Ok, that's not completely true. Apple's (NASDAQ:
) quarterly earnings crushed analyst expectations, doubling after
a huge jump in iPhone sales. But didn't we almost expect them to
blow expectations away? Be honest - who is genuinely
Apple is now the business equivalent of the New England
Patriots. We expect them to do well and the only surprise is when
it doesn't release mind-blowing numbers. If the New York Giants
or, in this case, Microsoft (NASDAQ:
) wins the Super Bowl,
when we get surprised. You get the analogy. Tim Cook is Tom
Brady, etc, etc.
Cook is obviously feeling the pressure, comparing Windows 8 to
a toaster-fridge combo device during Tuesday's Apple call. That's
a tenuous, though not entirely incorrect, link.
So Apple's share rose a solid 8% in after-hours trading, after
falling roughly 13% from a record high $644 in the past two
weeks. The company sold 35.1 million iPhones in the quarter,
approximately half of Apple's revenue. Wall Street expected 30
And there's more. Net income shot up to $11.6 billion, or
$12.30 per share, from $6 billion, or $6.40 per share.
Yes, the numbers are big. Revenue is led by huge international
demand for the iPhone, particularly in China. Best of all, there
is still room to expand in that country.
So let's celebrate the iPhone. It might not be the best
handset on the market, but it has been branded and marketed so
successfully that consumers will stand in line for 48 hours to
get the latest version before anyone else. It is the Nike shoe of
But the truth is, Apple should have done better. Everyone is
so focused on the iPhone that we haven't noticed the fact that
the Mac line has been faltering, producing a very underwhelming
2% year-over-year revenue gain on an increase in unit sales of
The growth in the PC market has slowed the Mac's growth almost
to a stationary position. iPhones, iPods and iPads are all well
and good, but the home computer line needs to be looked at long
and hard if the company wants the numbers to remain as
In the last quarter, Apple unleashed a new version of the
iPhone, a fact that makes these numbers almost deceiving. They
don't do that every month, and next month's figures will likely
disappoint because of this.
But Apple's biggest failure this quarter was to really
capitalize on the success of the iPhone by making enough handsets
available. Just imagine for a moment how much bigger those
numbers could have been if they were able to meet supply / demand
by selling a new iPhone to everyone across the globe who wanted
one. That is something that will need looking at if the company
wants similar success in the next quarter.
Questions are already being raised about whether Qualcomm
) can provide enough chips to meet demand of the next version of
the iPhone (yep, it's coming soon).
So ok, Apple's numbers are something to admire. The company
looks good going forward and the biggest enemy it faces is its
own pace of innovation, along with the ability to get enough
parts in a timely manner from suppliers. Truth be told, that's
not the worst problem to have.
But the fact remains that those numbers could have been so
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