profit Stories January 22, 2016

Tim Cook

The lawsuit between Oracle and Google is inadvertently revealing some confidential information about the companies. It has already been disclosed that Google paid Apple a $1 billion fee in 2014 to keep Google as the default search provider for iOS Safari, as well as a revenue sharing agreement where Google gives a substantial portion of the iPhone search ad revenue to Apple.

Another lawyer from Oracle has also stated that Google has generated $22 billion in profit and $31 billion in revenue from Android in its lifetime, via Bloomberg. Although any number in the billions is impressive, it pales in comparison to Apple’s mobile platform profiteering. As highlighted by Quartz, Apple made more revenue from the iPhone in one single quarter, raking in $32 billion dollars worth of iPhone sales from July – September.

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profit Stories October 19, 2015

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In 1995, two years before his return to the company, Steve Jobs gave a characteristically blunt answer when asked why Apple found itself struggling in the early to mid 1990s. The issue, he said, was that Apple had gotten greedy.

What ruined Apple wasn’t growth … They got very greedy. Instead of following the original trajectory of the original vision, which was to make the thing an appliance and get this out there to as many people as possible, they went for profits. They made outlandish profits for about four years… What that cost them was their future. What they should have been doing is making rational profits and going for market share.

Much has changed since then, of course. Apple has a substantial market share in both the personal computer and mobile markets, demonstrating that the two goals – growth and profitability – are not mutually exclusive. This is not an ‘Apple is doomed’ piece, nor anything like it. But I do wonder whether the company is once more putting short-term profits ahead of long-term brand loyalty … ?  expand full story

profit Stories July 22, 2015

Apple again lands behind Samsung at #15 on Fortune Global 500 list, #2 by profit

Fortune is out with its latest Global 500 today ranking the world’s largest 500 companies by revenue and Apple has once again landed at #15 on the list. Apple comes in behind #1 Wal-mart, a long list of petroleum companies, Volkswagen, Toyota, and #13 Samsung.

After a bumpy start to 2014, Apple’s stock finished the year up 40%, adding nearly $200 billion to the company’s market value. A product pipeline that’s gotten Apple fanboys lining up all over again has certainly helped reenergize revenue growth: In addition to unveiling new categories like Apple Pay and Apple Watch, the company launched the iPhone 6, selling a record-breaking 10 million units in the first three days. As CEO Tim Cook recently told investors: “It’s tough to find something in the numbers not to like.” The normally low-profile Cook is breaking new ground in other ways too–in October, 2014 he came out as the first openly gay CEO of a Fortune 500 company.

In Fortune’s calculations, which account for total revenues for the fiscal year that ended before March 31, 2015, Apple came in with almost $183 billion in revenue, compared to around $195 billion for Samsung and $485 billion for #1 on the list, Walmart. Apple, however, comes in at #2 on the list when filtering by profit with $39.5 billion compared to $44.7 billion for the #1 company by profit, Industrial & Commer. Bank of China. Other tech companies coming in behind Apple for profit include Microsoft at #8 with $22 billion and Samsung at #9 with $21.9 billion in profit.

The new Fortune 500 Global list follows Apple’s Q3 2015 earnings report yesterday where the company reported record revenue for several products, hinted at over $1 billion in Apple Watch sales, and crossed the $200 billion in cash mark for the first time.

profit Stories October 28, 2014

iPad Air 2 estimated to cost $275 in materials, Apple pays just $60 for 128 GB storage upgrade

A report from IHS, via Re/code, has costed out the various components of the iPad Air 2. Naturally, these prices are estimates — the exact nature of the deals Apple negotiates with its suppliers are not common knowledge. The report says that the iPad Air 2 costs Apple $275 in materials, with the screen making up the largest share with costs around $77.

profit Stories August 5, 2014

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Apple has announced that July was a record setting month for App Store revenue following its earnings report last month where the company reported strong iTunes results for the three-month period that ended June (via CNBC).

