Will Apple keep up the momentum?
Although there are more signs lately that the worst of the recession is over, Apple is one of the few companies that has seen little of the effects of the recession to begin with.
We'll find out if the company's good health has remained during the quarterly checkup Monday afternoon. According to Wall Street, it's been another good three months for the Cupertino, Calif.-based company. Apple's stock price jumped 43 points during the quarter to close at $185.35. Because of a string of impressive earnings announcements dating back a year ago, the launch of the company's latest operating system update, signs it gained share in the smartphone and computer markets, and a helpful accounting rule change, financial analysts are expecting good things from the company's fiscal year fourth-quarter earnings.
Did price cuts on the MacBook improve Mac sales for the quarter?
(Credit: Dan Ackerman/CNET)Analysts are expecting Apple to record earnings per share somewhere between $1.24 and $1.72, and revenue between $8.74 billion and $10.55 billion for the quarter ending September 30. Apple is known to provide consistently conservative guidance for future quarters, hence the wide gap in analyst estimates.
But a good way to know what's to come can usually be seen in the unit sales reports. Last week IDC reported that Apple had amassed a 9.4 percent share of the U.S. PC market--a jump from the 8.6 percent of the previous quarter. Near the end of the previous quarter Apple offered some price cuts on most of its Mac models. The sales numbers for the quarter, whatever they end up being, will be regarded as a commentary on whether those price cuts went far enough.
Apple watcher Gene Munster over at Piper Jaffray says he's had a peek at Mac unit sales for the quarter, and he says the company is on target to report sales of 2.8 million Macs. That would be an increase over the previous quarter's sales of 2.6 million, and it makes sense: The third quarter is a traditional time for people to buy computers ahead of the back-to-school season, and Apple also released its long-awaited operating system update, Mac OS X 10.6, or Snow Leopard.
On the smartphone side of the business, if Apple does once again report good numbers, it'll be one of the few in that industry. Despite constant attempts by rival handset makers to produce the "iPhone killer," Apple's main competitors in the smartphone world have struggled during the most recent quarter--Nokia, Palm, and Research In Motion each posting disappointing results.
Piper Jaffray is estimating that Apple sold 7.5 million iPhones. Munster said inventory checks showed that demand for the iPhone 3GS is "outstripping supply," which means that iPhone sales for the next several quarters should be fairly steady. We should also get an update on the number of countries and carriers that have the latest iPhone model. Apple had said in July that it was supposed to be in 80 countries by the end of the summer.
The iPod is the only real question mark when it comes to Apple's main revenue-generating products. The quarter ending in June was the first in which iPod sales saw a year-over-year drop. Apple acknowledged it last quarter, saying that it expected eventual declines in iPod sales, and that it was the reason it developed the iPod Touch. Chief Financial Officer Peter Oppenheimer actually broke out the individual sales numbers for each iPod model and cautioned that the company expected "to cannibalize ourselves with iPod Touch and iPhone."
A slew of new iPods--including the new camera-equipped Nano--were introduced near the end of the quarter, so the full effect of those new models probably won't be visible until the following quarter.
(Credit:
James Martin/CNET)
The biggest change during the quarter however had nothing to do with anything that had a keyboard or a touch screen. Apple was one of several companies to lobby (successfully) for an accounting rule change that, if applied to the most recent quarter, will likely show much higher revenue for the iPhone.
The practice--in which Apple has been recognizing revenue for the iPhone and Apple TV over a two-year period--was put in place to avoid charging a fee for every product upgrade. It was something Apple was told it would need to satisfy accounting regulations that require companies to establish a value for product upgrades. The new rule won't change the amount of revenue coming into the company's coffers, but it will provide a more accurate picture of how much money the iPhone in particular is bringing in every quarter.
Check back Monday afternoon. Apple's results will be posted shortly after 1 p.m. Pacific.
