Linked by Thom Holwerda on Tue 23rd Apr 2013 22:35 UTC
Apple "Apple just posted its hotly-anticipated Q2 2013 earnings, and the company posted a profit of $9.5b on revenues of $43.6b, compared to $11.6b in profit on $39.2b in revenue this quarter last year and $13.1b in profit on $54.5b in revenue last quarter. That's right in line with the company's guidance from last quarter. Most importantly, iPhone sales are fairly flat year-over-year. Apple sold 37.04 million in Q2 2013 versus last year's 35.1 million, a modest growth of seven percent. iPad sales for the quarter were 19.5 million, up a massive 65 percent from last year's 11.8 million, but the average selling price (ASP) dropped fairly steeply year-over-year, likely due to the introduction of the cheaper iPad mini."
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RE: It's a funny old world
by Carewolf on Wed 24th Apr 2013 14:51 UTC in reply to "It's a funny old world"
Carewolf
Member since:
2005-09-08

Well. The problem with news and the stock market is that everybody expects growth and nobody seems to care about profit.

Remember Nokia: They also made huge profits before they decided things were so bad they needed to panic and throw everything out. What was so terrible? Their huge profits was getting slightly less huge.

Reply Parent Score: 3

RE[2]: It's a funny old world
by tylerdurden on Wed 24th Apr 2013 19:24 in reply to "RE: It's a funny old world"
tylerdurden Member since:
2009-03-17

First off, Nokia never ever reached the levels of profit that Apple has.

But more importantly, the expectation of growth is not a problematic "side effect" of capitalism... it is the whole core point of it. Publicly traded corporations exist for one thing and one thing only: to generate as much profit as possible (under current legal conditions) to maximize the return on the investments in the company. Any corporation that fails in that fiduciary duty gets penalized by the "market forces."

If apple can't maintain a specific level of growth, some investors will look for alternatives, talented employees will seek more lucrative employment positions elsewhere, etc, etc. Which eventually leads to a negative compounding effect, that makes a corporation less valuable, the minute its growth starts to falter.

(I'm not saying I morally approve of such a socioeconomic system, but that's the system under which Apple et al operate).

Edited 2013-04-24 19:27 UTC

Reply Parent Score: 4