; Apple (AAPL) Fiscal Q4 iPad Sales Miss the Mark
Learning Center
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Apple (AAPL) Fiscal Q4 iPad Sales Miss the Mark


Apple's iPhone momentum remains strong, but iPad sales fall short

More Info
  • pg 1
									Robert DeFrancesco’s
October 25, 2012

Apple (AAPL) Fiscal Q4 iPad Sales Miss the Mark
NOW AVAILABLE: The October 2012 issue of Tech-Stock Prospector for your
Amazon Kindle or Kindle for iPad/iPhone reading app.

Here are some of the topics covered in the October 2012 issue:

*Apple stumbles after the iPhone 5 launch
*Google shares hit a new all-time high
*Short sellers circle Splunk
*Adobe Systems embraces the cloud
*The new darling of networking security: Palo Alto Networks
*Demandware benefiting from growth in e-commerce
*NetSuite expands via its SuiteCommerce platform
*Cisco Systems gets some Wall Street support
*F5 Networks jockeys for more share of the ADC market
*Cornerstone OnDemand fends off the big HCM competitors
*Tibco Software boasts a record deal pipeline
*Oracle steps up its cloud battle against Salesforce.com
*New cloud play: Eloqua automates lead management
*Are ValueClick shares undervalued?
*A fresh valuation analysis on Yahoo
*Deal Report: Cloud security IPO Qualys

Order the October 2012 issue here: http://www.amzn.com/B004T6Z0ME


Apple (AAPL, $609.54) reported fiscal Q4 (Sept.) EPS of $8.67, 14 cents below the
consensus estimate of $8.81, on revenue of $36 billion, vs. the consensus of $36.02

Here’s the unit sales breakdown by product category:

*iPhone: 26.9 million (better than expected—consensus: 25.4 million)
*iPad: 14 million (weaker than even recently lowered estimates of 15 million+)
*Mac: 4.9 million
*iPod: 5.3 million
For fiscal Q1, Apple sees EPS of $11.75 (consensus is $15.41) on revenue of $52
billion (consensus is $54.98 billion). This guidance could turn out to be quite
conservative, particularly if iPhone momentum keeps up.

While iPhone sales (47% of total revenue) in the latest quarter were particularly
strong even with supply constraints on the iPhone 5, the shortfall in the iPad
number was a bit of a downer. The Apple conference call was dominated by
questions about the iPad, which accounts for about 21% of total revenue.

Everyone is trying to figure out why Apple only sold 14 million units this past
quarter. Perhaps a good number of consumers pushed out purchases ahead of the
release of the widely rumored iPad Mini, which finally made its debut this week.
Unit sales for the iPad were still up a respectable 25.8% year over year.

It was emphasized at least twice on the call that iPad Mini margins are “significantly
below the corporate average.” Apple guided fiscal Q1 gross margin down to 36%, a
400 basis point sequential decline.

There are now a lot of moving parts at Apple as we push through the December
quarter, with the iPhone 5 still supply constrained (into the end of the year at least)
and the new iPads (4 and Mini) just hitting the market.


Read the latest issue of Tech-Stock Prospector on your Amazon Kindle or Kindle for
iPad/iPhone reading app.

Here’s the Kindle link: http://www.amzn.com/B004T6Z0ME


Tech-Stock Prospector Managing Editor Rob DeFrancesco has more than 20
years of experience covering the tech sector. He is a former senior writer with
Louis Rukeyser’s Wall Street.

TechStockProspector.com, launched in 2003, is an investment-research service
focused primarily on the networking, storage, security, wireless and software
sectors. Annual subscription: $350.

For more information or to place an order, call 800-392-0998.

To top