Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Apple Expected to Report Best-Ever Second Quarter Today With Anticipated Clues About iPhone X Sales
- Thread starter MacRumors
- Start date
- Sort by reaction score
If a news site or analyst thinks the estimates are too high, that's just that. No where is anyone saying Apple is doomed. That's just Apple fans reacting and claiming it is doom.
It's like if a kid got 99% on a school test and you think the kid is doomed. Hilarious.
I also feel the need to once again point out that not setting a "record" translates into a decline. We should already know how the markets take a reduction of earnings and revenue. The point being, "records" are not nearly as important as growth, and the amount of it. Solid YoY revenue and earnings growth is what investors are hoping to see. That important fact tends to get overlooked in all this talk of setting records.
[doublepost=1525189629][/doublepost]
One of if not the largest company in the world. So no surprise here that their earnings reports matter in a big way.
What you call panic I call intense interest, more or less proportional to the size of the company, arguably magnified somewhat by the fact that a huge segment of their earnings are derived from one product. Besides, the results of all of the companies you mention are scrutinized too. We're just not following them so closely.
Surprising considering everyone on here goes on and on about Apple's failures. Seems like people do like their products, maybe just not you. Hence the reason they are moving on from segments of their business that you support. This is called business.
They all are going to be marginal upgraded smartphones, at this point. Apple sees the big picture and knows this.
I love my wife, kids, parents, friends and dogs. And probably some other too. And they all know it.
Is it the same between you and Apple?
Q1 sales for iPhone mix are always front loaded with the newest model because of pent up demand. Last year ASP dropped from $695 in Q1 to $655 in Q2 as Q1-heavy sales of the iPhone 7 were burned off, and the mix shifted to older, less expensive models.
Realistically, many customers for a first-gen $1,000-1,150 iPhone X are early adopters, and they’re going to be Q1 buyers—no surprise there. Apple may have easily sold 50% of the year’s total X sales in Q1. At this point, most of the customers who would buy the X, have bought.
If the Q1—>Q2 expected drop off in ASP were similar to last year, we could expect Apple to report a $750 ASP today. But there’s every reason to expect that X customers are more front-loaded to Q1 than were iPhone 7 customers. So I think something more around $725 can be expected.
Apple obviously expected this greatly reduced sales of the X (and other iPhones) since they guided revenue of $60-62 billion after having already reported a record breaking $88 billion Q1. They literally guided a 30% drop in revenue for this quarter.
I think most interesting results will be related to iPhone X, HomePod and Services (Apple Music). For the former two, as we never see figures breakdown once they are successful, I’m keen to know how the alleged poorer than expected results will be communicated. At least if the supply chain sources tend to be accurate.
Most Amazon users don't own shares in the company nor do they care if Amazon goes bankrupt next year.
With Apple users, there is this thing called RDF that affects their judgment. They don't just buy and use their products, they own shares of the company too. That's why most users care a lot.
Today I expect AAPL to announce that they are paying off the entire $100B+ of Debt they accumulated under Tim Cook.
That's NOT what most shareholders will want to hear, but it is the smart move for the company !
The Stock will tank upon that announcement (to ~$138), as most are hoping for a BIG dividend payout.
That's NOT what most shareholders will want to hear, but it is the smart move for the company !
The Stock will tank upon that announcement (to ~$138), as most are hoping for a BIG dividend payout.
"They literally guided a 30% drop in revenue for this quarter."
And? There has always been a significant Q1 to Q2 drop in revenue. Not surprising.
Yeah, I figure giant buybacks are a given. The percentage raise on dividends is still my big concern. Will they stick with 10% increase as they've done most every year, or go with something a bit more aggressive using their big windfall of cash. If it jumped 25% I'd be unbelievably happy. But they've always been very conservative, so I'm guessing 15%. Better than nothing.
And, read my post. Don’t pull out one sentence and turn my post into something to take offense to.
I guess my point wasn’t clear. You can’t take a normally expected decline in ASP that will be reported today as evidence of disappointing X sales. Sure, last quarter it was $796 as the article states. But when it comes in at $725-ish, that isn’t proof of crappy X sales. ASP always drops off in Q2 over Q1, it happens every year—as do units sold. Which is why Apple expects (guided) revenue to be down 30% from last quarter.
Last edited:
Those numbers are mind boggling. I hope Apple executives and investors understand that Apple will not be able to infinitely grow and revenue will decrease in the future. Just like Nokia, BB, Sega, and others once were dominant new entrants will come to the market and eat Apple's shares.
I also hope thisi doesn't mean drop in quality of the product. I remember when Jobs was trying to save Apple from bankruptcy each year we had amazing product and new software that made your life better.
I also hope thisi doesn't mean drop in quality of the product. I remember when Jobs was trying to save Apple from bankruptcy each year we had amazing product and new software that made your life better.
Yeah, I figure giant buybacks are a given. The percentage raise on dividends is still my big concern. Will they stick with 10% increase as they've done most every year, or go with something a bit more aggressive using their big windfall of cash. If it jumped 25% I'd be unbelievably happy. But they've always been very conservative, so I'm guessing 15%. Better than nothing.
A one-time dividend of a few bucks a share is another possibility. They could do that without breaking a sweat.
Cant wait to see all the "iPhone X sucks, it's not selling" forum trolls to swoop in and defend how they were right using magical mathematical calculations.
There has not always been an iPhone X.
iPhone 6, 6s, 7, those were all iterations of basically the same product. So a drop in Q2 revenue is expected.
The iPhone X design is supposed to drive the market for the next decade. The effort and expectations on iPhone X were very high.