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Apple bulldozes Street: $1.26 EPS; Mac sales reach all-time high of 2.6m, 6.9m iPhones
Mac Daily News ^ | 10/21/2008

Posted on 10/21/2008 11:01:56 PM PDT by Swordmaker

Apple today announced financial results for its fiscal 2008 fourth quarter ended September 27, 2008. The Company posted revenue of $7.9 billion and net quarterly profit of $1.14 billion, or $1.26 per diluted share. These results compare to revenue of $6.22 billion and net quarterly profit of $904 million, or $1.01 per diluted share, in the year-ago quarter. Gross margin was 34.7 percent, up from 33.6 percent in the year-ago quarter. International sales accounted for 41 percent of the quarter’s revenue.

MacDailyNews Note: Analysts' consensus estimates for Apple's Q4 08 called for $1.11 EPS, on revenue of $8.05 billion, or 29.4% YOY sales growth. Peter Oppenheimer, Apple’s CFO, had provided guidance of "about $7.8 billion" and earnings per diluted share of "about $1.00.”

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone and Apple TV over their economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures (more info) for the quarter are $11.68 billion of “Adjusted Sales” and $2.44 billion of “Adjusted Net Income.”

Apple shipped 2,611,000 Macintosh computers during the quarter, representing 21% unit growth and 17% revenue growth over the year-ago quarter. The company sold 11,052,000 iPods during the quarter, representing 8% unit growth and 3% revenue growth over the year-ago quarter. Quarterly iPhone units sold were 6,892,000 compared to 1,119,000 in the year-ago-quarter.

“Apple just reported one of the best quarters in its history, with a spectacular performance by the iPhone—we sold more phones than RIM,” said Steve Jobs, Apple’s CEO, in the press release. “We don’t yet know how this economic downturn will affect Apple. But we’re armed with the strongest product line in our history, the most talented employees and the best customers in our industry. And $25 billion of cash safely in the bank with zero debt.”

“We’re very pleased to have grown revenue 35 percent and to have generated $9.1 billion in cash in fiscal 2008,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead, visibility is low and forecasting is challenging, and as a result we are going to be prudent in predicting the December quarter. We are providing a wide range for our guidance, targeting revenue of $9.0 to $10.0 billion and earnings per diluted share between $1.06 and $1.35.”

MacDailyNews Take: Analysts' consensus estimates for Q1 09 call for $1.65 EPS, on revenue of $10.57 billion, or 10.0% YOY sales growth. It's nice to see Apple providing a "wide range" instead of harder guidance, but even the top end of EPS guidance doesn't come close to expectations. We'll see how the market treats this guidance. If history is any guide, it won't be pretty.

Apple will conduct a conference call to discuss the company's results today, Tuesday, October 21, 2008 at 2pm PT/5pm ET.

MacDailyNews will be covering the conference call via live notes at that time. The live coverage will appear at the top of our home pages shortly before 5pm ET.

The link to the QuickTime stream of the conference call is here.


TOPICS: Business/Economy; Computers/Internet
KEYWORDS:
Live notes from Apple’s Q408 Conference Call Tuesday, October 21, 2008 - 06:01 PM EDT


1 posted on 10/21/2008 11:01:56 PM PDT by Swordmaker
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To: Swordmaker
Glad I bought some AAPL calls this am. See the after hours trading?
2 posted on 10/21/2008 11:03:39 PM PDT by hinckley buzzard
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To: 1234; 50mm; 6SJ7; Abundy; Action-America; acoulterfan; AmericanGirlRising; aristotleman; ...
Apple blows through expectations on last quarter's expectations.

Some quarterly state:

Apple topped over 10,000,000 iPhones in 2008 with 1 complete quarter yet to go.


Apple WOW! Ping!

If you want on or off the Mac Ping List, Freepmail me.

