by ilene - May 8th, 2010 1:47 pm
Yellow highlighting mine, reminds me of my student days, only neater. – Ilene
Courtesy of Robert Reich
Why is the Federal Trade Commission threatening Apple with a possible lawsuit for abusing its economic power, but not even raising an eyebrow about the huge and growing economic (and political) muscle of JP Morgan Chase or any of the other four remaining giant banks on Wall Street?
Our future well being depends more on people like Steve Jobs who invent real products that can improve our lives, than it does on people like Jamie Dimon who invent financial products that do little other than threaten our economy.
Apple’s supposed sin was to tell software developers that if they want to make apps for iPhones and iPads they have to use Apple programming tools. No more outside tools (like Adobe’s Flash format) that can run on rival devices like Google’s Android phones and RIM’s BlackBerrys.
What’s wrong with that? Apple says it’s necessary to maintain quality. If consumers disagree they can buy platforms elsewhere. Apple was the world’s #3 smartphone supplier in 2009, with 16.2 percent of worldwide market share. RIM was #2, with 18.8 percent. Google isn’t exactly a wallflower. These and other firms are innovating like mad, as are tens of thousands of independent developers. If Apple’s decision reduces the number of future apps that can run on its products, Apple will suffer and presumably change its mind.
On the other hand, the four largest U.S. financial institutions are so big and the rest of the economy so dependent on them that if one of them makes a bad decision it can take us all down. Between them they hold more than $7 trillion in assets, over half the size of the entire U.S. economy.
So why is the FTC nosing around Apple and not around Wall Street? Because the Federal Trade Commission Act allows the agency to stop “unfair methods of competition” almost anywhere in the economy except in the financial sector. Banks are explicitly excluded.
Another reason for financial reform.
And how are we doing on that front? Senate Dems and Republicans have just agreed to jettison a $50 billion fund in the financial reform bill that would have been used to wind down operations of a failing bank. Republicans had created a smokescreen by…
by ilene - April 21st, 2010 12:49 am
Pragcap post-apple earnings:
As expected, Apple crushed earnings. By Wall Street’s standards the analysts were laughably far from reality. Apple posted EPS of $3.33 which was 36% higher than Wall Street’s ridiculous estimate of $2.44. Revenues came in at $13.5B which was $1.5B higher than Wall Street’s estimate of $12B.
As we suspected, the “unaffiliated” estimates were much closer to the actual figures though Apple still managed to outperform these lofty expectations. The company is providing EPS guidance that is practically comical – $2.28-$2.39. This is well below my estimate of $2.85.
Regardless of all this, one thing is certain – Apple Inc. is absolutely smoking.
by ilene - January 25th, 2010 7:27 pm
Courtesy of Dan Frommer at Clusterstock
Apple threw us a curveball today: The company reported results in GAAP format, reflecting an accounting change that means they no longer have to distribute iPhone revenue and earnings over 24 months.
Unfortunately, that means Apple’s GAAP results don’t match up with non-GAAP estimates. So analysts are going to have to tweak their models.
As expected, the Mac had a monster quarter. Apple reported 3.36 million Mac shipments, higher than the Street expected. But the iPhone was relatively weak: Apple only shipped 8.7 million iPhones, lower than the 9.1 million Street consensus.
Steve Jobs also touted the Apple tablet in the earnings release: "The new products we are planning to release this year are very strong, starting this week with a major new product that we’re really excited about."
Shares resumed trading at 4:55 and were immediately down about 1%. But now it seems to be creeping upwards.
Join us for LIVE coverage of the company’s conference call, beginning at 5:00 p.m. ET. Click here for the latest.
- GAAP Revenue: $15.7 billion
- GAAP EPS: $3.67
- Macs: 3.4 million vs. 3.0 million consensus
- iPhones: 8.7 million vs. 9.1 million consensus
- iPod: 21 million vs. 21.0 million consensus
- Gross margin: 40.9%
- Guidance (Rev.): $11.0 billion to $11.4 billion
- Guidance (EPS): $2.06 to $2.18
LIVE Conference call coverage: (refresh for the latest)
4:52 Waiting for call to begin..
5:04 Call begins. Opening remarks from IR boss.
5:04 COO Tim Cook, CFO Oppenheimer on the call. No Steve Jobs. (Jobs not expected.)
5:05 Oppenheimer: We’re thrilled to report our best quarter ever! New records for Macs and iPhones. All historical comps busted because of new accounting rules. Peter will explain in detail coming up. Now going over results from release.
5:07 Record Mac sales of 3.36 million, beating by over 300,000. Up 33% year-over-year. Compares extremely favorable to ICD’s 17% year-over-year growth for the market. iMac especially huge.
5:08 New records for K-12 and High ed for Dec. quarter.
5:08 Traditional iPods declined, but 55% y/y increase in iPod touch, sending up ASP and revenue.