Apple’s 3Q FY13 Review (Padcast)

Preview 3Q-13 screenshot

Using interactive graphics and narration, this latest Apple Earnings Review discusses Apple’s performance in relation of its historic performance as well as to expectations (published in the Preview) on the following topics:

  1. Guidance vs Actual performance: Now that Apple changed the way it provides guidance, are we seeing a new degree of precision in their signaling. We look at the history of earnings guidance and how effective (or not) the current method is in helping predict performance.
  2. Gross and Operating Margins analysis: What is the pattern of margins and how important are margins to the perception of competitiveness?
  3. Margins by product. How are margins allocated by product?
  4. Average selling prices for each product. Any surprises in Pricing? What was the magnitude, cause and significance of iPhone ASP drop.
  5. iOS product shipments. Comparison with expectations, trends and explanations. Overall iOS growth story.
  6. Cash balance and the effect on cash of share re-purchase.
  7. Sales growth and Earnings growth, a long term retrospective.

Duration is about 1hr.

As a reminder, the Padcast can be reviewed interactively users can access to the underlying data.

It’s available for download on the iPad for $19.99. Those who already bought the Preview will be receiving an updated version soon that includes the Review at no extra charge.

  • Steve

    I’d be a buyer at $5, maybe even $10, but $20 is a bit steep. As Apple would say, drop the price and go for volume!

    • VKP

      Indeed. Is this going to be way forward at Asymco?

      • Brant Arthur

        Indeed! This is a premium product for premium consumers. Pony up!

      • The Silver Fox

        You’re right, $20 for a 1 hour presentation from Horace is excellent value. Having said that I hope he continues to publish free stuff on Asymco as well as the paid premium material.

      • Steve

        I suppose the problem is one of market expectations. As Horace as typically provided his insights at no direct cost to us, he has conditioned us to think it’s ‘free’. To jump from $0 to $20 is a big leap to make for the price-conditioned consumer.

      • Farshad Nayeri

        I don’t think even Horace knows what the “way forward for Asymco will be”. If by that you mean trying new, novel ways to “learn by teaching” then I would guess yes.

    • Farshad Nayeri

      @Steve Exactly where does Apple say that?

      • BaltimoreDave

        OS X pricing is one example where apple has done just that

      • Farshad Nayeri

        @BaltimoreDave that’s because you’ve already bought a $1000+ “dongle” called a Mac. And OSX is a broad-based product for millions of people made by the top tech company in the world.

        You could use Final Cut Pro as an example. It certainly was a lot cheaper than an Avid. But it still cost a pretty penny.

        As a comparison, with these analysis Padcasts you get to step “inside the analyst’s mind” for a price a lot less than a consultation with a Wall Street shop.

      • Steve

        It is their advice to the publishers on book pricing

    • mieswall

      I guess Horace was testing the supply/demand curve. It would be nice to know the results. 🙂

  • obarthelemy

    Oh well, not available for Android, and too expensive anyway. I guess that’s one way to control the discourse.

    • Your comment merely affirms the notion that Android users are cheap. This does not help. Also, Padcasts would likely be poorly suited for a phone, even the Galaxy Mega. (See how I just assume that Android tablets don’t exist? This doesn’t really help either.)

      Now to pricing — there are many different models to follow. Here are three:

      • Do you have a platform with network effects? Make it free and available everywhere.
      • Do you have a game with cheap in-app currency that can amass $50 from an unsavvy user? Make it free or 99¢.
      • Do you have a product that appeals to a very small niche of consumers and professionals who place more value on time and quality than money? Charge a high price and focus on one platform that can give a consistent experience.


      • obarthelemy

        I’m hoping Padcasts have a built-in comment system, because if not, judging by the 0 “on-topic” comments, readership is nil.

      • Readership ≠ comments.

      • obarthelemy

        Oh ! thank you ! I didn’t know that !

        I also had no clue the two are not correlated at all !