A Confident Apple Takes On Christmas, New Products
20 Octobre 2009 - 2:29AM
Dow Jones News
Apple Inc. (AAPL) executives said on Monday rising costs and
expected lower average selling prices likely won't prevent the
consumer electronics giant from meeting its guidance for the fiscal
first quarter, hinting that some new gadgets would boost sales.
The Cupertino, Calif.-based company, which reported a 47% rise
in fiscal fourth quarter earnings earlier in the day, said gross
margins for the current quarter would likely shrink to 34%. It
blamed the expected contraction on rising shipping and component
costs.
But Chief Operating Officer Tim Cook, speaking on a conference
call following the company's earnings, said the narrowing margin
reflected a host of new products "we have and will announce" that
have lower gross margins. Cook, who shepherded the company during
Chief Executive Steve Jobs medical absence, wouldn't identify the
gadgets.
Cook's comments heighten expectations Apple is designing a
tablet computer that would build on the success of its iPhone
series of smartphones. A variety of blogs and other news sources
have reported the company could launch a tablet computer sometime
in 2010.
On Monday, Apple blew away expectations for the fourth quarter,
reporting earnings of $1.67 billion, or $1.82 a share, up from
$1.14 billion, or $1.26 a share, a year earlier. Revenue jumped
25%, to $9.87 billion. The company's shares jumped more than 8%, to
an all-time high of more than $204 in after-hours trading. Apple
recently traded at $201.95.
Apple, which is notorious for giving conservative guidance, said
it expects fiscal first-quarter earnings of $1.70 to $1.78 a share
on revenue of $11.3 billion to $11.6 billion. Analysts polled by
Thomson Reuters expect $1.91 and $11.45 billion, respectively.
Apple said its margins would also take a hit as sales of its
highly profitable Snow Leopard software begin to peter out. Snow
Leopard is Apple's latest operating system software, which went on
sale in late September.
Apple also said it expects to incur significantly more shipping
charges in the quarter, but Cook didn't describe what products were
driving up the costs.
Apple's confidence comes mainly from its iPhone, sales of which
are expected to continue to thrive in the holiday season despite
growing competition phones based on Google Inc.'s (GOOG) Android
operating system.
The iPhone's debut in China in the next few months should spur
sales significantly. Also, Apple's original and exclusive
agreements with carriers to sell the device are expiring, opening
Apple up to selling the iPhone through multiple carriers in the
same country.
Meanwhile, iPhone demand among businesses, an undeveloped market
for Apple, remains "very strong", Cook said, and the online iPhone
software peddling App Store remains a "country mile" ahead of
competition.
Company executives said they battled an iPhone 3GS shortage in
the fourth quarter as demand for Apple's new smartphone outstripped
supply. They said inventory was in balance by October.
Meanwhile, during the quarter, the company it spent less than
expected on a new line-up of videocamera iPods.
The company also shed no light on when it will begin accounting
for iPhone sales under new accounting rules that Apple says will
better highlight the iPhone's contribution to the company
performance. Rather than defer iPhone revenue over 24 months, as
Apple has been doing, it can now record the entire sale
instantly.
Apple says it continues to evaluate when to make the
changes.
-By Ben Charny, Dow Jones Newswires; 415-765-8230;
ben.charny@dowjones.com