6
This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?
Sorry, you are not old enough to view this content.

Inside Scoop: Inside Scoop: The bottom line on Apple's bottom line

About Video Transcript

Inside Scoop: Inside Scoop: The bottom line on Apple's bottom line

2:01 /

Despite some gloom and doom speculation, Apple's latest earning report surpassed Wall Street expectations as the company announced strong sales of iPhones and iPads. CNET Senior Writer Josh Lowensohn gives us the Inside Scoop on Apple's plan to boost its stock price, and what the company would and would not say about its future products.

-In today's earnings, it was kind of a surprise because Apple actually met expectations. A lot of the times, they've had a blowout, but then kind of more recently, they've missed particularly 'cause analysts kind of upped these estimates. So, this is kind of the first time that Apple has provided something that's a little bit lower and a little bit more conservative. And it actually worked out really well for them. For today's earnings, this is really kind of a show that Apple still is selling a lot of products. They've made all new records for iPhones and all new records for iPads. They're actually surprised on both those numbers which blew some of Wall Street's numbers away. The point really turns out in the future on what Apple is doing next. And Tim Cook today, who's Apple's CEO, really provided this vision that they're not really gonna have anything until fall and have a really good 2014, but that leaves a lot of questions between now and then. There are a lot of questions today about what Apple is doing next. The company was totally [unk] about it. Of course, there are questions about bigger iPhones, new products like a watch or a television. They kind of dodge around that by saying, "We don't have anything to tell you, but we have some really great stuff in the pipeline." It's really been their kind of go-to way of saying, "We can't tell you what's happening." But they seem really bullish about what's coming up next. Of course, when that is, we don't really know. The big news to come out today's earnings is really what they expect for the next quarter which isn't great. Their estimate was pretty far below what analysts were expecting. A big part of that is their margin. That's how much they make on each of their products. That is considerably lower than what people thought it would be. So, that combine with revenue, it's-- they're just not making as much as they used to based on the fact that products are more expensive. Along with the earnings announcement, Apple also announced a repurchase plan that was a little bit higher than what they had before, in fact $55 billion higher, along with the dividend that was 15%. This is really something they can do to potentially raise the stock price, but also make people happy with the stock which has been going down in value.

New releases

What could and should a Zappos brick-and-mortar store look like?
1:57 January 29, 2015
That's what the e-tailer tried to decide over the holidays, when it opened a Las Vegas pop-up store that let shoppers handle items...
Play video
Tomorrow Daily 121: Realistic Unreal Engine 4 demo, a homemade mechanical horse and more
23:06 January 29, 2015
On today's show, we give kudos (and chuckle a bit) at one man's attempt to make a mechanical horse at home, check out a jaw-droppingly...
Play video
The Apple Watch is coming in April
5:11 January 29, 2015
Tim Cook officially confirms it, but will it have enough battery life to last through a day? Apple's Q1 earnings are the best by any...
Play video
How to send Group Messages in Twitter
1:33 January 29, 2015
Learn how to hold private conversations with one or more people on Twitter, and then how to escape them.
Play video
SkyBell's smart buzzer puts outdoor security into focus
2:34 January 29, 2015
It isn't perfect, but this $200 Wi-Fi-enabled video bell will do more to protect your front door.
Play video
Quickly turn off the iPhone flashlight
0:49 January 29, 2015
Donald Bell shows you an alternative, faster way to switch off your iPhone's flashlight feature.
Play video
Fitbit Charge HR folds heart rate into its everyday fitness band
1:46 January 29, 2015
All-day heart rate tracking, and it doesn't cost much more than the old Fitbit Charge. The question is, do you need it?
Play video
This high-concept LED gets high marks
2:00 January 29, 2015
Don't let the hollow look fool you -- Green Creative's BR30 Cloud LED is a solid performer.
Play video