Apple 'happy ending': BULGING iPhone WAD - but can it ever be enough?

'A strong finish to an amazing year' beams the Cookster


Apple has reported its financial results for the fourth quarter of its fiscal 2013: its numbers handily outperformed the projections published by the Wall Street moneymen, though net income slipped from the same period last year.

For the quarter, Apple's all-important earnings per share (EPS) came in at $8.26 on revenues of $37.5bn. Apple's numbers for the same quarter last year were an EPS of $8.67 on revenues of $35.97bn. Net income for the quarter totaled $7.5 billion, compared to $8.2 billion for the same period last year.

Consensus Wall Street estimates compiled by FactSet for Q4 2013 put EPS at $7.92 and revenues at $36.87bn, while the average estimates of the 47 analysts surveyed by Yahoo! Finance were a penny more optimistic for EPS at $7.93 and $30m more downbeat for revenue at $36.84bn. The range of Yahoo! Finance's EPS numbers was $7.23 to $8.49, with revenue projections from $34.57bn to $39.18bn.

"We're pleased to report a strong finish to an amazing year with record fourth quarter revenue, including sales of almost 34 million iPhones," CEO Tim Cook said in a statement.

The quarter that was detailed after the markets closed on Monday ended on September 28, and so included only about a week of sales of Apple's "forward-thinking" iPhone 5s and "unapologetically plastic" 5c, which were announced on September 10 and went on sale on September 20. Apple reported that it had sold 33.8 million total iPhones in the quarter, a new record for their fourth fiscal quarter; word on the street was that sales would be as low as 32 million or as high as 36 million.

Apple also sold 14.1 million iPads during the quarter, compared to 14 million in the year-ago quarter, along with 4.6 million Macs, compared to 4.9 million the same quarter last year.

The new iPad Air, iPad mini with Retina display, MacBook Pros, and Mac Pro haven't hit store shelves yet, and so their sales weren't part Apple's Q4 2013 numbers – unless, of course, you factor in the fact that their impending releases may have depressed sales of the models they're about to replace.

After reporting that it had sold nine million of the new iPhones in their first weekend of sales – but not breaking down the sales by model – Apple made the unusual move of upping its revenue estimates for the just-finished quarter to the high end of the range it had forecast when it announced its results for the previous quarter.

"Apple expects total company revenue for the fourth fiscal quarter to be near the high end of the previously provided range of $34 billion to $37 billion," CFO Peter Oppenheimer wrote in an SEC filing on September 23. As seen in their projected numbers, above, the Wall Street moneymen took Oppenheimer at his word.

Those same fiscal prognosticators are already hard at work putting out their numbers for Apple's current holiday-shopping quarter, and they're decidedly more optimistic than they were for the just-completed quarter. FactSet's folks project an EPS of $13.92 on revenues of $55.5bn, and Yahoo! Finance's analysts' wild guesses considered opinions average out to an EPS of $13.86 on revenues of $55.65bn.

Both of those are up from the same quarter last year, when Apple's EPS was $13.81 on revenues of $54.51bn. However, if the word on the street is correct that shipments of the iPad mini with Retina display will be seriously constrained due to supply problems with its 7.9-inch, 2048-by-1536 pixel display, Wall Street's optimism about the current quarter may be tempered by the time Apple announces its Q1 2014 numbers in late January of next year.

Apple, however, remains optimistic about the holiday quarter, projecting revenues between $55bn and $58bn. Wall Street, however, seems a bit less optimistic: shares of Apple stock, which had risen to as high as $531 during the day – some of the recent rise likely due to activist investor Carl Icahn's share-buyback pushiness – dropped to just over $500 immediately after Apple issued its Q4 2013 report, but quickly bounced back, though only to around $520. ®

Similar topics


Other stories you might like

  • Warehouse belonging to Chinese payment terminal manufacturer raided by FBI

    PAX Technology devices allegedly infected with malware

    US feds were spotted raiding a warehouse belonging to Chinese payment terminal manufacturer PAX Technology in Jacksonville, Florida, on Tuesday, with speculation abounding that the machines contained preinstalled malware.

    PAX Technology is headquartered in Shenzhen, China, and is one of the largest electronic payment providers in the world. It operates around 60 million point-of-sale (PoS) payment terminals in more than 120 countries.

    Local Jacksonville news anchor Courtney Cole tweeted photos of the scene.

    Continue reading
  • Everything you wanted to know about modern network congestion control but were perhaps too afraid to ask

    In which a little unfairness can be quite beneficial

    Systems Approach It’s hard not to be amazed by the amount of active research on congestion control over the past 30-plus years. From theory to practice, and with more than its fair share of flame wars, the question of how to manage congestion in the network is a technical challenge that resists an optimal solution while offering countless options for incremental improvement.

    This seems like a good time to take stock of where we are, and ask ourselves what might happen next.

    Congestion control is fundamentally an issue of resource allocation — trying to meet the competing demands that applications have for resources (in a network, these are primarily link bandwidth and router buffers), which ultimately reduces to deciding when to say no and to whom. The best framing of the problem I know traces back to a paper [PDF] by Frank Kelly in 1997, when he characterized congestion control as “a distributed algorithm to share network resources among competing sources, where the goal is to choose source rate so as to maximize aggregate source utility subject to capacity constraints.”

    Continue reading
  • How business makes streaming faster and cheaper with CDN and HESP support

    Ensure a high video streaming transmission rate

    Paid Post Here is everything about how the HESP integration helps CDN and the streaming platform by G-Core Labs ensure a high video streaming transmission rate for e-sports and gaming, efficient scalability for e-learning and telemedicine and high quality and minimum latencies for online streams, media and TV broadcasters.

    HESP (High Efficiency Stream Protocol) is a brand new adaptive video streaming protocol. It allows delivery of content with latencies of up to 2 seconds without compromising video quality and broadcasting stability. Unlike comparable solutions, this protocol requires less bandwidth for streaming, which allows businesses to save a lot of money on delivery of content to a large audience.

    Since HESP is based on HTTP, it is suitable for video transmission over CDNs. G-Core Labs was among the world’s first companies to have embedded this protocol in its CDN. With 120 points of presence across 5 continents and over 6,000 peer-to-peer partners, this allows a service provider to deliver videos to millions of viewers, to any devices, anywhere in the world without compromising even 8K video quality. And all this comes at a minimum streaming cost.

    Continue reading

Biting the hand that feeds IT © 1998–2021