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Apple Announces Most Profitable Quarter in History

Unknown Lamer posted more than 2 years ago | from the that's-a-lot-of-zeros dept.

Businesses 761

zacharye writes with an except from an article over at BGR about Apple's quarterly results: "'Disappointing' though it may have been to some, the iPhone 4S propelled what is now confirmed to have been the most profitable quarter any technology company has ever recorded. Apple on Wednesday reported record earnings for the December quarter, revealing a profit of $13.06 billion on revenue that surpassed $46 billion. Among technology companies, Apple's fiscal first quarter represents the most profitable quarter ever recorded. Only one U.S. company has ever posted a more profitable quarter — Exxon managed a profit of $14.8 billion in the third quarter of 2008 — and the driving force behind Apple's record-setting performance was quite clearly the iPhone."

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761 comments

Nokia and RIM (5, Insightful)

vakuona (788200) | more than 2 years ago | (#38812863)

Nokia and RIM should read and weep. This should have been them.

Re:Nokia and RIM (4, Funny)

ackthpt (218170) | more than 2 years ago | (#38812903)

Nokia and RIM should read and weep. This should have been them.

Poor choices of business partners and lack of vision on the part of RIM, nothing new there. Someone has to win.

I imagine Steve Ballmer needs a new chair at the moment. So that's a plus for the local office furniture outlet he buys from .. expect them to declare a good quarter, too.

Re:Nokia and RIM (-1)

BasilBrush (643681) | more than 2 years ago | (#38813239)

Of course some people seem to think that Windows and Android are winning.

Re:Nokia and RIM (2, Insightful)

Samantha Wright (1324923) | more than 2 years ago | (#38813421)

I don't know the real numbers, but Android could still be winning. It's not as if all of the different manufacturers have one joint financial statement.

Re:Nokia and RIM (1)

Anonymous Coward | more than 2 years ago | (#38813323)

Yeah, Nokia with a slew of real, open, MeeGo phones by now.

*burns whatever platform Elop is standing on*

*pisses somewhere else*

*returns from fantasy land to reality*

*cries in beer*

Re:Nokia and RIM (2, Insightful)

clarkkent09 (1104833) | more than 2 years ago | (#38813493)

They didn't have Jobs. When he came back Apple was almost bankrupt and had to be rescued by Microsoft. It took great vision to take a nearly broke computer company and take on the most contested markets like consumer electronics and music and win through quality and design of the products alone. And I'm not even an Apple fanboy.

Who Cares? (-1, Troll)

sexconker (1179573) | more than 2 years ago | (#38812865)

Who cares?
This isn't news for nerds, it's fodder for fanboys.

Re:Who Cares? (0)

Anonymous Coward | more than 2 years ago | (#38812907)

Yep. Yawn.

Re:Who Cares? (5, Insightful)

Anonymous Coward | more than 2 years ago | (#38812923)

I'll have to disagree ...it's tech worthy news. The more money Apple gets, the more money they have to influence the shape of things to come.

It's good to be aware of the shifts in power and the current status quo regardless of whether you are a fanboi or not.

Re:Who Cares? (-1)

Anonymous Coward | more than 2 years ago | (#38813267)

Spoken like a true fanboy!

Re:Who Cares? (1)

MightyMartian (840721) | more than 2 years ago | (#38813431)

Translation: The more money they get to try bully competition with spurious but time-consuming lawsuits.

Re:Who Cares? (2, Insightful)

icebike (68054) | more than 2 years ago | (#38813457)

I'll have to disagree ...it's tech worthy news. The more money Apple gets, the more money they have to influence the shape of things to come.

It's good to be aware of the shifts in power and the current status quo regardless of whether you are a fanboi or not.

The profit levels say nothing about the shape of things to come (other than more law suits).

What the do indicate is the excessive level of profit is cranked into the iphone/ipad line.
By my estimate they could cut the price in half and still make a profit. None of the other phone
or tablet makers have this kind of profit margin, yet their products easily match the iOS products
in quality and ease of use.

If apple cut their prices the "cool factor" would be diminished, and the fanbois would move onto something
else. If they aren't over paying top dollar its just obviously not the best thing ever.

Re:Who Cares? (5, Interesting)

Caerdwyn (829058) | more than 2 years ago | (#38813013)

It shows that nerds are wrong and Apple is right.

