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Apple's gross margin solid; Americas growth slows, China improves

  • FQ4 iPhone sales beat estimates, iPads were slightly light, Macs were in-line.
  • Gross margin was 37%, -300 bps Y/Y but at the high end of a guidance range of 36%-37%. FQ1 gross margin is expected to be in a range of 36.5%-37.5%.
  • Exc. retail, Americas sales only +1% Y/Y after rising 12% in FQ3. Japan remained strong: sales +41% Y/Y vs. +27% in FQ3. Europe flat Y/Y vs. -8%, Greater China +6% vs. -14%, rest of Asia-Pac -6% vs. -18%.
  • iPhone revenue ($19.5B, 52% of total) +17% Y/Y vs. +15% in FQ3. But iPad revenue ($6.2B) -13% vs. -27%. Also, Macs ($5.6B) -15% vs. -1%.
  • 3.5M iPods were sold, revenue ($573M) -30% vs. -31%. iTunes/software/services ($4.3B) +22% vs. +25%, Accessories ($1.3B) +5% vs. -4%.
  • $7.8B was returned via dividends/buybacks.
  • AAPL -2.5% AH. FQ4 results, PR.
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Comments (16)
  • IGUART
    , contributor
    Comments (345) | Send Message
     
    "Beat Estimates" Ha!! Take that!! Apple haters! LOL
    28 Oct 2013, 04:55 PM Reply Like
  • bfmil
    , contributor
    Comments (221) | Send Message
     
    I'm laughing right along with you!
    28 Oct 2013, 05:04 PM Reply Like
  • NYC Trader
    , contributor
    Comments (513) | Send Message
     
    Apple's got it all wrong. If only they had negative earnings like Amazon, the stock would just keep going up. Their problem is that they produce huge EPS for their investors.
    28 Oct 2013, 04:58 PM Reply Like
  • Stan Ackman
    , contributor
    Comments (924) | Send Message
     
    Many people are whining about why $AAPL dropped in the after hour. IMHO, many AAPL investors claim they are long term focused, but, in the reality, they are very shor-term focused. No matter how many iPhones Apple sold during the recent quarters, Apple cannot change the fact that smartphone market is saturating. Without finding the next product with nearly as big as profit potential, AAPL's long-term price appreciation potential is very limited.
    28 Oct 2013, 05:02 PM Reply Like
  • dgulick
    , contributor
    Comments (1562) | Send Message
     
    Saturating domestically (and even their, not really, people upgrade every 2 years), but definitely not internationally, lots of room for growth. AAPL is the easiest no-brainer buy in the market today.
    28 Oct 2013, 05:19 PM Reply Like
  • bgold1955
    , contributor
    Comments (2106) | Send Message
     
    Stan, may need that next product but 23% growth yoy in iPhone sales does not indicate a market saturating.
    28 Oct 2013, 05:20 PM Reply Like
  • Stan Ackman
    , contributor
    Comments (924) | Send Message
     
    bgold, I used the word saturating rather than saturated. True, Apple's market penetration is not consider saturated in many developing countries. However, you have to recognize the difference in different market. Chinese and Indian have to pay more than what we paid for iPhone 5s for a iPhone 4 while their average income is less than 20% of Americans'. That's why iPhone's ASP keeps declining.
    28 Oct 2013, 05:28 PM Reply Like
  • dgulick
    , contributor
    Comments (1562) | Send Message
     
    Avg income is less, but they have 4x the population (china too!)
    28 Oct 2013, 05:36 PM Reply Like
  • bfmil
    , contributor
    Comments (221) | Send Message
     
    They'll still find something to bash Apple on. It's what the so called experts (read drones) get paid to do. Purposely try to drive the stock down so big money can buy on the cheap. One of the most heavily manipulated stocks in the history of the market.
    28 Oct 2013, 05:02 PM Reply Like
  • FAT BANKER
    , contributor
    Comments (959) | Send Message
     
    RE bfmil Comment 58

     

    WALL STREET would have to be a sane institution run the good and rational for things to be different. NO GREAT SURPRISE HERE THEN !
    However. despite Wall Street antics Apple is unstoppable in the long run.
    28 Oct 2013, 05:27 PM Reply Like
  • vbbv
    , contributor
    Comments (87) | Send Message
     
    What a load of crap the stock market is. Here you have one company that beat expectations, generated insane profitability and guided for $55 BILLION+ for Q1 revenue and its stock is down after hours.

     

    And then you have Amazon which couldn't earn one cent in profit to save its life.

     

    Enough said.
    28 Oct 2013, 05:03 PM Reply Like
  • ispank
    , contributor
    Comments (667) | Send Message
     
    Stay calm, don't be panicked, tomorrow will be green.
    29 Oct 2013, 12:25 AM Reply Like
  • Humble Eagles
    , contributor
    Comments (1932) | Send Message
     
    I wouldn't worry about short term gyrations as long as they don't say something very negative. Everything looks very solid to me. They beat handily on 4Q and guidance for 1Q. They are growing again! Margins edging higher. Remember, they are conservative on guidance. China growing again. ASPs doing fine. Phones and ipads did quite well.
    28 Oct 2013, 05:05 PM Reply Like
  • Robert Duval
    , contributor
    Comments (4546) | Send Message
     
    http://seekingalpha.co...

     

    Read this.
    28 Oct 2013, 05:16 PM Reply Like
  • Johnwoods41
    , contributor
    Comments (150) | Send Message
     
    They need to be more like Amazon, keep everyone guessing how many they sold, and what they sold and what margin, too much detail Apple far too much detail.... Be more like Bezos, just trust me the revenue is up and that's what you need to worry your pretty little heads with.
    28 Oct 2013, 09:34 PM Reply Like
  • rrosey2
    , contributor
    Comments (709) | Send Message
     
    By making older iPhones "updateable", Apple has brilliantly developed its own "cheap phones".

     

    A 4s can carry ios7.
    28 Oct 2013, 10:00 PM Reply Like
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