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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: XoFruitCake who wrote (132586)	5/1/2012 8:20:26 AM
From: slacker711	Respond to of 213172

the bullish side of me said that Apple management just want to sandbag everyone but the cynical side of me said that they really don' t know the component market too well.. For F2Q, they misguided by about 470 basis point. About 10% off the real GM. It seems like they are surprised by the dropping of NAND and mobil DRAM price, higher revenue and higher Iphone sales as a percentage (I think it is their way of saying Ipad margin will not be too good compare to Iphone. Two points. 1) Apple obviously sandbags each and every quarter. The table I posted gives you a pretty good idea that it is by around 2.5 to 3 points of GM. 2) No company has an exact handle on component pricing but their sandbagging nearly guarantees a solid beat of the gross margin guidance. The only outlier was the first half of calendar '08 when component pricing was going through the roof even as the overall economy was starting to slide. Absent those two quarters, they have beat their guidance by a minimum of 190 basis points. Absent an economic inflection point during the quarter, I dont see how you can model anything less than a 2 point gross margin beat. Slacker

To: XoFruitCake who wrote (132586)	5/2/2012 9:19:49 AM
From: JP Sullivan	Read Replies (2) \| Respond to of 213172

But over 60%(??) of the cash are oversea and there will be a 35% penalty for bringing them in. No problem, just do a Microsoft. Issue debt in the US at a ludicrously low rate and use it to pay dividends and buy back shares. If interest on the debt is tax deductible, even better <LOL!> -we-