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Apple 1Q 2008 Results: Record $1.58 Billion Profit

macrumors.com — Apple posted revenue of $9.6 billion and net quarterly profit of $1.58 billion, or $1.76 per diluted share during the 1Q 2008 (ending December 29th). Michael Dell cries.

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  • chadu, on 01/22/2008, -31/+70Recession? Who Cares... I want shiny things!
    • Microdot, on 01/22/2008, -2/+41i wish. it would be nice if their stock price reflected this news. DAMN YOU US ECONOMY!
      • theyerb, on 01/22/2008, -4/+14I've lost a pretty penny from Apple in the last few weeks. I think the dollar is going to take a huge hit in the next year. Answer: invest in Euros. Cheers.
        • ronmexico, on 01/23/2008, -2/+12The old buy high sell low strategy.
        • Locke2053, on 01/23/2008, -0/+4Let this be a lesson to all the diggers who invest in stocks based on hype or simply because they like a product: Three things have to typically go right for your investment to make money over the long term:
          1) The company has to be good. This is clearly the case for Apple, Google.
          2) The stock price has to be good! You'll never make money off even the best company if you buy the shares at 100 times earnings! No company grows earnings fast enough to justify the insane P/Es that Google and Apple had at their highs.
          3) The macroeconomic picture has to be good, or at least priced in to the stock. Right now, the macro picture is rather bla, so you should avoid stocks which require big earnings growth to justify the price.

          The kids on digg all seem to know about #1, but they don't know about #2 or #3 at all.

          Also, currency speculation (aka "invest in Euros") is a very tricky business. The dollar has been RISING for the past couple months DESPITE rate cuts and recession fears.

          You seem like the sort of foolish investor who chases recent trends and thinks he knows a lot more than he really does. With your philosophy, you are almost guaranteed to do worse investing than someone who just buys the index every month and doesn't think about it.
      • jmpeagle, on 01/22/2008, -1/+8it's P/E ration priced in too much future growth so when Apple gave a 2nd quarter warning along with its first quarter results, the stock tanked
        http://bigcharts.marketwatch.com/quickchart/quickc ...
        down $17+ dollars in after hours trading.
      • notadiggtard, on 01/22/2008, -6/+3Two Words.
        Buying opportunity !!!!!!!!!!
      • newrooky, on 01/23/2008, -0/+3umm. it does reflect the news. perfectly.
        http://www.reuters.com/article/technology-media-te ...
    • longofest, on 01/22/2008, -5/+3more like darn you WORLD economy.
      • ssttuu, on 01/22/2008, -3/+12More like darn American Banking System; I've got a great idea, lets lend ,at ridiculous interest rates, loads and loads of money to near broke Americans, with variable interest rates, so when it turns sour, we magnify the effect 10 fold, with them all defaulting on there payments!.. Great idea, 1920's America comes round again...
        • mrBitch, on 01/23/2008, -0/+5this is a planned recession - anyone seen " zeitgeist - the movie " ?
        • Locke2053, on 01/23/2008, -4/+4You can't blame that on the American banking system. They packaged these loans, sure, but EVERYONE AROUND THE WORLD BOUGHT THEM. The UK, Australia, even China and Japan bought these loans. If the world at large was not willing to buy them, the American banking system would not have created them in the first place. I know hating on the US is hip, but it this cause in makes you look ignorant.
        • theragu40, on 01/23/2008, -1/+1With all due respect, we are nowhere NEAR 1920's levels of recession. People literally had nothing back then. Not a dollar to their name. Hardly anyone had anything. I think the fact that Apple just posted record profits is evidence that we are still not doing that badly.
    • shortshmu, on 01/22/2008, -2/+2I agree shiny things are cool!!
      • LeeSoong, on 01/23/2008, -1/+2me Too !

        Platinum, Gold and Silver money, that is . . .
    • metalhead3767, on 01/23/2008, -1/+8Part of the reason why they earned so many dollars is because the american dollar isnt worth *****.
    • Gabberwok, on 01/23/2008, -0/+5Part of it is because Europeans are flocking in droves to the Apple stores in New York City. Foreigners are coming to NYC for "cheap" electronics and condos, since the dollar is so bad these days.
  • mozmac, on 01/22/2008, -31/+16They should sell a special edition MacBook Air for $1 billion. If they only sold one, they'd double their revenue? All it would take is for Steve Jobs to proclaim, "This is the most valuable laptop in the world."
    • benguild, on 01/22/2008, -14/+5Lmfao, win.
    • atbnet, on 01/22/2008, -3/+19Their revenue was $9.6 billion, not sure how that would double it.
      • MacParrot, on 01/22/2008, -1/+8New Math?
      • Archimboldo, on 01/22/2008, -6/+15Error in Leopard calculator.
        • schoate09, on 01/22/2008, -3/+6Well, they did switch to Intel CPUs...
        • KibibyteBrain, on 01/22/2008, -4/+3...caused by Intel processor.
        • sv650touring, on 01/23/2008, -4/+3I love Macs and that was funny
      • MrLlama, on 01/23/2008, -0/+0Technically Apple would make a *profit* of 1 billion assuming that it wouldn't cost much more than a standard macbook air, so yes it would double (well increase by 50%) their profit. Their total revenue is irrelevant.

        Not that this is going to happen............
        • jabberwolf, on 01/23/2008, -1/+1NET profit that is, and net revenue is important. Sales or gross profit is irrelevant.
        • seaners, on 01/23/2008, -0/+1technically the point was borderline retarded, don't try and defend it, you look somewhat silly
        • cthellis, on 01/23/2008, -0/+0Not going to happen...? What, you don't seriously think a company could sell a laptop for $1 billion?!
    • wush, on 01/23/2008, -0/+1it's a screamer
  • neiltc13, on 01/22/2008, -35/+11Buried as yet more MacRumors spam.

    Do we really need this stupid site to dilute the content into baby steps for us or can we just get on with actually digging the CORRECT stories which link directly to the article?

    http://digg.com/apple/Apple_Reports_First_Quarter_ ...

