App Store Hits New Single-Day Revenue Record on New Year's Day With Customers Spending $322 Million

[Baymowe335]

But that is exactly the problem, is not it? Cook created an impression that business in China was doing great by emphasizing the positives which, while real, are insignificant considering that the lion share of Apple profits comes from iPhone. And as far as replacing iPhone revenues goes... It might happen but as they say: "Past performance is not indicative of future results". I am not aware of any compelling Apple services. As I understand the service that brings the most profits is the fee that Google pays Apple for using Google search.

The positives were there. I asked you to post the quote and the date. Until you do, your point is nonsense as China WAS performing well as over 90 days ago. I guess you don't understand that things actually do move quickly when economies start sputtering. China is having real problems, bigger than just Apple.

You might not be aware of them, but Apple is going to put up $45B in services revenue this year. Go research them. It's not all Google search...and that money spends too, btw.

 

[falainber]

"Our business in China was very strong last quarter," said Chief Executive Officer Tim Cook, who said he was pleased with the 16 percent gain and singled out growth in iPhone sales."

So it was for earlier quarter not for this.

Why old models doesn't belong to ecosystem? what nonsense is that? If only new devices are worth for ecosystem Android ecosystem just became niche too.

Those old models print money for Apple just like the new ones

I look at the ecosystem from the customer (not company) perspective. If you go to newegg.com they are offering 144 Android phones (directly from newegg and not counting third party sales) from 17 manufacturers. Some of these models may differ just in size but the total number still dwarfs that for iOS.
[doublepost=1546551563][/doublepost]

The positives were there. I asked you to post the quote and the date. Until you do, your point is nonsense as China WAS performing well as over 90 days ago. I guess you don't understand that things actually do move quickly when economies start sputtering. China is having real problems, bigger than just Apple.

You might not be aware of them, but Apple is going to put up $45B in services revenue this year. Go research them. It's not all Google search...and that money spends too, btw.

So China was performing well 90 days ago but stopped 89 days ago? That's not my issue, that's what many commentators were saying today. He misled the investors. As to more specific quotes, here they (from the conference call):

• Regarding tariffs and "deceleration" in emerging markets, Cook: "Emerging markets that we're seeing pressure are Turkey, India, Brazil, Russia, markets where currencies have weakened over the recent period in some cases that resulted in us raising prices.
  
  
• Business in India in Q4 was flat, Brazil was down YOY
  
  
• "each one of the emerging markets has a bit of a different story, and I don't see it as some sort of issue that is common between those for the most part."
  
  
• China: "I would not put China in that category." 16% growth in China, driven by iPhone double-digit growth.

Plenty of companies warn about deteriorating business conditions well ahead. That's what investors expect from CEOs.

 

[Duel]

I look at the ecosystem from the customer (not company) perspective.

Ecosystem is the thing you get when you buy certain device. You spend your money there and like you see Apple users really love spending their money in Apple ecosystem and Apple ecosystem printing billions for Apple.

How many different devices you sell has nothing to do with that.

 

[ryanwarsaw]

I was talking about services, because this due said services was in the "millions" and hardware was in the billions.

Well, services ARE in the billions. As in $10.8B for 90 days.

I realize that but it also means now that everything is grouped together this is going to make phone sales look absolutely dismal. The reaction isn't going to be a pleasant one.

 

[Baymowe335]

I realize that but it also means now that everything is grouped together this is going to make phone sales look absolutely dismal. The reaction isn't going to be a pleasant one.

We haven't seen the new format yet. We know services was $10.8...I don't think phone revenues were any worse than indicated with this China news.
[doublepost=1546552195][/doublepost]

I look at the ecosystem from the customer (not company) perspective. If you go to newegg.com they are offering 144 Android phones (directly from newegg and not counting third party sales) from 17 manufacturers. Some of these models may differ just in size but the total number still dwarfs that for iOS.
[doublepost=1546551563][/doublepost]

So China was performing well 90 days ago but stopped 89 days ago? That's not my issue, that's what many commentators were saying today. He misled the investors. As to more specific quotes, here they (from the conference call):

• Regarding tariffs and "deceleration" in emerging markets, Cook: "Emerging markets that we're seeing pressure are Turkey, India, Brazil, Russia, markets where currencies have weakened over the recent period in some cases that resulted in us raising prices.
  
  
• Business in India in Q4 was flat, Brazil was down YOY
  
  
• "each one of the emerging markets has a bit of a different story, and I don't see it as some sort of issue that is common between those for the most part."
  
