rmo

Apple Beats Estimates, Proves to Be Lowball Central

So many of the reporters are attribute the negative reaction of Apple earnings to their iPod business. Yet, iPod revenue increased by 17 percent YOY because of margins on iPod touch, and "that's the highest increase they've ever seen." How many people will upgrade to the "touch" or iPhone due to this shift in the companies product(s) and technology(s)? Anyway you look at it... it seems to represent an opportunity and future growth to the companies bottom line?

Further, Apple launched the iPhone in the US, London, Germany and France; all within SIX MONTHS of it's launch. FOUR MILLION iPHONES SOLD WITHIN TWO HUNDRED DAYS!! And it appears sells are accelerating since December 31st! Apple states during the earnings call they were, "Very confident of hitting the 10 million goal in 2008 on iPhone unit sales."

FACT: the iPod Touch and the iPhone are both taking from the further GROWTH STORY of the iPod. However, in both case you can see higher margins. Why aren't people in the media seeing this as a new and improved "iPod Story." It's evolutionary, not a story of extinction.

The Mac number was far better than estimates: 2.4 million versus the 2.2 million analysts anticipated. Same goes for iPhone with Apple reporting 2.3 million units shipped against the 2.26 million Wall Street expected. "All of the numbers were fine. They continued to gain marketshare. The issue is that people wanted a more confident earning guidance from a company that isn't known for doing that. There's nothing wrong with the actual numbers as you reported, it's just that people are worried there's going to be a problem with the self-fulfilling recession everyone in the media has been trying to create. Consequently, the earnings guide-down was a little bigger than historically stated. Typically they guide down earnings by 9 percent, but this time around it's closer to 15 percent. People were likely hoping for something stronger and now there's worry that maybe the robust earnings days at Apple may be gone. Mac is gaining marketshare, and that's the key for the company near and longer term. I agree.. low hanging fruit ripping at a rate of 30+%.