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Kind of a bittersweet quarter. Very happy as a shareholder. This is usually a quiet quarter so for Apple to beat revenue and maintain margins is exciting and comforting, especially when Apple released zero products of significance this quarter. (Yes, slicing Air off the iPad and tweaking the 6SE are marginal meant to keep those products from completely sliding off the cliff).

As a tech fan I lament much of this profit is from services. Guessing it's mostly from ApplePay as more and more retailers worldwide start accepting it and Apple Music, the other area in services where there is fast growth potential. I have a feeling this year's WWDC more than any other in the TC era is going to give us a huge hint at where he see's Apple trending in the next few years and how much more we can expect Apple to latch onto subscription services.

I'm a shareholder also and am very happy with this quarters results if they come to fruition and although services is growing at a nice clip it is not much of the profit by any means. Largely apple pay is being adapted at an unsatisfactory rate. I love it and use it when ever I get the chance but it has cliches. Not sure it's on apples end or the store but sometimes i'll use it and it denies payment. embarrassing when it doesn't work for no reason. Apple music is growing nicely but i'd personally like to see more. More in terms of less Hip hop and more culture but its heading in the right direction. I think the Beats studio in the newly renovated 5th ave store will be awesome. I look to for Apple to return to the MAC this year and deliver big, repatriation looms large. DIV increase today and with the anniversary phone around the corner its all gravy as of now. LONG!
 
Quarter of a trillion... damn.

That's a lot of cash. But net of debt, it's more like a sixth of a trillion.

Apple's cash pile, net-of-debt, hasn't been growing very fast in recent years because Apple's been returning massive amounts of cash to shareholders. Apple's cash net-of-debt has grown by less than $20 billion over the last 2 years and less than $40 billion over the last 4 years.
 
Seems like the good OP story should have somewhat balanced the presentation of record cash with at least some reference to Apple's ever-increasing debt number too. Only a few years ago, Apple had no debt and was cash-rich. Now Apple is cash rich-ER but also piling up debt at the same time.

That's not saying that debt is bad or good here- just pointing out that the cash hoard is not the whole story when it comes to Apple's finances. If you are unaware of Apple's debt, you might want to look it up. It's not exactly chump change. And a "WOW!" number like the projected $250B is not subtracting it out in spite of it being real money that Apple owes.

Even an average Joe's finances can look good inside their own little bubble if they only talk up income and savings while excluding debt. I suspect many Americans are actually quite rich if their own financial picture is spun without referencing their debt loads. More extreme example: The U.S. government is spectacularly, ridiculously rich in income and cash if allowed to ignore government debts.


https://chart.googleapis.com/chart?...032|0,8.1932364,15.223927,22.155712,27.054955
 
What I'd like to hear is Apple making record-breaking donations to humanitarian causes. It's just a given they made billions of dollars on this year's iPhones, it's non-news now.
 
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Earnings are important but ... any chance for a MacBook update w Kaby Lake i*Y in the short term?
 
Apple having debt lowers their U.S. income tax rate. Did we not know this?? I fully expect them to be fine in the foreseeable future, and this is coming from an Android user.
 
What I'd like to hear is Apple making record-breaking donations to humanitarian causes. It's just a given they made billions of dollars on this year's iPhones, it's non-news now.

Recent history would suggest it isn't a given. A year ago revenue fell for the first time ever in the iPhone era. It was only last quarter its losing streak was broken.
 
Always love when the earnings reports come out and Apple customers cheer like they've won something. Apple remains insanely profitable while charging them a premium for increasingly stale/mediocre products and we jump up and down and clap for them.

It was a lot easier to pay an Apple tax when their products were superior to everything on the market.

Apple isn't insanely profitable (mostly) because it charges a premium (relative to others) for comparable products.

It's insanely profitable in large part because (1) it sells so many premium products (the kind of products that others have large gross margins on just as Apple does, but of which others don't sell as many) and (2) its operational efficiency.

Other companies (e.g. Samsung) have company-wide gross margins that are comparable to, and in some cases greater than, Apple's. The separation comes from operational efficiency. Apple's operating margins are much greater than most of those others. For instance, it doesn't spend as much on sales and administrative (relative to its total sales and gross profit) as others do.

