Apple’s quarterly profit probably fell for the first time in over a decade, thanks to new products with lower profit margins and a slowing demand for the iPhone, Bloomberg reports. Fourteen analysts have reduced their estimates for Apple in recent weeks, and on Friday, the Cupertino company’s share price fell below $400 for the first time since December 2011.
Over at Asymco, noted Apple analyst Horace Dediu takes a moment to look at the iTunes App Store from the perspective of a “break even” model, a perspective that Apple has only recently started to discuss as perhaps more than breaking-even. Dediu notes that with the quintupling of growth of the overall beast that is iTunes (including music, video, and iOS app software), an analysis of Apple’s business practices as well as the App Store’s economy of scale suggests that Apple is doing quite a bit better than “breaking even.”
The iBookstore might not be the most profitable leg of Apple’s empire, but it is said that Apple doesn’t get into a business if it can’t make a billion dollars off of it… so no surprise that the iBookstore is a billion dollar business, even if it’s not much more than that.
Apple stock opened at $457.70 this morning, down more than 10%, following its financial results on Wednesday. The Cupertino company announced $13.1 billion profit for the first quarter of 2013, a slight increase over the $13.06 billion it posted for the first quarter of 2012. But despite that increase, it’s clear Apple’s phenomenal growth has hit a stumbling block.
Verizon has today announced its financial results for the fourth quarter of 2012, which has been its best yet in terms of subscriber growth. The company added 2.1 million new customers during the three-month period, bringing its total number of subscribers up to 98.2 million, with 58% of those customers using a smartphone.
Apple announced their fourth quarter financial call for Q4 2012, scheduling it on October 25th, from 2 pm Pacific time (5 pm Eastern). The results should include the successful launch of the iPhone 5, which sold over 5 million units in the first three days it was on sale in the US. In addition, the iPhone 5 was launched in 22 other countries, with 100 more to come in the months ahead.
While Apple and Samsung duke it out in Northern California this week, it makes sense to take a little time comparing the two on sales numbers, units shipped, and profit made. And while many folks these days like to bring up the fact that more Samsung devices are sold than iOS devices, those same folks are missing the boat.
According to a report from Raymond James analyst Tavis McCourt, via website AllThingsD, Apple’s iOS devices are making its company a ton more profit than Samsung’s devices are. Let’s take a look at the numbers.
Let’s put Apple’s golden touch in perspective, because it’s a super power eerie and miraculous enough that it makes competitors puke in mortal terror (hey, it happens!). Consider this: Apple makes more from selling one Mac than HP does from selling seven PCs.
Apple might not have more money than God (yet), but come the end of this quarter, they are likely to have so much cash flowing from their coffers that, if they had a mind to, they could buy the entire mobile phone industry.
Apple has surpassed Microsoft in quarterly profits for the first time ever, bagging $760 million dollars more during the first calendar quarter of 2011. Microsoft announced today that its net profit for the past quarter – the company’s third fiscal quarter – is $5.23 billion. Last week, Apple reported profits of $5.99 billion over the same period, which is its second fiscal quarter of 2011.
Six months ago, Apple’s excellent performance in recent years was highlighted when the Cupertino company surpassed Microsoft in quarterly revenue for the first time in nearly 15 years. Despite this, Microsoft continued to hold Apple off when it came to profits, largely due to the high profit margins it achieves with its software business.
Apple’s latest accomplishment is now the third time the company has trumped Microsoft over the past year. In May of 2010, Apple first surpassed Microsoft in market capitalization, then went on to surpass Microsoft in quarterly revenue in October, and has now surpassed Microsoft in quarterly profits.
Apple’s market cap is now nearly $100 billion higher than Microsoft’s. It’s no wonder Apple has enough cash reserves to keep the company going until 2018, without selling another single product.
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