Seeking Alpha

Apple +7% AH; iPhone strength provides a lift to margins

  • Stronger-than-expected iPhone sales (carry higher margins than iPad/Mac sales) led Apple (AAPL) to post an FQ2 gross margin of 39.3% +180 bps Y/Y and above guidance of 37%-38%. GM guidance is set at 37%-38% for FQ3.
  • iPhone revenue (57% of total revenue) +17% Y/Y to $26.1B, an improvement from FQ1's 6% growth. iPad revenue -13% to $7.6B, a reversal from FQ1's +7%. Mac revenue +1% to $5.5B vs. +16% in FQ1.
  • iTunes/software/services revenue +11% to $4.57B (+19% in FQ1), accessories +3% to $1.4B, iPods -52% to $461M.
  • Exc. retail, Americas revenue +2% vs. -1% in FQ1. Europe +4% vs. +5%, Greater China +13% vs. +29%, Japan (has been a strong spot) +26% vs. +11%, rest of Asia-Pac (has been a weak spot) -17% vs. -9%. Retail sales were flat after growing 9% last quarter.
  • ~$18B was spent on buybacks, providing a lift to EPS. As a result, Apple's cash/investment balance fell by ~$9B to $150B.
  • FQ2 results, split announcement, PR

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Comments (40)
  • Mrek
    , contributor
    Comments (52) | Send Message
     
    It seems like the never ending SA parade of estimators and financial geniuses just couldn't even get the numbers close.

     

    Remarkable.
    23 Apr 2014, 05:03 PM Reply Like
  • aardvark3
    , contributor
    Comments (539) | Send Message
     
    I'm shocked.
    23 Apr 2014, 05:18 PM Reply Like
  • InmanRoshi
    , contributor
    Comments (216) | Send Message
     
    Also a ton of "analysts" on CNBC, who ultimately don't know what the hell they're talking about, just regurgitating the same group think from the hivemind. Most people know that just because they have a pipe wrench in the garage they're not experts on the steel industry, but anyone who plays Angry Birds on their tablet on the subway ride into work thinks they're an expert in the tech sector.
    23 Apr 2014, 05:21 PM Reply Like
  • Kimer62
    , contributor
    Comments (245) | Send Message
     
    I have yet to see a comment from MB?
    23 Apr 2014, 05:09 PM Reply Like
  • name999
    , contributor
    Comments (173) | Send Message
     
    He is probably doing all he can to save and turnaround his darling Blackberry now :)
    23 Apr 2014, 05:36 PM Reply Like
  • baozebub
    , contributor
    Comments (376) | Send Message
     
    His hands are shaking too much he can't type.
    23 Apr 2014, 05:47 PM Reply Like
  • Vickg
    , contributor
    Comments (135) | Send Message
     
    What's to comment? His irrationality met an immovable wall of logic at 100mph.
    23 Apr 2014, 05:49 PM Reply Like
  • rickraphael
    , contributor
    Comments (297) | Send Message
     
    MB is the anti-Andy Zachy (remember him and where's he now?). Just as in you face and just as wrong and both on the wrong side of the story. Don't pay attention to analysts, just do your own homework.
    23 Apr 2014, 06:15 PM Reply Like
  • jswieter
    , contributor
    Comments (177) | Send Message
     
    I agree. That pos will probably try and take the high road after he recovers from taking a dump in his shorts.
    23 Apr 2014, 10:23 PM Reply Like
  • hobart16
    , contributor
    Comments (476) | Send Message
     
    These are amazing numbers. I am long Apple, but I did not expect them to come close to this amount of revenue. I like the cash deployment and the free calls on the iTV, iWatch and iPhone6.
    23 Apr 2014, 05:10 PM Reply Like
  • NYC Trader
    , contributor
    Comments (513) | Send Message
     
    Looking forward to hearing from Michael Blair.
    23 Apr 2014, 05:11 PM Reply Like
  • aardvark3
    , contributor
    Comments (539) | Send Message
     
    It's difficult to type while sobbing.
    23 Apr 2014, 05:19 PM Reply Like
  • rocback
    , contributor
    Comments (1137) | Send Message
     
    we heard from him 3 weeks ago in his article on S A entitled "Apple's earnings will Disappoint". LMAO
    23 Apr 2014, 07:18 PM Reply Like
  • mailsoli
    , contributor
    Comments (7) | Send Message
     
    Rocback,

     

    Fixed it for you.

