apple delivers quite good results and its down quite a bit.. interesting thing to learn about how the stock market acts of course, it was one of the greatest crash since 9:11 but good results should get u some rewards...
In its post-earnings conference call, Apple (AAPL) noted that iPod unit sales in the U.S. were flat year over year; the company said it is possible that cannibalization from iPhone sales were a contributing factor.
Some other tidbits from the call:
- Revenue in the December quarter was up 35%; up 27% domestically, 46% internationally. Operating margin of 22.1% was higher than anticipated on higher gross margin and revenues. Cash generation was about 2x net income.
- Macs were 47% of revenue. Mac units were up 44%, 2.5x the PC market rate of growth based on IDC data. Desktops were up 53%, portables up 38%. There is less than 3 weeks of Mac channel inventory.
- Leopard revenue in the quarter was $170 million, vs. $100 million the first quarter for Tiger. 19% of the installed base is using Leopard.
- About 50% of revenue came from the music business; iPod inventory in the channel is 4-6 weeks, within target range. ASP in the quarter was $181.
- Apple recognized $241 million in revenue in the quarter. Deferred revenue is now $1.44 billion, up from $636 million one quarter earlier.
- Retail stores had $1.7 billion in sales, 53% year-over-year growth. They have 204 stories, adding 7 in the quarter. Revenue $8.5 million per store, vs. $6.6 million a year earlier.
- The 34.7% gross margin was above expectations, due to a more favorable commodity environment, stronger software revenues and a weak dollar.
- For the March quarter, the company sees gross margin dropping to 32%, due to a sequential decline in software sales, and lower revenue due to seasonality.
- The company expects a sequential decline in iPods in the March quarter from December.
- The company remains confident of hitting its target of 10 million iPhone units in 2008.
- MacBook Air orders are “very strong.”
- Apple expects to open 35-40 new stores in FY 2008, including its first stores in China.
- Apple expects NAND and DRAM to remain in oversupply condition in the March quarter.
In after hours trading, Apple is now down $16.79, or 10.8%, to $138.85.
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