Apple Reports Fourth Quarter Results • Hacker News Board

Re: Apple Reports Fourth Quarter Results

#21

Post by sksk » Mon, Oct 28, 2013, 9:27 PM UTC

CNBC's summary explains the negative reaction to the earnings:

Apple posted better than expected earnings and revenue for its fourth-quarter on Monday, but shares still took a hit in after-hours trading.

The tech giant posted $8.26 a share on $37.5 billion in revenue. The street estimated the company would post $7.96 a share on revenue of $36.93 billion. But investors were disappointed with guidance for gross margins.

During the current quarter, the company expects gross margins of 36.5 percent to 37.5 percent, which missed forecasts of 37.9 percent.

http://www.cnbc.com/id/101149511

Re: Apple Reports Fourth Quarter Results

#22

Post by john_b » Mon, Oct 28, 2013, 9:30 PM UTC

bradly wrote: post #19

john_b wrote: post #7

Earlier quoted context omitted.

+/-3% is a common benchmark for the market's definition of "big swing". There's nothing really formal about it, and it's a more accurate measure when applied to the market as a whole rather than individual stocks. For a company like AAPL which is famous for not providing a lot of detailed information to investors, it might not be a big swing. For a different company, say P&G, it might be a huge swing.

Actually, there is a formal measurement of a stocks volitiliy called it's beta. http://en.wikipedia.org/wiki/Beta_(finance)

Beta is one of many measures of volatility. Since it's a normalized correlation between the stock's rate of return and that of the market, it only really has meaning in the context of a stock's performance over a long time or in relation to the market as a whole. A stock's performance post-earnings is about as market-independent as you can get, however.

Re: Apple Reports Fourth Quarter Results

#23

Post by KaoruAoiShiho » Mon, Oct 28, 2013, 9:31 PM UTC

encoderer wrote: post #13

recuter wrote: post #9

Earlier quoted context omitted.

Keep in mind that Apple doesn't make aircraft carriers or nuclear power plants.

Also, a significant share of Apple's revenue (and profit) is in the Q4 holiday season. Far more so on a percentage basis than Samsung. So I'm not really sure what the OP was getting at? A more important comparison I think is margin.

Apple used to kick Samsung's ass every quarter so I'm rather shocked to find the tables turned already.

Re: Apple Reports Fourth Quarter Results

#24

Post by downandout » Mon, Oct 28, 2013, 9:34 PM UTC

ChuckMcM wrote: post #15

No way to hide this: 2013: Revenue $37.5B, Profit $7.5B (20%) 2012: Revenue $36.0B, Profit $8.2B (22%) Loss of 2% net profit year over year. Just under a 5% drop per share on a diluted basis. So its becoming less profitable to be Apple which speaks to the margin pressure they are under from credible Android phones and tablets. I don't think the market expected that (or maybe they did, GOOG is trading over $1000 these…

Let's remember that everyone was anticipating the iPhone 5s for all but 10 days of the third quarter, which naturally slowed iPhone 5 sales. Then Apple almost instantly ran into supply constraints after its release. Because of these two factors, these results aren't that meaningful. 4th quarter results will give a far more meaningful picture of iOS's place in the current market.

Re: Apple Reports Fourth Quarter Results

#25

Post by IBM » Mon, Oct 28, 2013, 9:41 PM UTC

mladenkovacevic wrote: post #17

recuter wrote: post #9

Earlier quoted context omitted.

Keep in mind that Apple doesn't make aircraft carriers or nuclear power plants.

Samsung Electronics is only a subsidiary of Samsung Group which makes all those things. Samsung Electronics profits were $9.6 but that includes TVs and their semiconductor division. The actual mobile division had $6.3 in profits (about 20% growth from same time last year).

Samsung's profits are up mainly because of chips which makes sense when they're manufacturing Apple's chips (and Apple's iPhone sales are up significantly). Samsung's growth in high-end phone sales is slowing down.

http://www.bloomberg.com/news/2013-10-24/samsung-profit-surg...

Re: Apple Reports Fourth Quarter Results

#26

Post by cstrat » Mon, Oct 28, 2013, 9:41 PM UTC

IBM wrote: post #2

Interesting that iPad sales were flat year over year. I would have thought it would have contracted without new iPads launched. Also the big increase in iPhone sales year over year jives with what Asymco has posted about Android peaking. The easy growth from feature phones being replaced by low-end Android devices is over.

I have a lot of Apple devices, and I am sure there are others out there like me who are stick using an original iPad 2. Those devices have not really needed an upgrade unless you wanted to move to the mini. My device is almost at its end, I have dropped it a bunch of times and the battery is struggling to last a 10 hour day at work (I dont use it a lot during the day, only really in meetings and on the run).

There is probably a big fleet of iPad 2 users out there who are almost ready to upgrade when their device dies. I think Apple have done right by the consumer by making iOS 7 work on the iPad 2... they could have chased profits and limited iOS 7 to only the newer iPads...

Re: Apple Reports Fourth Quarter Results

#27

Post by tedunangst » Mon, Oct 28, 2013, 9:46 PM UTC

alttag wrote: post #4

Markets are hammering AAPL. Down $15 (about 3%) after-hours. https://www.google.com/finance?q=aapl

That's weird. Right now, yahoo is telling me AAPL is at $537, up $7. After hours is bullshit.

Re: Apple Reports Fourth Quarter Results

#28

Post by tedunangst » Mon, Oct 28, 2013, 9:47 PM UTC

cecilpl wrote: post #3

Shares trading down 3% in AH.

Shares trading up 1% in AH.

Re: Apple Reports Fourth Quarter Results

#29

Post by ksk » Mon, Oct 28, 2013, 9:47 PM UTC

As someone who has to buy Apple devices for work, I'm hoping they get some pressure to drop their prices, especially on MBPros. My next one will probably cost a bomb since the new ones don't let you stick in third party ram - though the SSD is replacable (with considerable effort)

Re: Apple Reports Fourth Quarter Results

#30

Post by mladenkovacevic » Mon, Oct 28, 2013, 9:49 PM UTC

IBM wrote: post #25

mladenkovacevic wrote: post #17

Earlier quoted context omitted.

Samsung Electronics is only a subsidiary of Samsung Group which makes all those things. Samsung Electronics profits were $9.6 but that includes TVs and their semiconductor division. The actual mobile division had $6.3 in profits (about 20% growth from same time last year).

Samsung's profits are up mainly because of chips which makes sense when they're manufacturing Apple's chips (and Apple's iPhone sales are up significantly). Samsung's growth in high-end phone sales is slowing down. http://www.bloomberg.com/news/2013-10-24/samsung-profit-surg...

No the $6.3B is from the mobile division alone. Their chip sales also saw profits of about $1.9B which is double than same time last year, but the phone sales are still their #1 business.