Erica Ogg is a CNET News reporter who covers Apple, HP, Dell, and other PC makers, as well as the consumer electronics industry. She's also one of the hosts of CNET News' Daily Podcast. In her non-work life, she's a history geek, a loyal Dodgers fan, and a mac-and-cheese connoisseur. E-mail Erica. 
Long answer: Macbook sales will be strong - say 2.6 to 2.8 million - the iPod refrsh will stimulate or maintain share and the iPhone 3GS will shift 7 million or so units.
It'll be a good quarter although it'll be interesting to compare Y on Y as well as Q on Q trends.
The YoY trends I think will likely show a slight depression, as it does for most of the industry this year. The fun part will be in comparing them to competitors.
*shrugs*
Too each their own.
The suggestion that a Mac can't run any useful programs is just FUD - knock it off.
Anyway, the recent predictions by Apple that the Windows 7 release represents an opportunity to grow their business isn't far from the truth. The current Mac platform competes very nicely so if people really are going to rush out to buy a new computer due to the release of Windows 7 then it is certainly possible that they might buy a Mac. But I will say that had Windows 7 existed when XP did then I might not have switched myself.
I will have to admit that if you have never run anything but Windows then Windows 7 is impressive. Having run the betas and the RC I can say it beats Vista hands down. As far as it being the best thing in consumer non-server OSs, all the numbers prove is that superior technology rarely wins out with the masses. What Windows 7 accomplishes is to bring Windows user up to the level the rest of the computing world has been enjoying for some time now.
Since you obviously are an experienced Windows user let me be the first to welcome you to the world of advanced computing that many of us have already become accustomed to.
Windows 7 is a great improvement over XP.. and it will keep people that love Windows out of principle... but I doubt it will send experienced Mac users over to the windows side..
7 still feels like Windows to me.. the things I can't stand are still there (registry, clumsy file system....).
When OEM's start making quality laptops.. materials and design.... THAT may persuade a few people. You simply can't get the equivalent of a Macbook or Macbook pro as far as design is concerned. If your the person that would be happy with a laptop that cost 200 bucks weighs 8 pounds.. and is splitting at the seams in two years.. then you wouldn't have considered an Apple laptop anyway.
Im not sure if your just trolling with the "no software for Macs" comment... as people still seem to think this is true. Im not sure where people get that idea... as that Macbook can actually run more software than an equivalent PC. Even if you forgo installing windows.. you have the very high quality apps that come free with the mac.. + you have anything that can run in X11 + and all of the well-written freeware out there... Saying there is no software for the Mac is a clear indication that you are making your argument, not by experience... but just on what you read in the blogs and windows user forums.
In order to counter that, Windows 7 would've had to be all that and a bag of chips. Right now, it's received by the Windows user community with a sigh of "whew! At least it's not another Vista", but not exactly as a hallmark of excellence.
Who the hell buys a machine before they know if the software they need will run on it? People who use their machines as actual *tools* are informed enough to know to check at least this much.
And for those that don't, have you ever heard of something called Parallels? The day I can afford a macpro replace my rapidly aging G4-based machine, I'll be running AutoCAD all day long while still being able to use everything else in OS X.
They didn't. Never did. That's how they chose to deal with it. MS you pay up front, Apple you pay and pay, and Linux you pay for support."
No one is being forced to purchase the Touch OS upgrade. Sure it is $10 and for some people that represents almost two hours of wages, but it isn't like you spend that on an upgrade every week maybe once a year.
Face facts, Microsoft has been coasting forever, and that's not going to cut it. For every Windows fanboy out there, there are 100 people who just want the best. And that, my friend, is the Mac. They used to listen to people like you, but they are learning how wrong they were. It's truly a wake-up call for everyone new to the Mac.
And Win 7 is no big success story--just look at the user forums there are tons of problems. And the average user will not want to go 64 bit or even know what version to purchase. This all works beautifully on the Mac, no need to geek out over it.
Personally, I don't care what computer you think is best, just as you don't care which one I think is best. But when you churn out BS "We all know" comments, of which I am one of the we, then you have no right to speak for me or anyone else, especially with condecending opinionated dribble.
