iPad Sales Dropped in Q3, Apple is Going Bankrupt, End of Western Civilization to Follow

A111104 - PD Permit Final Set.pdfApple released a horrible quarterly report today.

According to the press release, Apple only sold 14.4 million iPads this past quarter. on a slightly better related point, Apple also sold 31 million iPhones,. Both figures are down from last quarter, but the important detail is that iPad sales are down from last year as well.

OMG, I think we could be seeing the beginning of the end of Apple.

Today people have stopped buying iPads, tomorrow they'll stop buying iPhones, and after that they'll stop buying Macbooks. And then the skies will rain blood, Snooki will get a movie deal, dogs and cats will live together, and it will truly be the end of days.

I can only hope that Apple's finances last long enough that they can finish their new HQ. It really is a spaceship and sources tell me that Steve Jobs will return to rescue the faithful and fly the ship to another planet and give us all new Apple products and who wanted to live on a yellow submarine anyway.

A111104 - PD Permit Final Set.pdf

And now that I have finished with satirizing the coverage of this story...

On a more serious note, today's news doesn't mean much of anything. The best way to describe this story is that we might possibly be seeing the beginning of a trend. This quarterly report might be a sign that Apple will no longer be an insanely profitable company.  Instead Apple will be taken down a notch. They will only be an incredibly profitable company.

Apple posted quarterly revenue of $35.3 billion and a quarterly net profit of $6.9 billion. These results compare to revenue of $35 billion and net profit of $8.8 billion for the same quarter last year.

Yep, Apple made a couple billion less in profit.

That is terrible news, I agree, and that goes double when you consider that Apple sold tens of millions of iPads when MS took a $900 million write off on the Surface. Clearly Apple is in the worse shape.

Yes, I am being sarcastic, but I am trying to make a point. This isn't bad news.

Bad was when Apple was in such dire straits that they had to be bailed out by Microsoft. Today is merely a burnt microwave burrito in comparison.

P.S.  Here's a thought. This report might spur Apple into actually releasing an iPad Maxi (like the rumors say). Apple might want to boost their bottom line by adding a new and larger iPad, and hang the damage it does to a partner.

And this same report could spur Apple to release those iPhones with different screens sizes. I didn't believe the rumors, but now?

22 thoughts on “iPad Sales Dropped in Q3, Apple is Going Bankrupt, End of Western Civilization to Follow

  1. Nate, you’re either unperceptive of the obvious signs of Apple’s downward trend, or you have ooddles of shares in Apple. One or other.

    What I know is that this is a really bad sign for Apple. How is Tim Cook going to turn around a huge company like Apple if he can’t even do something simple like selling iPads. Cook’s underprepared for filling Jobs shoes, and it’s going to be a downward spiral until someone can actually harness the workforce at Apple well, like Steve did.

    1. Don’t worry. Steve will come back and fix everything.

      Steve Jobs didn’t die; that was merely a cover story for what really happened. Jobs was a beta tester for Apple Maps (it was Case’s idea), and as soon as Apple figures out where Jobs is they’ll go get him and he’ll make things better.

          1. Well, it wasn’t satirical. Signs from Apple’s performance over the past year should alarm anyone who follows tech news.

            They haven’t offered any significantly differentiated products since Jobs death, and sales are dropping.

            You, Nate, say there is nothing to worry? Really?

            So again, either you are ignorant of tell-tale signs of a downward spiraling business, or you have oodles of shares of Apple stock. One or the other.

          2. Apple was a pleasantly profitable business before the iPad. Should that market vanish Apple will go back to being a pleasantly profitable business. The Macbook sales won’t be going away, and that segment was enough to fund the development of the original iPhone and iPad. It will be enough to sustain Apple while they look for another breakout product.

            TBH I am not sure Apple will wait for another product. I think it is more likely that Apple, in a desperate and ill-advised move to boost the bottom line, will launch more iPads (like the iPad Maxi) and more iPhones with new screen sizes and price points. That will dilute what Apple special, IMO.

          3. Do you know what? I’m ging to turn this around on you.

            “They haven’t offered any significantly differentiated products since Jobs death, and sales are dropping.”

            Please justify your assumption that Apple needs a significantly differentiated product.

    1. You’re talking out of both sides of your mouth.

      On one hand, you’re saying everything’s hunky dory as long as Apple has the MacBook.

      On the other you’re saying they’re going to do something foolish like further fragment their iPad with the iPad Maxi, and it looks bad for them.

      Can you give a consistent assessment on Apple’s present state?

  2. It wouldn’t hurt to have a significantly differentiated product. It’s been almost 2 years, and Cook hasn’t demonstrated that he can push Apple forward. Offering an iPad Mini with lackluster sales and botching iOS 7 are just signs of a company trying to use gimmicks to keeps their shares up.

    I would sell your shares while you still have time. It’s only getting worse for Apple unfortunately (and I’m an Apple fanatic).

  3. How many times has Apples’ death rattle been forewarned right before they launch something revolutionary? Competitors, who are continually playing catch up, are getting more efficient at it. Apple will have to shorten their game-changers development timeline. If they don’t deliver something that makes my eyes pop out in 2014 I may start to worry, but not before (and I’m not an Apple fanatic).

  4. Considering that every computer company registered a decline this year, and Apple still had massive profits, what’s the fuss about?

    As pointed out earlier, they haven’t had to write off $900 million of tablets.

  5. I made the mistakes of reading some of these comments and I could comment that people are foolish and drawing the wrong conclusions. But here I am posting a comment. Basically I’m right, you’re wrong, company is doing fine, I hold shares.

  6. It is indeed the end of the world when your profit margin is still in BILLIONS! I’m all for wall street punks to dump Apple stocks. DO IT!

  7. A couple things:

    First, does ANYONE else see the badness in calling it the “iPad Maxi?” Here, let me turn that around for you so it’s more obvious: Maxi iPad. Yeah, bad plan.

    Secondly, I do think that this is slightly more than “no big deal,” but I don’t think it has anything to do with Apple’s failure to deliver new and exciting products. Apple hasn’t launched a “new and exciting” product in a lot of years. When Steve Jobs was alive, they were significantly LESS differentiated, in fact.

    The difference between then and now is that Jobs (and his regime–it wasn’t all him) were masters of advertising. They turned Apple’s non-changing, iterative ways into a bonus rather than a point of boredom. I think it’s that reality distorting bubble of awesome that has kind of popped for Apple.

    Does that mean they’re going to spiral into bankruptcy and ultimately fail? Probably not, but they HAVE done it before. Were it not for MS and the iPod, we wouldn’t have Apple around today–or at least, we wouldn’t have them around as an independent company. I think it more likely that Apple will go back to being more of a niche market. They won’t sell in the same volumes that they enjoy now, but they’re still going to make money.

  8. I know I am late to the discussion, but …

    I think that this is bad news for Microsoft. This might mean that the tablet market is saturated at this moment, so there will be even less takers for their failed Windows RT tablets.

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