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Mentioned during Apple's FQ3 call: China iPhone sales doubled Y/Y (total sales up 3x last...

Mentioned during Apple's FQ3 call: China iPhone sales doubled Y/Y (total sales up 3x last quarter). Asia-Pac Q/Q decline due to Chinese iPhone inventory adjustments (suggests channel was stuffed in FQ2). iPad channel inventories up, iPhone inventories down. iPhone weakness in France/Italy/Germany. iTunes revenue of $1.8B, down slightly Q/Q. 2x Y/Y increase in iPad sales to education, 3x to Fortune 500. 1.3M Apple TVs sold (+170% Y/Y). FQ4 gross margin guidance of 38.5%. AAPL -5.1% (live blog) (more)
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Comments (19)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    The margin compression is not a good sign...want to see expanding margins, not contracting.
    24 Jul 2012, 06:12 PM Reply Like
  • chopchop0
    , contributor
    Comments (3874) | Send Message
     
    Android tablets and phones are starting to eat into apple's margins I'm sure. Most notably I'm guessing is the Samsung Galaxy line of phones and tablets from Samsung, Amazon and google
    24 Jul 2012, 06:25 PM Reply Like
  • rubicon59
    , contributor
    Comments (1414) | Send Message
     
    Typical silliness.

     

    How can Android tablets and phones eat into Apple margins when Apple pricing has not changed?

     

    Unless of course, a loose Android snuck into the Apple manufacturing line and mucked things up.
    24 Jul 2012, 09:37 PM Reply Like
  • rubicon59
    , contributor
    Comments (1414) | Send Message
     
    From the conference call.."Total company gross margin was 42.8%, which was a 130 basis points higher than our guidance."
    24 Jul 2012, 09:42 PM Reply Like
  • chopchop0
    , contributor
    Comments (3874) | Send Message
     
    Youve obviously been missing the sales on EBAY. $469 for a 3rd gen IPad, marked down from MSRP
    24 Jul 2012, 10:00 PM Reply Like
  • rubicon59
    , contributor
    Comments (1414) | Send Message
     
    I see. That explains why the can't meet demand. It must be those EBAY sellers soaking up the new iPad supply in order to resell at a loss.
    24 Jul 2012, 10:11 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    Margins are much higher for iPhones, so when you sell less phones than estimates, and sell a lot of iPads, you change the mix of products, and therefore the margins. If they sold 31M Phones and a little less iPads, I think the margins would look fine...just a different product mix, that's why EPS was so low, a few more million phones and that figure would look fine too...

     

    Even though the other products are growing, the 800-pound Gorilla is still the iPhone...we only forget about him to our own peril!
    24 Jul 2012, 06:23 PM Reply Like
  • galaxy travels inc.
    , contributor
    Comments (302) | Send Message
     
    refresh has been slowing due to people sitting on their wallets.....household expenditures are scaling back ..... food prices increasing...........I tried to sell half last week at 616 did not touch sell order limit..... oh well ........ now have to wait for the slow ride up again......
    24 Jul 2012, 06:34 PM Reply Like
  • earlalbin
    , contributor
    Comments (97) | Send Message
     
    ".household expenditures are scaling back ..... food prices increasing...........I tried to sell half last week at 616 did not touch sell order limit..... oh well ........ now have to wait for the slow ride up again......"

     

    This doesn't jive when you hear how many Galaxy III Samsung sold in a month, doesn't Jive. Apple needs to do a better job at spending some of the $100B+ on brute force to get product out sooner. They are missing the window and once any one converts to the Samsung they are likely gone for good. Apple has their head up their ass if they think they can just take their sweet time. There won't be any lunch to be had.
    24 Jul 2012, 08:39 PM Reply Like
  • thealct
    , contributor
    Comments (183) | Send Message
     
