2013/01/26
Quoting Tim Cook: 5 Gadget-Related Sound Bites from Apple’s Latest Earnings Call
2013/01/25
Apple’s Profit Surge Halts in Latest Quarter
NEW YORK (AP) — Apple Inc. warned Wednesday that the blockbuster sales growth of the last five years is slowing drastically, as iPhone sales are starting to plateau.
The outlook sent Apple shares plunging by 10 percent, wiping out a year’s worth of gains.
Analysts said the warning suggested that Apple can no longer sustain its growth without some completely new product. Its last revolutionary product launch was the iPad in 2010.
“It has been an overriding concern with Apple that they would not be able to generate revenue growth just rolling out new versions of old products,” said Jeff Sica, president and chief investment officer of SICA Wealth Management. “Now they’ve proven it in their numbers.”
Apple said it expects sales of between $41 billion and $43 billion in the current quarter, which ends in March. That would usually be little cause for concern, even though analysts were expecting $45.6 billion, because Apple usually lowballs its forecasts. But Chief Financial Officer Peter Oppenheimer said the company is changing its practices and providing a reasonable range rather than a single, easily achievable number.
That means Apple is looking at sales growth of about 7 percent from last year’s January to March quarter, a striking number for a company that’s posted double-digit increases in every quarter except one since 2008.
Apple shares fell $51.48 to $462.59, in extended trading, after the release of the results.
Apple’s enviable profit growth also hit a wall in the October to December quarter. It said net income in the fiscal first quarter was $13.1 billion, or $13.81 per share, flat with a year ago. That still beat expectations, as analysts polled by FactSet had forecast earnings of $13.48 per share.
Revenue was $54.5 billion, up 18 percent from a year ago. Analysts were expecting $55 billion.
Apple shipped 47.8 million iPhones in the quarter, about 1 million less than analysts were expecting, and 22.9 million iPads, also about 1 million short.
Most surprisingly, Mac sales were also 1 million short, at 4.1 million. That’s a 22 percent drop from shipments a year ago. Oppenheimer said this was due to difficulties producing enough of the new iMac desktops fast enough.
Investors have already been concerned that Apple’s strategy of keeping the price of the iPhone high means it’s losing out on sales, particularly overseas. Consumers are instead opting to buy cheaper smartphones running Google Inc.’s Android software, which has propelled South Korea’s Samsung Electronics to the world’s largest maker of smartphones.
There’s speculation that the company will produce a cheaper iPhone, but that would cut into its stunning profits, which are the whole reason it’s become the world’s most valuable company.
Apple had warned that the holiday quarter’s profits would be lower than Wall Street was initially expecting, because it had so many new products coming out, including the iPhone 5 and iPad Mini. New production lines are more expensive to run and yield more defective products that need to be redone or thrown out rather than sold.
2013/01/16
Virgin Mobile UK becomes latest Euro carrier to offer Google's Nexus 4
Some say that it's "better late than never," and, as of right now, this may very well be a good thing for Virgin Mobile UK users looking to snag one of those chart-topping Nexus 4s. A mere few months after the LG-made handset was first announced, Virgin Mobile is set to join other carriers across the pond in offering Google's sleek flagship. What's more, the Nexus 4 can be had at no cost upfront, so long as interested UKers choose from one of Virgin Mobile's qualified 24-month tariffs. Meanwhile, those of us in the States without a Nexus 4 will have to keep on waiting, as Google Play (and T-Mobile) still appear to be having trouble keeping up with demand.
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