhone: “The first generation of LTE chipsets force a lot of design compromises with the handset, and some of those, we are just not willing to make.”
- iPad 2 suffered from “the mother of all backlogs.” Despite that Apple managed to roll out significantly more iPad 2s and is confident that it'll “produce a great number of iPad 2s during the quarter.” Tim Cook added: “We’re thrilled with the iPad’s momentum.”
- “We sold every iPad 2 we made during the quarter.”
- other Mac devices: iOS is pushing Macs in the corporate sector and that's one of the main reasons for the growth in Mac sales.
- Tim Cook couldn't be more optimistic on Apple's positions in regards to Android as he quoted comScore data about iOS, which proves the platform outgrows Android by 59% in the U.S. “And so this is an enormous percentage,” Cook added. The acting CEO also noted the importance of fragmentation in the Android world: “I think the user appreciates that Apple can take full responsibility for their experience, whereas the fragmented approach turns the customer into a systems integrator and few customers that I know want to be a systems integrator.”
- Peter Oppenheimer: “In terms of the June quarter, I would expect to see a significant year-over-year increase in sales.”
The majority of the following questions focused around the tragic tsunami in Japan and how it could affect sales. In a nutshell, Apple didn't seem overly concerned about components shortages if the situation remains relatively stable. Even more so, the acting CEO assured everyone that supply chains will not be affected. So while the iPad sales might be slightly under expectations, Apple only had a couple of weeks to sell the second-gen tablet in the US and only a couple of days to sell it across the 25 countries it launched it just before the end of the quarter. With more countries getting the iconic tablet and the convincing tale of the numbers, it seems there is little room left for nay-sayers as Apple gears up for the next quarter.
Is it magic? A part of it might be, but it seems more like gradual evolution to us. After the groundbreaking iPhone, Apple has been building on its existing portfolio and even the iPad - as magical as it seems - was considered a large iPhone. But even if it was magic - we'd know some if its ingredients: Apple has continuously and steadily managed to improve over one single brand whether its the iPhone, the iPad or the iPod; it's products carry an identity like none other and it has the tight integration with services like iTunes that finish the cycle.
1. IOS5 (unregistered)
That's what I'm talking about it.
2. andro (unregistered)
Its no suprise when Fanboys hand over all their cash foaming at the mouth each year for products which are so called 'upgrades' of previous generations,despite the differences being minimal.
Worse still reports of major worry have emerged of Apple spying on its users with the facetime camera taking anonymous photos of the phones user and not saving them on the phone but ending them somewhere,and now the revelation that the iphone is tracking your every movement weither you like it or not and transmitting all the data to apple.
But Fanboys iphone 5 is almost here with a slightly better camera and better antenna so get your bank accounts ready and nfc sorted so apple can track you and continue to smile!!
3. davecann2 (Posts: 460; Member since: 15 Mar 2011)
^^^ TROLL ^^^
Hasn't Google been spying on its users for a long time now?
20. remixfa (Posts: 13902; Member since: 19 Dec 2008)
google asks permissions and gives you an opt out if you dont want your data tracked.
apple didnt ask permissions and has been secretly tracking you for who knows how long. and there is NO WAY to turn it off.
Of course they had a monster quarter, its not magic, its common sence. They launched the ipad2 and VZW iphone4. Had it been anything other than a huge success it could only be called a failure. Ibots buy anything cupertino throws out.
Ahh.. PA, your love affair with Apple knows no bounds huh? Pure magic? Really?? lol. Did you have a boner when writing that? Is steve jobs naked under the photoshopped money?? lol.
23. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Google has gotten in trouble multiple times for collecting user data without permission and had lawsuits against it in Europe because of that same reason. So you're okay with google doing it, but it's unacceptable if Apple does it?
26. jogutier (Posts: 324; Member since: 12 Feb 2010)
Nope, I don't care if people in europe are being track. I only care if i'm being track in my homeland. U.S.A. baby!!!!!!!
37. jbash (Posts: 339; Member since: 07 Feb 2011)
God Bless America!!!!! I dont go bashing whatever country your from donpeppino9.
34. remixfa (Posts: 13902; Member since: 19 Dec 2008)
google got in trouble for the pictures it was taking while doing Google Street View because u could see inside some people's houses.
There was nothing nefarious going on, people got pissed about a lack of privacy, and google changed how they do things.
That is not the same as the phone in your pocket recording every move you make, probably every purchase, and also it takes a snap of you every time u run facetime. That is a huge invasion of privacy on purpose. Its not accidental like google's was.
Apples and oranges.
41. g (unregistered)
remixfa, as far as I got it, it's some analysts who dubbed the quarter magical, not i/phonearena this time around
4. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Minimal upgrades and yet the iPhone and iPad specs are right in line with the high end android phones. I guess droid isn't upgrading either. And to Dave's comment google is known for spying on everyone including people who aren't customers.
12. biggles (Posts: 212; Member since: 15 Oct 2009)
Except that dinky, circa 2008, 3.5" screen which looks to stick with the iPhone 5, too. And the lack of removable memory. And no hdmi out. And no removable battery. So much for "right in line".
16. davecann2 (Posts: 460; Member since: 15 Mar 2011)
The only think I agree with you on is the small screen size.
Do you really need a removable battery? By the time I need a new battery i would have already upgraded to another phone.
Also, the removable memory would be cool but not essential.
