Apple alerts SEC about iPhone sales

An SEC Form 8K alerting the commission that those 9 million sales represents a material change in the company’s prospects for its fiscal fourth quarter, which ends Saturday. “Apple expects total company revenue for the fourth fiscal quarter to be near the high end of the previously provided range of $34 billion to $37 billion,” the company wrote, “and expects gross margin to be near the high end of the previously provided range of 36% to 37%.”

Sales are so over-the-top great, the company has to tell the SEC.

  • Scott Falkner


  • So much fun, not even funny!

  • artman1033

    IMHO: SOLD is not the same as ACTIVATED.

    If Apple had said, We have sold more than 9 million and activated 7 million, that would have been more impressive.

    Last year, there was only one new iPhone.

    This year, there were 2, + lots of new SKUs. There has to be lots of new channel inventory.

    Last year, the new products were introduced in fewer markets, NO China!

    The numbers are great, but must be kept in context.

    If you have 95 different SKUs, how many would be channel inventory

    • kevbot

      For Apple, sold usually means in customer’s hand. So sold=activated.

      • artman1033

        SOLD ALWAYS includes “channel inventory”. That includes the 5c. There is a lot of 5c in channel inventory. They are sitting on carrier shelves and have not been sold/activated to the final customer. ALL of the 5s are sold/activated but not the 5c.

        • tylernol

          nope. Apple runs very conservative accounting , it counts devices as sold only when they are in customer’s hands. channel inventory is not counted. As for Samsung,etc, they do count inventory in their sales numbers and can “channel stuff”.

          • artman1033

            You are wrong.

            Apple records a sale when it sells to a consumer AND when it ships to a carrier or a distributor like BBY. If the carrier or a distributor like BBY, has not yet SOLD it to a consumer; it is in the CHANNEL INVENTORY.

            Channel inventory is mentioned in almost every AAPL earnings call transcript where an analyst asks OPPIE why they did not sell as many iPads or iPhones as predicted by analysts. OPPIE MENTIONS WHEN THE CHANNEL INVENTORY IS UP OR DOWN ON A PRODUCT. It is part of GAAP accounting.

            PLEASE CONSIDER an email to Apple IR to get the REAL answer.

    • jacksonsquire

      Apple only ever reports sales, not shipped. They report sales when someone forks over money in one shape or form in return for product. The SEC Is only interested in revenue. You don’t earn revenue unless the product is sold.

    • BC2009

      Sold is not the same as activated?????


      Do you think folks are buying these iPhones but not activating them? Do you think there is ANY channel inventory available right now?

      Samsung announced 10M GS4 units shipped in 30 days to like 68 countries. Most of those were sitting on the shelf at retailers. Apple is all sold out with lines out the door and they have ship times extended to October.

      • weyhan

        Well, you know, there are Apple customers like iFixit. 😛

    • You clearly do not know how Apple does things. This is not samsung or HTC, Apple reports ACTUAL sales, not shipments!

    • Scott Falkner

      Who gives a shit about activations? A sale’s a sale, whether it’s to me, iFixIt, or Will It Blend. Activations are an issue for the carriers, not Apple.

  • BC2009

    The sad thing here is that this announcement did not push AAPL over $500. All estimates had Apple selling 5M to 8M iPhones. Apple beats that and sells over 9M and the market fails to correct and realize the analysts are all wrong (despite the analysts making a living out of being wrong).

    If the market keeps this up, then Apple will have cash assets equal to their market cap in less than 7 years. At $37B revenue and 37% profit margin, then Apple is looking at $13.7B in profit for the quarter. That means they experienced growth over their amazing fiscal 2012 and did over $42B in profit in fiscal 2013.

    Assuming a slight decline (no growth), @ $40B in profit per year x 7 years = $280B in profit.

    Apple’s cash coffers = $160B (after this quarter)

    Apple’s cash in 7 years = $160B + $280B = $440B

    Apple’s market cap today: $440B

    How many companies are valued in a way that the market believes that their value will be less-than or equal-to their cash assets in 7 years?

    Probably none. Take into account that Apple is a market leader in growing segments of tablets and smartphones and has demonstrated growth for the last decade and you gotta wonder which companies Wall Street is putting their money into.

    • They are +$21 so far today with a few hours left to go.

  • So they underestimated the total number of sales, but overestimated the ratio to which the 5c would sell. I’m guessing the 5c ratio will improve over time since most people enthusiastic enough to buy an iPhone on launch day will probably want the better one regardless of the small price difference.

    • g

      Sounds about right. However, I would be surprised if they underestimated sales. I think they knew they would be woefully short of the 5s… and really pushed the 5c as they can produce them faster.

  • Scott

    Maybe this is confirmation that Munster’s story is bogus. If apple changed the way they’re reporting iPhone sales, I suspect they would have to disclose the change to the SEC (and to the public). Otherwise the announced iphone sales numbers are very misleading to investors.