If Apple is so much better why aren't Macs dominant in PC retail? And yes MAC is a brand of PC. Remember PC stands for personal computer.
Hate much?
Much hate?
"Now I have to wipe up the coffee. "
There's an app for that, you know. :)
Time for a trip to starbucks... and I'll be listening to my little sansa mp3 on the way.
And let's not forget, that Microsoft is loosing hundreds of millions on the Zune, while Apple rakes in billions every quarter in profits from the iPod.
Like it or not, that isn't going to change soon. But Microsoft making a better player, also means Apple will as well. And that means the consumer wins. That's always the important part.
They don't really care for intelligent discourse. If they imposed a strict policy of thoughtful commentary, there would be few posts and fewer pageviews.
A sad testimony to some of the inherent shortcomings of Web 2.0.
Microsoft has it's fingers in everything.. and has a strong global presence. Apple is a great example of American innovation... and can shows that you don't need to be king of the hill to be profitable. Apple is counter to the idea that "American Made" now equals low quality...
This is what our country needs in the face of the auto industry failure.. and we should be routing for both companies to do well. If MS or Apple failed we would be in a bad place right now... as MS is showing it can learn from mistakes.. and Apple has shown that you can exceed expectations.. and not every American company will blame their losses on "the economy".
Sorry... I had way too much coffee this morning....
+1
Apple outsources much of their design work out of the US currently. This isn't unusual in the industry. Apple isn't any different in that area.
What are you smoking?
Someone call Mr. Ive and Mr. Jobs... it wasn't them that came up with the iPhone and current line of Macs... it was some kid in India.
Are you suggesting that Apple did not design or "dream up" its current line of products?.. the iPhone, ipod.. etc? Or are you confusing the words "assemble" and "design"?
Now sit back down and have a cookie- You're going to start choking on your own bile or something if you keep that up.
Apple designs all their own stuff- but the physical locations and the ageneices they use to do it all are not necessarily in Cupertino. For example, you may find that they designed what the outside of the case of a new iPod will look like, what they need the specifications to be, and similar items, but that then gets farmed out to other companies that do the nitty gritty work of figuring out component layouts, internal designs, case assemblies, etc. All of that has to be done also from a manufacturing point of view. You know you want a glossy screen on that case. Great. But you also need to design it to have clips or latches to keep it in place. Where do you plan for the ejection pins from the styrene injection molding to push the finished product out from? Where will the sprues be attached?
These are the sorts of things that are not handled locally. They are handled by industrial engineers and they are largely not in this country at all.
"...in is next major under taking of getting them to buy their junking out f date products."
Hate much?"
No just stating facts............... Its hurts you because its true a? Have a nice day. I hope it rain there
It's early, you expect my grammer to be perfect before 7am!
Apples the top of the heap but they need to work to keep that momentum.
You`ll soon see tons of Zune HDs, they`ll be sent to your village to be used a building materials for new shantys.
Per c|net revies. I was given an iPod classic. It's like wresting a greased pig trying to force it to do what I want it to do. It's in papwerweight mode. Maybe I'll try again later. So I'm inclined to believe the C|net review. "If you love music get a Zune".
@Seaspray0
It should be that simple. That's where momentum comes in. iPod has momentum. My entire family has iPods that they wrestle with trying to get them to do what they want. Momentum is that my entire family has them. Research is why I have an Archos and it works for my purpose a heck of a lot better than I've been able to get my iPod.
Getting WIndows 7 to test it out and WIndows Server 2008 :- )
- by lkrupp October 19, 2009 9:59 AM PDT
- Dear Cnet,
- Like this Reply to this comment
-
Showing 1 of 2 pages (100 Comments)Allowing comments on your articles has become a complete embarrassment to you. You should just turn them off for good. Any article concerning Apple or Microsoft is responded to by complete lunatics from either side. Take this very thread for instance. It is filled with drivel from every loose canon slithering around tech sites. It really makes you bad. It makes your site look as though only complete idiots reside here. Seriously, think about it.