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Apple Making Big Profits, Disses Netbooks Again

by - source: Tom's Hardware US

With the iPad, Apple definitely has nothing good to say about the netbook market.

In case it wasn't already obvious, Apple is having pretty great success in the market. The company yesterday revealed its financial results for its fiscal 2010 second quarter ended March 27, 2010.

Apple posted revenue of $13.50 billion and net quarterly profit of $3.07 billion, or $3.33 per diluted share. These results compare to revenue of $9.08 billion and net quarterly profit of $1.62 billion, or $1.79 per diluted share, in the year-ago quarter. Gross margin was 41.7 percent, up from 39.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue.

Helping Apple's bottom line is the 33 percent growth of Macs over last year; Apple sold 2.94 million Macintosh computers during the quarter. The real star was the iPhone, however, as Apple 8.75 million iPhones in the quarter, representing 131 percent unit growth over the year-ago quarter. All those iPhone sales may have taken a little away from iPods, however, as Apple sold 10.89 million iPods during the quarter, representing a one percent unit decline from the year-ago quarter.

"Looking ahead to the third fiscal quarter of 2010, we expect revenue in the range of about $13.0 billion to $13.4 billion and we expect diluted earnings per share in the range of about $2.28 to $2.39," said Peter Oppenheimer, Apple’s CFO.

"We’re thrilled to report our best non-holiday quarter ever, with revenues up 49 percent and profits up 90 percent," said Steve Jobs, Apple’s CEO. "We’ve launched our revolutionary new iPad and users are loving it, and we have several more extraordinary products in the pipeline for this year."

During the conference call after the announcement, Apple's COO Tim Cook answered a question regarding if iPad sales could cannibalize those of the MacBook line. While it's too soon to tell as the iPad hasn't even been out a month yet in just a single country, Cook did take the opportunity to boast how much better he feels the Apple tablet is over any netbook.

According to TechCrunch, Cook said, "With the iPad in terms of netbooks — to me it’s a no brainer. It’s sort of 100 to 0. I can’t think of a single thing a netbook does well."

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bonezy 04/22/2010 2:52 AM
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Hmm... I don't know about you Mr. Cook, but I'd rather not be sitting in class and take notes on a touch screen, thanks.

coopchennick 04/22/2010 2:55 AM
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Quote :"With the iPad in terms of netbooks — to me it’s a no brainer. It’s sort of 100 to 0. I can’t think of a single thing a netbook does well."


I can think of a few things that netbooks can do and the ipad cant at all...

albion000 04/22/2010 3:00 AM
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"With the iPad in terms of netbooks — to me it’s a no brainer. It’s sort of 100 to 0. I can’t think of a single thing a netbook does well."

It has USB ports, is user-serviceable, largely customizable, runs business-class applications (if slowly), and leaves another $200+ in your wallet? I mean, those aren't exactly ACTIVE things, but still. Having played around with an iPad, it's obvious they aren't really products for the same styles of use despite the overlap.

Hopefully version 2 of the iPad will beef up the processor a little (CULV?), make the battery and drive accessible, and support USB peripherals and SD memory cards. Not holding my breath on these, but with a little more of an open platform it COULD be a netbook-killer.

keither5150 04/22/2010 3:02 AM
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Cook's comments are retarded.

Here is a good video from the onion.com It's not as stupid as what Cook said.

http://www.theonion.com/video/appl [...] -no,14299/

How many words per minute can be typed on the iPad? I can type about 65 on a keyboard. My friend types over 90 wpm. Students that buy this instead of a netbook should be kicked out of school for being dumb.

I am shocked that a COO would say such a thing.

thedreadfather 04/22/2010 3:08 AM
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Quote :"With the iPad in terms of netbooks — to me it’s a no brainer. It’s sort of 100 to 0. I can’t think of a single thing a netbook does well."