    I am kinda sick of MacRumors using their multiple spam accounts to digg stuff to the homepage. This is not permitted under the terms of use of digg and it really shows that a select few people control the news we see here.
    • longofest, on 01/22/2008, -6/+8what's ironic about your comment is that you link to an article that has a "2" at the end of the link, indicating that it in of itself is a duplicate of another story.
      • neiltc13, on 01/22/2008, -12/+6And what's ironic about your comment is that you didn't take the time to investigate just what the one without the 2 was. It's the first quarter results from LAST YEAR so it is not a duplicate. The story I linked to was submitted before this one and is not spam.
    • grindmygears, on 01/23/2008, -1/+2I have the next macrumour - digg.com will be running on a Mac before the end of the first quarter of -08. Seriously though, does Apple own Digg? Every second article is Mac this and Air that.
  • totorototoro, on 01/22/2008, -7/+73Holy ***** the stock got hammered after hours. :(
    • khail250, on 01/22/2008, -0/+8yea good thing i bought some FEB options :( i thought it was a steal at 153 :(
      what a day what a day...
    • cyberdork, on 01/22/2008, -0/+6Well earnings warnings are the worst you can imagine in the stock market. I still remember their warning in late 2000 when their stock went from 52 to 24 over night. Oh yeah and I was in it on full margin... wiped me out.
      • bjornski, on 01/23/2008, -4/+2Boy! We should have invested our entire Social Security system in the stock market!

        It can only go up!
        • RagdollOp, on 01/23/2008, -1/+3It would go up more than the stupid Social Security account would!!!!! Do the math and see what your account would have in it on average if it was in the stock market compared to what you will get with social security. It will make you sick!!!!!!!!!! Atleast just give us the choice to pick for our selves!
    • masbestiaquetu, on 01/22/2008, -1/+3i will gobble this ***** up when it hits rock bottom and bounces up. mind you, i bought my shares when they were at 24, before the splits...XD
    • Lionhart, on 01/22/2008, -1/+3Sounds like a good buying opportunity to me.
      • NSResponder, on 01/22/2008, -0/+1Sure is. Wish I had another $20K to put in.

        -jcr
      • bingobongony, on 01/22/2008, -4/+1It is a goodthing you have no money if you consider this a good time to buy.
        • mrBitch, on 01/23/2008, -1/+3You are an idiot - this is a GREAT time to buy shares.
          Simple Question : When would you buy ?
          - 1 ) When the market is doing well and at all time HIGHS ...
          - 2 ) When the market is shaky and at all time LOWS...
          ( seems like you would be the idiot that picks option 1 )
      • Gabberwok, on 01/23/2008, -1/+1This is a bad time to buy anything. And for the record, a few P/E/ ratios for tech companies (one indicator of the cost of the stock relative to the value of the company)... Although I love Apple and Google, I would not touch their stocks with a 10 ft pole in our current economy - you need happy investors to keep stocks at their levels. (From Forbes.com)

        P/E Ratios
        Apple: 39.5
        Intel : 15.8
        IBM: 14.0
        Microsoft: 20.1
        Google: 45.7
    • mrsteve007, on 01/22/2008, -4/+6It's the first time in 3 years that Apple performed below analyst expectations. Apple also has lowered their projections for the upcoming quarter. I wouldn't be surprised for a huge slide tomorrow. With after-hours trading, they've lost 33% of their stock value since their 52week high a week or so ago. No amount of reality distortion field will help them out of this one. Not quite the time to buy.
      • Angostura, on 01/22/2008, -3/+10Errr hang on - Apple didn't perform below analyst expectations. The company is warning that *next* quarter is going to be tough.
      • VitriolAndAngst, on 01/23/2008, -2/+1Next quarter is going to be tough for everyone EXCEPT companies like Home Depot.
        • Spuy767, on 01/23/2008, -0/+3The banks own most of the homes these days, and I don't think they're going to be doing any improving, so I think that this next quarter is going to be pretty sour for them as well.
          • alittleroy101, on 01/23/2008, -0/+1Yeah but I have Home Depot habit, economy be damned.
    • The_Dude, on 01/22/2008, -2/+1I love it. I will have a chance to buy soon. *gulp*
    • FutureGuy, on 01/22/2008, -0/+5According to Bloomberg, Apple's stock went from a 52-week high of (12/27/07) $202.96, to $136.70 in today's after hours extended trading. humm
    • surfing, on 01/23/2008, -1/+1I made a typo when I added the them to my google stock market watch. Now I wish I would have made the same typo and bought some stock:

      APPL 156.00 +70.90 (83.31%
    • johnpaul191, on 01/23/2008, -0/+1*if* you were going to sell AAPL in the next few months, today may be the high end of a steep slope down. Apple doing ok can't buck the market as a whole, and i don't think Apple expects next quarter to be as great anyway.
    • ilgaz, on 01/23/2008, -0/+2It is because markets don't follow Digg Apple section. Neutral news sources say these "record" profits are disappointing and below expectations.
  • kmalik, on 01/22/2008, -40/+15who cares?
    Heath ***** ledger just died :'(
    • dib2, on 01/22/2008, -3/+21Yeah so? Life goes on.
    • CraigJ, on 01/22/2008, -2/+8Who cares? I just lost a few thousand dollars.
      Seriously, it's sad he is dead, but the Apple news affects me far more...
    • d3dm, on 01/23/2008, -1/+6Check his portfolio. Maybe he owned AAPL.

    • Billions, on 01/23/2008, -0/+1Yes, but we live in a complex world and the faster you learn to separate and comprehend multiple events the better you will fare. That is indeed a shame, he was really starting to flex his acting chops and show some range, but it's really no relation to this tidbit about Apple.
  • matthewdestroys, on 01/22/2008, -26/+39Dell is somebody's BITCH.
    • pyrates, on 01/23/2008, -8/+7Then in that case, Apple is Microsoft's BITCH.
      • BlueStarr, on 01/23/2008, -8/+4How the ***** do you figure that? Does anyone talk about Dell? Or Microsoft anymore? Not just plain old tired *****. But innovation and how their ideas are leading the industry? They're still making money( and with time that too will slow down). but their future is uncertain now. While on the other hand, when you think of Apple, you know it still has a looooong life to live.
        • pyrates, on 01/23/2008, -1/+1Who made more money? Apple or Microsoft? I'll be waiting your answer.
    • roberto_deneero, on 01/23/2008, -6/+3Michael Dell, EAT ASS you BUTT JUNKIE.
    • leahcim, on 01/23/2008, -0/+3Dell is much more important to the general market place than Apple. The average person can't afford a $1200+ Apple product, but they may be able to afford a $400 Dell product. Why hate on Dell? They've done more to expand computers to the average person than Apple ever did. Apple made all of this money selling pretty/hyped products for MUCH MUCH more than it cost them to produce. And you rag on Dell? Most people would rather buy a 400 dollar Dell, giving Dell 50 dollars profit, instead of a 1200 dollar Apple, giving them a 600 dollar profit.