  
• China: "I would not put China in that category." 16% growth in China, driven by iPhone double-digit growth.

Plenty of companies warn about deteriorating business conditions well ahead. That's what investors expect from CEOs.

Might have taken more than 1 day to see China slowing down, because the quarter they were doing great goes back 180 days.

Your quotes are from the conference call, again, 60 days ago. The XR had not been out more than a couple weeks. The holidays weren't in full swing. The sales were probably tracking well and then needed to ramp, HARD, and just never did. When you're doing this much business, you have to get that huge push toward the end. It didn't happen.

Again, Cook isn't going to lie or mislead on purpose. They probably thought China was fine then. I don't know what kind of conspiracy theory you're trying to cook up, but they were 100% transparent once 2 days after the quarter ended and they had the data. They CLEARLY thought on the last conference call that things were going fine, otherwise they wouldn't have said that.

 

[ryanwarsaw]

Not really bad but less than expected. I think the problem oftentimes in these discussions is hyperbole. It can still be YOY growth but not as much as people expected. Is that really bad? Not necessarily. People may have expected too much or the company underperformed. But a single quarter’s result is hardly really bad unless it’s a dramatic double digit or more decline. If their YOY growth continues to decline and reaches near 0 then I think we’ll know something. Right now there are simply a lot of Monday Morning CEOs pretending to know far more than they really do.

I think what these sort off threads and discussions miss is that much of what will happen is also dependent on the over all market. I am a an armchair quarterback same as you or anybody else in this thread. However I don't think the street is going to reward Apple if they sell another 5 million rainbow halo bands.

If they do not exceed their last guidance by at least a figure equal to these numbers it is bad. If they make guidance then they had better forecast some fairly good numbers for the next quarter or they will be punished again. I don't see how that can be escaped. i also don't think they will move more phones next quarter than this quarter and they won't get a magical Christmas sale again so this is what troubles me.
[doublepost=1546552706][/doublepost]So I guess I am saying they need to exceed guidance by a billion and forecast a bit of growth or expect the stock to tank further in the short run. They stopped reporting units sold vs. services it doesn't mean the market magically stopped tracking that metric. Nobody will be fooled.

 

[JosephAW]

I noticed today that I can no longer use the Apple Store app to make hardware purchases on my iPhone 5 iOS 10 and any other devices running iOS 10. Now requires iOS 11 or higher. Now have to use the website.

 

[falainber]

Ecosystem is the thing you get when you buy certain device. You spend your money there and like you see Apple users really love spending their money in Apple ecosystem and Apple ecosystem printing billions for Apple.

How many different devices you sell has nothing to do with that.

From a user perspective, I don't care how much profits the company makes. I care how many choices I have with a given ecosystem. With Apple - not much. It may work for some but that's a severe limitation. For example, right now one can't buy an iPhone with a fingerprint scanner (old models don't count and it's a temporary solution anyways) or a pen support or memory card support. The list goes on.

 

[Soccertess]

Source?
[doublepost=1546545567][/doublepost]
It’s the internet echo chamber. Usually people reading opinion pieces on places like this with no access to actual facts.

Source? how about you check the Journal of common sense!!

Do you need a citation about Mac Pros being so old? Do you need a citation to tell you Mac Books suck, touch bar is a joke, and Home Pod is Tim laughing at you? Or how Macbook Air while finally got an updated screen, is lacking in utter power? Are you even a Mac user?

You need a citation that Home Pod has not audio in, and can only be used with Macs using Airplay? Lacks integration with other streaming services?

here is a gartner graph for those who are blind and can't see around them regarding android: https://www.statista.com/chart/15561/smartphone-sales-by-os/ I don't even know the methodology or how accurate it is, Android is growing because the operating system has improved dramatically, google now beats Siri to a pulp (if you want facts just try them both), some hardware providers do a is fantastic job (others not so much), and whatsapp has be come the default communication tool with a user base MUCH bigger than imessage (which lack of cross form platform was a HUGE mistake - those of us who had common sense could see that).

I'm bitter not towards you, but towards Tim who really has done everything but run Apple. I commend his social advocacy, he should continue to do it and retire! iOS is good, OSX is good, just it could be so much more with someone who had a vision for the company. I'm sure Jobs didn't have facts when he changed the market, just a vision and common sense.

Lastly, Some times you just need to use common sense and think critically, does this product fit my needs, or does it suck? I just see everyone from around the world using android and Apple releasing products that are half good, but with draw backs that make me go wtf (example homepod).

