We analyzed Apple Inc's financial statement Q3 2011 (April-June, 2011) at link (group meeting 930-1015pm Tue Oct 18th, 2011).
Apple has posted some ludicrously huge numbers for their Q3 2011, with quarterly revenue reaching $28.7 billion and a net profit of $7.31 billion, both new records. By comparison, 2010′s Q3 was $15.7 billion in revenue with a profit of $3.25 billion.
Apple’s Q3 2011 Highlights:
· Revenue increased 82% year over year
· Profits increased 125% year over year
· Gross margin was 41.7% compared to 39.1% in the year-ago quarter
· Retail revenue increased 36% year over year
· International sales accounted for 62% of the quarter’s revenue
o Americas revenue grew 63% year over year
o Europe revenue grew 71% year over year
o Japan revenue grew 66% year over year
o Asia Pacific revenue exploded 247% year over year
Hardware Numbers:
· iPhones sold: 20.34 million, a 142% increase year over year
· iPads sold: 9.25 million, a 183% increase year over year
· Macs sold: 3.95 million, a 14% increase year over year
· iPods sold: 7.54 million, a 20% decline year over year
In Q3, Apple released iPad 2 & iPhone 4 (service carrier AT&T) in March 2011. The new release of the 2 major products & the international sales increase (62% of the quarter revenue) are the main reasons for the quarter’s revenue increase.
We agreed that the net profit Apple provided is correct.
However, when we read Apple's own analysis at link, we realized that the grow trend that Apple declared for the rest of the year overlooked some information, for example, the iPhone/iPad has lot more competitors come, such as, Samsung, HTC, Google, Amazon, etc. Even Apple used to be run by the genius and the company’s product line for the next 4 years has been preset by Steve Jobs, they can’t stop innovations from their competitors. People are an organizations most important asset, different leaders run an organization differently. There are engineers left from Facebook for Apple, there will be engineers leaving Apple for Apple’s competitors. Additionally, they shifted the focus from Hardware innovation to Software, iOS, iCloud, that creates more uncertainty. Thirdly, the prices for Apple products, from iPhone to iPad to Mac, are relatively high to most of the consumers worldwide. It is true that people would sell Kidney for an Apple product which the battery of the product is not replaceable, which means, the product itself will push you to buy a newer version in the market in about 2 years when the battery is no longer functional. How many kidneys does one consumer have? Finally, Apple has already moved its iPad production from China to Brazil. Some predicted that Apple would lower iPad production & increase iPhone’s. However Brazil has very strict policy on manufacturing & selling cell phones. The labor cost in Brazil is 6 times higher than that of in China. We don’t think it is a good sign for Apple’s next quarter or next quarters.
P.S.: I would like to share with you some news as follows on new released smart phones.
No comments:
Post a Comment