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FelineTech

macrumors member
Aug 24, 2012
44
134
Florida West Coast
If you're making, say $1b a year in profit year over year, that's awesome. But in business culture that's considered failure. Regardless of "how you pick stocks", growth should not be the only metric the defines success.

And infinite growth is definitely unsustainable.

Of course, it's unsustainable. The point is that the stock market is based upon a price of Outstanding Shares * Earnings for each share. If your growth is slowing, people will want to pay less because they don't see your earnings growing as rapidly.

The stock market (or Wall Street) isn't saying that "Apple's going out of business" or that "Apple is a poorly run company". All they are saying is that the growth is slowing and that doesn't justify the same multiple on earnings. Hence the stock price appreciation will suffer.

If you want predictability, go buy a CD from a bank.... The stock market is another thing entirely.
 

SMIDG3T

Suspended
Apr 29, 2012
3,859
2,316
England
Considering Apple only offer four main products: iPhone, iPad, Mac and Watch that's absurdly good. Other companies can't even dream of earning as much yet they offer so much more.

I can tell you, ANY company would gladly swap with Apple right now.
 

C DM

macrumors Sandy Bridge
Oct 17, 2011
51,392
19,459
Which reality? iPhone sales are down, iPad sales are down. The only numbers that went up are services. AAPL will not bet at $120 in 2 weeks.
Remember, a lot of is about expectations and whether or not they are met or exceeded or not. (Also, iPad revenue seems to be up actually: https://www.macrumors.com/2016/07/26/ipad-revenue-growth-q3-2016/).
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Does anyone really care unless they work for Apple or are an Apple investor.
Seems like plenty of people care (look at the ones that are just here).
 

Breaking Good

macrumors 65816
Sep 28, 2012
1,449
1,225
I don't follow this very closely but it seems to me the Mac slice of that pie is larger than it has been in recent periods. Am I imagining that?

Only because overall iPhone sales fell relative to Mac sales.

Mac sales didn't increase. The number of iPhones sold dropped. So Macs make up a larger piece of the pie.
 

djcerla

macrumors 68020
Apr 23, 2015
2,311
11,993
Italy
Which reality? iPhone sales are down, iPad sales are down. The only numbers that went up are services. AAPL will not bet at $120 in 2 weeks.

Down much less than expected, with iPad revenue unexpectedly much higher, services booming and a MUCH HEALTHIER product mix.

Apple P/E has been artificially compressed to a ridiculous level by narratives that have been wiped out by this report, and that's why AAPL will slowly continue rising in the next days (add to this the upcoming, massive short covering).
 

Breaking Good

macrumors 65816
Sep 28, 2012
1,449
1,225
Modern business culture is insane. "If you're not improving quarter over quarter, you're failing."

Shareholders aren't satisfied by just making money; they're only satisfied by making more money every quarter. It's a depressing and unsustainable position.

The primary determining factor of stock value is the expected future earnings of the company. If investors are expecting earnings to fall, the stock price decreases.

As a company, I think Apple will be fine for quite a few years. I expect they will be turning out quality products for quite some time. However their days of record breaking growth are probably behind them now.
 
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henryngan2006

macrumors member
Jun 6, 2014
35
50
"Cook says Apple has incredible products in the pipeline and is very bullish about the company's future."

Indeed incredible, what they do....no headphone jack, drop the 64GB...this fall will be awesome! Probably finally a protruding camera in the iPad Pro, and because people liked it, an even bigger camera bump in the iPhone 7.
Incredible new macs, now only 600 extra for 1 TB SSD...
and an incredible old Mac Pro...

LOL The iPad Pro already has a protruding camera
 

MacLC

macrumors 6502
Oct 18, 2013
414
272
Waited to the end to post, hoping my fears would be wrong but alas. Mac sales are now 12% (with Mac-related ITMS sales probably 15-20%) and falling every year. Justification by many here for lack of focus on Mac is the declining importance of Mac. Here is an alternative view.