Off the top of my head (and note he didn't say well compared to the iPad):

1. Web browsing
2. Printing
3. Forfeiting IP addresses
4. Portability
5. USB
6. VGA out
7. HDMI out
8. Bluetooth
More?
EDIT:
9. Flash/Silverlight (thanks below)
10. Run Windows (or OSX for that matter)
11. Open application support
12. Word Processing
13. Skype/VoIP
14. Read optical media
15. Read SD cards

mlopinto2k1 04/22/2010 3:13 AM
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Ragnar-Kon 04/22/2010 3:27 AM
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Well, other than the fact I despise all Apple products with the exception of their Macbook Pro line, this is wonderful news for my Apple stock.

Good job Apple, your making my wallet happy.

lauxenburg 04/22/2010 3:32 AM
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I hope this doesn't turn into the next Mac vs PC. iPad vs Netbook.

Please no. The iPad is pretty useless in so many ways. It does stuff that we accomplish perfectly with other things and doesn't required to be charged and lugged around...

Scenario: Guy finishing his presentation handout sheets and the presentation itself while on the subway. He realized he had some faulty information and needed to correct it before he handing it out.

Guy: "Just finished editing my Keynote and Pages document" Gets in his office building... "I will just go to desk and print it out" Gets to his office only to be denied by the lack of a print feature....

Sad face. Gets fired for not having a presentation...

----

So if I have a $500 device something like a print feature would be a "no brainer". Especially if you are marketing productivity suites on the device. Even if they allowed the dock connector to plug into a printer via USB and print through there. Even better, wireless networking printing. This is Apple, not HP, not Dell. Apple is supposed to make the best stuff, supposedly. (According to themselves) Make something that actually does something.

zachary k 04/22/2010 3:39 AM
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why use a netbook when you have a keyboardless, locked down, slow, giant ipod the size of a netbook.

frostyfireball 04/22/2010 3:47 AM
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"With the iPad in terms of netbooks — to me it’s a no brainer. It’s sort of 100 to 0."

He's quite confused as to what people need and why people buy netbooks. 100 to 0 in favor of the netbook is more like it.

matt87_50 04/22/2010 3:48 AM
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apple just has no credibility with their "everything we do is perfect in every way and markets we aren't in are stupid, pointless and only populated by the unclean masses who are yet to be enlightened by the Apple way" promotion that every single person who works there seems to have.

its just not believable.

I could sit here and think about how wrong this latest statement is, but I don't have to. I know every word that comes out of an Apple employees mouth is meaningless propaganda.

Its a bit like the boy who cried wolf. maybe one day they actually will make a product that is as awesome as they make it sound. and i'll just disregard it as their normal propaganda. I don't think it really does them any favours.

radguy 04/22/2010 3:52 AM
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Ipad is awesome for 299 anything over 399 and its a ripoff. Netbooks do lots of things way better than ipad most importantly surf internet faster.

Pyroflea 04/22/2010 3:55 AM
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The thing is, if Apple made a Netbook, it'd sell just as well. All their brainswashed (semi-retarded at that) customers will buy anything they release, no matter the quality. Hell, the iPad has absolutely no features that most people would deem "mandatory" and look how quickly they're selling.

the_krasno 04/22/2010 4:00 AM
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coopchennick :
I can think of a few things that netbooks can do and the ipad cant at all...



Like multitasking, having a real keyboard, support for third party apps, having a real OS...

Nik_I 04/22/2010 4:01 AM
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bonezy :
Hmm... I don't know about you Mr. Cook, but I'd rather not be sitting in class and take notes on a touch screen, thanks.


i found it hard enough typing notes, so i just went back to the old-fashioned method: pencil and paper.

totheshed 04/22/2010 4:17 AM
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thedreadfather :
Off the top of my head (and note he didn't say well compared to the iPad):1. Web browsing2. Printing3. Forfeiting IP addresses4. Portability5. USB6. VGA out7. HDMI out8. BluetoothMore?



Flash

guzz46 04/22/2010 4:35 AM
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I love how jobs calls the ipad revolutionary, whats revolutionary about it? its just a big ipod touch.
Sounds like he's insecure about the ipad by constantly putting down netbooks instead of letting their product do the talking.

tayb 04/22/2010 5:00 AM
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Godfail 04/22/2010 5:16 AM
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pojih 04/22/2010 5:17 AM
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Netbook has saved me in college.

