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View Full Version : Bloomberg: Apple Profit Rises 48% on Intel Mac Sales


mummey
07-20-2006, 01:52 PM
>>Link<< (http://www.bloomberg.com/apps/news?pid=20601087&sid=aufchEDqRY1g&refer=worldwide_news)

July 19 (Bloomberg) -- Apple Computer Inc. said third- quarter profit rose 48 percent on demand for Macintosh computers, offsetting slowing sales of iPod music players.

Net income increased to $472 million, or 54 cents a share, from $320 million, or 37 cents, a year earlier, Cupertino, California-based Apple said today in a PR Newswire statement. Sales climbed 24 percent to $4.37 billion.

Apple sold 1.33 million Macs and 8.11 million iPods. Orders for notebooks with Intel Corp. chips helped Chief Executive Officer Steve Jobs counter a slide in iPod sales. Apple, which delivers at least two new iPods a year, hasn't updated the gadget since October. Analysts expect new models this year.

``We feel pretty good about their prospects in PCs as the iPod and the retail strategy have really brought the brand back to the forefront,'' said Robert Dean, who helps manages $1.5 billion including Apple shares, at Franklin Templeton Services in San Mateo, California.

Sales this quarter will be $4.5 billion to $4.6 billion, Apple said in the statement. Net income, including stock-based compensation costs, will be 46 cents to 48 cents. Bear Stearns & Co. Andrew Neff anticipates 50 cents on sales of $4.86 billion. Neff, in New York, is among the most accurate analysts at predicting Apple's results according to StarMine Corp.



More in article... >>Link<< (http://www.bloomberg.com/apps/news?pid=20601087&sid=aufchEDqRY1g&refer=worldwide_news)

pixelmonk
07-20-2006, 02:17 PM
interesting... 3 days ago their stock fell by 5% or something?

psyop63b
07-20-2006, 06:23 PM
The stock market is an irrational creature that seems to act more on emotions than logic.

If Apple's profits increased by 10%, but the market was expecting 11%... the stock goes DOWN? The headlines read, "Apple's 3rd Quarter profits fall short of expectations."

My headline would read: "Boo-hoo, Apple only made $36 million dollars more than it did last quarter :sad:"

.

Keiphus
07-20-2006, 06:36 PM
The stock market is an irrational creature that seems to act more on emotions than logic.

If Apple's profits increased by 10%, but the market was expecting 11%... the stock goes DOWN? The headlines read, "Apple's 3rd Quarter profits fall short of expectations."

My headline would read: "Boo-hoo, Apple only made $36 million dollars more than it did last quarter :sad:"

.

AAPL shot up over 12% after the release of this news. What are you talking about?

psyop63b
07-20-2006, 06:45 PM
What are you talking about?
I'm not referring to this particular event. The scenario I am describing occurs regularly in the market. It is an example of how missing a market projection can result in a drop in stock value (even if the company made gains).

.

wombat778
07-20-2006, 07:02 PM
The stock market is an irrational creature that seems to act more on emotions than logic.

If Apple's profits increased by 10%, but the market was expecting 11%... the stock goes DOWN?

Very true that missing estimates will cause stock to drop. But, I would say there is nothing irrational in that...

psyop63b
07-20-2006, 08:34 PM
What I find irrational about it is that the rise or fall of a stock has much to do with emotional factors and the perceptions investors have of a company when making investment decisions.

Miss a projection, but still make gains, and one could still claim that the business is thriving, but the stock drops. This implies the business is now worth LESS. How can a business be worth less if it's profits have increased?

Conversely, a company's stock can go UP, when they post LOSSES which are less than projected. Stock going up in a company that is hemhorraging money?

Perhaps there is a CG Economist on this forum that could explain this phenomenon.

mummey
07-20-2006, 08:55 PM
Well, if a company misses estimates, the stock can go down. This is because investors had put money into the company assuming it would meet those estimates, or even exceed them.

When the company fails to do this. The investors have to reevaluate whether their money is better off elseware. If thy believe it is, then they will sell.

One of the laws of Wall Street is: When you aren't making money, you're losing it. Even if a company you're invested in is stagnant, it can still mean you're losing money because the money you have invested in it could have been better off elseware.

wombat778
07-20-2006, 09:24 PM
This implies the business is now worth LESS. How can a business be worth less if it's profits have increased?

As mummey said, a drop in stock price only implies that the business is worth less than you expected it would be worth. The stock price of a company should (theoretically) incorporate all known public information and expectations about that company, so its actuals v. estimates that drives stock price not profit v. loss.

beaker
07-21-2006, 03:33 AM
Well, if a company misses estimates, the stock can go down. This is because investors had put money into the company assuming it would meet those estimates, or even exceed them.Yes, but the trouble is there are two different predictions. Companies will give their estimate and then the "street" gives their own estimate which is often times much higher then the companies estimate. They will make their own estimate but miss the "streets" prediction and the stock will still go down.

