Apple’s Q1 2013: Revenue Up 17.7% to $54.5B, $13.1B In Profit
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AAPL actually missed revenue estimates by a little, which may have caused concern for some who always expect tremendous quarterly reports.
As the stock has fallen below $500 in after-hours trading, I think we'll see a correction in the morning from limit-orders that may have hit while the market was closed.
Apple is a great company with a very healthy business, but AAPL as a stock is not in the same shape.
Considering that there are a number of analysts and they produce a range of estimates, it doesn't seem accurate to reduce things to "beat" or "missed" estimates - it's possible to beat most of the estimates but miss a few of them, or vice versa.
You will always see articles about how the "market reacted to X" in the announcement when this occurs.
X is often different between articles ;)
Because revenue growth is starting to fade away and margins are being hurt. Despite a lot of really, really ridiculous things said about equities here on HN (or any tech board), the market is quite rational and future-facing. Look back on all of the absurd conspiracy theories about options traders keeping AAPL down, and compare with the reality that it is down 6% aftermarket today. Of course it's down from enormous heights, so in no universe is Apple in imperiled or any nonsense like that, but it simply isn't the darling that it was a year+ ago.
I don't think it's fair to characterize Apple as "down from enormous heights." Throughout 2012, Apple's P/E meandered between 13-15, which puts it in the company of stocks like IBM and MSFT, and below Oracle. Even at its 700+ highs, Apple's P/E never came close to that of Google. It doesn't seem like a bubble.
As @gruber pointed out, 3 years ago they were making $50 billion annually and they just announced they were making $54.5 billion in a _quarter_. You can't expect 20% increases every quarter when you're at the top of the market.
-- Music players remain a shrinking niche.
-- Mac sales have (at least) plateaued and are likely sinking in lockstep with the rest of the classical PC industry.
-- Apple is doing fine. 75%+ of their revenue is now from iOS.
-- China is important.
General-purpose computing is starting to look more and more like a profitable hobby for Apple. That it is in retreat over the whole industry only makes it worse. Maybe the day when most everybody has been herded into a walled garden isn't too far away.
For non-gamers, the Mac's that Apple sells are now lasting three, four, and in the case of the iMac, 5+ years. That's going to kill their sales to existing customers - so they'll need to rely more on their mobile platforms (not that they don't already)
Retina displays could be a driving force for selling more airs.
Retina is great, but it depends on the price. But still, what next after the retina? People are working more and more online and even old computers are perfectly fine. Not the fault of Apple or Microsoft, in fact they may have done a too good of of a job.,
An LTE/3G connection would be nice.
It certainly seems like there's a downtick in computer buying as a whole - perhaps because its a fairly saturated market that's now driven by upgrades rather than new users combined with it's taking longer for a computer to be really out of date.
They kinda osborned themselves.
While the large PC industry is declining (according to Tim on the conference call) and Macs are generally doing better- growing or declining less, depending on the quarter- I don't think Apple's Mac business is destined to become a hobby.
Speaking of hobbies, the AppleTV device is selling more every year.... pretty soon it may not be a hobby at all.
A 3 year old article with similar pts is in the top 20.
Does Apple take 30% of the HN points too? Techcrunch penalty?
Q1 2012 46.3B Revenue 13.1B Profit (28.3% net profit) Q1 2013 54.5B Revenue 13.1B Profit (24.0% net profit)
So 4.3% of your net profit (2.3 billion dollars) went somewhere. Did anyone see on their balance sheet where it went? Any extraordinary items? Down payment on the new HQ or anything?
More Tim Cook on the call:
"regarding the mix as an example, the iPad mini gross margin is significantly below the corporate average "
They've introduced new products for every category, so the manufacturing processes are still being refined. As time goes on they should eek more output in a given amount of time with fewer rejects, thus increasing margin.
Dividend perhaps?
edit: I suppose that doesn't come out of operating expenses
This impacts GM in the short term, with profitability increasing over several quarters.
Q1 2012 profit/week = $0.93B Q1 2013 profit/week = $1.00B
"In addition to reporting changes, to further increase transparency, we're changing our guidance approach In the past, we've given a conservative estimate. Going forward, we plan to project what we are likely to achieve"
And the projection for the Jan-Mar quarter:
"we are expecting between $41 and $43 billion for the next quarter"
http://techcrunch.com/2013/01/23/apples-record-first-quarter...
I personally don't think they can grow to be much bigger than they already are.
Makes sense, especially in tech companies; an investor has a lot to lose and less upside given the current market cap.
So, even if that's what Wall Street expected it seems ... off... to be down so much.
I think the reality is, some people expected %50 growth, and Wall Street doesn't like the fact that the margins are smaller.
The margins being smaller, however, goes hand in hand with what it takes to produce the massive growth... and the margins will improve.
Which is why markets aren't perfectly efficient... and people have an opportunity to profit from this kind of nonsense.