1000he -> can take notes well, plus when my desktop died it has been my only source of a computer (can't wait until august!)

Godfail 04/22/2010 5:25 AM
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Godfail 04/22/2010 5:26 AM
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Sraigux 04/22/2010 5:30 AM
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Oops, they forgot to mention the iPad costs more and doesn't do jack shit compared to a netbook.

ptroen 04/22/2010 5:33 AM
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Well what you expect? Apple is scared of their friggin mind as they should be. Netbooks are getting better and better. All apple does is copy PC hardware slap a big Apple logo along with a nice finish and then markup at least 100%. Apple is all about BRAND POWER. And netbooks are getting better we are having dual core netbooks soon as well. And if you upgrade with a modest gpu you can run some neat shader apps so yeah really apple is that the best you can do is play the public opinon polls?

thedreadfather 04/22/2010 5:59 AM
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Godfail :
Actually...a lot of your points are just plain wrong.1. it can browse the web, probably faster than a netbook at that3. a bug...will be fixed4. Portability? Really? It weighs 1.5 pounds and is thinner than a netbook..5. USB. I'm still trying to figure out what it is that people want from USB on an iPad. Either way, it has it via the camera kit, and will work with more than just cameras6. VGA dongle is available.7. No HDMI yet but component dongle is available.8. It has Bluetooth10. Now you're just talking semantics, if the OS is able to get the job done...11. Has word processing, wtf are you trying to pull?12. Has Skype/VoIP - you haven't looked into this much, have you?14. Reads SD cards with the camera kit


Well considering I was addressing the quote "I can’t think of a single thing a netbook does well," and not "iPad vs. netbooks," my post is 100% correct. Would you disagree with me that a decent netbook does all of the listed things well, or are you going to disregard part of my post yet again and skew the argument?

cabose369 04/22/2010 6:37 AM
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Godfail :
Actually...a lot of your points are just plain wrong.1. it can browse the web, probably faster than a netbook at that3. a bug...will be fixed4. Portability? Really? It weighs 1.5 pounds and is thinner than a netbook..5. USB. I'm still trying to figure out what it is that people want from USB on an iPad. Either way, it has it via the camera kit, and will work with more than just cameras6. VGA dongle is available.7. No HDMI yet but component dongle is available.8. It has Bluetooth10. Now you're just talking semantics, if the OS is able to get the job done...11. Has word processing, wtf are you trying to pull?12. Has Skype/VoIP - you haven't looked into this much, have you?14. Reads SD cards with the camera kit



His point was a netbook does all that you listed WITHOUT the need to spend more money on things such as extra dongles, etc. And a netbook is A HELL OF A LOT cheaper than a Ipad with A LOT more space on a netbook. And netbooks run a Dual Core processor in most cases whereas a Ipad runs a single core phone processor.

ms1191 04/22/2010 6:48 AM
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Didn't Apple say the iPad wasn't intended to compete with netbooks anyways?

bonezy 04/22/2010 7:10 AM
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Nik_I :
i found it hard enough typing notes, so i just went back to the old-fashioned method: pencil and paper.



Well, alot of people are like me, and we type faster than we write. Alot faster. Not to mention the advantage of perfect legibility, for the penmanship-challenged, like myself ;)

anamaniac 04/22/2010 7:29 AM
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Macintosh :
Revenues up 49 percent and profits up 90 percent


From a consumer standpoint, that's a downright scary thing to hear. :O
Stop raping customers please.

However, I should have invested in Apple.

sceen311 04/22/2010 7:30 AM
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Godfail 04/22/2010 8:08 AM
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thedreadfather :
Well considering I was addressing the quote "I can’t think of a single thing a netbook does well," and not "iPad vs. netbooks," my post is 100% correct. Would you disagree with me that a decent netbook does all of the listed things well, or are you going to disregard part of my post yet again and skew the argument?



Actually, you're right about that, sorry. The context of the posts surrounding yours made me forget exactly what it was that was said. Again, I apologize.


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