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Apple: Exploding iPhone Profits

t0000

thanks...

Apple: Exploding iPhone Profits

Turleymuller,

all I am asking is where in the CC did Tim Cook say this.

Your best buy price discount makes sense.

I have my doubts that accessories would be any part of the subscription accounting.

Although apple did stop the revenue sharing model, the revenue from these carrier payments are more than made up with the reduced costs.

Apple: Exploding iPhone Profits

To t000,

Could you poi nt out where in the CC Tim Cook said that sales were 2900? Appreciate it if you could look at the transcript and more or less direct me.

Apple: Exploding iPhone Profits

I cmae ut with the same asps as you did for the previous quarters. I believe you are wrong abut the declining asps. The ASPs will pickup as more 3GS are sold. The 3GS ASPs are above US$600.

anyway here is a stab at computing the mix of 3GS (16gb, 32gb) and the 3G (8gb) for the previous Q.

Assuming a base price of US$500 (rounded price for the 3G), total revenus would have been 500 * 5208 = 2.604. But as you said the total revenue was 3094 million. Computing for the difference we have 490 million. 490 million is the amount of revenue the 3GS must have added to the mix. since the price of the 3GS are 600 and 700 (16gb, 32 gb respectively rounded), I assume the mix was about equal, the ASP for the mix is 650. the difference then is made up of the difference in ASPs of the 3G and 3GS, which is 150.

490 million / 150 = 3.2 million units of 3GS. I propose that apple sold 3.2 million units of 3GS for the period June 19 to June 26 (end of quarter for apple).

this scares the hell out of WS and their good friends MSFT, VZ and RIMM. they know that this momentum continues and in fact I am willing to bet their sales pace of over 3 million per week carried through the month of July. this is the reason that Credit Suisse is suggesting that folks buy calls to optimize their returns.

In all, I think the analysts are holding back on their projections. Or maybe they are not. Maybe they have those weekly trading huddles. after all, don't they try to emulate the masters of the universe.

Credit Suisse Analyst: iPhone Will Continue to Bolster Apple Shares

Funny, but I am willing to go on a limb here. I bet apple sells 17 million iphones this quarter.

Total iphones subject to the subscription accounting method use in reporting, would com to 43 million.

On these 43 million iphones alone, apple will derive 1.75 in quarterly income for the next 8 quarters. Assuming that ipod and mac sales can take care of R&D and SG&A, apple will earn US$7 per year for the next two years with no additional iphone sales.

Also, if apple can maintain maintain 6 million in iphone sales every quarter and ipods and macs take care of SGA and RD, apple will make US$7 per year.

It is not believable though to think that macs will not contribute to the bottom line.

Forget the Feds, Apple Is Doing Just Fine Wrecking the Wireless Business

WS got what it wanted, which was to mitigate any runup in apple's stock before options expiration. They were very successful for the June expirations and seem to have been successful for July.

How they spin the good numbers next week will be a good one?

Here's an Unconventional Idea: Sell Apple

Idiot probably not.

Misleading probably. Nobody is dumb enough not to know that the 99 dollar iphone is actually a 500 dollar iphone (subsidies). The margins on the iphone are like 68 percent.

Apple is more than happy to have the cannibalization happen.

WS wants to mitigate the rise of apple's PPS. At all costs. The masters are freaking out.

How High Will the Price of Oil Go?

Sorry, I did not mean you as a shyster. Butnthere are liots of them out there in WS.

People get taken in by this US$40 marginal cost to produce oil.

In 2000 while living in texas, lots of oil wells were restarted. When it seemed that the oil price would hold steady over Us$20, it became profitable to restart the wells. these were wells that produced oil at half of what most wells were producing at that time.

Read Statoil's and Chevron's quarterly reports for last year. you will be able to compute for the operating costs and costs including SG&A and DD&A.

Again, I will ask anyone to produce a report that saw negative operating costs for upstream operations at an oil price of US$30.

Your article said "Could oil be $30/bbl (in 2009 dollars)? Not likely, as that exceeds most of the world's cost of production.".

Yet the article you have just pasted (which by the way is the most honest i have read regarding oil costs of production) belis this:

“On average the cash cost of extracting a barrel of oil in the mature and higher cost non-OPEC markets of Russia, the UK, Norway and Alaska is around $15 a barrel. As such it is significantly below the current oil price. Only in the Canadian oil sands do average cash costs of circa $28 a barrel approach the prevailing $35-40 WTI oil price.”


You will never hear CNBC or the other business shows say this. All you heard from CNBC was that marginal costs were at US$40 per barrel. The only folks who benefit from these lies are the shysters of WS who have manipulated and continue to manipulate the oil market. Of course you will hear more of the likes of Bernstein. Marginal costs BS.

I thank you for the article you paste (a link would be nice). I suggest reading the quarterly reports rather than depending on self serving researchers.

How High Will the Price of Oil Go?

re: Could oil be $30/bbl (in 2009 dollars)? Not likely, as that exceeds most of the world's cost of production.

I applaud how you can say this without batting an eyelash.

Read statoil's and chevron's earning reports. Cost of production even in the deepest ocean rigs are at US$8 per barrel. With SG&A and DD&E it is below US$30.

take the case of thunderhorse. The rig lifts 250,000 BOE a day. cost of operation is US$8 per barrel. The rig has magically been inflated to have cost US$5 billion from US$1 billion. Even at this overprice, they can recover this within 4 years at a price of US$30 per barrel of oil without SG&A and DD&A figured in. At US$50, they recover in 1.5 years.

Of course the accountants will figure a way of adding the cost of the toothpaste and toilet paper the CEO uses into the SG&A and DD&A. So the expenses will be inflated.

In fact Statoil has refused to go along with OPEC in limiting production. They are continuing thei shale projects and they have been purchasing assets in the Gulf despite a US$40 oil.

I dare the author to show me any financial report wherein Upstream operations have lost money at US$40 per barrel of oil

Of course some of us can go to bed knowing how billions have been screwed for the sake of the few shysters in WS.

Oil's Trending Up, But Speculators Aren't to Blame

YES there is no manipulation.

You see there is nothing wrong big oil trader to put all that excess supply put on ships (enviromental single hulled accidents waiting to happen) and watch the price go up.

I as a trader, am also allowed to bid up the price on margins that require me to put up 5 percent of the total value of the "asset class". I as a big trader can form numerous off-balance sheet hedge funds thereby hiding my real share of the daily energy trade.

I also as a big trader have no relationship with analysts and economists working for my principal. So when the analyst and economist comes out with an "educated" analysis which helps push up the price and makes me billions richer, it is pure coincidence.

So damn all those companies, the truckers, airlines, utilities, food producers and their whining. Why did they not hid our investments bankers and hedge their costs (and allow our investment bankers to grab their fair share).

U.S. Steel: Ugly, Way Ugly

Bet you your:

So all in all this string of news can only mean one thing... recovery is imminent and green shoots are flowering throughout the steel industry. Buy US Steel in huge quantities because the market looks ahead and see the recovery

Will be lifted out of context.

The Greenshoot trumpet section on CNBC will be strutting about tomorrow.

U.S. Steel: Ugly, Way Ugly

My sentiments exactly.

WS just got the secondary done and the convertible. With GS JPM MS in the picture I cannot see the stock falling.

although you never know (this is shysterism at its best) I bet the stock moves up like it did for alcoa and fcx. the timing is amazing. they did not wait for the gdp report nor the mittal quarterly report to come out.