Apple Reports 2Q 2017 Results: $11B Profit on $52.9B Revenue, 50.8M iPhones

[dogslobber]

Where is Apple heading exactly?
My guess is to become a private company or hoarding stock for a huge buy.

Generally when companies run out of ideas or are in a mature industry then they just do "more of the same". E.g. see the oil companies with divvies or the utilities. There's very limited growth in those spaces so they throw in the towel by not innovating in some manner. They're happy to keep doing what they're doing, tweak the widget in their industry a bit, then rinse, cycle, repeat. Auto makers are another mature industry.

Apple is a mature cell phone maker. That's their core competency and gets most of their resourcing. They're pretty poor at making computers nowadays. Not poor as in quality but poor as in there are no new computers.

 

[Plato65]

iPad unit sales down 13% and revenue down 14% while Mac unit sales up 4% and revenue up 14%. Mac revenue is now 50% more than iPad revenue.

Hope that drives a point home that customers do NOT want to replace their computers with iPads after all.

I find it hard to believe that anyone every really believed this. Tablets are a great supplementary device class, but they are not full fledged computers for most people.

Lots of people take it as given that PCs will go away and be replaced by tablets. Maybe in the distant future, but the sales figures give zero reason to believe that the transition is happening anytime soon.

Mac sales went up by one percent, in a market that is generally dropping. Apple keeps its users, while many other companies don't.

Mac unit sales are up 4% and revenue is up 14%. To me that's much more than "keeps its users"...
https://www.apple.com/newsroom/pdfs/Q2FY17DataSummary.pdf

 

[lederermc]

This should be a stacked bar chart.

 

[JeffyTheQuik]

Dollar cost averaging.

I'm DCA on the shares I bought and held back in 2010 through DRIP. It's just fun to get all hyped up on the interval between the dividend and the ex-dividend date.

Just a dumb question, why is there an interval between the announcement and the actual payout date? I mean, we're not in 1928, where someone has to find all the people with shares, and write checks for the money. Or, maybe we do have to still.

 

[mrhick01]

I'd love to see somebody call out Cook on why he's completely abandoned the Mac & Pro platforms in his time at the helm of Apple.

In such a conference call, the Mac Pro is irrelevant from an earnings standpoint.

It certainly matters from a technical standpoint and with their relationships with developers and content creators, but not in total revenue. Not at all.

 

[thomas040]

The purple 5% "Other" is cables.

Apple Watch

 

[whiteboytrash]

if it was amazon or google who had a result like this, the stocks would be up with at least 5%

With good reason. It's a lot easier to pump & dump a stock at $180 than $900 that Google & Amazon are at. Apple is a prime stock to buy pre earnings and sell it 30 seconds after the earnings call begins in after market trading. General folk don't have access to markets at that time. It would be wise to buy Apple shares now on the dip and sell them just prior to WWDC with rumors of new products etc. when the stock is on the slight uptick. If you have the money of course.

 

[6foot5foot]

What's hysterical is that most people here would consider their own company "Hugely successful!" if they earned in 5 years, 1/1000th of Apple's QUARTERLY PROFIT... but those same people will still parrot this moronic "Apple R doomed" crap, lemming-esque and without considering how idiotic they sound. Wow...

Mind you, I haven't taken into consideration, the following:

~ Everyone on MacRumors is a marketing genius.

~ Everyone on MacRumors is an engineering legend.

~ Everyone on MacRumors is a successful stock broker.

~ Everyone on MacRumors can best Apple at what they've DECADES of experience in doing, no matter WHAT Apple do, yep, the minions can better it... if only they had the chance to prove it... bah!

~ Everyone on MacRumors is a meme genius and a coiner of phrases, mastery of the written word is epidemic - it's quite astonishing - never yet have I seen such profound observations at SCALE!

~ Jonathan Ive has limited experience, the armchair "designers" at MacRumors Towers, Inc, are unbeatable... if only they could find the hours in the day to split between forum posts AND writing ID application letters to Apple ID dept, they'd PROVE how inept Jony Ive is... you wait and see... just give it a little more time... no, a bit longer.......... no, a little bit more time please...