 

[Rique]

imagine how good revenues would be if AppStore were anything other than absolutely awful!

That comment is exactly what I came here to say. The AppStore - in every possible instance (MacOS or iOS) is sorely in need of a usability update. Every time I use it I ask myself "where are the Product Managers and wtf are they thinking"?

 

[npmacuser5]

What competition Apple Pay has? Also i don't think iCloud have much competition either. I pay for iCloud monthly, using Dropbox for free. Icloud has my backup, dropbox i use for transfer files from PC to iOS.

One example of competition on the cloud. Amazon a massive cloud vender, maybe dozens of times larger then Apple. Their storage costs are much less then iCloud with a nice photo app with free unlimited photo storage. Also works well with all platforms for sharing.

Android pay on the same terminals as Apple Pay to name one competitor to Apple Pay.

Not saying Apple is not competitive however, they are far from the only or dominate show in town.
[doublepost=1546563318][/doublepost]

And just to put some perspective on this. Services pulls in the Millions. Hardware sales makes up the Billions.

Correction, services 10% of revenue brings in 8.5 billion last year. To your point 70% of 85 or so billion total revenue, iPhone.

 

[nwcs]

Source? how about you check the Journal of common sense!!

Do you need a citation about Mac Pros being so old? Do you need a citation to tell you Mac Books suck, touch bar is a joke, and Home Pod is Tim laughing at you? Or how Macbook Air while finally got an updated screen, is lacking in utter power? Are you even a Mac user?

You need a citation that Home Pod has not audio in, and can only be used with Macs using Airplay? Lacks integration with other streaming services?

here is a gartner graph for those who are blind and can't see around them regarding android: https://www.statista.com/chart/15561/smartphone-sales-by-os/ I don't even know the methodology or how accurate it is, Android is growing because the operating system has improved dramatically, google now beats Siri to a pulp (if you want facts just try them both), some hardware providers do a is fantastic job (others not so much), and whatsapp has be come the default communication tool with a user base MUCH bigger than imessage (which lack of cross form platform was a HUGE mistake - those of us who had common sense could see that).

I'm bitter not towards you, but towards Tim who really has done everything but run Apple. I commend his social advocacy, he should continue to do it and retire! iOS is good, OSX is good, just it could be so much more with someone who had a vision for the company. I'm sure Jobs didn't have facts when he changed the market, just a vision and common sense.

Lastly, Some times you just need to use common sense and think critically, does this product fit my needs, or does it suck? I just see everyone from around the world using android and Apple releasing products that are half good, but with draw backs that make me go wtf (example homepod).

So your argument is your personal opinion. Got it.

 

[I7guy]

From a user perspective, I don't care how much profits the company makes. I care how many choices I have with a given ecosystem. With Apple - not much. It may work for some but that's a severe limitation. For example, right now one can't buy an iPhone with a fingerprint scanner (old models don't count and it's a temporary solution anyways) or a pen support or memory card support. The list goes on.

I want a phone that wirks great and gets support for 5 years. With android I have a choice of the following phones:

 

[Soccertess]

So your argument is your personal opinion. Got it.

too bad you didn't see the link with the stats. IN OTHER news, the earth is pretty much round and apple sales are down. There is evidence and I'm basically saying, look at the product and that will tell you the future performance of the company. What you are saying is absence of the evidence is evidence of the absence, which is non-sense. Not only was there a lame graph for those who refuse to believe the earth is round, i gave examples of crappy hardware that isn't selling well.

Now, my example and my theory below:

Spin: Tim says it's because people repair their phones.

Tech magazines "too expensive" compared to competitive hardware.

Apple fanboys "Apple does nothing wrong, I'll keep buying like lemmings"

Tech Consumers "I use to love Apple, but the premium value isn't there anymore"

 

[falainber]

I want a phone that wirks great and gets support for 5 years. With android I have a choice of the following phones:

Only Apple customer would be worried about this because that's how long it takes to pay off $1500 phone. With Android one nab buy $700 phones every two years and have on average better/newer tech. Besides 5 year Android phone will work just fine and even have most of the latest features. Keep in mind that, unlike Apple, Google put most of the features into separate apps/services. Those get released separately from OS and work fine with older OS versions.

 

[I7guy]

Only Apple customer would be worried about this because that's how long it takes to pay off $1500 phone. With Android one nab buy $700 phones every two years and have on average better/newer tech. Besides 5 year Android phone will work just fine and even have most of the latest features. Keep in mind that, unlike Apple, Google put most of the features into separate apps/services. Those get released separately from OS and work fine with older OS versions.

