You would think by the recent commentary, Apple was close to being placed into receivership. Based on what you ask? Well, here is the evidence:
- Apple sold 47.8 million iPhones, up from 37 million last year
- It sold 22.9 million iPads, up from 15.4 million
- All based on a Q1 period which was one week less than last year
- iPods were down, but this was well flagged as this market matures
- Mac sales fell from 5.2 million to 4.1, probably the one piece of bad news from the figures. But this was mostly due to Apple not selling the iMac during November. Macs only represent 10% of Apple revenues these days

So where does this leave Apple. Its revenue was a company history, as was its profits, and it is now the most profitable company in history, passing the likes of Exxon. These results were the fourth biggest quarterly profit in history. And there you go- that is what it takes to be doomed in business today.

The Irish Times and the Irish Independent ran the same story written by the Press Association: “Apple figures show stall in growth”. The article accepts that revenue grew 18%, but goes on to say that there is pressure on Tim Cook, Apple’s CEO. We can find no other word to describe this apart from “ludicrous”. Apple has set the bar at the highest level in the last few years and is still breaking records.

Here, thanks to Dan Frommer at SplatF, are the figures in charts:



The media would need to work had to find bad news in the figures above and yet this is what a section of them have chosen to do. Apple growth year on year is still at 18%, something any IT firm would love to experience right now. Ask Microsoft, RIM, Nokia, Dell or any other firm about Apple’s figures and they would probably sheepishly admit that these are the type of numbers that they dream of hitting. Add to this the fact that Apple is now holding $137 billion in cash reserves, and you see the strength of their position.

In terms of the future, we see that the iPhone and iPad continue to set record sales numbers and we know that Apple is well placed. They have moved from a Mac and iPod manufacturer through to being centred on their iOS devices and this is a transition which Microsoft is struggling to come to terms with right now. As the iPod ages and Mac numbers may be steady, the push ahead is with the iPad as it becomes the number one home (and possibly business) PC. Not only did Apple ride the success of the iPod, but it then stepped off this success and on through with the iPhone, showing how it evolves as a company, knowing where the market is today but ready to move to where the market is heading.

All of the rumours of the decline in demand for the iPhone 5 came to nothing. The iPhone 5 is the most popular iPhone model to date. Demand for the iPhone 4 is also strong and this is Apple cheaper iPhone model. All of the speculation and rumours about Apple introducing a cheaper handset is nonsense. The figures show that the iPhone 4 IS Apple’s cheaper model and the demand for the iPhone 4 and 5 outstrips supply.

At the end of the day the view of analysts needs to be looked at again. Most financial analysts don’t understand Apple or its business model, and the wild expectations for quarterly revenue and growth needs to be reassessed. In recent years Apple have always exceeded their guidance figures for the quarter but the analysts still punish the company when they do not meet the Wall Street expectations, which ride way above the facts and way above the figures Apple had given. They, on occasion, don’t meet the speculative figures given by Wall Street analysts. Analysts punish Apple for not meeting their Wall-Street-created figures. This takes no account of Apple’s reporting, its own numbers, and the facts at hand.

This may be the reason that Apple has decided to change the way it sets guidance figures. In the past it set figures on what it was sure it would meet. They have now said they will set realistic targets, representing what they believe that will achieve, setting the bar that bit higher, and presumably at times they will fall short. We hope that Wall Street have taken note. Apple future guidance numbers may not be met- they are figures that they hope to achieve, but are not 100% certain that they will hit for that quarter. This will open a new chapter in realism but we doubt as to whether Wall Street will take this on board and treat the company fairly in its reporting and speculation.