The significance of Apple's earnings call numbers

The significance of Apple's earnings call numbers: "Jean-Louis Gassée, former Apple executive and founder of the company that created BeOS, took a detailed look at Apple's latest financial report, SEC filings and its earnings conference call. In an analysis that mixes financial figures with excellent insight, Gassée outlines three areas of Apple's financials that are worthy of a closer look.



First, Gassée points out the explosive growth and influence of the iPad. Sales of the iPad grew from 3.3 million units in its first quarter of sales, 4.3 million in the next three months and 7.3 million for the latest quarter that Apple reported. In the upcoming year, Apple is expected to grab 87.5 percent of this media tablet market, a new category of devices created by the success of the iPad.



Gassée also notices that the iPad revenue for Q1 2011 reached $4.6 billion and is close to the $5.4 billion generated by the Mac, which is now 27 years old. This is an impressive figure for a device that's less than one year old. Part of the tablet's success, according to Gassée, can be attributed to its low price tag. The base model of the Wi-Fi iPad starts at US$500, which is $300 less than what was predicted before the tablet was launched.



Though it is far from a discount retailer, Apple has bucked the trend of high-priced devices with the iPad, the $99 Apple TV, and finally the $999 MacBook Air in 2010. Though its gross margin has dropped slightly to 38.5 percent in the last quarter, revenue and profit continued to grow, which attests to the success of these competitive prices.

Continue reading The significance of Apple's earnings call numbers

The significance of Apple's earnings call numbers originally appeared on TUAW on Tue, 25 Jan 2011 09:00:00 EST. Please see our terms for use of feeds.

Source | Permalink | Email this | Comments"