Seriously, you're confronted with an existence-proof.

Re:Who Cares? (1)

Anonymous Coward | more than 2 years ago | (#38813047)

Nerds are often arguing about issues that require foresight, something the general public doesn't have when it comes to IT because they're good at other things than us. Freedom is one of the examples of things that don't matter to the public, but may matter later. Which is why we still argue that the 'losing' alternative is superior.

Re:Who Cares? (3, Informative)

SuperKendall (25149) | more than 2 years ago | (#38813417)

Nerds are often arguing about issues that require foresight

That is exactly right, and why you should place no stock in predictions from those on Slashdot that constant predict Apple's demise for reasons that plainly make no sense and exhibit the continued misunderstanding of the market as a whole.

something the general public doesn't have when it comes to IT because they're good at other things than us.

And yet the general public generally speaking could have told you Apple continues to fare well, just form anecdotal evidence. So should not there be some giant red flags here that nerds En Masse have apparently willfully given up the power of foresight simply because of hatred?

Which is why we still argue that the 'losing' alternative is superior.

You can still argue something is superior while correctly predicting the thing you think is not superior will win out and understanding why. That's what helps you to make the truly superior thing fare well in the market.

But again many nerds here on Slashdot have instead decided over and over again to proclaim Apple is not successful because they say so, and the technologies they favor will win "just because". That is not going to work out well long-term.

Re:Who Cares? (1)

K. S. Kyosuke (729550) | more than 2 years ago | (#38813045)

Who cares?

Uhm, shareholders? :-)

Re:Who Cares? (0)

Microlith (54737) | more than 2 years ago | (#38813225)

Why should shareholders care? It's not like they're paying dividends, and it's not like it's reasonable or affordable to buy into Apple at the current sky high share price.

Re:Who Cares? (5, Informative)

dnaumov (453672) | more than 2 years ago | (#38813319)

You should learn a few things about investing before making a fool out of yourself. The fact that AAPL shares are above 400$ bares no meaning at all on whether the price is "sky high" or not. Berkshire Hathaway class A shares are over 100,000$ each and their price is not "sky high" either. It's all about the actual valuation metrics of the company relative to the share price and according to them, AAPL was actually pretty fairly priced before the earnings release.

Or are you going to be making even more of a fool out of yourself by sticking to your guns and saying that a PE of 15 for a company with projected 30% revenue growth is "sky high"? Except that it was actually even cheaper then that, because the revenue growth ended up being twice higher.

Re:Who Cares? (4, Funny)

halivar (535827) | more than 2 years ago | (#38813425)

Damn you, dnaumov, now I have to open at least 5 Wikipedia tabs so I can later pretend I understand something about investing.

Lessee... "PE".... 41 matches. This is gonna take a while...

AAPL is still cheap (0)

SuperKendall (25149) | more than 2 years ago | (#38813483)

Why should shareholders care? It's not like they're paying dividends, and it's not like it's reasonable or affordable to buy into Apple at the current sky high share price.

The price of AAPL is currently as low as it's possible for the physics of money (if you will) to allow.

Just as you can predict exactly how much time it will take a satellite in orbit to be pulled to earth by gravity, you can predict AAPL will go up quarter after quarter, as Apple continues to increase profit and thus drags along the minimum price that AAPL sells at.

I mean right now, just based on Apple's historically lowballed guidance for the next quarter, I can predict in one quarter Apple's share price will be higher than it is now.

I already bought some more just a bit below $400, because I knew this Q it would be dragged up.

Ignore the advice if you want, just trying to help you understand....

Re:Who Cares? (1)

ackthpt (218170) | more than 2 years ago | (#38813127)

Who cares?
This isn't news for nerds, it's fodder for fanboys.

How can I tell you don't have a stack of Apple stock? Because you are sitting here, creating a post like that.

If you had any stock in them at all you'd be dancing a jig. That's an impressive jump in stock price and evidence the company is still growing.

Two ways to look at this - from a financial investment - looks good! The other, it's that little company that was trounced by Microsoft for years, made cute little computers, but lost the plot and market share and nearly died. Re-invented by Steve Jobs, it's back and badder than ever and from whom more toys will be forthcoming.

Sure wish I had some stock in them...