Well that's a bit disingenuous.

It's my dollars and last I looked, where and how my dollars are spent are my prerogative. BTW, I paid cash for my $1500 phone. Well, not exactly, I charged it for extended warranty and will pay off the balance as soon as the bill comes in.

 

[Tech198]

Users have more money than ever this year? I bet Tim is happy

 

[mrex]

I want a phone that wirks great and gets support for 5 years. With android I have a choice of the following phones:

ehm, what kind of support? i have had android since almost from the beginning and even years old android devices get the latest core apps updated via playstore (unlike iphone which apps can be only updated with os update - and everytime there are bugs, the whole operating system needs to be updated rather than through the app in app store). many playstore apps i have are working with several android os version - unlike when new ios is out, it usually breaks several apps and those apps need to be updated by devs.

if you want to talk about security updates or just the bugs, lets talk about the security batches and bug fixes that apple provides for you if you dont want to update to the latest ios. how many?

the difference between android os and ios is that many core apps can be updated without needing a new android os. core apps cant be updated in ios without ios update. what is the worst part here is that sometimes you need to wait months that a minor bug is fixed because the fix comes with the next ios update rather than just via app store as an app update.

the main part is that you dont need the latest android os to have fully functional android phone. you just have learnt with apple that os itself has to be updated always.

and btw, iphone 5c didnt even get ios11 (got support only 4 years), and the first generation apple watch was dropped out without getting the newest watchOs, althought the watch was introduced 3 years ago.

 

[Abazigal]

Only Apple customer would be worried about this because that's how long it takes to pay off $1500 phone. With Android one nab buy $700 phones every two years and have on average better/newer tech. Besides 5 year Android phone will work just fine and even have most of the latest features. Keep in mind that, unlike Apple, Google put most of the features into separate apps/services. Those get released separately from OS and work fine with older OS versions.

Any discussion regarding iPhone pricing should take into account the impact from an expanding iPhone gray market.

https://www.aboveavalon.com/notes/2018/10/22/the-gray-markets-impact-on-iphone-pricing

Given how well iPhones seem to hold their value, one can easily sell off their 1-2 year old iPhone to help defray the cost of a newer model.

 

[I7guy]

ehm, what kind of support? i have had android since almost from the beginning and even years old android devices get the latest core apps updated via playstore (unlike iphone which apps can be only updated with os update - and everytime there are bugs, the whole operating system needs to be updated rather than through the app in app store). many playstore apps i have are working with several android os version - unlike when new ios is out, it usually breaks several apps and those apps need to be updated by devs.

if you want to talk about security updates or just the bugs, lets talk about the security batches and bug fixes that apple provides for you if you dont want to update to the latest ios. how many?

the difference between android os and ios is that many core apps can be updated without needing a new android os. core apps cant be updated in ios without ios update. what is the worst part here is that sometimes you need to wait months that a minor bug is fixed because the fix comes with the next ios update rather than just via app store as an app update.

the main part is that you dont need the latest android os to have fully functional android phone. you just have learnt with apple that os itself has to be updated always.

and btw, iphone 5c didnt even get ios11 (got support only 4 years), and the first generation apple watch was dropped out without getting the newest watchOs, althought the watch was introduced 3 years ago.

You cited one model out of all of them since 2011 that doesnt get 5 years of support? 5 years is still exemplary.

As far as android support, people keep saying f what you say but I keep reading online that after about 2 years android updates stop.

Well what ever works for the individual. I like my iPhones in that I know what I am getting.

 

[NomadicTy]

322 million dollars in one day? that would make up for maybe 12 iphone Xs Max's that they failed to sell.

 

[BrooksA]

I do think that Apple has a much bigger problem than China and headlines like this don't help, just make you wonder what they are wanting you to not look at.

I used to be very uncritical of Apple because the OS on the Mac was great but the problem they have is that if they lose the aura that enables their colossal profit marging more and more people will look at their products critically.

A lot of people on here are correct, the hardware is in many ways sub-par (saying this typing on a Macbook pro) and Apple really doesn't need people making side by side comparisons instead of accepting the fairy dust.

Having said that I'm not sure what I would do in the shoes of the senior management. They could easily make cheaper, better products but that would cut their margins and lead to more stock punishment. Don't hold your breath on services either, it is a massive earner for sure but most of it comes from App store revenue and Applecare which both need people to buy and own devices. I don't think they have bottomed out yet.