Apple Predicted to Report Record-Breaking First Quarter on Strength of iPhone 6 and 6 Plus

[MacRumors]

Apple is set to report its financial results this afternoon for Q1 2015, a three-month period spanning October through December that directly followed the launch of the highly-anticipated iPhone 6 and iPhone 6 Plus. Despite offering guidance of between $63.5 to $66.5 billion in total sales, many analysts are predicting that Apple outpaced those numbers in what could amount to a record-breaking quarter.

Fortune has averaged the estimates of 35 analysts, including 20 professionals and 15 amateurs, and determined that expectations are for Apple to report earnings of $2.68 per share, a nearly 30% year-over-year increase, and revenue of $68.7 billion, about a 20% increase from the year-ago quarter and $2.2 billion higher than Apple's high-end forecast.

The first quarter has historically been the most lucrative for Apple, as the company typically launches new or refreshed products in the fall ahead of the busy holiday shopping season. Apple has posted record-breaking first quarter earnings results for over a decade, a span in which it announced several iconic products such as the iPod, iPhone, iPad, MacBook Pro and MacBook Air.

Analysts believe that Q1 2015 will be a home run for Apple on the strength of the iPhone 6 and iPhone 6 Plus. The larger screen sizes of the new smartphones were a major draw for many existing iPhone users looking to upgrade, and enough of a reason for some Android users to make the switch. Apple also launched a few other noteworthy products in the quarter, including the iMac with Retina 5K Display and new iPads.

MacRumors will be providing live coverage of Apple's financial results as they are reported around 1:30 PM PT (4:30 PM ET), including the subsequent earnings conference call with CEO Tim Cook and CFO Luca Maestri at 2 PM PT (5 PM ET). At that time, we'll have a clearer picture of just how well Apple managed to perform in the quarter.

Article Link: Apple Predicted to Report Record-Breaking First Quarter on Strength of iPhone 6 and 6 Plus

 

[nav92]

Not surprised.

 

[ghostface147]

The sky is falling!

 

[MacVista]

The large screen is the last remaining trick from the bag of Steve Job's legacy.
Next iPhone will be just another smartphone in the marketplace.

 

[realeric]

$750 is my contribution.

 

[icanhazapple]

Wow, Macs are only 6% of sales? Scary with respect to the iOS'ification of the desktop, it's definitely coming at this point.

Honestly, the only thing holding me back to switching 100% to Windows (I'm about 75% in Windows now, 15% in OS X, and 10% on Linux, well, command line running in Linux) is seeing what the new Photos app in OS X will be. I'm too lazy to learn how to use that one really sophisticated (yet very functional) Flickr plugin for Adobe Lightroom, and I like the idea of having a full-res backup of all my photos in the cloud. Beyond that, maybe Tweetbot, but insane focus on ease-of-use functionality in OS X has really turned me off. If Windows 10 were to gain bootable ReFS volumes, I would 100% switch.

I still am running Windows 8.1 on a 13 inch 2013 MBP though; apple still makes the best physical hardware for x86.

 

[Klae17]

The large screen is the last trick from the bag of Steve Job's legacy.
Next iPhone will be just another smartphone in the marketplace.

Can we quote you on that when the 6S and 6S+ outsells every other phone (again) and past iPhone records?

 

[gnasher729]

The large screen is the last trick from the bag of Steve Job's legacy.
Next iPhone will be just another smartphone in the marketplace.

You mean Apple is doomed? Like last year? And the year before? And the year before that?

Whatever you think of "Steve Job's legacy" which seems to mean that Tim Cook and his little helpers can't think for themselves, a _large phone screen_ was not in his bag.

Wow, Macs are only 6% of sales? Scary with respect to the iOS'ification of the desktop, it's definitely coming at this point.

6 percent of unit sales, I'd guess 10 to 12 percent of revenue.

 

[icanhazapple]

Look, you want an acid test for how good Cook is going to be? Look at the attention to detail with respect to UI elements if there is in fact a stylus on this new convertible device and how well it fits into the rest of the iOS functionality. That will be 100% something that Steve would make sure is executed not just successfully, but _best in the marketplace_

 

[Rogifan]

Stock market way down today. Microsoft down 10% at one point due to weak guidance. Intel down 5%. Market looking for Apple to be a bright spot today.