Re:Who Cares? (4, Informative)

arielCo (995647) | more than 2 years ago | (#38813305)

abusus non tollit usum [merriam-webster.com]

: abuse does not take away use, i.e., is not an argument against proper use

That is, fanboyish reactions do not strip the relevance of one of the largest players in a tech industry making more money than ever before, or prevent sane discussion of the fact.

Re:Who Cares? (1)

polymeris (902231) | more than 2 years ago | (#38813383)

Also I might be a bit slow today, but I don't understand the summary:

Apple's fiscal first quarter represents the most profitable quarter ever recorded. Only one U.S. company has ever posted a more profitable quarter — Exxon [...]

Seems like a contradiction to me. So is it the most profitable quarter in history or not? In the history of what? the US? the world?

Re:Who Cares? (1)

SadButTrue (848439) | more than 2 years ago | (#38813433)

I would say "kinda". The bigger story isn't the blowout story. For most nerds, it is that a tech company is now the largest company in the world when measured by market cap. Apple passed Exxon in after market trading.

An ancillary story would be the rise of mobile and a potential sea change in how we interact with our computing devices. These are good times for nerds me thinks!

Sorry for sounding a bit like an Apple fanboi. I actually think Apple is bad for nerds long term.

WebOS (5, Interesting)

slashgrim (1247284) | more than 2 years ago | (#38812875)

As a WebOS fan, this makes me sad. Why would HP give up on such an incredibly profitable market after only investing $3.3billion http://techcrunch.com/2011/11/21/hps-failed-webos-experiment-cost-them-3-3-billion-but-whats-next/ [techcrunch.com] ? The iOS and Andriod user experiences still have not passed WebOS smoothness, in my opinion, though the notification systems are catching up.

Although HP's management style of WebOS reminded me of: "They say you gotta spend money to make money. I don’t know what went wrong. We spent all our money." - Tom Haverford

That was sad (1)

SuperKendall (25149) | more than 2 years ago | (#38813065)

I always thought WebOS would be a close second to iOS. What tragedy that other platforms prevailed, and like you said HP basically took the axe to WebOS.

RIP, WebOS.

Expect... (1)

ackthpt (218170) | more than 2 years ago | (#38812879)

Expect some of those profits being rolled into further efforts to battle back Android and secure a future for Apple.

Also expect more headlines in Slashdot regarding how they are spending it.

Re:Expect... (1)

Bovius (1243040) | more than 2 years ago | (#38813149)

In related news:

Apple spent a tiny, tiny portion of their profits bludgeoning their competition in patent litigation.

$100 million sure sounds like a lot until you see how much they make.

Re:Expect... (3, Insightful)

ackthpt (218170) | more than 2 years ago | (#38813411)

In related news:

Apple spent a tiny, tiny portion of their profits bludgeoning their competition in patent litigation.

$100 million sure sounds like a lot until you see how much they make.

Which is why I mentioned it. If you are on the other side of Highway 101, at a certain company you are probably cringing at this turn of fortunes.

Why not do evil? It evidently pays very, very well.

Re:Expect... (0)

Anonymous Coward | more than 2 years ago | (#38813201)

They spent $100m in Q1 on Android litigation if you believe Gizmodo. That's a rounding error on the balance sheet.

Bubble? (0)

djlemma (1053860) | more than 2 years ago | (#38812883)

I can't help that think with record breaking profits like this, there has to be some sort of bubble that's about to burst. Maybe it's paranoia brought about by the current economy, but goodness.. $13 billion in profit? More than 25% of their revenue is profit? Something is going on here..

Re:Bubble? (1)

Wyatt Earp (1029) | more than 2 years ago | (#38812899)

Selling mp3s, apps and movies doesn't have a ton of costs.

Re:Bubble? (1)

djlemma (1053860) | more than 2 years ago | (#38812953)

The press release doesn't really mention much about iTunes sales. Mostly it's talking about the MASSIVE number of iPhones they sold, and huge increases in almost every other hardware product over this quarter last year (except for the iPod). 37 million iPhones is equivalent to quite a lot of mp3's....

Re:Bubble? (5, Interesting)

FunnyStrange (974343) | more than 2 years ago | (#38813079)

They make very little from the software/media sales. Gross margins on the hardware are huge though: 44.7%. Tim Cook indicated in the conference call that that's probably not a sustainable number (their margins are typically in the high 30s). But the raw numbers of devices they sold grew by stunning amounts. Even Mac volumes rose by more than 25%, and that's in a PC industry that's not doing that well in aggregate.

