10 Updates

Apple Predicts Flat Revenues, New Product Categories

Jan 28 2014, 1:00am CST | by

Despite reporting today its highest quarterly revenue – from $54.5 billion a year earlier to $57.6 billion – and operating profit ever, for the last December quarter, Apple stock fell more than 8%....

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26 weeks ago

Apple Predicts Flat Revenues, New Product Categories

Jan 28 2014, 1:00am CST | by

Despite reporting today its highest quarterly revenue – from $54.5 billion a year earlier to $57.6 billion – and operating profit ever, for the last December quarter, Apple stock fell more than 8%. Shares were down $44.50, or 8%, at $506.

So what gives?

“No technology company has ever generated that much revenue in a single quarter,” said Apple CFO Peter Oppenheimer during the earnings call. “And we’re especially pleased to have generated that record despite foreign exchange headwinds, the year over year decline in iPod sales, and the higher revenue deferral rates from iOS devices and Macs that we discussed last quarter.”

Product-wise, this was also a really busy quarter, with Apple rolling out new iPhones, iPads, iMacs, MacBook Pros and Mac Pro.

But, although the company sold a record number of 51 million iPhones during its latest quarter, it fell short of financial analysts’ expectations of 55 million.

While it’s prudent to take the somewhat “speculative” opinion of Wall Street with a grain of salt, this “miss” would have been a drop in the ocean if Apple’s smartphone didn’t account for so much of the company’s bottom and top line – 56% of its revenue and over 70% of its profits.

Which also could help explain why Apple turned in the same net profit of $13.1 billion as a year ago, despite the revenue increase – selling more iPads and Macs, rather than higher-margin iPhones.

With a zero-growth  quarter looming, Apple needs to show it can still innovate

But what really hurt Apple’s stock was the company’s lower guidance for the current quarter, predicting revenues between $42 and $44 billion, with a gross margin between 37 and 38 percent. This is roughly flat compared to the $43.6 billion in revenue and the 37.5 percent margin the company reported in the year-ago quarter.

“Most investors will be disappointed with the forecast, given the recent China Mobile launch,” said Alex Gauna, an analyst at JMP Securities. “The problem is that it’s not a robust second-quarter forecast, so we are back to no year-over-year growth, based on this guidance.”

With this in mind, Apple CEO Tim Cook is under even more pressure to show investors that the company can still innovate.

“Innovation is deeply embedded in everybody here, and there’s still so much of the world that is full of very complex products, etc. We have zero issue coming up with things we want to do that we think we can disrupt in a major way,” said Cook.

During the call, Piper Jaffray analyst Gene Munster asked Cook if Apple still planned to release a new product category in 2014, as the company repeatedly said it would last year. And Cook’s response was, “Yes, absolutely. No change.”

Although, there are a lot of things Cook could talked about, like a larger iPhone or a mobile payment system, the one device that is on top of everyone’s mind is the so-called iWatch – which could be Apple’s first entry into the wearable device category.

And according to a recent study by Deloitte, there will be 10 million wearable electronic devices sold in 2014, generating about $3 billion, and more than 100 million units by 2020. But to be fair, IDC also reported this month that the global smartphone market topped 1 billion shipments for the first time in 2013, with Apple owning 15% of it!

Source: Forbes Business

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the De ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken into ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan Raky ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datu ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the south ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 mil ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Se ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year involving an allocation of RM20 million. ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Ba ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansa ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

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