    I agree, Apple has gotten complacent and they should have had the iphone5 out in June. Samsung is obviously impacting sales but that isn't the only reason. Lots of 3GS and 4 clients want to upgrade ASAP. Apple should announce a date even though this will hit existing sales a bit. Volume will make up for it in the whole hype.
    24 Jul 2012, 09:00 PM Reply Like
  • rubicon59
    , contributor
    Comments (1414) | Send Message
     
    "Complacent". Yes, indeed. If Steve Jobs was still around, the would have shipped a new iPhone every month...of course.
    24 Jul 2012, 09:39 PM Reply Like
  • Ronin.
    , contributor
    Comments (1487) | Send Message
     
    I remember last summer, with SJ around...was it fantastically superior to now?

     

    Oh how some lament the loss of mythical Camalot...where king Jobs sat at the Round table...
    24 Jul 2012, 09:44 PM Reply Like
  • galaxy travels inc.
    , contributor
    Comments (302) | Send Message
     
    they aren't twiddling their fingers by any means new store openings , one today in fact Barcelona... in the high rent Gaudi district.......new products in the pipeline . how about their new maps getting them away from google a new headquarters in Cupertino,,, how about pairing up with Chinese telecoms....a collaboration of sorts with facebook....,..maybe they should hold a mystery expo like msft and not have a functioning tablet with no arrival date and no price point.....maybe they should rush out a playbook like rimm that was a real fiasco..... they bought Anobit chip manufacturing maybe they will slowly pry themselves loose from Samsung.....
    24 Jul 2012, 10:08 PM Reply Like
  • kmi
    , contributor
    Comments (4311) | Send Message
     
    Gonna expand on Rubicon's comment and suggest you folks talking about rushing a iPhone5 out the door are appearing clueless.

     

    Most people, not all but most, do not upgrade before their 2 years are up in order to get a phone subsidy. Apple can cooperate with carriers to make upgrades more palatable but now that Apple doesn't work with carrier exclusivity it may not be able to force its carriers to subsidize its business model to the detriment of their own.

     

    So Apple is forced to wait a reasonable time to release iPhone5, as a single device manufacturer, while the competition puts out a million variants on a million flavors of Android.
    24 Jul 2012, 10:14 PM Reply Like
  • ColoradoMacUser
    , contributor
    Comment (1) | Send Message
     
    Apple's guidance:
    “Our record March quarter results drove $14 billion in cash flow from operations,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the third fiscal quarter, we expect revenue of about $34 billion and diluted earnings per share of about $8.68.”
    Did they miss or beat?
    Apple beat, Analysts missed.
    Why do we care what the analysts say?
    24 Jul 2012, 10:57 PM Reply Like
  • mitrado
    , contributor
    Comments (2018) | Send Message
     
    "Why do we care what the analysts say?"

     

    Because, in the end, you know that's what drives the stock price.
    Investors' love for Apple is starting to fade away. This bubble will burst and it will not be pretty. :-P

     

    Good luck to all those who believe Apple can grow at absurd levels, because that's what analysts are expecting now. Something like 85% growth this year... and 165% next year. Right?

     

    It's totally insane. No way Apple will be able to keep up with such delusionally high expectations.
    25 Jul 2012, 03:19 AM Reply Like
  • tyoung33
    , contributor
    Comments (12) | Send Message
     
    "This bubble will burst and it will not be pretty. :-P"

     

    To some degree it may burst, but how low can it go? Apple had a "bad" quarter in that it "only" grew 22%, but it carries a PE of 14. Apple is not a 40x, priced-to-perfection, high-flying growth stock that looks ripe for a tumble.
    25 Jul 2012, 02:37 PM Reply Like
  • galaxy travels inc.
    , contributor
    Comments (302) | Send Message
     
    ditto t young33
    25 Jul 2012, 05:38 PM Reply Like
  • galaxy travels inc.
    , contributor
    Comments (302) | Send Message
     
    killers make the headlines and headlines can kill....
    24 Jul 2012, 11:47 PM Reply Like
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