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Apple-1. Recession-0

From Forbes.com

Apple-1. Recession-0
Brian Caulfield, 10.16.09, 6:00 AM ET

BURLINGAME, CALIF. -
Over the past year, banks have collapsed, PC sales have fallen and unemployment has soared. And Apple Chief Executive Steve Jobs went on a mysterious medical leave that ended only after it turned out he had snuck off to Memphis for a liver transplant.

Apple, however, has thrived. Sales and earnings aren't down less than everyone else. They're actually up over the year-ago period. The result: Apple shares have more than doubled in value this year.

The Cupertino, Calif.-based gizmo and computer company's earnings are expected to jump 14% Monday when it reports results for the quarter ended September.

Analysts expect Apple to report net income of $1.3 billion, or $1.62 per share, compared with $1.1 billion, or $1.26 per share, during the corresponding year-ago period, according to a Thomson Reuters survey.

Sales are expected to rise to $9.2 billion from $7.9 billion.

And that's not just thanks to the iPhone, which has become one of Apple's biggest businesses in just a few years.

The company's share of the U.S. personal computer market actually rose to 8.8% during the third quarter, up from 8.6% a year ago, according to a report released Wednesday by tech tracker Gartner.

BernsteinResearch expects Apple will report quarterly Mac sales of 2.9 million, up 10% from the corresponding year-ago period.

Slick, considering Apple doesn't even sell a laptop computer that costs less than $999.

Even Apple's aging lineup of digital music players is holding up well. BernsteinResearch expects iPod sales of 10.5 million for the quarter, down 4% from the corresponding year-ago period. It expects iPhone sales of 6.9 million, roughly the same as the corresponding year-ago period.

So, what will it take to hurt Apple? Who knows. Maybe if things start going right, for a change. Bad news--and outright weird news--has only made these guys stronger. The takeaway: If aliens invade, go long on Apple.

Re: Apple-1. Recession-0

In related news:

Apple Shares Soar on Earnings Report
(Click on the title for the full CNN/Money article)

Quote:

NEW YORK (CNNMoney.com) -- Apple Inc. said Monday that record sales of Macintosh computers and iPhones lifted its quarterly profit and revenue, which trounced Wall Street's forecasts.

Shares of Apple (AAPL, Fortune 500) rose 7% after hours, at one point hitting an all-time trading high of $204. The previous high in regular trading was $202, set nearly two years ago.

Mac sales soared 17% from a year ago to 3.1 million units, a quarterly record.

"We're thrilled with these record results, particularly given the economic environment around us," said Peter Oppenheimer, Apple's chief financial officer, on a conference call with analysts. "Mac is showing fast momentum, growing faster than the rest of the market in the past two quarters."

The company said its successful June launch of its new Mac operating system, Snow Leopard, helped push Mac sales over the 3 million mark. Stronger than expected back-to-school sales also boosted the numbers.

Despite a recession and an average selling price of just over $1,200, Apple grew its PC market share to a 15-year high last quarter according to recent reports from industry watchers.

Macintosh computers made up 8.8% of PC shipments last quarter, according to Gartner, while a separate report from IDC tallied up 9.4%. Both figures represent the highest market share the company has enjoyed since 1994.

IPhone sales climbed 7% to a record 7.4 million in Apple's fiscal fourth quarter. That rate could increase as Apple introduces the iPhone to China later this month.

IPhones make up 22% of the U.S. smartphone market, according to the latest data from IDC, second to Research In Motion's (RIMM) BlackBerry, which has 51%.

"We are thrilled to have sold more Macs and iPhones than in any previous quarter," Steve Jobs, Apple's chief executive, said in a statement. "We've got a very strong lineup for the holiday season and some really great new products in the pipeline for 2010."

IPod sales slumped 8% to 10.2 million for the quarter, despite slashed prices in September.

Record profit: The Cupertino, Calif.-based company said its fiscal fourth-quarter net income rose 47% to a record $1.7 billion, or $1.82 per share from a year earlier. Analysts polled by Thomson Reuters were looking for $1.42 per share.

Sales rose 25% to $9.9 billion, topping expectations of $9.2 billion.

A recent change in generally accepted accounting principles allows the company to declare revenue from iPhone sales as it comes in, rather than spread out over the two-year span of customers' contracts. Apple has not yet changed its accounting practices, but if it had, the company said it would have earned $12.3 billion.

For the current quarter, Apple said it expects revenue in the range of $11.3 billion to $11.6 billion, with earnings per share coming in between $1.70 and $1.78. The revenue outlook fell in line with analysts' consensus expectation of $11.4 billion, while Apple's earnings guidance fell short of Wall Street's forecast of $1.91 per share.

Despite some price-cutting, Apple said its gross margin rose to 36.3% in its fourth quarter, up from 34.7% last year.

But the company expects the margin to fall to 34% this quarter, due to price cuts and a higher cost of installing memory in its products.

"Apple brought down pricing modestly around its Snow Leopard launch, but pricing from the competition has come down as well," said Vijay Rakesh, an analyst at ThinkEquity. "Overall, Apple performed very well. Good customer demand in the back-to-school sales was a big plus."

Merry Christmas, Apple! :D

Re: Apple-1. Recession-0

haha! Awesome! Apple should be giving us apple users some kind of Christmas gift! :)

Re: Apple-1. Recession-0

Good news for Apple stockholders. I hope they would give us their new magic mouse as Christmas gifts (wishful thinking). :D

Re: Apple-1. Recession-0

"A lot of companies have chosen to downsize, and maybe that was the right thing for them.

"We chose a different path.

"Our belief was that if we kept putting great products in front of [customers], they would continue to open their wallets.”

- Steve Jobs

Re: Apple-1. Recession-0

"Our belief was that if we kept putting great products in front of [customers], they would continue to open their wallets.”

quote of the year!

Re: Apple-1. Recession-0

good for them :) i do hope more great products in the upcoming years,( cheaper please) :D

Re: Apple-1. Recession-0

Just sharing this article in relation to the thread. Article below taken from the CNET News written by Erica Ogg:

Quote:
In regards to its brand new Snow Leopard operating system, Cook said that sales of OS upgrades to Mac OS X 10.6 were twice as high as the same five-week initial sales period from the previous version of the OS, called Leopard. "We were very pleasantly surprised by it," he said.
Apple stores also had their best quarter ever in terms of revenue ($1.7 billion) and Mac sales (670,000), and 15 new locations opened over the three-month period.

But as the company turns in a string of "best fill-in-the-blank quarters ever" (holiday, non-holiday, in the history of the company), it's hard not to wonder if exceedingly high expectations will soon be a problem. Apple is, as always, choosing to be conservative. The company is predicting its fiscal first quarter 2010 will bring in between $1.70 per share and $1.78 per share and revenue of between $11.3 billion and $11.6 billion.

Full article HERE

It's quite a big achievement for Apple being able to increased it's sales outputs despite the recession. This shows Apple has good business management and marketing skills.