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 Comments (0 ) 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

5-inch Moto G fits your budget...
1:54 September 16, 2014
This budget Android 4.4 delivers on comfort, features, and price.
Play video
LG 55EC9300 OLED TV: the best picture...
2:58 September 16, 2014
With its bright whites and perfect black levels, the LG 55EC9300 lives up to the promise of OLED with the...
Play video
Canon SX60 HS packs all the zoom...
1:28 September 15, 2014
Want to get up close and personal? The SX60 has 65x optical zoom and one of the widest lenses on a camera...
Play video
Tomorrow Daily 051: Microsoft buys...
21:19 September 15, 2014
On today's show, Rich and Ashley discuss a jetpack that helps you run a 4-minute mile, a tiny radio the size...
Play video
On the road: 2015 Chrysler 200...
8:02 September 15, 2014
When the Chrysler 200 first came along, it was a warmed over Sebring and results were tepid. But the new 2015...
Play video
Top 5: Things we value most in...
2:52 September 15, 2014
With so many choices and features in the center head unit, what do we really value? Brian Cooley tells you...
Play video
Check out library books on any...
2:15 September 15, 2014
Many libraries now support e-books. Find out how to check out library books and get them sent directly to...
Play video
Car Tech 101: How to get TV in...
3:15 September 15, 2014
Brian Cooley tells you about emerging technologies that could make watching TV in your car a reality.
Play video