AmbiDextrose
07-21-2006, 03:47 AM
Not only that but the stock price can also be influenced by the sector leader. Take the storage sector, for example. Eventhough some of the major storage vendors (e.g. IBM, Hitachi, NetAPP, HP) beat analysts expectations, due to EMC (the perceived market leader) didn't make their projected earnings, analysts and brokers turned tail becuase they think the market segment is slowing down thus bringing down the stock price of everyone, especially those of smaller companies.

As someone who worked in Wall Street for 10 years, take my word for it: a company's stock price is not an indication of how profitable a company is/can be- you have to do your research.

CupOWonton
07-21-2006, 05:24 AM
Although im sure the mac fanboys would like to think this means Mac is somehow beinning its attempt at market domination... No, sorry, it isnt. What this means is people are replacing their old macs * which should be falling appart just about now if they havent already* and buying new ones.

Theyre replacing old hardware, not realy CG news.

mummey
07-21-2006, 02:25 PM
Not to rain one your parade, CupOWonton, but...

http://www.macworld.com/news/2006/07/20/marketshare/index.php

Granted, its still small compared to Dell.

pixelmonk
07-21-2006, 02:33 PM
Not to rain one your parade, CupOWonton, but...

http://www.macworld.com/news/2006/07/20/marketshare/index.php

Granted, its still small compared to Dell.


*finger twirl*

I always love it when people post stuff from such a non-biased reputable source such as macworld.

Essania
07-21-2006, 03:53 PM
Although im sure the mac fanboys would like to think this means Mac is somehow beinning its attempt at market domination... No, sorry, it isnt. What this means is people are replacing their old macs * which should be falling appart just about now if they havent already* and buying new ones.

Theyre replacing old hardware, not realy CG news.

From the "Reply to thread" page:

Before posting, please review the following:

Be courteous and polite. Show respect to the opinions and feelings of others. Use of the forums is a privilege, not a right.

So, I think that you should stop posting such stupid opinion about professional people using a certain brand of computer.
You don't like Apple ? Fine.
So what ?

meeper
07-21-2006, 04:04 PM
From the "Reply to thread" page:

Before posting, please review the following:

Be courteous and polite. Show respect to the opinions and feelings of others. Use of the forums is a privilege, not a right.

So, I think that you should stop posting such stupid opinion about professional people using a certain brand of computer.
You don't like Apple ? Fine.
So what ?


That was plain silly. In your first sentence you tell him to respect the opinions and feelings of others, then in the next sentence you tell him to stop posting "such stupid opinion". Sooo... in YOUR words, he isn't allowed to voice his opinion, but he should respect others opinions, but if he DOES voice his opinion then you are allowed to not respect his opinion. Who are you? CupO has just as much right as anyone here to voice his opinion on the subject. Using the term "fanboy" does not necessarily show disrespect to anyone who posted something here. It's a generalization, not directed at an individual in the forum or in this particular thread. So you don't like CupOWonton, then keep it to yourself or post a message to him in private.

He actually did post a valid point concerning people ditching old hardware for new Macs (maybe the intel duo cores). So is that influx of sales necessarily representative of a leap in marketshare, or a natural part of evolution when new products hit the shelves that just so happens to show up in a particular marketing/financial quarter. Next time try reading and understanding his posts before blindly going in a fit of rage and responding inappropriately.

mummey
07-21-2006, 04:19 PM
That was plain silly. In your first sentence you tell him to respect the opinions and feelings of others, then in the next sentence you tell him to stop posting "such stupid opinion". Sooo... in YOUR words, he isn't allowed to voice his opinion, but he should respect others opinions, but if he DOES voice his opinion then you are allowed to not respect his opinion. Who are you? CupO has just as much right as anyone here to voice his opinion on the subject. Using the term "fanboy" does not necessarily show disrespect to anyone who posted something here. It's a generalization, not directed at an individual in the forum or in this particular thread. So you don't like CupOWonton, then keep it to yourself or post a message to him in private.

He actually did post a valid point concerning people ditching old hardware for new Macs (maybe the intel duo cores). So is that influx of sales necessarily representative of a leap in marketshare, or a natural part of evolution when new products hit the shelves that just so happens to show up in a particular marketing/financial quarter. Next time try reading and understanding his posts before blindly going in a fit of rage and responding inappropriately.

/me gets the feeling that Meeper isn't really from Uganda... o_0

Essania
07-21-2006, 04:20 PM
That was plain silly. In your first sentence you tell him to respect the opinions and feelings of others, then in the next sentence you tell him to stop posting "such stupid opinion". Sooo... in YOUR words, he isn't allowed to voice his opinion, but he should respect others opinions, but if he DOES voice his opinion then you are allowed to not respect his opinion. Who are you? CupO has just as much right as anyone here to voice his opinion on the subject. Using the term "fanboy" does not necessarily show disrespect to anyone who posted something here. It's a generalization, not directed at an individual in the forum or in this particular thread. So you don't like CupOWonton, then keep it to yourself or post a message to him in private.