Say what you want pro or con about their products, but they know how to make stuff that people want to buy.

Case in point: Verizon reported that iPhones accounted for 55% of their smartphone sales last quarter. That's against how many different models of Android phone?

Re:Bubble? (1)

jo_ham (604554) | more than 2 years ago | (#38813307)

They make almost nothing on those things - practically noise in the data as far as profit goes.

The vast, vast bulk of their profits are in hardware sales.

Re:Bubble? (-1, Troll)

spyder-implee (864295) | more than 2 years ago | (#38812917)

The workers committing suicide in their Chinese factories know what's going on there...

Re:Bubble? (4, Insightful)

BasilBrush (643681) | more than 2 years ago | (#38813387)

The Foxconn factory complex in question has a lower suicide rate than the overall suicide rate for China. When you have half a million employees in the same city, some of them are gong to commit suicide. If you have half a million humans in the same city, some of them are going to commit suicide.

Re:Bubble? (1, Insightful)

ackthpt (218170) | more than 2 years ago | (#38812927)

I can't help that think with record breaking profits like this, there has to be some sort of bubble that's about to burst. Maybe it's paranoia brought about by the current economy, but goodness.. $13 billion in profit? More than 25% of their revenue is profit? Something is going on here..

They are building all their products in China. What's so hard to figure about this? OK, Foxconn will now pay the workers a few Renminbi more, per hour, but don't expect that to dent the profit margin much.

Just where does your Android phone comes from? (5, Interesting)

SuperKendall (25149) | more than 2 years ago | (#38813121)

They are building all their products in China. What's so hard to figure about this?

So is everyone else. Everyone else is not enjoying this level of increase in profits quarter after quarter, or the same margins that Apple has.

Only Apple as far as I know has started moving any production (the A5 chip) back into the U.S.

OK, Foxconn will now pay the workers a few Renminbi more

They already do, and yet Apple's sales surge.

Re:Bubble? (1)

djlemma (1053860) | more than 2 years ago | (#38813157)

Apple isn't the only company building things in China, but somehow they've managed to be the most profitable about it. If "Made In China" was the only requisite for extreme profits, then I think there would be a lot more "99 cent" stores dominating the stock market.

Re:Bubble? (2)

vakuona (788200) | more than 2 years ago | (#38812933)

Nothing lasts forever. But Apple have put together a quite amazing run. If Apple were to shut down tomorrow, and distribute all of its cash as dividends, it would be returning 100bn to its investors, and for anyone who invested in Apple 10 years ago, they would be getting a stupidly large return. That for what was already a mature company.

Re:Bubble? (1, Interesting)

Darkness404 (1287218) | more than 2 years ago | (#38812957)

Of course it is a bubble. Apple is currently the only company that can charge huge margins for their tech because they are looked at as the best. If you want quality, the masses think, you need to get a Mac/iPod/iPad/etc. Of course if Apple slips up like they did back in the 90s and slips backwards of course they won't be as profitable. But, at the moment, everyone thinks Apple has very high quality products. If they really do or don't, it is irrelevant. The fact is, the masses think that its made by Apple, it has to be good. Couple this with having large revenues per product makes Apple super profitable. Compare it to most technology companies that operate on razor thin profit margins and powerful hardware and sell it to the masses.

Re:Bubble? (0, Flamebait)

DogDude (805747) | more than 2 years ago | (#38812967)

Something is going on here..

The only thing going on is that people are suckers for slick marketing and consumerism in general. They are making a massive profit because they are able to charge several multiples over their competition for the same hardware.

Re:Bubble? (1)

MikeMo (521697) | more than 2 years ago | (#38813031)

Cite please.

Re:Bubble? (1)

Anonymous Coward | more than 2 years ago | (#38813083)

The only thing going on is that people are suckers for slick marketing and consumerism in general.

So that's why on a daily basis, I see more android commercials than apple commercials.