      I type this on my MacBook btw.
  • birdly, on 01/22/2008, -24/+15iLove my iPod.
    • musntSurfatWork, on 01/22/2008, -17/+11iHate iCulture when iT's iN my face everywhere iTurn.
    • my8bird, on 01/22/2008, -6/+1Put rockbox on and you will love the device the way it should be loved.
    • digggggggggg, on 01/22/2008, -1/+5Good for you! So do many of the other people who have contributed to this 'Record $1.58 Billion Profit'.
    • sotopheavy, on 01/23/2008, -0/+3Someone stole my iPod. If it had GPS I could have it back and beat some ass.
  • dan222555, on 01/22/2008, -33/+17Large profits are expected when everything you make is grossly overpriced.
    • Sparhawk2k, on 01/22/2008, -10/+13Only if they're priced low enough that lots and lots of people still buy it all. Good thing for them they found that price balance.
      • dan222555, on 01/22/2008, -10/+10I should have added "....and you've convinced enough idiots to buy it"
    • my8bird, on 01/22/2008, -10/+6I agree completely. They do not supply the service or the level of device competency that should be required for their devices.
    • kelly, on 01/23/2008, -4/+3Dan, Apple products don't cost any more than products from competitors with the same equipment in hardware, software and operating equal OS. Actually, typically they cost less.

      Your confusion comes by way of the fact that Apple is less flexible with what they allow you to buy. With a PC you can buy less and spend less or buy different and spend less. If ever you come to the conclusion that PC gear is less expensive when making a comparison, it's important to ask yourself, "what is it about these two systems that is different." Update the differences and then my point will be proven.
      • dan222555, on 01/23/2008, -0/+3"Dan, Apple products don't cost any more than products from competitors with the same equipment in hardware, software and operating equal OS. Actually, typically they cost less."
        That's just blatantly untrue. A macbook pro equivalent to the ThinkPad laptop I currently own cost almost $1000 more than I paid and is still under equipped compared to what I got.

        With equivalent hardware macs are in almost every case, more expensive. That's certifiably true.
    • roberto_deneero, on 01/23/2008, -5/+2By definition, if they were overpriced people would NOT buy them. Obviously, they are priced right. Just because you are too poor to afford Apple products doesn't make Apple a bad company. Eat ass butt pirate.
      • dan222555, on 01/23/2008, -1/+4"By definition, if they were overpriced people would NOT buy them."
        By what definition? You're telling there aren't people who are stupid enough to overpay for things?

        A good majority of mac users (not all, some have legitimate reasons) pay extra for macs because they buy into all the shallow Apple glitz and glamor and are willing (stupidly) to pay more for their products just because they are seduced by the "image" Apple sells.
  • OhSn4p, on 01/22/2008, -14/+4I thought they made more money than that...
  • snarkman, on 01/22/2008, -28/+31Apple FTW!
  • jazh, on 01/22/2008, -18/+11AAPL 157.45 -3.91 (-2.42%)

    Couldn't Resist ;)
    • DCstewieG, on 01/22/2008, -3/+7Maybe you should say the After Hours real-time price then...139. ***** ow.
    • cyberdork, on 01/22/2008, -2/+6It's at $137 right now in after hours trading.
    • springo, on 01/22/2008, -5/+6Oh! So that's why they're charging $20 for the software update!
    • digggggggggg, on 01/22/2008, -2/+2Now would be a great opportunity to buy.
      • bjornski, on 01/23/2008, -0/+2With their "latest and greatest" device being a crippled laptop? Hardly.

        Unless Apple rolls out another genre changing device, like the iPod, I don't see them reaching their highs again any time soon.
  • h3smith, on 01/22/2008, -9/+9God I wish I bought last year :(
    • jsg7, on 01/22/2008, -0/+29God I wish I sold last month :(
      • notadiggtard, on 01/22/2008, -9/+0God Im glad Im holding on,and wish I could buy more!
    • FutureGuy, on 01/22/2008, -0/+3No you don't , Apple's stock went from a 52-week high of (12/27/07) $202.96, to $136.70 in today's after hours extended trading.
      • eh270, on 01/23/2008, -0/+4I bought at 137 at the end of the summer. Back to square one, I guess. I knew the piper jaffray estimates were too good to be true.
      • seaners, on 01/23/2008, -3/+1its gonna bounce back, it just sucks to be an american right now

        well, it was never that good i guess, unless you are black, gay or liberal....oh wait..
    • quazywabbit, on 01/23/2008, -0/+3See I sold earlier this month at 170, and some was bought at 90, and some at 130. Glad I sold when I did.
    • johnpaul191, on 01/23/2008, -0/+1yeah, just wait and see what happens. if the economy is this mixed up, i bet AAPL goes at least as low as last year. i know a few people that had automatic sell orders for some of their shares when it hit $200. i thought they were crazy; shows what i know.
  • teddtech, on 01/22/2008, -13/+6Stock is hammered because they missed their numbers and warned next quarter...goodbye economy
    • clak, on 01/22/2008, -3/+31Correction: They missed the analysts' lofty projections. Apple had the best quarter in their history.
      • digggggggggg, on 01/22/2008, -2/+2Stock doesn't meet expectations: Massive selling, resulting in a more severe 'doesn't meet expectations' condition.

        Who the hell came up with this system anyway?
      • norman619, on 01/22/2008, -6/+5Nice spin.
      • cthellis, on 01/23/2008, -0/+1Correction: The exceeded last quarter's projections, and are under this quarter's projections by about as much.