35. remixfa (Posts: 13902; Member since: 19 Dec 2008)
for a heavy user, it is essential. if your a business user that gets email piled to the phone and uses it all the time, being able to flip to a second battery is a lot easier than being tethered to a cord for 2 hrs while the phone charges.
5. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Can't wait for the fandroid trolls to come rolling in here with their lame excuses on why android is better. The Apple juggernaut keeps marching on.
15. biggles (Posts: 212; Member since: 15 Oct 2009)
Yeah, shocker. Ridiculously overpriced + wildly popular = massive profits.
24. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Before the iPhone smartphones were way more expensive. Other manufacturers had to drop their prices to compete with the iPhone. $49 for 3GS is ridiculously over priced? Also if their over priced why would they be popular? By the way the Xoom is more expensive than the iPad sooo...
36. remixfa (Posts: 13902; Member since: 19 Dec 2008)
49 is what your paying ATT. ATT didnt get cheaper phones, they are just closing out old inventory because the iphone4 had been out for a few months. ATT still sells the thing to ATT for 500+ while the actual build cost is around $130 or so for it.
Your confusing carrier subsities with what they pay for the phone from apple.
6. Truthy (unregistered)
Apple is a smart company and no matter what you think of their products, you'd be a fool to not want their stock. A capitalistic sucess like few others in recent memory.
I'm a huge Android fan but it's all about getting what you like and what works for you. Competition in the industry keeps everyone on their toes. This back and forth battle is great for everyone, Apple, Google and consumers.
7. B (unregistered)
make sure you don't leave comments here from your iphone,apple will be tracking it and crush you......or else make you spend hundreds on a 'new' product
8. kev (unregistered)
Its funny how controlled apple fanboys are,very worrying revelations are right here in black and white how apple is extending itrs control and monitor them in every way possible and yet they defend it without question!
9. TDroid21 (Posts: 70; Member since: 04 Apr 2011)
Pure majic? Naahh!! Probably from lawsuits..
Gud thing im typing on a humble nokia c3.. Who's tracking me? Haha
10. TDroid21 (Posts: 70; Member since: 04 Apr 2011)
Pure majic? Naahh!! Probably from lawsuits..
Gud thing im typing on a humble nokia c3.. Who's tracking me? Haha
13. zuno gyakusatsu (Posts: 257; Member since: 16 Mar 2010)
nice double post from your nokia c3....
14. davecann2 (Posts: 460; Member since: 15 Mar 2011)
Your reliable Nokia still won’t prevent you from double posting...lol
19. jbash (Posts: 339; Member since: 07 Feb 2011)
why is droid in your username and you are using a nokia, isn't that an oxymoron?
11. trin (Posts: 88; Member since: 11 May 2010)
Apple is a great company with a magical marketing team. Who else could release a device with features they should have included originally and have more people continue to eat it up? Don't hate on em.
Apple is a huge bubble waiting to burst tho. And when it does a lot of people are gonna be stuck. The minute it's not "cool" or "high class" to own an apple product is the day the iphone dies. That's generations away imo.
17. Rich (unregistered)
DOESNT APPLE KNOW THAT SOMEONE CAN GO TO JAIL FOR FALSE EARNINGS REPORTS?
22. 530gemini (Posts: 2198; Member since: 09 Sep 2010)
At this point, with Apple's another VERY successful quarter, I could care less what fandroids would say or think about this article :)
I just read through it and LOL :)
21. hawk62 (Posts: 320; Member since: 21 Nov 2009)
Keep bashin apple. They are winning. Only a handful of techies care about the hdmi out, removeable memory, dual core shit that android needs to sell to offset the fact that android is a weaker os.
I have no problem with the tinny little iphone screen, it is better than than droid x screen i had.
Apple makes a product that works and they are doin a great job selling it.
27. TDroid21 (Posts: 70; Member since: 04 Apr 2011)
i used my freind's nokia to type here coz my android ran out of juice..
38. jbash (Posts: 339; Member since: 07 Feb 2011)
dont you wish battery tech was on pace with computing tech
28. InspectorGadget80 (Posts: 6212; Member since: 26 Mar 2011)
Things I dislike bout iphone. NO RE-MOVEABLE BATTERY, NO SD MICRO CARD SLOT SUPPORT.
30. taco50 (banned) (Posts: 5506; Member since: 08 Oct 2009)
Why do you need a removable battery?
39. Rawrzellers (Posts: 224; Member since: 22 Aug 2010)
Cause if your battery goes to shit which used to be a very common problem with iPhones not sure if it is now, you have to send it back to apple and pay their service fee.
29. Rawrzellers (Posts: 224; Member since: 22 Aug 2010)
I used to know this other company that posted record earnings each quater... well two companies actually... Enron, Bernie Madoff?
31. Eingild (Posts: 203; Member since: 19 Apr 2011)
"other Mac devices: iOS is pushing Macs in the corporate sector and that's one of the main reasons for the growth in Mac sales."
Seriously? Corporate sectors want total control over their device. Total control means, "openness" and "flexibility". Mac PCs is great but the environment of these devices are closed like prison cells. No one gets in or our.
Not an Apple hater. I love apple. It's just that I think Mac needs a little bit more of "openness" to be widely accepted around the globe.
40. Outsider (unregistered)
Man, would hate to lose all those stocks when Jobs kidney fails and he passes on ..RIP Apple =/