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Eug Wanker · 04:12 PM

Apple beats street, stock jumps

$4.37 billion revenue, and $427 million profit (54 cents/share).

AAPL now at $54.15, up $1.25 (2.4%) for the day, and up $3.48 (6.9%) from Friday.

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P.S. For some reason the � - cents symbol no longer works on this forum (Safari).

Gossamer · Jul 19, 2006, 03:58 PM

I invested in AAPL this morning. Good thing.

Landos Mustache · Jul 19, 2006, 04:00 PM

Wasn't it $90 in the beginning of the year and now it is $50something?

analogika · Jul 19, 2006, 04:03 PM

$472 profit?

cool.

That's a pretty decent fish dinner for the board in celebration!

Landos Mustache · Jul 19, 2006, 04:05 PM

Originally Posted by analogika

$472 profit?

How much of it is JUST from mac sales though?

Peter · Jul 19, 2006, 04:06 PM

very little i imagine.

Eug Wanker · Jul 19, 2006, 04:09 PM

Originally Posted by Gossamer

I invested in AAPL this morning. Good thing.

Good news finally.

I bought when it dropped below $60, but I knew I should have waited longer, until last week. Somehow I knew it was going to get close to $50, but I didn't have the stones to wait it out.

Originally Posted by Landos Mustache

How much of it is JUST from mac sales though?

With 1.327 million Macs sold, I'd say a pretty fair chunk.

Landos Mustache · Jul 19, 2006, 04:11 PM

Originally Posted by Peter

very little i imagine.

So even though sales of Macs are up 12% are they actually making apple any more money than before the iPod?

analogika · Jul 19, 2006, 04:13 PM

Macs were 55% of the revenue.

http://www.macrumors.com/pages/2006/...19164004.shtml

production_coordinator · Jul 19, 2006, 04:17 PM

Not bad... the sad part is... we are still technically losing market.

analogika · Jul 19, 2006, 04:21 PM

so?

Actually, in Germany, Apple is now the #1 educational institution supplier (though the other contenders probably number in the dozens, but still). Also, Germany is Apple's #1 growth market in terms of market share (from laughable to acceptable).

Apple still has to make up for the first 15 years of sins from their incompetent and stupidly elitist marketing team.

Eug Wanker · Jul 19, 2006, 04:22 PM

Originally Posted by analogika

Macs were 55% of the revenue.

http://www.macrumors.com/pages/2006/...19164004.shtml

The MacRumors numbers don't make sense.

Desktops - 614000 (down 14%)
Laptops - 498000 (up 60%

)

Total 1112000, even though they say 1327000 Macs elsewhere in the article.
They also say 8111000 and 8526000 iPods, depending on where you are in the article.

Anyways, if the 55% revenue number is correct, that's $2.4 billion worth of Macs sold.

Oh, and according to Reuters, it was $56.80 in after hours trading as of 4:50 pm.

production_coordinator · Jul 19, 2006, 04:23 PM

Last Quarter: 8,526,000
This Quarter: 8,111,000

WE ARE DOOMED!!!

production_coordinator · Jul 19, 2006, 04:28 PM

Originally Posted by Eug Wanker

The MacRumors numbers don't make sense.

Desktops - 614000 (down 14%)
Laptops - 498000 (up 60%

)

Total 1112000, even though they say 1327000 Macs elsewhere in the article.
They also say 8111000 and 8526000 iPods, depending on where you are in the article.

Anyways, if the 55% revenue number is correct, that's $2.4 billion worth of Macs sold.

Oh, and according to Reuters, it was $56.80 in after hours trading as of 4:50 pm.

Servers?

production_coordinator · Jul 19, 2006, 04:29 PM

Originally Posted by Eug Wanker

Desktops - 614000 (down 14%)
Laptops - 498000 (up 60%

)

Also... wait until they release a Mac Tower... that Desktop number is going to rise significantly.

Landos Mustache · Jul 19, 2006, 04:31 PM

Originally Posted by production_coordinator

Also... wait until they release a Mac Tower... that Desktop number is going to rise significantly.

Really? I thought the towers are what had the lowest number of sales typically.

Eug Wanker · Jul 19, 2006, 04:31 PM

Originally Posted by production_coordinator

Last Quarter: 8,526,000
This Quarter: 8,111,000

WE ARE DOOMED!!!

OK. That makes sense. That's not what the MacRumors article says though.

Anyways, it was kind of expected. No significant change to the iPod since October, and people have been predicting the plateau in iPod sales for some time now.

Originally Posted by Landos Mustache

Wasn't it $90 in the beginning of the year and now it is $50something?

$86.40 at its peak. I told myself to wait until it dropped back to around $50 before I bought, but when it dropped below $60 I caved. Shoulda trusted my instincts.

Originally Posted by production_coordinator

Also... wait until they release a Mac Tower... that Desktop number is going to rise significantly.

It will jump, but it's not going to reverse the overall trend for the desktop drop.

Originally Posted by production_coordinator

Servers?

Traditionally, Apple has lumped the servers in with "Power Macs", and then "Desktops".

Eug Wanker · Jul 19, 2006, 05:35 PM

By the way...