        What they seem to have "missed" were lofty projections projections about iPod unit sales backed up by few numbers, ignoring the sales of iPhones which ARE also iPods and would have put them in even those lofty projection ranges, and simultaneously ignoring a healthy increase in the revenue per iPod sold. (Which would only go up more when factoring in iPhones.)
    • CraigJ, on 01/22/2008, -2/+5The average street estimate was 1.62 EPS, The highest estimate was 1.77EPS, Apple guided 1.42 EPS. Actual EPS was 1.76.
      The next quarter was not a warning, Apple did not release Q2 estimates until today. The street estimate was 6.98B, apples estimate was 6.8B.
      Something else is at play here I think, Guidance of 180M lower that the street estimate, when you're talking close to 7B, especially when Apple always guides conservatively, dose not equate with a 15% drop in stock price. Luckily the after hours volume low (it's high for AH but nowhere near average daily volume) Hopefully we'll see better prices tomorrow...
      • cthellis, on 01/23/2008, -1/+0Worries about the economy in general, illogical analysis of Apple's "guidance versus analyst estimates," a continual media frenzy to portray Apple in as poor light as possible, an over-reaction to the perceived inflation of AAPL during 2007...
    • mooseontheloose, on 01/22/2008, -1/+2Yes, because the economy hinged on whether or not Apple could not only post record profits (which they did), but beat the projections for those record profits.

      DOOMED!!
    • NSResponder, on 01/22/2008, -3/+4"missed their numbers"

      Nope. They far exceeded their projections, as usual. The wall streeters, on the other hand, made some unfounded guesses which were higher than Apple's results.

      -jcr
  • Chairboy, on 01/22/2008, -10/+50Goodness, imagine what it would have been if the iPhone hadn't been the huge failure all the Nokia and Windows Mobile keep saying it is.

    Oh, wait...
    • my8bird, on 01/22/2008, -25/+14HaHa: iPhone == iCrap
      • jo21, on 01/23/2008, -4/+3but the iphone is a failure sold only 2.3 millions while nokia more than 25 millions smartphones and most are n95 are more expensive phone
    • ilgaz, on 01/23/2008, -2/+1Do you have slightest clue how many Smart Phones/Multimedia Phones does Nokia and SE sells a year? Also I don't think they have said it is a failure, they are happy about iPhone giving the necessary beat to Smart Phone market.
      If Apple had balls to ship iPhone with Xcode SDK _right_ at launch with a DESKTOP quality Java, they would have been in real panic. That _would_ change the entire smart phone scene we know.
  • Angostura, on 01/22/2008, -4/+26The astonishing thing, I think is that Mac shipments showed a 44% year on year growth. Pretty good. Ipod shipments only up 5%.
    • tekmonkey, on 01/22/2008, -2/+19Only because every person and their dog already own iPods.
      • BedPost, on 01/23/2008, -1/+3Yeah, but my dog only has a nano.
        • thedragon4453, on 01/23/2008, -1/+3Ha Ha. Everyone know iPod mini is for girls!
    • Lamity, on 01/22/2008, -8/+1Perspective in terms of market share? 44% of ***** all is still ***** all. 5% of nearly 100% actually quite a lot!
      • bingobongony, on 01/22/2008, -6/+3Hate to tell you, but the iPod has a lower market share than Windows, or Internet Exploirer, or Google in their respetive markets. Not nearly 100%
    • johnpaul191, on 01/23/2008, -0/+1Mac sales have been up every quarter i think, even if just a little. that's a good sign for people that care about more than iPods.
  • swimmer88, on 01/22/2008, -2/+11Thats great and all but their Q2 guidance was well below analyst's expectations. The stock is down about 15% right now after hours. They are expecting their earnings next quarter to be lower due to higher expenses related to stock-based compensation, slower software sales and lower sequential revenue.
    • Birdoftruth, on 01/23/2008, -1/+1source? else wise bull *****
      • johnpaul191, on 01/23/2008, -0/+2go to macrumors.com or any other site with all the conference call info. i read it too.
        "lower than expected earnings" does not mean lose money, it often just means not growing as much as the analysts want every quarter. Comcast has had the same issue recently. they are making TONS of money, but not growing as fast as analysts want (blaming the new housing slowdown and FIOS competition) and their stock took a hit. like i said, they are still making tons of money, just not more very 3 months than the previous 3 months. the US stock market quarter system is crazy like that. it's also why companies will do mass layoffs. it makes the quarterly numbers look better even though you are gutting the inner workings of the company.
    • iplayyouandme, on 01/23/2008, -0/+2Q2 is always lower than Q1 because first quarter reflects the natural yearly spike that comes with Xmas sales (duh). Also, Apple almost always gives very conservative earnings estimates, which are usually below analyst's expectations. This insures that Apple will meet or beat their targets. Plus, I believe, Q2 is traditionally a weak quarter for most retail stores, since everyone blows their wad of cash at Xmas.

      The rest can be blamed on an economy that is heading for a train wreck caused by the conservative polices of fiscal conservatives who "spend and spend" into us debt, since they don't seem to understand that the government's money comes from taxes that they keep cutting. Tax breaks are great, if the government actual still had the money we paid in taxes, but that's already been spent on things like the war. Instead, they will give us a "tax break" by borrowing even more money that only adds to the national debt, a debt that WEs nation will have to pay back later with INTEREST. Great plan! That's how I should do my finances; when I run out of money I should just barrow more that way I never run out.

      CLUE --> That's why the dollar has dived in value, because our deficit spending is being propped up by loans from the Chinese and India.