Re:Bubble? (1)

Dzimas (547818) | more than 2 years ago | (#38812997)

I paid $70 for an unsubsidized low-end LG android phone at Christmas. It's not a bad phone, and I suspect Apple's jaw-dropping profit margin is going to get hit as Samsung, LG and Moto push out some extremely capable phones in the sub-$300 range. That said, Apple has two things going for them -- (1) a closed iOS ecosystem that encourages people to remain on their platform, and (2) Profitable multi-year contract arrangements with the telcos that allow them to market "$149" handsets with the true cost hidden in multi-thousand dollar contracts.

Re:Bubble? (-1, Troll)

0123456 (636235) | more than 2 years ago | (#38813085)

3. Fanboys who'll buy anything with an Apple logo on it.

Re:Bubble? (5, Funny)

BasilBrush (643681) | more than 2 years ago | (#38813479)

And the number of "fanboys" appear to grow exponentially each quarter, judging by the financial results. How exactly do you imagine that Apple manages to keep on getting all these new fans?

WARNING: This question actually requires you to think. Be careful. Do some warm ups first.

Re:Bubble? (1)

Anonymous Coward | more than 2 years ago | (#38813131)

Wow. You could have had an iPhone 3GS for free, or an iPhone 4 for $100. "Penny-wise, pound-foolish" comes to mind.

Re:Bubble? (-1)

Anonymous Coward | more than 2 years ago | (#38813227)

LOL yeah, except for getting the life jewed out of you in a 2 yr contract. I'll take my used phone and 34$ monthly bill plz. Carry on subsidizing me. K THX BYE

Re:Bubble? (0)

Anonymous Coward | more than 2 years ago | (#38813257)

I had a free iPhone 3S. I bought a Galaxy soon after. Worst free phone ever

Re:Bubble? (1)

geekoid (135745) | more than 2 years ago | (#38813017)

It's because they can expand services and not have to raise their overhead that much.

Not a bubble. Inflection point. (1, Insightful)

SuperKendall (25149) | more than 2 years ago | (#38813019)

The entire phone market is switching over to smartphones.

All of CHINA is switching over to smartphones.

Apple's current profits are based on selling to a tiny fraction of the current phone market; at least some iPhones are now free in contract.

This is not a bubble. This is a surfer just at the START of riding in a very big wave.

And that's only figuring in the phone business, the entire PC industry is going to switch quickly to where most casual consumer computing is done on tablets... and there Apple is again, lead surfer on that wave.

Oh, and I forgot to mention Apple is a leader in selling consumers media over the internet. But that would only matter if that were some kind of transition underway also.

So if you think it's time to sell, think again... even if you think buying now is foolish, well plenty said that back at $350. The fact is that just to keep the absurdly low P/E of 15 that Apple has currently, every quarter is going to see a large stock surge like you see now as profits and cash on hand keep dragging the price up against the will of the traders.

Re:Not a bubble. Inflection point. (0)

Microlith (54737) | more than 2 years ago | (#38813055)

Woo, SuperKendall the Apple Zealot strikes again.

I'll give a shit about Apple's high stock price when it splits or they start actually paying out dividends to their investors. Until then it's just a bubble you hope you exit before it pops.

Re:Not a bubble. Inflection point. (1)

Karlt1 (231423) | more than 2 years ago | (#38813287)

I'll give a shit about Apple's high stock price when it splits

So please explain how you think a stock split will increase value? Do you also think if someone gives you two 5 dollar bills for a 10 you have more money?

Re:Not a bubble. Inflection point. (1)

Microlith (54737) | more than 2 years ago | (#38813325)

I own a single share. If it split I could sell one and see some return on the investment. Same for a dividend. Until then it's immaterial wealth that could vanish before it is claimed.

Re:Not a bubble. Inflection point. (1)

Karlt1 (231423) | more than 2 years ago | (#38813395)

I own a single share. If it split I could sell one and see some return on the investment. Same for a dividend. Until then it's immaterial wealth that could vanish before it is claimed.

And the average dividend yield is 1.96%...

Would you rather have the S&P average dividend yield or AAPL capital appreciation?

Re:Not a bubble. Inflection point. (0)

Anonymous Coward | more than 2 years ago | (#38813403)

I'll give a shit about Apple's high stock price when it splits

So please explain how you think a stock split will increase value? Do you also think if someone gives you two 5 dollar bills for a 10 you have more money?

Value is relative. From Wikipedia about stock splits increase stock prices: "...there are more buyers and sellers for 10 shares at $10 than 1 share at $100."