3 posted on 10/21/2008 11:09:59 PM PDT by Swordmaker (Remember, the proper pronunciation of IE is "AAAAIIIIIEEEEEEE!)
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To: RS

Your question has now been answered... yes, Apple WILL indeed sell more than 10,000,000 iPhones in 2008 and in fact will sell far more than 1% of the market.


4 posted on 10/21/2008 11:14:10 PM PDT by Swordmaker (Remember, the proper pronunciation of IE is "AAAAIIIIIEEEEEEE!)
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To: hinckley buzzard

Ditto


5 posted on 10/21/2008 11:16:03 PM PDT by BigFinn (Isaiah 32:8 But the liberal deviseth liberal things; and by liberal things shall he stand.)
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To: Swordmaker

RIM has become the next victim being crushed beneath the treads of the Apple iPod/iPhone Juggernaut.

Which is good, because their products are in fact crap. :P

Nokia and Samsung are now in the unenviable position of needing to innovate or die in the smartphone space.

And Ballmer has the answer to his question - Who’s going to buy a $500 smartphone? Answer: Apparently a lot of people - just not if it runs Palm, WindowsMobile, or RIM.


6 posted on 10/21/2008 11:25:46 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr
Which is good, because their products are in fact crap.

After using Macs and Apple products for almost 24 years, I didn't know that. My company offers cross platform software to two distinct markets. One is 79% Mac and the other is almost all Windows. Guess which platform costs me more money to support. If you said Windows, you are right.

We have remote software where we can see our clients machines. Windows is a nightmare. I see the difference every day.
7 posted on 10/21/2008 11:55:49 PM PDT by 101st
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To: 101st

The products that are crap are RIMs, not Apple’s. Thought I’d made that clear. :P


8 posted on 10/22/2008 1:11:29 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Swordmaker

AAPL way down from 24 days ago. 30% off. Maybe you’ll get nice dividends


9 posted on 10/22/2008 4:19:57 AM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw
And MSFT is down only about 18 percent since Sept. 26. Probably just a coincidence.

Of course MSFT has lost about a third of its value since the first of the year.

10 posted on 10/22/2008 6:28:27 AM PDT by Tribune7 (Obama wants to put the same crowd that ran Fannie Mae in charge of health care)
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To: dennisw
AAPL way down from 24 days ago. 30% off. Maybe you’ll get nice dividends

And so are many stocks.

If you really want it to look bad, it's down 50% from six months ago.

Look at is a bargain. Some analysts have not backed off of their target prices on AAPL of $250 or there abouts.

11 posted on 10/22/2008 8:19:18 AM PDT by Swordmaker (Remember, the proper pronunciation of IE is "AAAAIIIIIEEEEEEE!)
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To: Swordmaker

This quarter included the lucrative months of send your kid off to college with a new computer. :) And Apple’s part of the pie is impressive.


12 posted on 10/22/2008 9:42:31 AM PDT by Texas_shutterbug
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To: dennisw

Dell is down over 50% from its 30 day high. Your point being....


13 posted on 10/22/2008 12:57:36 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Swordmaker
Thanks for the Image Hosted by ImageShack.us!
14 posted on 10/22/2008 1:35:42 PM PDT by vox_freedom (G K Chesterton: "If there were no God, there would be no atheists.")
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To: Spktyr

I don’t buy Dell but you buy Apple. I have never bought a Dell but I have bought HP products.


15 posted on 10/22/2008 3:39:00 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: Spktyr

Hey Microsoft is your enemy. How much did it go down compared to Apple?


16 posted on 10/22/2008 5:35:09 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw

HP is also down almost 50% in the last month.


17 posted on 10/22/2008 6:10:50 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: dennisw

AAPL close today: 96.87
MSFT close today: 21.53

Also, YTD, Apple’s stock has been pretty stable. Microsoft’s been in a dive.


18 posted on 10/22/2008 6:38:58 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: dennisw
MSFT, 1YR:

AAPL, YTD:

One shows a downward spiral, the other shows a generally stable price.

19 posted on 10/22/2008 6:42:09 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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Gah, stupid FR non parser.

