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FQ3 iPad units would've been down only 3% Y/Y rather than 14% if not for channel inventory...

FQ3 iPad units would've been down only 3% Y/Y rather than 14% if not for channel inventory shifts, CFO Peter Oppenheimer states on Apple's (AAPL) CC. But that figure still implies share loss, given industry growth. iPad and iPhone channel inventories fell by 700K and 600K Q/Q. iPhone sales rose 51% Y/Y in the U.S., 66% in Japan, and 400%+ (off a low base) in India, even as they fell elsewhere. $106B of Apple's cash is offshore. $4B spent to repurchase 9M shares in FQ3, but more shares retired (hence the $16B repurchase figure). Share count lowered by 22M Q/Q. Greater China iPhone sell-through -4% Y/Y; Mainland China +5%, Hong Kong -20%. DRAM pricing is pressuring margins; NAND flash prices are stable, and LCD prices have fallen. App Store revenue was $2.4B. Shares +3.5% AH. (more on Apple) (live blogs: I, II)
Comments (14)
  • Valuable Insights
    , contributor
    Comments (485) | Send Message
     
    DRAM and NAND pricing are likely to remain margin headwind for $AAPL - http://bit.ly/130Q9el - long $MU
    23 Jul 2013, 06:23 PM Reply Like
  • Lopakaii
    , contributor
    Comments (231) | Send Message
     
    I thought Apple bought a NAND mfg. in Israel about 1 year ago? Does anyone recall that?
    23 Jul 2013, 06:57 PM Reply Like
  • Keep It Simple
    , contributor
    Comments (470) | Send Message
     
    That's correct.
    23 Jul 2013, 09:19 PM Reply Like
  • ladubs111
    , contributor
    Comments (49) | Send Message
     
    they make the controllers for the NAND.
    23 Jul 2013, 10:16 PM Reply Like
  • newbietech
    , contributor
    Comments (192) | Send Message
     
    "$4B spent to repurchase 9M shares in FQ3, but more shares retired (hence the $16B repurchase figure)".

     

    Where did the extra shares come from if they are not repurchased?
    23 Jul 2013, 07:02 PM Reply Like
  • SMJTRUST
    , contributor
    Comments (60) | Send Message
     
    Who wrote this? This is a typical example of SA writing, as they tend to put a negative spin on any positive news! This is writing is not only reserved for Apple, but other stocks like Facebook, etc. BUt I guess that is how they get readers, and people like me to comment at times - and that is what keeps them in business.
    23 Jul 2013, 07:53 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    There's plenty of positive news here as well. See the details about U.S./Japanese iPhone sales, lower LCD prices, share count reduction, etc. But if you want nothing but positive news, Market Currents doesn't provide that for Apple or any other company.
    23 Jul 2013, 09:51 PM Reply Like
  • SMJTRUST
    , contributor
    Comments (60) | Send Message
     
    Eric:

     

    It's not that I "want" good news, but SA seems to publish the articles like yours that is doom and no gloom! Editors like you take good news a company has, and twist it to be bad news, and then publish it! Take away Apples cash, with Revenues, Margins, and Earnings - should Apple be trading just above 6 PE? Even with some bad news, it should not be trading at these levels - gee I guess the shorts got the market down enough to buy just before the earnings release! It is not all Doom!
    24 Jul 2013, 10:14 AM Reply Like
  • criticalbear
    , contributor
    Comments (81) | Send Message
     
    But that figure still implies share loss, given industry growth.

     

    I love this comment, because the link it links to says that the tablet industry will grow for 2013.

     

    GEE was 2013 already over?
    23 Jul 2013, 09:01 PM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (753) | Send Message
     
    The link also mentions IDC estimated industry tablet shipments rose 142% Y/Y in Q1. Here are more details.

     

    http://seekingalpha.co...

     

    I'd be willing to bet they also rose strongly in Q2 (though probably not as fast).
    23 Jul 2013, 09:48 PM Reply Like
  • Cabeza Howe
    , contributor
    Comments (252) | Send Message
     
    There's no denying iPad sales were a bit soft overall in FQ3, even though Tim and Peter kept on touting its 84.3% share of tablet web usage in U.S./Canada. Overall, the FQ3 report appears quite a bit better than feared. But that's a different issue.
    23 Jul 2013, 11:12 PM Reply Like
  • bgold1955
    , contributor
    Comments (1939) | Send Message
     
    Just buy. Eliminate drama and make money.
    23 Jul 2013, 09:14 PM Reply Like
  • VictorHAustin
    , contributor
    Comments (793) | Send Message
     
    From the call on China:

     

    Tim Cook

     

    China was weaker in the quarter, although the datasheet that obviously focuses on revenue doesn’t really tell the complete story here. If you look at sell-through as we have mentioned earlier with the inventory changes, it’s important to do that. And so our sell-through in China was only down 4% from the year ago quarter when you normalized for channel inventory. Hong Kong was actually down more significantly. Mainland China was actually up year-over-year. It was up 5%, but that is the lower growth rate than we have been seeing and are attributed to many things including the economy there clearly doesn’t help us or nor others. In Hong Kong, Hong Kong is an international shopping haven as you know for not only tourist but also some resellers and we saw more dramatic downturn there, it's not totally clear exactly what had occurred but it was down on a sell through basis by about 20% so that weighed greater China down as you can see in your data sheet.
    24 Jul 2013, 02:01 PM Reply Like
  • henhill69
    , contributor
    Comments (29) | Send Message
     
    Transcript of $AAPL Q3 2013, iPhone unit sales in the U.S. increased 51%. Read more @ http://bit.ly/1bKFD27
    31 Jul 2013, 02:06 PM Reply Like
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