Re:Not a bubble. Inflection point. (1)

Wyatt Earp (1029) | more than 2 years ago | (#38813191)

Actually, feature phones outsell smartphones planet wide with no end in sight.

Re:Bubble? (1)

stms (1132653) | more than 2 years ago | (#38813171)

It probably is just paranoia. The reason for a bubble is prices no longer represent real world value. Contrary to the popular opinion on /. a lot of people like their iPhones which gives them value. So unless for some reason people stop liking their iphones (which seems unlikely) there's no bubble here.

Wednesday? (0)

Anonymous Coward | more than 2 years ago | (#38812891)

Did I lose a day? I could've sworn it was Tuesday.

Re:Wednesday? (0)

Anonymous Coward | more than 2 years ago | (#38812973)

Agreed, and I'm in GMT

Apple is a big as Big Oil (0, Troll)

Anonymous Coward | more than 2 years ago | (#38812925)

They use child and/or slave labor, shitty business practices and leveraged the death of their CEO.
Can they finally be considered uncool now?

Tasteless (1)

SuperKendall (25149) | more than 2 years ago | (#38813145)

How did they "leverage the death" of Steve Jobs?

Seems to me that was only a negative for Apple, making a lot of people think the company would drift after that point.

It's not like Apple came out with a "Jobs Memorial iPhone". The only people who profited off Job's demise were a few turtleneck manufacturers and some doll makers.

1 billion (1)

gorrepati (866378) | more than 2 years ago | (#38812935)

Thats a billion dollars a week! I figure there are not even many countries which can manage that.

so i guess. (-1, Flamebait)

superwiz (655733) | more than 2 years ago | (#38812937)

We should be expecting a congressional hearing on what Congress should do with all those profits? I mean, if it was held for Exxon (which doesn't employ slave labor), it should be held for Apple (which does employ slave labor) shouldn't it? Apple is only this profitable because US has relations with China favorable enough that Apple can get a country purporting to defend workers' rights to create a slave-labor powered factories. We should tax that and subsidize failing tech companies, right? I am sure AT&T's and Verizon's of the world could use a hand out. </sarcasm>

Re:so i guess. (0)

Anonymous Coward | more than 2 years ago | (#38812991)

Keep on crying into your middle class pillow, hippy.

Re:so i guess. (1)

geekoid (135745) | more than 2 years ago | (#38813043)

I was going to explain why there's a key difference, that I read your journal. So I'm not going to bother, because no amount of explaining will fix stupid.

Communism wishes to roll back the clock.. idiot.

Re:so i guess. (1)

Anonymous Coward | more than 2 years ago | (#38813109)

The difference is in the perception: Apple did it by developing something that didn't exist before. Exxon did it by digging stuff out of the ground and suddenly prices spiked through no effort of their own.

Re:so i guess. (0)

MightyMartian (840721) | more than 2 years ago | (#38813467)

I'm sorry. What did Apple develop that didn't exist before?

Inflation-adjusted ? (2, Insightful)

Anonymous Coward | more than 2 years ago | (#38812943)

Most Profitable Quarter in History?
Did you adjust for inflation?

American jobs (4, Insightful)

Anonymous Coward | more than 2 years ago | (#38813025)

And yet Apple couldn't manufacture iPhones in the US because they couldn't afford the extra $49 it would cost to make iPhones here. It might shave a few millions off of those billions. Can't have that happen!

Re:American jobs (0)

Anonymous Coward | more than 2 years ago | (#38813067)

Plus Plus Plus

Massive profits (1, Interesting)

SlippyToad (240532) | more than 2 years ago | (#38813075)

Courtesy of outsourcing manufacturing to China.

I'm a bass player. For years, it's been common that high-quality expensive gear is made in the US, and cheap knockoffs overseas.

Now, Apple has re-defined that. They will gouge your eyes out for high-quality (if you believe their absurd marketing schemes, that is) hardware that is still made overseas.

$13 billion in profits is probably not entirely derived from short-changing their American workforce (who seriously believes those things can't be made here -- I don't) and adding to the already bursting trade deficit.

I guess I shouldn't complain, though. In America, the land of milk and honey, it's now considered fortunate to have a shitty McJob. God forbid the middle class could afford the fruits of their own labor.

