macorange
Member
My actual dog is cuter.
Posts: 60
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Post by macorange on Nov 5, 2012 5:42:14 GMT -8
A question for those who follow the numbers: How do we know if and when there are changes in the amounts that carriers pay Apple for the iPhone? Are these deals reported anywhere?
Or to put the question another way, how do we know that the low margin guidance for Q1 isn't based on a renegotiation of one or more of the major carrier arrangements which would result in less margin per iPhone sold?
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Post by mbeauch on Nov 5, 2012 6:47:15 GMT -8
A question for those who follow the numbers: How do we know if and when there are changes in the amounts that carriers pay Apple for the iPhone? Are these deals reported anywhere? Or to put the question another way, how do we know that the low margin guidance for Q1 isn't based on a renegotiation of one or more of the major carrier arrangements which would result in less margin per iPhone sold? Apple signs the carrier to long term deals. The terms are not public. The Sprint deal was talked about a lot last year, but no specifics. The carriers have made it known that they want Android phones over iphones. This should make sense, the carriers are out to screw every individual they can and profit while doing so. The low margin guidance is typical and should not be taken as gospel. I can't remember a quarter when Apple was within 2 points of its guided GM. Something else that needs to be taken into account. Apple has revamped almost their entire lineup in the last 6 weeks, that does cut into the GM, but will work itself out and should really show up next quarter. Q2 should be a sequential rise (Rev/EPS)
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Post by qualitywte on Nov 5, 2012 13:31:28 GMT -8
Q2 should be a sequential rise (Rev/EPS) Is that because you expect Q1 to be supply constrained? Holiday quarter is usually highest.
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Post by mbeauch on Nov 5, 2012 15:03:39 GMT -8
Q2 should be a sequential rise (Rev/EPS) Is that because you expect Q1 to be supply constrained? Holiday quarter is usually highest. Yes, will be at full production with a full line of new products. Then thrown in China Mobile and yes, a sequential rise. if you back out the extra week this past year the quarters were fairly close.
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Post by spoonman on Nov 7, 2012 20:13:37 GMT -8
Oppenheimer explained what the reason for the reduced margins were. If he didn't reveal that it was due to reduced carrier subsidies that would be a huge no no since he was asked a direct question about the margin. Retooling all the products and amortizing all that massive fixed cost into the income statement is definitley going to reduce margins. Plus less economies of scale right now until they ramp up.
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Post by thomson on Oct 11, 2013 9:36:27 GMT -8
Carrier Revenue comes in earning that company enjoys from it normal activities such as sale of goods and services from customers.
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