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

Most anticipated games for Holiday...
3:03 October 31, 2014
The most sought after new titles that gamers want for the holidays.
Play video
RHA T10i: Stainless steel headphones...
2:04 October 31, 2014
The $200 RHA T10i is a great sounding in-ear headphone that's well-built and has some nice extras, including...
Play video
The XYZPrinting da Vinci 1.0 AiO...
3:00 October 31, 2014
CNET editor Dong Ngo demonstrates how well the XYZPrinting da Vinci 1.0 AiO 3D printer can replicate a 3D...
Play video
Verizon-exclusive Sony Experia...
2:35 October 31, 2014
If you've been craving Sony's Xperia Z3, this sleek alternative comes close but is a little different: it...
Play video
Amazon Fire Phone burns on
2:54 October 31, 2014
Amazon hasn't given up on the Fire Phone, Facebook makes it easy to mask your identity with Tor, and the Starbucks...
Play video
The 404 Show 1,574: Halloween episode,...
26:08 October 31, 2014
It's an ultra-creepy episode of The 404 today -- way creepier than normal. Will Seth Rogen play Steve Wozniak?...
Play video
Skylink's boring security system...
2:37 October 31, 2014
This low-cost, DIY smart setup offers basic security without monthly fees
Play video
Everything you need to know about...
2:05 October 31, 2014
Google's Android Wear software is cropping up on a host of smartwatches. But what exactly is Android Wear...
Play video