Re:Massive profits (3, Funny)

thestudio_bob (894258) | more than 2 years ago | (#38813167)

I'm a bass player...

You lost me there. Everybody knows it's the drummer that has insight into everything.

Re:Massive profits (3, Funny)

tomhath (637240) | more than 2 years ago | (#38813359)

He was a drummer, until he took an arrow to the knee

Re:Massive profits (5, Funny)

Swampash (1131503) | more than 2 years ago | (#38813197)

Cause...

I'm a bass player

Meet effect...

it's now considered fortunate to have a shitty McJob

Re:Massive profits (1)

frank_adrian314159 (469671) | more than 2 years ago | (#38813335)

I'm a bass player. For years, it's been common that high-quality expensive gear is made in the US, and cheap knockoffs overseas.

So am I. Wait until the musical equipment manufacturers actually learn these lessons about quality. There will be no looking back.

You save a lot of money with slave labor! (0)

Anonymous Coward | more than 2 years ago | (#38813087)

Nothing cheaper than having people be driven to suicide by assembling your products for meager earnings, in a country so poor that there will always be somebody else ready to take their place.

Apple saved a lot of money by using manufacturing companies that treat their people terribly. On top of all that, they still pushed overpriced junk to the masses that gladly paid through the nose for a phone with a faulty antenna.

Good job Apple, I guess hurting others for personal gain doesn't impact you at all.

Support bombing Iran (0)

Anonymous Coward | more than 2 years ago | (#38813125)

The massive rise in oil price will put Exxon back as number 1 for decades.

Paulbots my suck my Santorum covered cock.

Apple is not that bad (-1)

Anonymous Coward | more than 2 years ago | (#38813155)

Guys apple is not that bad at all. I can steve the inventor of century
http://rodney-sparrow.com

Shut down and give money back to shareholders (1)

dwenger (470452) | more than 2 years ago | (#38813173)

Perhaps it's time to just shut down and distribute the cash to the shareholders. Clearly this company didn't know how to manage.... :)

Apple is DOOMED (1)

beltsbear (2489652) | more than 2 years ago | (#38813181)

Apple is DOOMED! :)

Windfall profits tax! (5, Insightful)

chill (34294) | more than 2 years ago | (#38813203)

When Exxon posted those profit numbers people were screaming for a windfall profits tax. Where are those people now? Probably listening to their iPod, tuned out to the world.

Re:Windfall profits tax! (3, Insightful)

Microlith (54737) | more than 2 years ago | (#38813269)

Unlike Apple, Exxon deals in commodities with inelastic demand. It could be argued more readily, I suppose, that Apple actually earned those profits while Exxon gains them purely of virtue of having pumped it out of the ground. YMMV.

Personally, I would have more respect for Apple if they started paying a dividend.

Re:Windfall profits tax! (1)

FunnyStrange (974343) | more than 2 years ago | (#38813293)

Different situation. In that case, the oil companies made more profits not because they sold more product, but because world oil prices spiked artificially (due to OPEC, if I recall correctly). Apple sold more stuff by making stuff more people wanted than the competition.

They do have more than half their cash offshore. On the other hand, about 60% of their revenue was generated outside the US, so that might be fair.

Luckly, they are not an oil company (0)

Anonymous Coward | more than 2 years ago | (#38813249)

Else Congress would pass (or try to pass) an excessive profits tax or some such, even though Apple's profit margin is much more than most of the major oil companies.

http://ycharts.com/companies/AAPL/profit_margin
http://ycharts.com/companies/XOM/profit_margin

Re:Luckly, they are not an oil company (1)

reboot246 (623534) | more than 2 years ago | (#38813399)

Finally! Somebody on slashdot who knows the difference between profit and profit margin!!

Mark this day in your history book.

Slavery is great! (0, Flamebait)

Beelzebud (1361137) | more than 2 years ago | (#38813251)

It's easy to be highly profitable when your business model relies on slave labor.

Re:Slavery is great! (3, Insightful)

jo_ham (604554) | more than 2 years ago | (#38813365)

So the Android phones that are made in the same factory aren't as profitable.... why?

If it were solely down to the Chinese labour (who are not slaves btw, but we'll ignore the hyperbole) then there would be considerably more highly profitable electronics manufacturers.