I'd better watch what I say, one of the minions will be along in a second to point out how terribly mistaken I am...

 

[wondunk]

mac net sales 11%?
Phhh no wonder they boost iphone development and any other invisible department at apple but cut down the mac force. What a *****.

 

[drewyboy]

if it was amazon or google who had a result like this, the stocks would be up with at least 5%

Because they're in very different markets and each company operates very differently from the other.

Apple is one product failure away from falling out of favor fast. That just comes with the territory of being a hardware company.

 

[calzon65]

Because they're in very different markets and each company operates very differently from the other.

Apple is one product failure away from falling out of favor fast. That just comes with the territory of being a hardware company.

I agree and since the iPhone accounts for such a large share of Apple's revenues, any slip-up with the iPhone and Apple is toast. Even if Apple does not screw up, I think it's only a matter of time until companies like Samsung and others start to significantly eat into Apple's market share.

I recently saw some wholesale pricing $35 (GSM) $45 (LTE) for a decent low-end Android phone from a company called NUU Mobile. No, those phones are not in the same class as my own iPhone but for a wholesale cost of $35 to $45, it's amazing how much phone you can get for a low cost.

I love my iPhone and IOS, but I think Apple is flirting with danger. They have most of their eggs in one basket (i.e., the iPhone), and as drewyboy posted, they are one product failure away from falling out of favor fast. Apple's product portfolio is way too concentrated on the iPhone and at some point, I think Apple is going to be a short play.

 

[drewyboy]

I agree and since the iPhone accounts for such a large share of Apple's revenues, any slip-up with the iPhone and Apple is toast. Even if Apple does not screw up, I think it's only a matter of time until companies like Samsung and others start to significantly eat into Apple's market share.

I recently saw some wholesale pricing $35 (GSM) $45 (LTE) for a decent low-end Android phone from a company called NUU Mobile. No, those phones are not in the same class as my own iPhone but for a wholesale cost of $35 to $45, it's amazing how much phone you can get for a low cost.

I love my iPhone and IOS, but I think Apple is flirting with danger. They have most of their eggs in one basket (i.e., the iPhone), and as drewyboy posted, they are one product failure away from falling out of favor fast. Apple's product portfolio is way too concentrated on the iPhone and at some point, I think Apple is going to be a short play.

And that is exactly why you see Cook pushing services so hard. I think they're realizing the Apple Watch isn't what they had originally hoped and are heavily shifting it towards health.

I get what they're doing but they know it's no iPhone and so that's why we are seeing pushes, I think they're much much larger than what we're being led to believe, in AR and vehicle automation.

Right or wrong, Cook knows they don't have a large growth driver since the iPhone is reaching saturation. At least I'd argue that they are.

One other thing. The fact that they continue to expand the share buyback on such a large level would worry me on a long outlook (5+) years. I'd say Cook is using it/establishing it as a bridge from the iPhone to whatever is next, to continue to give shareholder value.

 

[Marx55]

These graphs drive me crazy. How is it possible that in graph 1 the top revenue is from iPad, yet in graph 2 that is very low?

 

[mib1800]

in China, down another 14% on numbers that was already down 30% (from year before). Doesn't bode well for Apple from its 2nd largest market.

 

[organic bond]

Stock always dip on earnings.

Absolutely not!

 

[NoWayBehind]

I hate how iPad sales are down again. They are such great devices, regardless of what people say. Depending on what you do and how you use an iPad they are superior to Macs. My iPad Air 2 is still the best device I ever bought and I value it more than any other Mac I owned. They also put every android tablet to shame.

Don't kill me, I am not a power user very frequently and I know Macs are much better for that stuff. But for casual usage they are a dream.

 

[ryanwarsaw]

Would love to know what percentage of other Airpods accounted for.

 

[Abazigal]

I agree and since the iPhone accounts for such a large share of Apple's revenues, any slip-up with the iPhone and Apple is toast. Even if Apple does not screw up, I think it's only a matter of time until companies like Samsung and others start to significantly eat into Apple's market share.