With 4.37 billion bux and 1.327 million Macs making up 55% revenue, that works out to $1811 per Mac. $1811 is over $100 more than the cost of a 20" iMac, and but quite a bit less than the base model MacBook Pro.

And for the sake of comparison, Intel made "only" $885 million profit, on sales of $8 billion. So, Apple had roughly half the revenue of Intel, and roughly half the profit this quarter. AAPL has a market cap of $46 billion compared to $108 billion for INTC.

If Apple gets its assets in gear for the movie download store, a "real" video iPod, Mac Pros, higher capacity iPod nanos, a smooth 10.5 rollout, and some new unknown products, I think AAPL has a real chance of hitting that $75 target (again) by next year.

smacintush · Jul 19, 2006, 05:56 PM

So what the f*ck is the hold up on the Mac Pro's and new iPods? Seems like it's been an awful long time since the last update.

Chuckit · Jul 19, 2006, 06:06 PM

The hold-up is that WWDC has been set for August for quite some time.

Eug Wanker · Jul 19, 2006, 06:08 PM

Yeah, and the new Xeons (Core 2 arch) only just came out a few weeks ago. WWDC is the logical release venue for the Intel Mac Pros.

Big Mac · Jul 19, 2006, 06:34 PM

Originally Posted by Eug Wanker

By the way...

With 4.37 billion bux and 1.327 million Macs making up 55% revenue, that works out to $1811 per Mac. $1811 is over $100 more than the cost of a 20" iMac, and but quite a bit less than the base model MacBook Pro.

And for the sake of comparison, Intel made "only" $885 million profit, on sales of $8 billion. So, Apple had roughly half the revenue of Intel, and roughly half the profit this quarter. AAPL has a market cap of $46 billion compared to $108 billion for INTC.

If Apple gets its assets in gear for the movie download store, a "real" video iPod, Mac Pros, higher capacity iPod nanos, a smooth 10.5 rollout, and some new unknown products, I think AAPL has a real chance of hitting that $75 target (again) by next year.

If Apple can achieve all that you outline, a $75 price target is low. Remember, Barron's just stated in its upgrade that AAPL has the capacity to double (from the $50s).

Glad I didn't close out my position at the close! If Apple can make me a sufficient amount of money, I may learn to not hate Intel.

ironknee · Jul 19, 2006, 06:45 PM

so listening to the call...

question: since the rumors say the true ipod will be delayed till next year, given it is a rumor, what do you think apple will offer for sale this christmas season?

5th gen ipod and nano w bigger capacity. movies on itunes...but what will be the kicker? maybe nanos with metal colors...what eles?

Eug Wanker · Jul 19, 2006, 06:53 PM

Complete info here:

Total units - 1327000 (+12% yoy)
Desktop units - 529000 (-23% yoy)
Laptop units - 798000 (+61% yoy)

Total revenue - 1866 million (+19% yoy)
Desktop revenue - 705 million (-17% yoy)
Laptop revenue - 1161 million (+61% yoy)

Revenue per Mac - $1406
Revenue per desktop - $1333
Revenue per laptop - $1455

iPod units - 8111 million (+32% yoy)
iPod revenue - 1497 million (+36% yoy)
Revenue per iPod - $185

Gross margin = 30.3%

$8 billion cash reserves

Eug Wanker · Jul 19, 2006, 09:34 PM

Apple has moved into 4th amongst US PC makers, at 4.8% market share.

Dell 34%
HP 20%
Gateway 6.5%
Apple 4.8%

I could see Apple hitting 3rd place in a few years.

P.S. In after hours trading as of 8 pm, AAPL was at $58.75.

Big Mac · Jul 19, 2006, 11:32 PM

Methinks we'll pass the big 60 pretty easily in the morning! BOOOYAAAA!!!

Eug Wanker · Jul 20, 2006, 09:56 AM

Originally Posted by Big Mac

Methinks we'll pass the big 60 pretty easily in the morning! BOOOYAAAA!!!

You are correct sir. Up over 11% since yesterday, and now at over $60.

Merrill Lynch has now also upgraded AAPL's price target to $72, because of the indirect mention of the iPhone.

"As regards cell phones, we don't think that the phones that are available today make the best music players. We think the iPod is. But over time, that is likely to change. And we're not sitting around doing nothing."

Eug Wanker · Jul 21, 2006, 07:37 AM

Closed at $60.50, an 11.8% rise.

It has also now surpassed Dell in market capitalization (again).

At close ($22.10), DELL was worth: $ 50 529 572 600
At close ($60.50), AAPL was worth: $ 51 455 734 000

However, Dell has dropped 12% in after-market trading, so it may drop below 45 billion when the market opens.

In the meantime, The Financial Times has another mention about a potential AppleBerry, while other analysts are upgrading AAPL as well.

blackstar · Jul 21, 2006, 10:29 AM

im satisfied when its a profit, how many years were they writing negatives?

Eug Wanker · Jul 21, 2006, 10:35 AM

If you're talking AAPL, they've been consistently profitable for a very long time now.

Gossamer · Jul 21, 2006, 10:58 AM

I think he's leaning more toward mid-nineties, which most definitely sucked.