There are other reasons which contribute to Apple's profitability, but to a great extent those two dynamics drive Apple's incredible profitability.
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Apple having debt lowers their U.S. income tax rate. Did we not know this?? I fully expect them to be fine in the foreseeable future, and this is coming from an Android user.

Do you just mean that taking on debt rather than remitting foreign earnings (in order to, e.g., fund its capital return program) means a lower U.S. income tax rate? If so, then yes. Remitting those earnings would mean a higher (actual, though not necessarily effective) rate.

Otherwise, it isn't clear to me what you're referring to.
 
Apple isn't insanely profitable (mostly) because it charges a premium (relative to others) for comparable products...
Other companies (e.g. Samsung) have company-wide gross margins that are comparable to, and in some cases greater than, Apple's.

Apple's 38%+ margins are the envy of the industry. Electronics are mostly low margin, high volume. Apple is high margin, high volume. That's why its revenue is so large. Samsung's phone margins by comparison are 17%.
 
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Apple's 38%+ margins are the envy of the industry. Electronics are mostly low margin, high volume. Apple is high margin, high volume. That's why its revenue is so large. Samsung's phone margins by comparison are 17%.

Samsung's overall phone (gross) margins may be lower than Apple's. (We don't really know what they are, but based on the information Samsung reports they almost have to be higher than 17%.). But that's in part because of what I referred to, they don't sell premium models (where they realize higher margins) in as great of volume as Apple does.

As I suggested, Samsung's company-wide gross margins are about as good as Apple's. The separation comes from operating expenses - SG&A and R&D. Apple's operating margins are much higher than Samsung's.
 
Actuallly, if you watched a few Hackintosh videos, I think pretty much any smart person who put their mind to it could make a new Mac Pro. The accountants are smart. Give a group of them a modest budget and six months and I'm pretty sure they could come out with a Mac Pro which can mount modern graphics cards.
You may be right about making a Hack but to design a pro solution takes engineers.
 
Time for Tim to tender his resignation and step down gracefully. What Apple needs is a true visionary like Steven Anthony Ballmer at the helm.
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Well the Macpro is made in the USA after all.
Let's hope it stays that way.
 
Samsung's overall phone (gross) margins may be lower than Apple's. (We don't really know what they are, but based on the information Samsung reports they almost have to be higher than 17%.). But that's in part because of what I referred to, they don't sell premium models (where they realize higher margins) in as great of volume as Apple does.

Guessing Samsung wouldn't embrace your suggestion that the Galaxy line isn't a premium line designed to go head to head with the iPhone.

Samsung is publicly traded so it's financials are not too hard to find. Here is a chart of its quarterly margins -- hit Max to go out to 2017. It's nothing close to Apple.
 
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No matter what Apple results are there are going to be posts about how Apple "is doomed" (sic) because of this, that or the other thing.

Apple isn't in any danger if doom because of the support of many sheeple. I haven't read one comment in this thread of "doom"
 
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Apple making billions doesn't help us. Apple making a new Mac Pro does help us and the sale of it will help Apple.

How do you think Apple made those billions? Precisely by making and selling millions of devices to people who presumably are getting great mileage out of them. Be it iPads, AirPods, Apple pencils, the Apple TV, whatever. All of which are benefiting millions of users every day.

I draw your attention to the diagram below. It shows just how few people use Mac Pros. Apple probably breaks even or makes a loss on the sale of Mac Pros. Not to mention the opportunity cost of not engaging those resources in a more profitable venture which could potentially benefit even more people.
ee2728c87e0ff7b36750799606109dc8.jpg
 
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I little bird told me that they will be needing a separate break out column for AirPods

AirPods are excellent, and might bring in more revenue than even the Apple Watch.
 
Earnings are important but ... any chance for a MacBook update w Kaby Lake i*Y in the short term?

Anything is possible. But with Intel's very tiny Kabylake performance gains over Skylake, it really will not make much difference overall.
 
So apparently Apple has cash reserves of more than the UK (world's 6th largest economy) and Canada combined. Maybe they could start making their products a bit more 'affordable'.... and paying their fair share of tax! 'lol'
 
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