I recently saw some wholesale pricing $35 (GSM) $45 (LTE) for a decent low-end Android phone from a company called NUU Mobile. No, those phones are not in the same class as my own iPhone but for a wholesale cost of $35 to $45, it's amazing how much phone you can get for a low cost.

I love my iPhone and IOS, but I think Apple is flirting with danger. They have most of their eggs in one basket (i.e., the iPhone), and as drewyboy posted, they are one product failure away from falling out of favor fast. Apple's product portfolio is way too concentrated on the iPhone and at some point, I think Apple is going to be a short play.

So by your logic, if the iPhone was never a success, Apple would not be the juggernaut it is today and we wouldn't be having this conversation either.

This strikes me as the classic "if you don't do anything, you can't do anything wrong" argument. Sure, maybe one day, the iPhone will fall out of favour, but until that day comes, why not keep milking it for all it is worth, while preparing to manoeuvre into the next big market (which should be wearables if my guess is worth anything).

The Mac has no place in Apple's future, however much you people here desperately want it to be. Let the Mac play out its role, and then retire it when the time has come. No sooner, and no later either.

 

[69650]

Mac sales only up 1% despite increased availability of the new MBP.

 

[TallManNY]

I'm DCA on the shares I bought and held back in 2010 through DRIP. It's just fun to get all hyped up on the interval between the dividend and the ex-dividend date.

Just a dumb question, why is there an interval between the announcement and the actual payout date? I mean, we're not in 1928, where someone has to find all the people with shares, and write checks for the money. Or, maybe we do have to still.

I'm not sure. But it certainly allows the market plenty of time to come in and out of the stock depending on what they want. If you stay in the stock, you will have a taxable event when your receive the dividend. Maybe that is an issue for some large institutional investors. More likely this is just what all companies have done so why change it.

And yes all the shareholders have to be found and checks or deposits have to be ordered. But it should be done automatically in the back office of the exchanges and registered owners and so no big deal. On the day of record the company figures out who the registered owner of the shares are (easy) and the registered owners figure out who the beneficially owners are (somewhat harder) and money goes from Apple to registered owners and from registered owners to beneficial owners.
[doublepost=1493811718][/doublepost]

Absolutely not!

Well there is an old saying "Buy the rumor, sell the news." So yes there is some truth to the fact that stocks tend to dip on earnings releases.

 

[Xavier]

RIP iPod

 

[SoyCapitanSoyCapitan]

Absolutely not!

And up it goes again, exactly as I said it would.

 

[JeffyTheQuik]

I'm not sure. But it certainly allows the market plenty of time to come in and out of the stock depending on what they want. If you stay in the stock, you will have a taxable event when your receive the dividend. Maybe that is an issue for some large institutional investors. More likely this is just what all companies have done so why change it.

And yes all the shareholders have to be found and checks or deposits have to be ordered. But it should be done automatically in the back office of the exchanges and registered owners and so no big deal. On the day of record the company figures out who the registered owner of the shares are (easy) and the registered owners figure out who the beneficially owners are (somewhat harder) and money goes from Apple to registered owners and from registered owners to beneficial owners.

Thank you for the explanation. As for taxable events, this is in my IRA, so my taxable events are 20 years from now... But it's fun to watch the stock go up and down and get the dividends along the way...

I started out with 70 shares, and after the 7:1 split and dividends, I'm up to 530ish shares. 40 "free" shares of AAPL isn't too bad!

 

[RickInHouston]

Children? What does the pie chart tell us?
Uhm, apple is a phone company?

 

[3NV7]

I find it hard to believe that anyone every really believed this. Tablets are a great supplementary device class, but they are not full fledged computers for most people.

Around the time of the iPad 2 launch, my boss' boss made a big push for iPad productivity. Bought a bunch of us iPads, encouraged us to do "real work" on them.

Needless to say, that didn't happen. Notetaking during meetings, perhaps, but that was about it.