Scaled Tariff (4, Insightful)

WindBourne (631190) | more than 2 years ago | (#38813259)

We are LONG overdue for America to implement a scaled tariff. Basically, These are tariffs that target nations that we have large deficits with, but in particular, those that manipulate their money and markets against us: [americanthinker.com]

This would not only restore manufacturing, but it would also improve our tax base, rather quickly. Finally, it would force nations that we have supposed open markets with that manipulate against us to change their behaviors.
So, for our top 20 nations that we trade with, this would punish the following:
  • China - 36%
  • Venezuela - 28%
  • Italy - 25%
  • Germany - 24%
  • India - 22%
  • Japan - 16%
  • South Africa - 14%
  • Mexico - 13%
  • France - 12%
  • Taiwan - 8%

While giving other nations like Canada a pass:

  • Argentina,
  • Australia,
  • Belgium,
  • Brazil,
  • Canada,
  • Hong Kong,
  • Luxembourg,
  • Netherlands,
  • Singapore,
  • South Korea,
  • United Kingdom

Interestingly, this is legal PER WTO. WTO's position is that when a nation's trade deficit is larger than 10% with another, than you may take action.

The trick here is to convince the neo-cons that are attached to China's pants to let go and back America instead. Right now, far too many neo-cons are the ones blocking efforts at a balanced trade. In addition, without a budget deficit below 500 billion (or so), this probably becomes impossible to do.

Re:Scaled Tariff (5, Insightful)

jo_ham (604554) | more than 2 years ago | (#38813409)

Or instead of crippling yourselves with trade manipulation you could just repeal the Bush Era Tax Cuts - there's 2 trillion right there, that barely touches the bottom 90% of earners and yet will cost the US 2 trillion dollars - more than twice the "expensive, wasteful, ill-affordable" healthcare bill.

Get your house in order before blaming countries like Germany, who have built a very strong export economy, for harming your own. You'd hardly say that Germany was in the position it's in by being like China in the way it goes about becoming a large net exporter - this is not simply about "restoring manufacturing" - it's not as simple as that by a long shot.

What's good for the goose (1)

YrWrstNtmr (564987) | more than 2 years ago | (#38813265)

A couple of years ago, there was much screeching about Exxon's excessive profits. "I want to take those profits and..."

Why not the same here? I guess it's just evil oil vs. cool iPhones.

Re:What's good for the goose (3, Insightful)

Swampash (1131503) | more than 2 years ago | (#38813393)

The world's, and particularly the USA's, economy depends on oil. There is no alternative. The world needs oil. If the oil stops, everything falls apart. In other words, whatever the cost of oil is people will buy it. They don't have a choice.

If Apple stops, people will use a competitor's products. No big deal.

(see: "elasticity of demand")

Seriously? iPhones are Oil? (1)

bussdriver (620565) | more than 2 years ago | (#38813463)

OIL the life's blood of ... all of us! Comparing that to the non-essential iPhone of hipsters of the world?

It takes about 10 calories of oil for 1 calorie of food you eat. per day. every day. The industrial revolution's fuels made the population boom possible. Oil is about LIFE; because we built this teetering world population upon an Oil foundation.

Oil was fraudulently priced too highly during an increased demand which stressed the already fragile world economy. Demand didn't raise the price of oil; they did and bribed anybody who knew better who could do anything about it.

They could just jack up the price tomorrow with no excuse what so ever and they would get it because its a NECESSITY (to avoid too much revolt, they do not push it any further than the edge of tolerance...) I bet they could hit 20 billion and not get enough congressmen to DO anything to them for a few more million in bribes.

Cue Corporate Tax Debate (1)

love05mustang (1023253) | more than 2 years ago | (#38813303)

Since we are in the season full tax disclosure, I wonder how much Apple pays ?

Hedge Fund (1)

igothandle (1003854) | more than 2 years ago | (#38813401)

Apple's short term investments essentially make it a very huge hedge fund.

It isn't Wednesday yet... (1)

iCEBaLM (34905) | more than 2 years ago | (#38813423)

... It's still Tuesday....

My crystal ball says... (1)

Daniel Phillips (238627) | more than 2 years ago | (#38813439)

My crystal ball, tuned to the year 2025, says that this quarter will in fact prove to be the most profitable quarter of Apple's entire history.

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