Or select individually:
- Apple’s REAL Earnings Expectations
- Tech Companies (But Not Apple Or Google) Take On More Debt
- In Case You Had Any Doubts About Where Apple’s Revenue Comes From
- Guess What? Google Doesn’t Get The Most Revenue Per Employee In Tech Land
- Has Any Company Lost As Much Money On The Internet As Microsoft?
Apple is known for dramatically lowballing its profit guidance, and then miraculously blowing out 'expectations.'
Since Sept. 2006, Apple has topped its quarterly EPS guidance by an average 39%, and its revenue guidance by an average 7%.
So what does that mean for this quarter, which will be reported Tuesday afternoon? (Join us for LIVE coverage.)
It's hard to tell, because Apple significantly changed its accounting practices last quarter. It now recognises iPhone revenue almost all at once, instead of spreading it over 24 months. So we won't know for a few quarters just how much Apple is lowballing its guidance using the new numbers.
But running the old formula, based on Apple's midpoint March quarter guidance of $2.12 EPS and $11.20 billion in sales, history suggests Apple should report EPS of about $2.95 on $11.98 billion of revenue.
Wall Street expects lower earnings but even higher revenue: Consensus stands at $2.44 of EPS on $12.06 billion of revenue. So Apple is set up to once again 'surprise' on earnings, but, possibly, disappoint on revenue.
Using Capital IQ, we've charted the total debt of Dell, Microsoft, Oracle, Cisco, HPand IBM. As you can see, these tech giants are growing their total debt.
Why? Well, the Journal posits that it's a good way to raise money, without diluting shareholders. Plus, a company can never have enough cash on hand, in case it decides its time to make an acquisition.
Noticably absent from this list are Google and Apple, which are both debt free.
Apple's iPhone business, which didn't exist three years ago, now represents a whopping 40% of the company's revenue, and has been the company's biggest revenue generator for three quarters in a row.
During the March quarter, iPhone revenue grew 124% year-over-year to $5.4 billion, or 40% of Apple's $13.5 billion in total revenue. Because of high profit margins on the iPhone, it's likely Apple's biggest profit contributor, too. (But that's another chart.)
Apple's second-biggest business is its Mac computer division, which grew 27% year-over-year in the March quarter to $3.8 billion, or 28% of Apple's overall sales.
Even with a highly lucrative search business, Google is not getting the most revenue per employee in the tech world.
This analysis, from George Morris at 37Signals, shows that Craigslist -- with its tiny staff -- is getting three times as much revenue per employee as Google. Obviously, Craiglist is a unique situation, and it doesn't scale infinitely, but it's still very impressive.
Why does this chart matter? It emphasises efficiency in business. You can see which companies get the most of out of their staff.
Last night Microsoft revealed that its Online Services Division lost $711 million in the first three months of this year. That's a jaw-dropping $2.8 billion loss annual run rate.
This chart shows quarterly loses since 2005, the last time Microsoft's online operations made money. If you travel further back, Microsoft's losses become even more staggering. Since 1998, Microsoft's online division has lost over $10 billion.
Is there any company that's lost as much money on the Internet as Microsoft? We're hard pressed to think of one.
Or select individually:
- Google Versus Wall Street
- Amazon Runs Away With Retailing Pt. II
- Email's Reign Is Over, Social Networking Is The New King
- How Will The iPad Sell Compared To Other Gadgets?
- Here's Why The Mobile Ad Market Is Still Small
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