      I tell you what, I have have a plan to head off this recession, it's called lower oil prices. Since Mr. Bush seems to like gunboat diplomacy so much, then maybe he should point our tanks in Iraq towards Saudi Arabia (or the oil companies) and show them the errors of their ways (j/k). Seriously, a dollar drop at the pump would spring board us straight out of any recession and cost us NOTHING. Oh yeah, oil prices skyrocketed BECAUSE of the war in IRAQ. Then we need to develop energy alternatives so we can tell them to f**k-off.
    • xbirdmanx, on 01/23/2008, -0/+0Quarterly earnings are usually compared to the same quarter's earnings from a year ago due to the cyclical nature of consumer purchasing.
  • theyerb, on 01/22/2008, -8/+20AAPL AFTER HOURS 139.06 -18.39 (-11.68%)

    It gets worse :(
    • Locke2053, on 01/23/2008, -2/+1If it's makes you feel any better, after hours trades tend to over shoot a bit due to limited liquidity. It likely will open at somewhat better levels than the latest after hours trade.
    • johnpaul191, on 01/23/2008, -0/+1the company is facing possible recession. Apple predicted next quarter not being as strong as this one. that right there is a sign for traders to sell their AAPL. odds are that AAPL will not top $200 again anytime soon..... and most of that depends on the market as a whole, not anything Apple itself does.
      • cthellis, on 01/23/2008, -0/+0While I agree that AAPL has likely been inflated over the part year, current market conditions would seem to be the cause of the loss (and "inflation reduction," as it were) rather than projections. AAPL is always conservative with their guidance, and this quarter's is under analyst predictions barely below what last quarter's (which they just revealed they exceeded by a healthy margin).

        ...but you do realize why a comment like "Apple predicted next quarter not being as strong as this one." makes no sense whatsoever regardless, right? If that right there was a sign for traders to sell off, just about every company ever would tank immediately after Christmas.
  • cannonballtrane, on 01/22/2008, -9/+2Apple are riding high on a wave of hype. Lets hope they're ready for the Bear when it finally (and inevitably) turns up.
    • demps, on 01/22/2008, -1/+2It already has shown up. They're down over 25% in not even the first month of the year.
    • Shiftgood, on 01/22/2008, -3/+5hype is when you go out to a movie you wanted to see only to find out that it sucked.

      Apple is growing because they make better products.

      shhhh k?
    • suprememilo, on 01/23/2008, -2/+747% increase in revenue is hype?
    • Billions, on 01/23/2008, -0/+1Maybe someone should tell you Apple has been around 30 years and has seen far worse times than this. Oh, I just did.
  • bridow, on 01/22/2008, -8/+10yet the stock tanked 14% today...
  • jwdav, on 01/22/2008, -2/+11It was an excellent Q1, but the projections for Q2 were below expectations.

    The only possible good news, is that if the Q2 projections are low *and* the economy doesn't melt down in the meantime, this will be an excellent buying opportunity.
    • Locke2053, on 01/23/2008, -1/+1But... if the economy doesn't melt... how are the Paulistinians going to justify their cries that the world is ending and only their Prophet can save us?

      I suppose they will move on to some other arbitrary problem that, of course, only Ron Paul can fix because he has a monopoly on the Truth.
  • demps, on 01/22/2008, -2/+5Sure, it's great that Apple is making record profits and gaining market share, but the real story is that Apple also lowered its guidance for Q2 2008. Hence, the major after-hours sell off, and I'm sure there will be plenty more selling tomorrow.
    • CraigJ, on 01/22/2008, -3/+2Yeah, but the only lowered it by $180M, which isn't really that much...
      • demps, on 01/22/2008, -1/+3I agree, it's not that much, but any form of change in guidance to the negative is the equivalent of Apple sending Wall Street a death wish... especially for a company such as Apple, who is well known to 'surprisingly' (*cough* sandbagging) beat analyst expectations.
      • CraigJ, on 01/22/2008, -2/+2The street estimate was 6.98, Apple guided 6.8, AFAIK Apple has not previously provided Q2 guidance. I
  • masbestiaquetu, on 01/22/2008, -6/+19all the investors are ***** idiots. so what, the economy is *****, you dont need to sell off apple because they had the best quarter ever and like every other company in the us, they might see less revenue due to slower spending...
    • bingobongony, on 01/22/2008, -5/+6You need to sell off Apple because the stock price is way too high at its current level.
      • masbestiaquetu, on 01/22/2008, -3/+5if thats true, then how the hell was it at 150-200 for so long?
        • schul155, on 01/22/2008, -3/+8same reason housing market was so high so long.... bubble bubble
          • Spuy767, on 01/23/2008, -1/+2'cept apple actually makes products and makes money. All of the tech bubble stocks were money sink fantasies.
    • NSResponder, on 01/22/2008, -3/+3"all the investors are ***** idiots"

      Don't forget that for everyone selling, someone is buying. At least half of the investors are making the right choice.

      -jcr
      • pauleric, on 01/22/2008, -0/+1That's not really true. For example, a stock price could be essentially flat in the future, and so it might be smart (if you could predict that) to sell and make a better investment, maybe bonds. It would not be smart to buy that, since, once again, bonds would be a better buy.
    • bingobongony, on 01/22/2008, -2/+1Do you not realize how the stock market works? The current price is based on its PROJECTED earnings. Therefore, since those projected earnings are much lower than expected, it is a time to sell becuase the price is overvalued.
      • cthellis, on 01/23/2008, -0/+0Those projections were exactly the same "lower" in regards to revenue as they were for the previous quarter, which they just exceeded. They're somewhat less in earnings-per-share than it was "lower" last quarter, but they exceeded analyst projections by as much as they were "lower" last quarter, and if that trend continues they'd exceed it this quarter, too. (Just, I suppose, 4% less than they exceeded it before.)

        Such comments do not reflect reality. The current price is based on many other factors.
    • VitriolAndAngst, on 01/23/2008, -0/+3@masbestiaquetu -- I think you are spot on.
      The other folks are talking about the "market forces" but these investors are selling Apple when they should be selling Microsoft. It's mainly the issue that Apple is giving an accurate lowered projected earnings -- which they are getting punished for. Will Apple make more in Q3? Probably. An INVEASTOR isn't looking just at next quarter -- that's a speculator.
      So you sell on this news, and then in a month, find out that EVERYONE is bringing in lowered earnings. So, who, amongst all the hammered companies is going to be doing well, relatively? Probably Apple.
      If you were selling Apple to buy into something like Home Depot -- that would make sense. The smart money left town a while ago, so this is just the scared money. But, if you realized that there would be so many scared -- then it might have made sense to sell last week. I was really contemplating it -- but at this point, since I'm not into speculating, I'll have to hold it for a while.
    • Locke2053, on 01/23/2008, -0/+1At a P/E of 41, you actually DO need to sell if future earnings will fall. When you buy a stock, you are buying FUTURE earnings. If a P/E is high, like Apple's, the future earnings have to keep growing a a high rate to justify the price.