 

[MacVista]

Can we quote you on that when the 6S and 6S+ outsells every other phone (again) and past iPhone records?

Next iPhone will sell very well, like Samsung smartphones.
Gradually the fad will pass simply because there is no extraordinary (or even plain ordinary) leadership at Apple.

 

[OllyW]

Wow, Macs are only 6% of sales? Scary with respect to the iOS'ification of the desktop, it's definitely coming at this point.

Mac sales are still climbing while iPad sales are in decline so it doesn't look like iOS is going to take over the desktop.

 

[MacVista]

You mean Apple is doomed? Like last year? And the year before? And the year before that?

Whatever you think of "Steve Job's legacy" which seems to mean that Tim Cook and his little helpers can't think for themselves, a _large phone screen_ was not in his bag.

What I am saying is that a large screen is the only thing left to do to an iPhone that has not evolved for 3 years.
The competitive edge is gone, and soon the iPhone will be left to fend for itself. I don't expect anything more from Cook/Ives.

 

[blackcrayon]

Next iPhone will sell very well, like Samsung smartphones.
Gradually the fad will pass simply because there is no extraordinary (or even plain ordinary) leadership at Apple.

Have a specific timeline in mind Nostradamus? I mean, you could make any open ended prediction which will eventually come true. Like someone in 2003 predicting the iPod would stop being Apple's most popular product "someday".

 

[69650]

What I am saying is that a large screen is the only thing left to do to an iPhone that has not evolved for 3 years.
The competitive edge is gone, and soon the iPhone will be left to fend for itself. I don't expect anything more from Cook/Ives.

They're obviously doing something right as iPhone sales are still soaring year after year. They don't need to evolve all that much, all they need to do is make each generation as desirable as the last so that customers on 2 year contracts continue to upgrade every other year.

Apple's USP is not the hardware, it's the software with an easy to use UI and integrated App/iTunes Store making it simple to purchase everything from songs to apps to books to games.

 

[MacVista]

Have a specific timeline in mind Nostradamus? I mean, you could make any open ended prediction which will eventually come true. Like someone in 2003 predicting the iPod would stop being Apple's most popular product "someday".

LOL.
I base my predictions on the following:
1) Soldered RAM - to cause premature obsolescence to keep sales from declining.
2) GUI that is out of control - attention to detail and perfection is gone
3) Bad releases - buggy updates and constant upgrades that bring limited value but destroy perfect things that should have been left alone.
4) Neglected base - 2015 MacMini that is slower than it was 3 years ago. Showcase software (Aperture and Final Cut) abandoned. A Mac Pro impractical format for real business. Server grade hardware and software nonexistent.
5) Stupid acquisitions - Beats, over-the-top new campuses - Spending their inheritance

 

[Zelmung]

What I am saying is that a large screen is the only thing left to do to an iPhone that has not evolved for 3 years.
The competitive edge is gone, and soon the iPhone will be left to fend for itself. I don't expect anything more from Cook/Ives.

Camera Upgrade? VR? HomeKit + TouchID integration? Ocular tracking? Inductive Charging? Improved AI? Gaming hardware support? OS synthesis?

Just because your design vision is limited does not mean there isn't any more competitive opportunities for the iPhone.

 

[AlecZ]

5) Stupid acquisitions - Beats, over-the-top new campuses - Spending their inheritance

I'm surprised you complained about this but not about the stock buyback. Apple makes more money than they know how to use.

----------

Stock market way down today. Microsoft down 10% at one point due to weak guidance. Intel down 5%. Market looking for Apple to be a bright spot today.

Hey, at least oil is up
I didn't see MSFT until I read this. Wow. Down over 9% at the moment.

 

[OriginalMacRat]

Wow, Macs are only 6% of sales? Scary with respect to the iOS'ification of the desktop, it's definitely coming at this point.

Keep in mind that Apple is still selling more Macs than ever before.

