All posts in 2011

Apple Shares Dip On Margin Outlook For 2011

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(Image courtesy of tweakosx.com)

Now for some other business news.  You may have caught word that yesterday Apple announced that it “expects to experience decreases in its gross margin percentage in future periods, as compared to levels achieved during 2010,” due to a mix of new products that cost the company more to produce and an expectation that product components and other costs will rise.  On the flip side though, the company also saw a hiring boost in their annual report that was filed with the SEC.

Apple is expecting a 36 percent first-quarter margin, which would be down from the 37.5 percent that analysts, who were polled by Thomson Reuters expect, on average.

On this news, AAPL dropped .66, or about 1.5 percent, to 3.17 a share in afternoon trading according to ABC News.

Despite the seemingly bad news, analysts didn’t think it to be all bad.

Shaw Wu, an analyst with Kaufman Bros. said in his note to investors today that there wasn’t any new guidance in Apple’s 10-K, and that he thinks any drop in shares should only give cause to buy more shares of the stock.

Wu felt that Apple’s remarks in their filing were on par with each annual report that it has filed about the upcoming fiscal year “as far as we can remember.” 

He continued, “those fixated on cautious gross margin commentary in its 10-K filing in previous years would missed out on a significant investment opportunity in the last 5-7 years.”

Despite the lower margins, the news wasn’t all bad.  Apple appeared to have gone on a slight hiring spree.  According to the New Mexico BusinessWeekly, the filing also revealed that Apple had 46,600 full-time employees on Sept. 25, which was much higher than the 34,300 in 2009 and 32,000 in 2008. 

That jump in jobs was mainly in the retail area, as Apple had 26,500 employees, a 10,000 increase from 2009.  Apple also now has 317 retail stores, compared to 273 from last year.

On the horizon, Apple is planning to open up 40 to 50 new stores next year, and more than half of those would be outside the U.S. 

Follow this article’s author, Matthew Tilmann on Twitter

 

News

No White iPhones Till Spring 2011 According To Apple

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(Image courtesy of CBS News)

So if you were hoping to get that special someone a white iPhone 4 for the holidays, unfortunately you’ll be a bit disappointed.  A new report has Apple saying that the white iPhone 4 may not be making an appearance until next spring, according to All Things Digital.

It was reported earlier that the the iPhone that always manages to allude us was part of an update to the Apple Store app.  But an Apple spokesperson dispelled any rumors.  “We’re sorry to disappoint customers waiting for the white iPhone yet again, but we’ve decided to delay its release until this spring.”

Originally the white iPhone 4 was to debut later this year, but now it would appear that won’t be the case.  The reason for the newest delay is currently unknown. 

Follow this article’s author, Matthew Tilmann on Twitter

 

News

Munster: Apple To Sell 21 Million iPads In 2011

Our favorite Wall Street analyst Gene Munster is back with a new prediction for 2011.  Not only has he raised his original prediction of iPad sales in 2011, but he’s also making a bold new claim.  The iPad will be on the brink of outselling the Mac next year!

He had previously thought that 14.5 million iPads would be sold next year, but now he’s calling for Apple to sell 21 million.  What’s the reasoning?  The growing expansion of the availability of the iPad, as well as the enterprise sector growing increasingly fond of it as well.

“We believe the iPad represents a meaningful product category for Apple as a secondary computing device for those who already have a primary computer, a primary device for those who could not previously afford a Mac, and the first Apple product that will be a success in the enterprise,” Munster writes.  “We see the iPad as the Mac for the masses.”

Other reasons factoring into his prediction: an increase of supply and an expansion of distribution channels, an international rollout and adoption in price-sensitive markets, and of course the uptick in the enterprise industry.

A presence increase of the device in retail stores is also believed to certainly help sales.

What else is on Munster-Vision?  He thinks Apple will control 94 percent of the worldwide tablet market in 2010, with about 10.7 million of the total 11.3 million tablet sales for the year.  Down the road, he also thinks that Android will be the main competition for the iPad, with the next 3.0 release, being coded “Gingerbread,” will be supporting tablets.