      You obviously don't know how the stock market works, so you probably shouldn't be trading stocks. Either read a book on stock market basics, or stick to index funds.
  • over900000, on 01/22/2008, -18/+8"Michael Dell cries."

    Smug comments like these is why I hate Apple and Apple fanboys.
    • mdavis, on 01/22/2008, -6/+15Yet Michael Dell's smug comments when Apple was hurting were A-Ok with you. Suck it.
      • my8bird, on 01/22/2008, -4/+4Proof please.
        • chancelcc, on 01/23/2008, -2/+3In 1997, Apple as a company was not doing well. Michael Dell was quoted by multiple sources on October 6, 1997 saying, "I'd shut it [the company] down and give the money back to the shareholders." You see, he made that comment when he was on top, but when someone makes a similar comment when the table is turned, it is unacceptable. Let's play fair.
        • mrBitch, on 01/23/2008, -1/+2Proof : http://www.nytimes.com/2006/01/16/technology/16app ...

          FTA :
          In 1997, shortly after Mr. Jobs returned to Apple, the company he helped start in 1976, Dell's founder and chairman, Michael S. Dell, was asked at a technology conference what might be done to fix Apple, then deeply troubled financially.

          "What would I do?" Mr. Dell said to an audience of several thousand information technology managers. "I'd shut it down and give the money back to the shareholders."
        • cthellis, on 01/23/2008, -0/+1Proof of what...? His statements, or that his "smug comments were A-Ok" with him?

          No real way to know THAT, of course, and chances are he wasn't paying attention back then. But, typically, if one simultaneously disapproves of the both the statement and the responses to it, he'd say something more along the lines of "this is getting tired, guys" rather than something more in the "LOL FANBOYS SUK!" vein.
    • DharmaDog, on 01/22/2008, -4/+7Smug comments by Michael Dell are why people hate him.

      Turnabout is fair play.
      • my8bird, on 01/22/2008, -3/+3Citation?
        • inkswamp, on 01/23/2008, -0/+2You have time to repeatedly request citations yet not enough time to Google it yourself?
        • mrBitch, on 01/23/2008, -1/+1Citation & Proof : http://www.nytimes.com/2006/01/16/technology/16app ...

          FTA :
          In 1997, shortly after Mr. Jobs returned to Apple, the company he helped start in 1976, Dell's founder and chairman, Michael S. Dell, was asked at a technology conference what might be done to fix Apple, then deeply troubled financially.

          "What would I do?" Mr. Dell said to an audience of several thousand information technology managers. "I'd shut it down and give the money back to the shareholders."
    • AvidPreatorian, on 01/23/2008, -1/+1you go with crappy products because of digg's Apple fan comments? wow dude, grow some balls
  • laplacian, on 01/22/2008, -3/+7The stock was clearly priced for a great 1st and 2nd quarter. now based on poor 2nd qtr outlook it take teh beating.
    AAPL -23.52 -14.58%
    • bingobongony, on 01/22/2008, -9/+7You are not allowed to post bad facts about Apple.
      • MrLlama, on 01/23/2008, -0/+0You are not allowed to say that you are not allowed to post bad facts about Apple.
        • cthellis, on 01/23/2008, -0/+0You are not allowed to say that he is not allowed to tell others that they are not allowed to post bad facts about Apple.
    • Billions, on 01/23/2008, -0/+1You have a lot of companies to post about tonight; the entire market is taking a beating, not just Apple.
  • mckirkus, on 01/22/2008, -1/+4From Yahoo "but a dramatically lower forecast sent shares plunging on fears about slowing consumer spending on electronics."
    • schul155, on 01/22/2008, -0/+5yeah well with the housing market it the *****, my portfolio is down 25% since July, I can tell you buying an Ipod or a $3000 airbook is not in my foreseeable future... cheap electronics, sure but not aapl
    • cthellis, on 01/23/2008, -0/+0The "dramatically lower forecast" was effectively the same "dramatically lower" that it was last quarter, when Apple exceeded expectations by as much per share as they were "dramatically lower" then.

      Is it just me, or is stock analysis a pointless endeavor? -_-
  • dolby, on 01/22/2008, -3/+2if apple is doing so great my stock should be flying high...I hate bear markets.
    • bingobongony, on 01/22/2008, -2/+3It is flying high. It was just ridiculously over inflated before. Still is. as are a lot of internet/tech related stocks. It is almost like I went back in time to 2000.
      • johnnybluejeans, on 01/23/2008, -0/+3Except for the fact that in 2000 everyone was investing in companies that never turned a single profit. Apple on the other hand just had the best quarter in its 30+ year history and is making money hand over fist.
    • my8bird, on 01/22/2008, -4/+3So at least someone admits that Apple is overrated.
  • matt.rubin, on 01/22/2008, -9/+3Wait really? Didn't newegg do more? I mean they did 1.5 billion in profit in 2006. So like if newegg did go public it would be larger than apple?
    edit: never mind thats in sales they did 1.9 billion last year
    • schul155, on 01/22/2008, -0/+1and you were comparing quarter to year
    • VitriolAndAngst, on 01/23/2008, -0/+1He was comparing Gross sales with a 2% margin, in a year, to Quarterly NET profits.
  • bingobongony, on 01/22/2008, -14/+7Why does Michael Dell cry?
    Pathetic that Apple fanboys still hold on to this feud.
    • inkswamp, on 01/23/2008, -1/+6I agree, but it's also pathetic that Michael Dell felt the need to kick Apple when they were down.
  • diggernaught, on 01/22/2008, -14/+6Never have or never will own any of their products. Why? Because you have tho use their locked hardware and crappy interfaces that want to think for you. I tried recently to delete some songs that should have not been synced with my nieces ipod and found you cannot do it form the player, nor can you simply drag and drop aac, mp3 or wma on the player and have it work - no I would have to use itunes or flash the damn thing with RockBox. They design a premium priced disposable computer, but it looks all shiny and flashy - great.
    • Angostura, on 01/22/2008, -3/+8So let's get this right... Apple produces a free bit of software explicitly designed as the control interface for selecting what is synced onto the iPod and then you complain that it is difficult to control what is synced without using the software.