You didn't get it, did you ?
It was to show him that it's not fine to read that people using a Mac is just a fan boy. So he'll see that it's not fine when he'll read that his opinions are stupid.

But yes you're right... this kiddo has just post this only one. It's just the first time he post something about Apple or people using Macs...
I just don't understand why he does...
(all in a sarcastic mood/joke)

PS. calling people "fan boy" is not an opinion but an insult !

pixelmonk
07-21-2006, 04:30 PM
You didn't get it, did you ?
It was to show him that it's not fine to read that people using a Mac is just a fan boy. So he'll see that it's not fine when he'll read that his opinions are stupid.

But yes you're right... this kiddo has just post this only one. It's just the first time he post something about Apple or people using Macs...
I just don't understand why he does...
(all in a sarcastic mood/joke)

PS. calling people "fan boy" is not an opinion but an insult !

Oh I got it... you took one post out of context and used it as an opportunity to use that post to call someone's opinion stupid.

YOU are forcing people to believe that that's what CupOWonton said. He never claimed anywhere in any posts that everyone using a Mac is just a fan boy. So you are still trolling by telling him his opinions are stupid? I guess he can't have an opinion because you've already voiced your opinion on him. That sounds fair? You're being a hypocrit right now.

Now.. if you were to just admit that you don't like half the stuff that CupOWonton posts, then I could see your distain for his one post. :)

BTW, fanboy isn't always considered an insult. Personal interpretation is key when it comes to terminology like that. For instance, fanboys are flocking to ComicCon today.. and they'll admit they're comic fanboys. Others will admit they are Mac fanboys... Nintendo fanboys, there's nothing wrong with that. If you don't like being called a Mac fanboy, maybe there's some hidden reason why that makes you angry. Maybe you're posing as a Mac fanboy, but underneath, you are in fact, wearing Microsoft underwear!

mummey
07-21-2006, 04:50 PM
http://yahoo.businessweek.com/technology/content/jul2006/tc20060719_557792.htm

Lone Deranger
07-21-2006, 05:04 PM
Maybe CupOWonton is a bit upset about this:

Dell (http://news.bbc.co.uk/1/hi/business/5203452.stm)


Not to rain one your parade, CupOWonton, but...

http://www.macworld.com/news/2006/07/20/marketshare/index.php

Granted, its still small compared to Dell.

meeper
07-21-2006, 05:11 PM
Maybe CupOWonton is a bit upset about this:

Dell (http://news.bbc.co.uk/1/hi/business/5203452.stm)

Heh.. I'd never purposely buy a Dell!!!

meeper
07-21-2006, 05:12 PM
http://yahoo.businessweek.com/technology/content/jul2006/tc20060719_557792.htm

dude.. we could trade links all day, but it won't prove anything but to be a pissing contest and for the most part I'm still not sure why this thread was even started in the first place? Maybe mods need to shut it down?

http://www.digitalproducer.com/articles/viewarticle.jsp?id=32951-0

wombat778
07-21-2006, 05:26 PM
Not to rain one your parade, CupOWonton, but...

http://www.macworld.com/news/2006/07/20/marketshare/index.php

Granted, its still small compared to Dell.

I just wanted to point out for anyone who only read the headline of the article ("Apple's Macintosh market share soars 16 percent"), that Apple's market share increased by 16% of its PREVIOUS market share (from 4.4% to 4.8%). Apple's market share did NOT increase by 16% of the total market share.

mummey
07-21-2006, 08:44 PM
dude.. we could trade links all day, but it won't prove anything but to be a pissing contest and for the most part I'm still not sure why this thread was even started in the first place? Maybe mods need to shut it down?

http://www.digitalproducer.com/articles/viewarticle.jsp?id=32951-0

By the content of your posts, it would appear that you're intending to derail the thread. In that case, it seems you and CupOWonton have something in common.

beaker
07-21-2006, 11:21 PM
Dell (http://news.bbc.co.uk/1/hi/business/5203452.stm)Yup, that is a perfect example of what I was talking about earlier. Dell forecasts low numbers and they get hit in the jimmy because they didn't make the numbers of the forecasts. This just baffles me. It's like, what is the point of even forecasting if the street is going to ignore your advice and give people expectations of numbers that your never going to make.

Rogun
07-22-2006, 12:28 AM
The stock market is a fickle beast, the other day it went up because one guy said "Things look good" Then the next day it went down because someone else said "well... maybe not." Its something that can be changed drastically because of rumors but it always goes back up in the end... It just takes time.

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