The company also told CNBC today that it saw “a record number of customers making transactions” for the App Store during the month:

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profit Stories April 23, 2013

ive-never-been-more-bullish-for-innovation-at-apple-tim-cook-said-of-the-companys-forthcoming

Following Apple’s announcement of its Q2 2013 earnings and new cash program, the company is hosting an earnings call to discuss the results. The company’s CEO and CFO, Tim Cook and Peter Oppenheimer, also typically stick around for a question and answer session. We’ll be live blogging the proceedings after the break (Image via AP):

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Wall Street seems pleased with Apple’s announcements: beats on Q2 2013 earnings and a massive expansion of its cash return program for shareholders.

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As planned, Apple has announced its Q2 2013 earnings results.

Apple® today announced financial results for its fiscal 2013 second quarter ended March 30, 2013. The Company posted quarterly revenue of $43.6 billion and quarterly net profit of $9.5 billion, or $10.09 per diluted share. These results compare to revenue of $39.2 billion and net profit of $11.6 billion, or $12.30 per diluted share, in the year-ago quarter. Gross margin was 37.5 percent compared to 47.4 percent in the year-ago quarter. International sales accounted for 66 percent of the quarter’s revenue.

The Company sold 37.4 million iPhones in the quarter, compared to 35.1 million in the year-ago quarter. Apple also sold 19.5 million iPads during the quarter, compared to 11.8 million in the year-ago quarter. The Company sold just under 4 million Macs, compared to 4 million in the year-ago quarter.

Apple reported revenues for Q2 of $43.6 billion, which beats Apple’s estimates for the quarter of between $41 and $43 billion. This revenue compares to a revenue of $39.2 billion in the year-ago Q2. Apple also reported net profit of $9.5 billion, or $10.09 per diluted share

Apple sold 37.4 million iPhones, 19.5 million iPads, just under 4 million Macs, and 5.6 million iPods. This compares to 35.1 million iPhones, 11.8 million iPads, and 4 million Macs, sold in the year-ago Q2 2012 quarter.

Apple CEO Tim Cook on the results:

“We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “Our teams are hard at work on some amazing new hardware, software and services, and we are very excited about the products in our pipeline.”

Apple CFO Peter Oppenheimer as well:

“Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO.

Apple’s guidance for next quarter (Q3 2013) is revenue between $33.5 billion and $35.5 billion

Apple will hold a conference call regarding today’s announcement. We will have live coverage at 5 PM EST/ 2 PM PST.

Here’s Apple’s press release announcement:

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profit Stories March 22, 2013

Asymco’s Horace Dediu has estimated that Apple’s iTunes business, initially intended only to cover its costs as a way of driving hardware sales, now earns the company annual profits of a cool $2 billion.

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What started as just a music store now sells music, video, books, iOS software, and Mac software. Revenues have grown five-fold in 7 years, with total sales approaching $5 billion a quarter and notching up an estimated 23 billion transactions a year.

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profit Stories August 10, 2011

Walmart has just announced their Vudu movie streaming service is now available to iPad users via a web app (opposed to an iOS app), which effectively allows the company to go behind Apple’s back rather than partake in their App Store revenue sharing model. The app also works on other iOS devices, but hasn’t yet been optimized for the smaller screen. They’ve also announced their iTunes competitor, mp3.walmart.com, will be closing indefinitely starting August 28, 2011. However, the announcement notes the Walmart Soundcheck music streaming service will remain available, making us wonder if they have plans on implementing an iPad-specific version much like they’ve done with Vudu…

This isn’t the first time we’ve seen content providers trying to avoid sharing profits with Apple. In fact, just yesterday we told you about the new Kindle Cloud Reader app that is accessible via the web, much the same as Vudu. While not sharing revenue is an obvious benefit of bypassing the App Store, TechCrunch points out there are many other advantages as well.

For instance, by avoiding the App Store’s restrictions, Vudu will be able to push out new updates whenever they see fit, rather than having to wait for Apple’s approval. It seems like more and more developers have been pushed away from the traditional iOS app model due to stringent approval policies and the unpredictability of Apple’s ever-changing process.

The real question is.. do these web apps compare to the experience offered by native apps?

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