      Do you try to steer your car by leaning out of the window and directly poking the front wheels with a big stick?

      I weep for your niece. All you had to do was untick the songs in iTunes and resync - gone.

      • mrBitch, on 01/23/2008, -2/+1LMAO ! : " Do you try to steer your car by leaning out of the window and directly poking the front wheels with a big stick?

        I weep for your niece. All you had to do was untick the songs in iTunes and resync - gone. "
      • diggernaught, on 01/23/2008, -0/+1You don't get it. I am not gong to friggin install the waste of space itunes EVER on any of my systems. Anyone who misses the basic point of an option to delete files FROM THE DAMN PLAYER is not available unless you RockBox it is missing the point and is clearly a clone wearing a black turtleneck.
        • Angostura, on 01/23/2008, -1/+1No, I really really DO get it. You have a religious aversion to a piece of software and irrespective of its merit, you are not going to install it.

          And why the hell should there be an option to delete files on the machine itself? You're not going to be able to use the freed up space without re-syncing some new music in, at which point you might as well remove the unwanted tracks.

          As it happens I'm wearing a rather fetching non-black fleece at the moment, but thanks for playing.
        • cthellis, on 01/23/2008, -0/+1It'd be nice to at the VERY least be able to say, on the fly, "eh, I really don't want this song on the playlist anymore" and quickly scrub it. Something that's going in the iPhones and iPod Touches, but they don't seem to want to "complicate" the classic iPod interface even minimally to bring an easy function like that in.
    • notadiggtard, on 01/22/2008, -4/+5Oh my God you are right!I UNDERSTAND now!Im throwing my macs and ipods away right now and,dude,Im getin a Dell and a shiny brown Zune!Thanks!I just realized how much I miss Microsoft.
      not
      • Psych77, on 01/23/2008, -0/+1Did you also realise how much you missed the space bar on your keyboard?
        • cthellis, on 01/23/2008, -1/+0Perhaps it was a snarky remark about the quality of Dell keyboards?
    • NSResponder, on 01/22/2008, -5/+4"Never have or never will own any of their products. Why?"

      Because you're a pompous ass who thinks that proclaiming your dislike of a company makes you look smart?

      -jcr
      • knightboat, on 01/23/2008, -1/+4You sign every single one of your posts, and you're talking about pompousness.
        • NSResponder, on 01/23/2008, -4/+2You bitch about four characters, and you imply that I'm the pompous one?

          -jcr
      • diggernaught, on 01/23/2008, -1/+1My dislike of a company has nothing to do with the fact of missing essential options that should be available without a GUI or a computer. When is the last time you had to connect your camera to delete a picture? Get that?
    • Billions, on 01/23/2008, -1/+1Dude, use some paragraphs every now and then and stick on topic. That was like a rushed blast of foul smell.
  • AriaGloris, on 01/22/2008, -7/+1The dollar will be worth nothing - the macbook pro can be smelted down into pure awesome.
    • bingobongony, on 01/23/2008, -1/+1Again...the whole using "lame" as a noun thing...no longer considered clever.
    • BossKey, on 01/23/2008, -0/+1Hm. Which candidate are you voting for that's pushing the Aluminum Standard for currency?
  • Demq, on 01/22/2008, -4/+3now lets hope the stock don't get the "air" effect
  • usingpond, on 01/22/2008, -9/+3Here comes the anti-Apple nerd brigade!
    • inkswamp, on 01/23/2008, -1/+6Armed with their anti-Apple rhetoric books last updated circa 1996.

      "Seriously, Macs can't multitask."
    • cthellis, on 01/23/2008, -0/+0"One-button mice suck!"
  • misterdeez, on 01/22/2008, -7/+1Lol @ this article trying to make it look positive. There's one small sentence about the Q2 guidance, and also the quote from Jobs about the $0.94 guidance is in tiny text. That is why the stock is tanking, it was not good news. On the plus side, I think the Macbook Air will do well because after reading a few Macbook Air articles you realize that even though it's an overpriced laptop... there's tons of idiots out there that want it or have already ordered it...
    • cthellis, on 01/23/2008, -0/+0So... you're telling me that while their guidance for last quarter ($9.2 billion / $1.46 per share) was under analyst predictions ($9.46 billion / $1.60) -- under by about 2.75% -- but DELIVERED 1.5% over (in revenues. Per share difference was under estimates by 9% but delivered 9% above), they're being penalized for Q2 guidance that is about 2.75% under revenue estimates and about 13.5% under in earnings per share...? Doesn't this just mean they might not EXCEED estimates by as much as normal?

      That makes sense.
  • c0ldfusi0n, on 01/22/2008, -3/+5I read that as Apple IQ 2008 Results. Figured it would be an interesting comment thread. Needless to say, I'm disappointed.
  • my8bird, on 01/22/2008, -10/+4And Microsoft waved 1 billion on the xbox without flinching.
    Ha Ha
    • inkswamp, on 01/23/2008, -0/+2Given that everyone I know who owns an XBox 360 has had to ship them off to repair the red ring of death, I wouldn't be too sure about that not flinching bit.
    • cthellis, on 01/23/2008, -0/+0Something to be extremely proud of, no doubt.
  • frenchi, on 01/22/2008, -5/+2After Hours: 139.25 -16.39 (-10.53%)
    I'll buy at $130
    • uptown, on 01/22/2008, -0/+8psst!.... we're not your broker.
    • wageslaven, on 01/23/2008, -1/+2Really? Its still vastly over priced...
  • mishaco, on 01/22/2008, -7/+6i'm still counting on aapl hitting 300 this time next year . that is if the economy doesnt kill us all .
    • uptown, on 01/22/2008, -2/+2way to hedge your bet .....
      It'll either be A ... of the complete opposite of A.
    • bingobongony, on 01/23/2008, -5/+3I sure hope for your sake you don't actually put your money where your mouth is.
    • macaca, on 01/23/2008, -1/+1It wont happen regardless of what are you smoking.
  • eaglescout5, on 01/22/2008, -3/+0Yet it dropped 10% aftermarket ...
  • davidhildreth, on 01/22/2008, -4/+3What did they start selling oil?