     

    "Apple's earnings will Disappoint ME!!" - Michael Blair
    23 Apr 2014, 08:48 PM Reply Like
  • ispank
    , contributor
    Comments (761) | Send Message
     
    The trolls are hibernated for few days, then they will come out full swing again. So please don't ask for it. We are so sick of the trolls and pundits.
    23 Apr 2014, 10:25 PM Reply Like
  • gelstretch
    , contributor
    Comments (2259) | Send Message
     
    My "inner feelings" have seldom failed me.... the best place to look for guidance, if it is YOUR money on the line. Trade accordingly, and dismiss the "noise".
    23 Apr 2014, 05:31 PM Reply Like
  • InmanRoshi
    , contributor
    Comments (216) | Send Message
     
    My "inner feelings" were that I was buying a very good company at a dirt cheap price. It's hilarious that anyone pays attention to schizophrenic Mr Market, other than when he's offering you an insanely good bargain. The sentiment on "the Street" is fickle and changes with the wind. A few years ago The Street thought that the Netflix CEO was a genius to a moron to a genius again within the span of about 2 months.
    23 Apr 2014, 05:35 PM Reply Like
  • kolizacr@yahoo.com
    , contributor
    Comments (217) | Send Message
     
    To all those who stood by the most bashed company in the world, CONGRATULATIONS.
    Now, where are all those CNBC, Bloomberg, FT, NYT... paid bashers?
    Will you listen to any of them again?

     

    Where's the biggest basher of all?
    Michael Blair, come out and apologize.
    If Apple had missed by a penny, your ready-made article would be imediately on SA!
    What are you waiting for?
    I suggest everyone boycott MB for life.
    23 Apr 2014, 05:31 PM Reply Like
  • baozebub
    , contributor
    Comments (376) | Send Message
     
    I had resisted clicking on his article today... until the blowout! Now I'll be giving him lots of clicks to remind him of the number of iPhones sold.
    23 Apr 2014, 05:49 PM Reply Like
  • aardvark3
    , contributor
    Comments (539) | Send Message
     
    Oh, I boycotted him a long time ago,. We all know his game.

     

    It was fun to watch CNBC tonight and see Melissa Lee almost gag while having to report "blowout numbers for Apple".
    23 Apr 2014, 05:58 PM Reply Like
  • InmanRoshi
    , contributor
    Comments (216) | Send Message
     
    Hilarious listening to that shorter at the closing bell crying that the huge beat was somehow covering up the "real story" that the iPad didn't sell to expectations.

     

    Putting aside the fact that tablet sales are flat across the board in the industry, I don't care if AAPL is selling phones, pads, laptops or abacuses as long as they're making money hand over fist.

     

    23 Apr 2014, 06:10 PM Reply Like
  • BruinWrtier78
    , contributor
    Comments (93) | Send Message
     
    Could this be the crack in the dike?

     

    After Google's split and earnings miss, will the momentum money move back toward Apple?

     

    Will the business media and Wall Street finally jump back on the bandwagon?

     

    Does this spell the end for Samsung?

     

    Will Steve Jobs rise from the dead and say "I told you so"?

     

    Don't you hate provocative questions that allow the writer to make up the most ridiculous sh*t possible to create unnecessary controversy and hide behind the question mark?

     

    Enjoy the day, Apple. Money talks and bearish*t walks!
    23 Apr 2014, 05:32 PM Reply Like
  • kimboslice
    , contributor
    Comments (1582) | Send Message
     
    Oh man things sure are looking up for Apple shareholders.

     

    What I like about Apple is that this is real, they actually make money selling real products. These guys are not fooling around.

     

    Compare to Yahoo, the dimbeau CEO paid a guy $58 million for 15 months of "work" selling ADS.

     

    Compare to Amazon, Tesla, Facebook, there is not an adult in the bunch who has respect for shareholders or our collective intelligence.

     

    (Tesla fanboys, don't bother replying, I'm not interested in how great a ride Tesla is.)
    23 Apr 2014, 05:36 PM Reply Like
  • InmanRoshi
    , contributor
    Comments (216) | Send Message
     
    Exactly. Nothing speculative here. Just a well run company that has rock solid fundamentals making a lot of profit selling a great, beloved products well above their operation costs. Maybe The Street doesn't term that a "high flyer", but I term it capitalism at it's finest.
    23 Apr 2014, 05:45 PM Reply Like
  • portatopia
    , contributor
    Comments (958) | Send Message
     
    @kimboslice,
    But have you driven a TESLA?
    23 Apr 2014, 05:46 PM Reply Like
  • kimboslice
    , contributor
    Comments (1582) | Send Message
     
    Thanks, I had a laff.
    23 Apr 2014, 08:31 PM Reply Like
  • name999
    , contributor
    Comments (173) | Send Message
     
    Gross margin increased by 180 bps to 39.3%, this is really great!

