Apple (AAPL) Reports

OK OK - I guess my $6.7B revenue for Apple (AAPL) was out of line considering the company guided $5.7B and earnings of $0.65.

Talk about low balling expectations

Apple just in with whopping $6.22 B in revenue, beating Apple's conservative guidance by half a billion dollars on top line and beating their ridiculously conservative bottom line by $0.36!!!

Analysts were in for $6.02B and $0.86 so even analysts were off; try $1.01. As I stated earlier today, Apple just got a whole lot cheaper in 15 minutes.

For a company of this size year over year growth is astounding. $6.22 vs $4.84 B, 28.5% revenue growth. Profit $904M vs $542M, 67% increase in earnings - wow. Gross margin expansion from 29.2% to 33.6% - wow. Product mix anyone? And this is without the huge margins from iPhone subscription "service" kicking in - thats in the future. International sales now 40% of revenue - that surprised me too - didn't realize it was so high.

Mac computers 2.164M, 34% year over year growth (halo effect)
iPods 17% year over year growth

Guidance - another lowball as we get to Christmas season $9.2B in revenue and $1.42. So we can probably expect near $10B and $1.60-$1.70 if this quarter is any clue. Analysts had $8.6B and $1.39. So that means analysts are going to overshoot what Apple says and push it closer to the numbers I just mentioned.

Right now analysts say $4.59 for 2008 which starts this upcoming quarter, $5.00 is in the bag and will prove to be conservative for 2008 estimates. With gross margin expansion like that and 60% year over year earnings growth - you can throw whatever multiple you want on it; I say Apple $250 next year.

Any subprime dips, any world is slowing dips that clips Apple down to mid $100s - one needs to be buying Apple (AAPL) - they are the game changers in consumer electronics. Period.

Long Apple in fund and in personal account