    ZING!
  • jetcopter, on 01/22/2008, -4/+4Apple was down 3.54% today. It dropped another 11.2 % right now in after hours trading.

    Bye bye apple gains. Should have sold when it was almost at 200 :(
  • ImpactedColon, on 01/23/2008, -3/+2I guess they foresaw the minor stock dip, and that's why they couldn't give away those iPod Touch updates for free.
    • jtjdt, on 01/24/2008, -0/+1Also skyhook wireless charges a fee to Apple to use their location services, so Apple needs to charge for the iPod touch updates.
  • hmunkey, on 01/23/2008, -6/+12Good. Now give us the ***** IPod Touch software update for free.
    • cthellis, on 01/23/2008, -0/+2They'd have to shift it to deferred revenue the same way they do accounting for the iPhone and AppleTV (or else risk accounting scrutiny and penalties). $20 still seems too much to charge for the upgrade, though admittedly I don't know the specifics of Sarbanes-Oxley.
    • jtjdt, on 01/24/2008, -0/+1Also skyhook wireless charges a fee to Apple to use their location services, so Apple needs to charge for the iPod touch updates.
  • grindmygears, on 01/23/2008, -7/+0Just wait until the iGame comes out. Profits have the potential of doubling but the console will be so flashy and expensive that common folk won't be able to afford it. And they'll probably forget to put a DVD drive in it too...
  • rayburt456, on 01/23/2008, -6/+7Geez..if this were Microsoft, Exxon or Mobil, folks here wouild be up in arms. But Apple? In that case, obscene profits are just fine....give me a hypocritical break.
    • RealHyperX, on 01/23/2008, -5/+3Exactly.
    • Spuy767, on 01/23/2008, -3/+2Exxon is Mobil dumbass. Exxon/Mobil & Microsoft make money by exploiting market position, Apple makes money by just making products that a certain segment of the market wants, Apple has not way to force you into buying an apple product.
    • mcduckov, on 01/23/2008, -0/+4An interesting thing happens when you own stock in these companies...suddenly no level of profit looks obscene. Tax cuts start to make a lot of sense and loosening regulations might not be such a bad idea after all.

      Teh stocz are making me republican!
    • Focher, on 01/23/2008, -1/+3Not to distract from your point that people are more forgiving of Apple than other companies, but the use of Exxon Mobil for comparison actually isn't relevant.

      The reason people were upset by the huge increase in profits at Exxon Mobil last year was because they came as the result of significant price increases to consumers. These increases were justified at the time as caused by the increase in the price of crude oil. However, logic dictates that this would not have actually given rise to profits, just gross revenue. Gasoline / Petrol are also very different when looking at the market compared to a consumer goods company. Petrol is considered a staple good and therefore price fluctuations don't tend to affect consumption - consumer goods are definitely not.

      Finally, I just wanted to point out that your phrase "give me a hyprocritical break" actually isn't what you meant to say. What you meant to say was "give me a hypocrisy break". Just trying to help.
    • cthellis, on 01/23/2008, -1/+0Yes, because owning a huge share of a necessary commodity that's gone through huge price increases and owning a monopoly in "one of the most important things ever" are directly comparable to "bringing in a healthy margin on consumer electronics."
  • alsowoldguy, on 01/23/2008, -3/+6Yay! Go big multinational corporation out for profit! Suck it, other big multinational corporation out for profit!
  • JoeLeo, on 01/23/2008, -5/+4iPod growth approaches 0%:
    http://itsmeusvita.blogspot.com/2008/01/ipod-growt ...
    • johnpaul191, on 01/23/2008, -0/+2Mac sales were up 44%. i would rather see people buy Macs than iPods.
      remember that iPod sales growth of 0% still means they are moving more digital music players than anyone else. it's not like the Zune is catching up anytime soon.
    • cthellis, on 01/23/2008, -0/+1Unit sales were up 5%, but revenue was up 17% and profit on that revenue was probably up even more. And that's not counting iPhone sales, which for the most part directly cannibalize on other iPod purchases, which you also have to magnify quite a lot, as 75%+ of the revenue is deferred to later quarters.

      It's not nearly as impressive as "more than doubling" in both unit sales AND revenue of the previous year, but they're still selling a mind-numbing number of units, and are showing the ability to draw more profit from the brand (and directly-related endeavors like the iPhone) instead of just resting on the success of the highest-volume sales.
  • EvilAnimator, on 01/23/2008, -8/+6Suck it, Mac haters!
    • jabberwolf, on 01/23/2008, -2/+3No haters just bringers of reality that mactards hate. Oh well Mactards dream on.
      • Billions, on 01/23/2008, -0/+2No, Jabberwolf, looking at the comments you always post, you're pretty much a hater.
    • meshman, on 01/23/2008, -0/+1Moran: Have you checked the second quarter estimates from Apple that tanked their stock yesterday?
  • redstorm986, on 01/23/2008, -0/+1My question is when the hell did Q1 08 end...Its January...isn't that reporting around 2 months early?
    • johnpaul191, on 01/23/2008, -0/+1corporations do not generally use a fiscal year of January 1st till December 31st.
  • jabberwolf, on 01/23/2008, -1/+3Growth yes, but compared to market of computers in General, not much. Apple still just taking in their niche.
    Not to mention idiot mactards paying the highest markup of any computer distributer. Mactards deserver to lose their money !
    • johnpaul191, on 01/23/2008, -0/+2If you could read more than headlines on Digg, you would realize the whole market is down. Google, Dell, Microsoft, etc etc etc etc.
    • dlowder, on 01/23/2008, -2/+1Jabberwolf, also please learn to spell before calling others any word that ends in "-tard"..... (HAHAHAHAHA)
  • acex23, on 01/23/2008, -0/+2So whats the right thing to do if we're in right now?
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