Certainly not a trivial amount that most people assume when they see this percentage compared to iOS sales.

 

[AlecZ]

Glad to see iPad sales are slipping while Mac sales increase.

 

[blackcrayon]

Apple's USP is not the hardware, it's the software with an easy to use UI and integrated App/iTunes Store making it simple to purchase everything from songs to apps to books to games.

I agree with you in spirit, but I actually think Apple has some pretty nice hardware too. Their custom SoC's, which they don't *have* to make, have tended to raise the bar for the rest of the industry almost every year since the A5.

LOL.
I base my predictions on the following:
1) Soldered RAM - to cause premature obsolescence to keep sales from declining.
2) GUI that is out of control - attention to detail and perfection is gone
3) Bad releases - buggy updates and constant upgrades that bring limited value but destroy perfect things that should have been left alone.
4) Neglected base - 2015 MacMini that is slower than it was 3 years ago. Showcase software (Aperture and Final Cut) abandoned. A Mac Pro impractical format for real business. Server grade hardware and software nonexistent.
5) Stupid acquisitions - Beats, over-the-top new campuses - Spending their inheritance

1) I thought we were talking about the iPhone? But Apple isn't the only one doing soldered RAM in the types of machines Apple is (ultra thin laptops for example). All you have to do anyway is buy the maximum amount. But it costs more? Well Apple has never had a problem charging more and it seems more people, not less, are willing to pay as time goes on...
2) Personal preference. I'll bet you'll find the vast majority of people aren't that concerned with "skeumorphism" or "flat ui" and sit in front of their computer with a magnifying glass.
3) I'll give you that, they had some buggy releases recently... Not sure how that's any different from the Jobs era, though.
4) The 2015 Mac Mini has a slower cpu, but much faster I/O. heh, it actually makes a *better* little server in a lot of ways just because of that. Where was Final Cut abandoned? And why is the Mac Pro "impractical" for "real business"? You have to be more specific than that or it's meaningless.
5) "Spending their inheritance" are you implying they're burning through their cash? Because the total amount keeps increasing every year. They're incredibly thrifty with their money it seems except when it comes to securing huge supplies of "stuff" for their products (ram, displays, etc).

 

[Mattsasa]

There is an 18% decline in iPad revenue

There is an 18% decline in iPad revenue

Does anyone know or know where to look to find the tablet market sales/revenue as a whole, for this quarter in comparison to last years quarter?? I would be really curious.

My best guess is the tablet market as a whole has dropped some this year, but maybe not as much as iPads have dropped

 

[thekeyring]

What I am saying is that a large screen is the only thing left to do to an iPhone that has not evolved for 3 years.
The competitive edge is gone, and soon the iPhone will be left to fend for itself. I don't expect anything more from Cook/Ives.

Okay, I'll bite. You think the phone has not evolved for 3 years?

Since the 4S to the 6, you think it's the same phone? The iPhone 5 was when it started to go wrong?

Read this:
http://www.theguardian.com/technology/2013/apr/02/apple-designed-iphone-5-before-death-steve-jobs

On a more general topic, if you think the transition from Steve to Tim happened in one year or less, you are mistaken.

This article from 2009 shows Tim Cook taking over more and more of Steve's responsibilities:
http://arstechnica.com/apple/2009/06/report-coo-tim-cook-to-take-on-more-responsibility-at-apple/

Steve Jobs on whether Apple can survive without him: http://archive.fortune.com/galleries/2008/fortune/0803/gallery.jobsqna.fortune/5.html


... and lastly the SVP of Design at Apple is Jony Ive. Not Ives.

 

[SoAnyway]

Good luck to other fellow investors with today's ER. Here's hoping to Christmas in January.


Full disclosure: I am currently holding a long position in AAPL.

 

[vvswarup]

What I am saying is that a large screen is the only thing left to do to an iPhone that has not evolved for 3 years.
The competitive edge is gone, and soon the iPhone will be left to fend for itself. I don't expect anything more from Cook/Ives.

What do you mean by "fend for itself?" What quantum leaps do you expect from the competition?