MSFT Chart: http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1224726124663&chddm=1173&q=NASDAQ:MSFT&ntsp=0
AAPL Chart: http://finance.google.com/finance?chdnp=1&chdd=1&chds=1&chdv=1&chvs=maximized&chdeh=0&chdet=1224725999371&chddm=98923&q=NASDAQ:AAPL&ntsp=0


20 posted on 10/22/2008 6:43:23 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

http://finance.google.com/finance?client=ob&q=NASDAQ:AAPL

In one month AAPL and HPQ down 25%
MSFT down 15%


21 posted on 10/22/2008 7:32:50 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: Spktyr

My prediction is the new Apple laptops will not sell well. People will go for cheaper options in this economic climate


22 posted on 10/22/2008 7:34:20 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: Spktyr

http://finance.google.com/finance?q=NASDAQ:DELL

Dell down only 27% last month...not 50


23 posted on 10/22/2008 7:36:07 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw; Spktyr
Dell down only 27% last month... not 50

Try since August 27th when Dell opened at 25.97. Today, it closed at 11.98 Down 54% in less than two months. And your point is?

24 posted on 10/22/2008 8:10:10 PM PDT by Swordmaker (Remember, the proper pronunciation of IE is "AAAAIIIIIEEEEEEE!)
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To: All

I love Macs!!! Windows machines are just unnecessarily complicated and irritating. The Mac that I am using right now is 8 years old and going strong. I have 2 newer ones as well. Both are at least 6 years old and doing great as well. I’ve always been one to “Think different”. Macs are rare in this part of the country. Love ‘em.


25 posted on 10/22/2008 8:18:37 PM PDT by NellieMae (Here...... common sense,common sense,common sense,where'd ya go... common sense......)
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To: dennisw

Why wouldn’t you get a great computer instead of a cheap one now? Seem to be a much smarter move to me. I would rather have one that will last 4-5 years than one that will limp through 2.


26 posted on 10/22/2008 8:20:07 PM PDT by Mr. Blonde (You ever thought about being weird for a living?)
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To: dennisw; Swordmaker

Did you not also predict that the iPhone wouldn’t sell and that the iPod was just a faddish toy?

What I’m seeing (and thinking) is that people will do the exact opposite. They have money *now*, they know they may not have money later. Is it better to buy something cheap now that you might have to replace in 18 months (when you may not have the money) because it’s died, or spend a bit more now and have something that’s good to go for an average of 8 years? People made the same call during the Great Depression - most of the ones with money opted to buy quality NOW to be certain it would last until their economic fortunes improved. Those that bought cheap gear were found dead somewhere in the desert between Oklahoma and California next to their jalopy.

The same thing is happening now - people are saying “enough of the constant PC service bills and 18 month upgrade cycle cost” and buying Apple gear instead. This isn’t just my own observation as an IT consultant; if you’ve been watching the sales numbers, Apple’s sales have actually *accelerated* as the economy gets worse, at the expense of PC makers.


27 posted on 10/22/2008 8:20:34 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Mr. Blonde
Why wouldn’t you get a great computer instead of a cheap one now? Seem to be a much smarter move to me. I would rather have one that will last 4-5 years than one that will limp through 2.

I don't need a great computer plus I don't think Apple gives as good value for the money as ye plain old windows machine. You may think otherwise.
I need a good and functional computer which is what I'm typing on right now. Dual core Athlon 4600/2gb memory/XP I put together

For some items I get the best
Not so for computers

28 posted on 10/22/2008 8:30:17 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: Spktyr
Did you not also predict that the iPhone wouldn’t sell and that the iPod was just a faddish toy?

I have made negative comments about both but not like those...  I think you have someone else in mind or a composite of Freepers that piss on Apple

29 posted on 10/22/2008 8:33:46 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw

Apple’s business strategy of not making entry-level/bargain-basement models is actually proven and sound. Hell, it got Packard through the Depression. (Packard died not because of business strategy but because of really horrifically badly conceived and badly timed design decisions, something that Apple doesn’t seem to do.)