If Apple focused more on Macs Apple could be leading a new PC revival. But justifying the lack of hardware updates on lack of sales only sends Mac into a downward spiral. It is not just Intel's slow chip updates. Apple is years behind Intel. It is also a lack of upgradability, lack of connectivity (ports), lack of new features (touch screen/2-in-1), 1080P screen on a $1000 laptop, slow/small drives, etc.

Apple needs to be a year ahead of the competition with features, not a year behind. Where is the innovation? It only seems to exist from Tim Cook's words, not in actual products.
 

Lesser Evets

macrumors 68040
Jan 7, 2006
3,527
1,294
Imagine if they kept Macs up to date?

Imagine that... the Macs are old and cruddy and they still make 1/8th (nearly) of Apple's revenue. 12% of a company's revenue is HUGE. That's not small potatoes when you deal with a company as huge as Apple!!

If all Mac--ALL MACS--were kept up to date ASAP according to processor releases, the Macs might be making them 17 or 20% revenue. The mini, the monitor, the Pro: completely passed over again and again. Who is running this crazy train, off the rails and dancing on Ellen? Is there anyone that can put the glasses back on the walleyed leadership?

Steve Jobs told us they would fade back to desktops after developing the iPhone/iPad tech. I think he said around 2012 or so. That guy was right! The iDevice edge is essential, but you aren't going to make the hardware impress anyone, anymore. It's going to have the same, basic stuff again and again, and the remainder of additions are now novelties. (Software is a different issue) They will add a better battery (incrementally), they will add a better camera (incrementally), they will add better memory (incrementally), and so on and on; it's not going to change into something so amazing that it will rake in a new consumer base, and Samsung will probably beat Apple to any punch they are pulling back in their typically cumbersome style. The desktops and their software are the way to go, the services are fairly important, and the software for iDevices is essential (especially Siri, which should be far more advanced already).

OK, there is nothing in a desktop that will be earth shattering either, but it is nice to spend some time every year to refresh and mildly re-engineer the line. There is a gigantic market that will always need powerful desktops (not gamers) for the next decade. Someone inside needs to be a visionary ballbuster and berater, which is how Jobs got stuff done in order to meet markets and move forward.
 

Benjamin Frost

Suspended
May 9, 2015
2,405
5,001
London, England
Market is up 7% after hours, but I don't think it'll hold.

Revenue decrease is accelerating: 15% down compared to 13% the quarter before. Net income is down 27%, horrendous. iPhone asp is down to $595 from $641, clearly on strong SE sales.

I expect next quarter to continue the trend of accelerating revenue decline. The January quarter I expect to be very ugly if the iPhone 7 rumours are to be believed. Cook should go.
 
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inkswamp

macrumors 68030
Jan 26, 2003
2,953
1,278
Imagine if they kept Macs up to date?

Imagine that... the Macs are old and cruddy and they still make 1/8th (nearly) of Apple's revenue. 12% of a company's revenue is HUGE. That's not small potatoes when you deal with a company as huge as Apple!!

Could not agree more with this.

I'm a long-time Mac user and the iMac I purchased back in 2008 died last year. I haven't bought a replacement and have no plans to do so because the entire Mac line-up right now simply blows chunks. I can't believe how utterly underpowered the low-end machines are (for no reason--the price certainly doesn't reflect it) or mind-blowingly overpriced. Apple has always sustained complaints that they were 1-2 years behind in terms of tech in their computers but it's always been justifiable as the OS was optimized to work with the hardware in ways that more than made up for it, but I'd say at this point, it's gone well beyond that. I refuse to waste my money on a new one until they update it to something worth the money or bring the prices down to something a little more reasonable and reflective of what you're getting.

I mean, $500 for a 1.4 Ghz Mini with 4GB of RAM in 2016? That is an embarrassment.
 

SBlue1

macrumors 68000
Oct 17, 2008
1,951
2,452
Maestri: We faced a very difficult quarter with Macs

Don't you say! Really?? What is Ive doing all year long???! Where are those enormous R&D $$ going to???
 

Bubba Satori

Suspended
Feb 15, 2008
4,726
3,756
B'ham
Stock up almost $7 in after hours trading.
Gotta give Tim credit for managing and then exceeding lowered expectations.
 
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