     

    Apple will hold WWDC 2014 on June 2 to 6 at San Francisco
    23 Apr 2014, 05:40 PM Reply Like
  • Happy Penguin
    , contributor
    Comments (210) | Send Message
     
    Blair is f*ked LOL
    23 Apr 2014, 05:54 PM Reply Like
  • S14drvr
    , contributor
    Comments (2) | Send Message
     
    Don't bet against Apple!
    23 Apr 2014, 06:04 PM Reply Like
  • a alto
    , contributor
    Comments (197) | Send Message
     
    Laughing my ass off , at the sellers of Apple
    23 Apr 2014, 06:10 PM Reply Like
  • leopardtrader
    , contributor
    Comments (1591) | Send Message
     
    Anyone that has access to computer and internet suddenly become an expert in Mobile computing churning out "estimates" of what AAPL should and should not earn. I have always told everyone that wanna hear is to do all possible to avoid the noises unleashed on investors by the media and their "talking heads". You will not only lose focus you will definitely lose your money. Those commentators and writers are NOT successful investors/traders. It is not easy to become one. It is no accident why 98% of us are not successful. If you do own Due Diligence and apply common sense that is not common..you could become one of the top 2%. Last year when I made bold bet in AAPL near $400 I was attacked by naysayers as here http://bit.ly/QFP7Tq
    23 Apr 2014, 06:11 PM Reply Like
  • Mrek
    , contributor
    Comments (52) | Send Message
     
    Magically, Mr. Blair will inform the community that he exited his short position Today with a gain.
    23 Apr 2014, 06:13 PM Reply Like
  • kolizacr@yahoo.com
    , contributor
    Comments (217) | Send Message
     
    I have said time and again and even dared him to show his actual trades on Apple, but to no avail!
    I have asked several times how anyone on their own could produce so much info and write so many articles on Apple from so many distorted angles so regularly!!!!!!!!!!!!
    He is not short anything - a real pity!
    23 Apr 2014, 08:33 PM Reply Like
  • 2puttwo
    , contributor
    Comments (557) | Send Message
     
    MB is going to have to bend over +6 times on his shorts, if he hasn't covered by June15th. I can still hear him say "cover,cover,cover,coo... co."Poor Mike, reminds me of one of my favorite movies of all time, Trading Places! Don't worry folks he's not going away. He will be just fine.
    23 Apr 2014, 06:27 PM Reply Like
  • Sailfast1
    , contributor
    Comments (3) | Send Message
     
    I run an iMac, a Macbook, iPad and iPhone. My grandchildren carry the iPhones I bought for them(they don't want anything else). My grandchildren submit their homework on IPads, in two cases provided by the private high school.
    My house is plugged in to Apple.
    A long time ago, a man told me to look around. Buy the stock of the products you see.
    It works!
    23 Apr 2014, 07:16 PM Reply Like
  • lifeS*X
    , contributor
    Comments (175) | Send Message
     
    hello Michael Blair ? Did U connect with those numbers ? I hope for you that you did not have a cardiac problem as i assume so much negativity in one's mind must damage the whole system.

     

    Anyhooo i guess tomorrow i ll tell my boss to not count on me til... say after may 1st long weekend (may 1st is equal to Labor day in Belgium). I guess he'll ask me why. I'll say I can do coz apple made my day. And the next 12 or so. He won't get it I guess but I am sure You will.

     

    Aside from that big thing about apple (dont be fooled : reason that will drive the stock is big beat on iphone sales PLUS big marging lift)... how is samsung latest floppy doing ? I can't seem to get any infos regarding sales of the fantabulous S5. Why?
    23 Apr 2014, 08:54 PM Reply Like
  • golmert
    , contributor
    Comments (3) | Send Message
     
    So ... I have gone long with AAPL long time ago because I did listen to the bulls and not the bears. Lost a lot of money so far even after this round which will take it up 7%.
    Am I missing something? Could someone please explain to me what is the wave of cheers and joy from everybody? Or is it just a matter of fighting on bears vs. bulls concepts and money is not an issue for the retail investors?
    23 Apr 2014, 08:54 PM Reply Like
  • duhaus
    , contributor
    Comments (320) | Send Message
     
    What price did you enter at golmert ? That makes all the difference. Don't worry though this may be the beginning of your trip out of the red as long as you stay the course. Good luck.
    23 Apr 2014, 09:26 PM Reply Like
  • cmsgop
    , contributor
    Comments (3) | Send Message
     
    Long since my entry at $ 22.00, needless to say I've had a few celebratory cocktails tonight. People thought I was dumb, buy Microsoft they said....
    24 Apr 2014, 12:01 AM Reply Like
  • Warren Buffet007
    , contributor
    Comments (980) | Send Message
     
    With a company like Apple you not can go on short!.
    24 Apr 2014, 03:12 AM Reply Like
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