30 posted on 10/22/2008 8:40:36 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr
Apple’s business strategy of not making entry-level/bargain-basement models is actually proven and sound.

IOW they skim off the cream and say screw you to the peasants

31 posted on 10/22/2008 8:43:42 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw

Not quite. That would be true if they only produced Mac Pros and MacBook Pros (i.e., the Peerless Motor business plan.)

No, they do everything BUT entry-level/bargain-basement. They have low-midrange, midrange, and high end.

Note that Sony and Pioneer don’t compete in the bargain basement arena any more either - doing so is a great way to lose your brand equity. Colt also discovered that the bargain basement pistol idea wasn’t so great for their brand. Jaguar went into the entry-level luxury market, and it’s dragged down their entire brand.


32 posted on 10/22/2008 8:49:46 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

No Macbook is low mid-range

High end Windows laptop start at $999 which is where Apple laptops begin


33 posted on 10/22/2008 9:22:58 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw

...

No, high end Windows laptop/workstations *start* at $2K. Not $1K.

$1K is solidly midrange.


34 posted on 10/22/2008 9:37:02 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

Apple will be forced to dump it’s absurd 13”/$999 laptops the same way these lobster men were forced to dump lobsters at $4 a piece. Luxury items are doing poorly right now

http://www.timesrecord.com/website/main.nsf/news.nsf/0/D8E56302F28282C6852574E9005A5B3C?Opendocument


35 posted on 10/22/2008 9:54:16 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw

We’ll see how Christmas goes. I think you’re going to be proven very, very, very wrong.

In addition, while nobody needs lobster, most everyone needs a computer for one reason or another.

I haven’t eaten lobster (sea bugs) for years. But I buy computers. :D


36 posted on 10/22/2008 9:56:50 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

Do you avoid lobster becasue it isn’t kosher?


37 posted on 10/23/2008 5:55:30 AM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw

No, I avoid lobster because I dislike eating insects. :P


38 posted on 10/23/2008 11:56:00 AM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

It is an insect. Is that the real reason for not eating it? Are shrimps insects too? Crawfish? Steve Jobs says he is a piscatarian


39 posted on 10/23/2008 9:08:57 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: dennisw

Heh, nice try - Jobs is a vegetarian. (I’m not.)

I don’t eat shrimp or “mud bugs” aka crawdads either.


40 posted on 10/23/2008 9:11:10 PM PDT by Spktyr (Overwhelmingly superior firepower and the willingness to use it is the only proven peace solution.)
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To: Spktyr

http://www.google.com/search?num=100&hl=en&rlz=1T4GGLL_en&q=pescatarian+steve+jobs

Who knows for sure but I believe Jobs is a pescatarian but has been vegetarian and vegan in the past

I haven’t eaten lobster in a while. Crawfish look unhealthy to me and I might copy you and give up shrimp. All of those “bugs” are not kosher but Muslim dietary laws (halal) allow them. I read an article about the Arab shrimping boats off the Saudi Arabia coast and Muslims scarf them down


41 posted on 10/23/2008 9:32:53 PM PDT by dennisw (Never bet on Islam! ::::: Never bet on a false prophet!)
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To: Swordmaker

“in fact will sell far more than 1% of the market.”

LOL ... “far more” ???

You realize they will need to sell ANOTHER 10 million to get all the way up to 2% don’t you ?


42 posted on 10/29/2008 5:32:07 PM PDT by RS ("I took the drugs because I liked them and I found excuses to take them, so I'm not weaseling.")
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To: RS
You realize they will need to sell ANOTHER 10 million to get all the way up to 2% don’t you ?

Street estimates are that Apple may sell more than 45 million in the next 12 months. Some predict that they will sell another 6 or 7 million in this quarter.

43 posted on 10/29/2008 6:12:41 PM PDT by Swordmaker (Remember, the proper pronunciation of IE is "AAAAIIIIIEEEEEEE!)
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