Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
Ralph:
I've modeled a number of scenarios and I agree $9.50 is conservative but it does reflect significant growth in iOS device sales. From dollar one of revenue in the September quarter my forecasting models suggest an additional 21% of revenue will flow to the net income in YOY comparisons.
Revenue is scaling much faster than operating expenses and the quarter will benefit from attractive gross margins. Revenue growth will amplify net income growth leading to significantly eps gains.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
what do I know:
I always appreciate your comments. I expect the market to respond positively to the September quarter results. Those results will confirm the June quarter earnings growth trend.
Independent Analysts Anticipate Q4 Revenue Growth Of 68.8% For Apple [View article]
Ivan:
As I wrote in another article posted on Seeking Alpha today, "Apple's revenue and earnings growth have become a continuum. The fiscal quarter reports are merely static, 91-day snapshots to measure the company's continuing success."
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
KenC:
An important factor to consider and I mentioned it in a comment above. Each revenue dollar in the quarter will deliver 21% more to the net income line than one year ago. As revenue rises, the impact on net income and eps is amplified considerably.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
Camden:
The retail stores are reaching into previously under served markets and the growth in the Asia-Pacific region has been almost unreal. I anticipate about one-third of the revenue growth in the quarter will come from the Asia-Pacific region. This reduces the revenue growth rate for all other regions to about 61% to reach my revenue number.
My iPhone number might be high and my iPad number a bit low. But I see a rate of revenue growth consistent with the March and June quarters.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
The estimated iPhone shipments might be high and the estimated iPad shipments might be low. But the rate of revenue growth is slightly below the rates of growth in the March and June quarters.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
The rate of estimated eps growth is below the rate of growth in the June quarter. Due to cost disciple, high margins and moderating tax rates, each dollar of revenue will deliver 21% more to the net income line this year versus one year ago.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
Ralph:
The Asia-Pacific region will again deliver strong results. According to my calculations, the region provided about 35% of the 82% revenue growth reported in the June quarter.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
A small investor's most effective tools are patience, knowledge, observation and the resulting insights that are provided. I don't have a crystal ball. I merely desire to add to the conversations through which people share information as an integral part of the process of making reasoned decisions.
Content is at least as important as the devices. Apple's expertise in the education market is demonstrated in the depth of education content available for devices, the development of rich curriculum resources and understanding of the ways in which students learn. There's much more to the education market than the nominal cost of the devices purchased or leased.
Beyond the hardware, the availability of content and especially curriculum content will factor heavily into the choice of devices. Apple's long-standing commitment to education extends beyond device design. It extends to the depth and array of content available for students and schools.
Apple is the leading PC vendor in the K-12 market. Supplanting the PC with the iPad will extend Apple's education dominance for the next several years.
Apple's reported revenue from iPhone sales include the sales of 3rd party and Apple-branded accessories. The ASP (average selling price) for iPhones is well below the $655 you mention. Secondly, the manufacturing costs on the iPhone exceed $190 per unit. Total costs for items sold to achieve the $655 revenue per iPhone handset is higher than the manufacturing costs of each unit.
Apple's gross margin in the 3rd fiscal quarter was 41.73%. It's best to use Apple's reported results as a guide.
One of the issues with printed text books is accelerated obsolescence (in addition to the high costs of printing, binding and shipping). Digital devices allow for access to the latest information as it is updated and in text embedded with links, students and instructors have access to additional curriculum resources.
If the most recent education buying season is an indication, school migration to iPads is well under way.
That's an interesting point. Apple has continued to invest in new products and new retail stores during this challenging economic period. The company is well positioned to maintain strong rates of revenue and earnings growth as many of the world's economies rebound and begin to expand.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
I've modeled a number of scenarios and I agree $9.50 is conservative but it does reflect significant growth in iOS device sales. From dollar one of revenue in the September quarter my forecasting models suggest an additional 21% of revenue will flow to the net income in YOY comparisons.
Revenue is scaling much faster than operating expenses and the quarter will benefit from attractive gross margins. Revenue growth will amplify net income growth leading to significantly eps gains.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
I always appreciate your comments. I expect the market to respond positively to the September quarter results. Those results will confirm the June quarter earnings growth trend.
Independent Analysts Anticipate Q4 Revenue Growth Of 68.8% For Apple [View article]
As I wrote in another article posted on Seeking Alpha today, "Apple's revenue and earnings growth have become a continuum. The fiscal quarter reports are merely static, 91-day snapshots to measure the company's continuing success."
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
An important factor to consider and I mentioned it in a comment above. Each revenue dollar in the quarter will deliver 21% more to the net income line than one year ago. As revenue rises, the impact on net income and eps is amplified considerably.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
The retail stores are reaching into previously under served markets and the growth in the Asia-Pacific region has been almost unreal. I anticipate about one-third of the revenue growth in the quarter will come from the Asia-Pacific region. This reduces the revenue growth rate for all other regions to about 61% to reach my revenue number.
My iPhone number might be high and my iPad number a bit low. But I see a rate of revenue growth consistent with the March and June quarters.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
The Asia-Pacific region will again deliver strong results. According to my calculations, the region provided about 35% of the 82% revenue growth reported in the June quarter.
Why Apple's Q4 Earnings Will Approach $10 Per Share [View article]
Apple's Expanding Global Reach [View article]
Apple's Expanding Global Reach [View article]
Apple's Expanding Global Reach [View article]
Apple's Expanding Global Reach [View article]
Apple's gross margin in the 3rd fiscal quarter was 41.73%. It's best to use Apple's reported results as a guide.
Apple's Expanding Global Reach [View article]
If the most recent education buying season is an indication, school migration to iPads is well under way.
Apple's Expanding Global Reach [View article]