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

Swap your iOS 8 keyboard for these...
0:59 September 19, 2014
With iOS 8, you can use a different keyboard than the default. Check out these third-party alternatives.
Play video
2015 Dodge Challenger R/T Scat...
5:50 September 19, 2014
The 2015 Dodge Challenger R/T Scat Pack has the muscle car power (and fuel economy) to back up its nostalgic...
Play video
Compact, budget Samsung Galaxy...
2:01 September 19, 2014
This wallet-friendly Android phone fits nicely in the hand, but has a few drawbacks you'll want to know about...
Play video
Line up for an iPhone 6, get a...
2:11 September 19, 2014
Why do people wait in line for days at Apple stores for the latest iPhones when they could preorder online?...
Play video
3D Pocketcopter crowdfunding soars...
5:13 September 19, 2014
This week on Crave it's your last chance to order a Pocketcopter that doesn't exist, run for your lives from...
Play video
The Blendtec Designer 725 is too...
2:33 September 19, 2014
A significant design flaw keeps us from recommending this high-end appliance
Play video
Genius hacker Walter O'Brien tells...
3:11 September 19, 2014
When Scorpion makes its debut on Monday night, it will bring hacking and computer security to prime time like...
Play video
The hidden features inside iOS...
2:04 September 19, 2014
Brian Tong shows you the features inside of iOS 8 that you might not know about.
Play video