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Apple Reports Second Quarter Results (apple.com)
65 points by llambda 1646 days ago | hide | past | web | 30 comments | favorite

I think it is important for folks to look at Apple's balance sheet and understand just how amazing of a job they have done in what is nominally a 'hardware' business. 39B$ in quarterly revenue trounced Microsoft's $17B$. More than double. If you had asked me in '95 if Apple would ever have double the quarterly revenue of Microsoft I would have thought you were crazy. That is legendary execution.

Of course if they are pulling all that money in there has to be folks who would be willing to pull in just a bit less (in market economies) so it will be interesting to watch the response of folks like Google, Microsoft, and HP as they maneuver around in this space.

Songs will be sung of this time in technology :-)

Yes, Apple's amazing. But I think there's this attitude that nobody can compete with them.

Somebody can. But we're all just too busy looking and marvelling at Apple's astounding success to see that, if just enough insight and resources were given to the R&D departments at a bunch of different companies, similar results could be achieved elsewhere.

Apple was just like other companies 15 years ago. Worse, actually. They were failing in 1997. It was about to go under or be acquired. All Steve Jobs did was return and re-focus the company on products instead of marketing. Granted the focus he brought was perfectionist to a neurotic degree, but those tendencies aren't limited to Apple.

So why aren't other companies doing that?

Jackson Pollock.

My kid could paint that, he just didn't.

"All Steve Jobs did" is nearly impossible for every single company. I'm watching bosses fight over the possibility of including dynamic content in a jQuery slideshow. I'm wading through thirty meetings to get approval to roll out an update to a javascript file that was nothing more than changing an easing function.

Most companies are not able to move beyond political infighting to coalesce around a goal, let alone the correct goal.

They coast.

This is offtopic, but if work is that bad you might want to look for a better job. The who's hiring thread is a good place to start: http://news.ycombinator.com/item?id=3783657

> All Steve Jobs did was return and re-focus the company on products instead of marketing.

Actually, if you take the textbook "four p's" definition of marketing, what Steve Jobs did was take Apple and finally do the marketing right.

Product: The right product in the right place at the right time. No more need be said.

Price: Thanks to Apple's tireless devotion to operations, they can offer that product at a competitive price, even if it has a retina display or a new type of glass that has never been mass produced before or laser-drilled microscopic holes in the bezel to make an indicator disappear.

Promotion: Bringing back Chiat/Day, turning the keynotes and product announcements into major events, and playing the press like a violin.

Place: Apple's online and retail stores.

I think we may also want to note that many CEO's are in it for the power and money. Steve Jobs was in it for creating the most awesome product ever. Two very different passions.

I think the multi-billion question is, what big thing comes after iPhone and iPad?

This is not a very urgent question at the moment, but one can clearly see that were Apple content to coast on profits from iPod and Macs alone they would still be a profitable company but a shadow of their current self.

My estimate is that it will take 2-3 years for competitors to really start eating into Apple share in phones and tablets. Also, the market will become more mature and people will not rush to upgrade Iphone 6 to Iphone 6s. Or Ipad to new Ipad. I mean once you go retina screen, how do you differentiate the Ipads? Quad core vs Octo core is not going to matter to regular buyer.

Currently Apple has great Operations(Cook) and great Design (Ives), the Vision is under the question mark.

1995? How about 2005? Quarterly earnings of $0.35 per share, vs this quarter of $12.35 per share, up 4000%.

Ars liveblog of the earnings call by Jacqui Cheng:


I think this should be titled: Apple Crushes 2nd Quarter Estimates with Massive iPhone Sales

I feel the stock might not have the same momentum over the next few days. Although Apple beat estimates, it guided lower for the upcoming quarters:


Apple's also notorious for lowballing guidance.

EDIT (answer): I didn't downvote you.

Why the down vote for pointing out their guidance?

Eric Raymond hit hardest.

Wow. This stood out:

"Apple sold 7.7 million iPods, a 15 percent unit decline from the year-ago quarter."

I wonder why the decline and if there is a concern?

Everyone that wants one has one? More competitors? Everyone who has an iPod transitioning to the iPhone?

iPod sales have been declining year over year for several years now: http://cdnmo.coveritlive.com/media/image/201204/php3nZ4YDapp...

Apple has repeatedly said they are not worried about this on their conference calls. The consensus is that the iPhone has been cannibalizing sales since its release.

See: http://blog.fraserkelton.com/2011/09/24/cannibalize-yourself...

where Steve Jobs is quoted as saying if there’s going to be cannibalization of Apple, they want it to be by Apple.

Not really a concern. Apple planned on the iPhone/iPod Touch/iPad cannibalizing their iPod line. This is how Apple has stayed ahead. It's better to disrupt your product than have a competitor do it to you.

This is why its important to fund R&D at companies. It enables exploration and innovation, to create the next disruption and/or continuous innovative use of products.

Anecdotally - none of my friends (or myself) carry iPods anymore. Nearly everyone I know uses their smart phone. I think most iPod sales are now sold to children as stand-ins until they have a smartphone of their own.

Or people who refuse to pay exorbitant rates (in comparison) for internet access to communications companies who on one hand claim the last mile is the bottleneck and expensive, yet refuse to invest in infrastructure for their wireless towers. AT&T and Verizon in particular.

you don't have to get a dumbphone just because you don't want to get a data plan. wifi is pretty ubiquitous, and if you don't have a data plan your smartphone will still work as an mp3 player and do a bunch of other cool stuff.

FWIW signing on to either AT&T or Verizon's network with any recent iPhone will "automatically" enroll you in a data plan if you don't have one. There really is no way to have a data-free iPhone, I've tried.

Pay cash and use it on T-Mobile? That's what I did. AT&T or any other GSM prepaid should also work.

I think the parent was suggesting there are a lot of people who are happy to purchase an iPod Touch for much less than the cost of an unlocked iPhone- the iPod Touch has most of the functionality of an iPhone minus the cellular capability. In fact, add skype+wiFi, and it makes a pretty good phone as well.

I think the 35.1 million iPhone activations had something to do with that. The iPod touch is simply a gateway drug to the iPhone.

> Everyone who has an iPod transitioning to the iPhone?

Bingo, although I think it's more like "everyone who has an iPhone (or any smartphone, really) doesn't feel the need to also have an iPod".

Anecdotally: My wife recently wanted to buy an iPod to replace her old MP3 player. For 100€ more you get an iPod with phone capabilities called iPhone 3GS. So she got one of those instead and replaced her old phone as well.

I'd bet on a transition to the iphone

could be saturation, but i also think ipads might be taking some of those sales.

And to no one's surprise, they're up 8% in after-hours trading.

And down 2% today before earnings. AAPL, she sure does swing.

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