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The Retail lifestyle Champions: Apple snaps up more growth pods

The recession blues fade away

The prospects of a recession always seem to fade away if you catch all the right results during the results season. Here is why part from 6 million starts for the year, we will have a growth in the US Economy above the Goldman Sachs rate of 1.5%.

They will buy the new iPhone when it comes out, they are buying iPhone 3GS/4 now and Android Sales are even growing 50% year on year (activations) but Apple alone manages to grow at 25% with all the older iPods, Nanos and such devices/product units actually losing growth momentum for the new king in iPhone/ iPad for the home, the Office, everywhere else.

Amazon is big in the e-reader and the cloud space already & Netflix completes the menagerie as he all pervasive digital movie subscription service alone. With JPM and GS analysts joining in pushing out these new retail lifestyle champions albeit as a Technology pop, things could not be more sanguine for the US economy

Apple Results

A Q1 performance of $24.7 bln was easily overshadowed by a 14% increase for $28.6 bln in revenue which was nearly double the revenues in the previous year’s same quarters  at 83% in Q2 and 82% in Q3. Also with a Early Black Friday Sale in July and a launch event for iPhone 4 expected and calendarised, Apple could maintain this revenue momentum throughout the year.

Operating margins were 31% or $7,9 bln in March and near 33% and $9.4 bln in June. Net  Income was $ 6bn in March and $7.3 bln , a new record in June

Net Income, in fact grew 125% to a $7.78 EPS and the street is going to open a record pop for the Jobs’ dream machine ( cliche) The sales momentum has however shifted to iPhone, though not as expected from dull iPad take off but from a growth of 142% -150% in iPod sales in volumes (21 mln units) and value ($13.3 bln in recognised revenue against $5.3 bln last June under the new rules) 

iPad also grew 142% in value and 183% in volume with 9.2 mln iPads worldwide, still seeming ly constrained by production limitations only, selling every unit of capacity it added in over 64 countries. 47% of Global 500 companies have alrdy deployed or tested iPad and 91% iPhone

iPhones are now available thru 228 carriers in 105 countries and still 7.5 mln iPods were additionally sold in the quarter and the iTunes store added another $1.4 bln.6 mln iPhones are carried in Vendor inventory now, itself an increase of 700k units for a target 4-6 weeks inventory

The MAC series had a new OS launch today, maintaining its gap with key desktop competitors limited yet only by Adobe Flash performance issues on its OS The iPone launch event may also be the new iOs5 on the App Store

Apple retail stores have grown revenues to $3.5 bln. Of the 728k iMacs and Mac portables sold at hese 327 retail points, half were still sold to Mac newbies, owning or operating a Mac for the very first time underlining the retail strategy’s criticality to Apple and the potential of growth in Apple products.  Store traffic at the Mac stores may soon become part of the nations retail footfall counts as leading indicators along with luxury stores as both, categories by themselves, continue to mark significant footfall growth Apple recored nearly 75 mln store visitors up from 60 mln last year

Image representing iPad as depicted in CrunchBase

Image via CrunchBase

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This entry was posted on July 20, 2011 by in China, Emerging Markets, Financial Markets, Global, Retail Lifestyle, US and tagged , , , , , , , .


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