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Apple states on its FQ4 call (webcast, live blog) it expects an FQ1 gross margin of 36%, down...

Apple states on its FQ4 call (webcast, live blog) it expects an FQ1 gross margin of 36%, down 400 bps Q/Q and 870 bps Y/Y - growing iPad/iPad Mini sales bear some responsibility. Tim Cook says it's hard to predict when iPhone 5 supply will match demand. FQ4 iTunes sales totaled $2.1B, and 1.3M Apple TVs were sold (+100% Y/Y). China sales +26% Y/Y (about even with total growth) and 15% of total. iPad channel inventories are slightly above target, iPhone inventories are below. 82% of cash is offshore. AAPL -0.4% AH. (more)
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Comments (9)
  • zd2002
    , contributor
    Comments (188) | Send Message
    Both Tim Cook and Peter Oppenheimer commented repeatedly that the compressed margin was largely due to the number of new products. As far as I remember, Apple never launched 7 new products (MBP Retina x 2, iMac, iPhone 5, iPad Mini, iPod touch, nano) in the span of 4 months. They all require new manufacturing methods and costs rose as a result.


    The iPhone 5 hasn't been rolled out to China yet (only Hong Kong) so sales may be a bit off in that area. Overall, a moderately good quarter, 25% growth (still something to kill for for all companies). The days that Apple grow 70% - 120% are history. The street should take that as a note.
    25 Oct 2012, 06:34 PM Reply Like
  • croatkid1
    , contributor
    Comments (213) | Send Message
    Where does the reporter get the selling of Apple TVs?


    " "and 1.3M Apple TVs were sold (+100% Y/Y)." "


    There's been lots of talk about the Apple TV coming out but when & where did they sell 1.3 Million units???
    26 Oct 2012, 11:12 AM Reply Like
  • SA Editor Eric Jhonsa
    , contributor
    Comments (1117) | Send Message
    The Apple TV set-top box, not the TV set.
    26 Oct 2012, 11:27 AM Reply Like
  • aperture1
    , contributor
    Comments (191) | Send Message
    The reason it is hard to predict when the supply will meet the demand for the iPhone 5 is because he can't predict the demand accurately.
    25 Oct 2012, 07:43 PM Reply Like
  • rocback
    , contributor
    Comments (1162) | Send Message
    Quint predicted 21.5 million I phone sales. Boy was HE off.
    25 Oct 2012, 09:28 PM Reply Like
  • Jacob Steinberg
    , contributor
    Comments (814) | Send Message
    If Apple can't match the demand on the supply side, it should raise its prices until supply meets the demand.
    25 Oct 2012, 10:16 PM Reply Like
  • Vipertom
    , contributor
    Comments (169) | Send Message
    NO, No, No. That maybe a textbook answer, but the reality is there is a learning curve to building new products. The margins will return as the assemblers become more familiar in producing the new products,and volume allows for better component prices by Apple. Stay the course.
    26 Oct 2012, 01:31 AM Reply Like
  • dwilly
    , contributor
    Comments (92) | Send Message
    Once they get the robots working everything will be fine
    26 Oct 2012, 08:27 AM Reply Like
  • Okatie Jack
    , contributor
    Comments (92) | Send Message
    Company culture at Apple demands the best products, delivery and customer satisfaction rather than cutting the edges and possibly increasing margins. Analysts prefer the latter at the expense of the former.
    26 Oct 2012, 09:03 AM Reply Like
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