Apple Reports 2Q 2019 Results: $11.56B Profit on $58B Revenue as Services Revenue Hits All-Time High

[Baymowe335]

Hmm...Tim Cook didn’t give an install base figure. Wonder if Luca will.

He did. Over 1.4B and record in every major market.

 

[spazzcat]

they won't "sell" hardware, it will be a service! Subscribe monthly and get all the best devices updated every 12 months. It's the best way to own apple products and we think you are really going to love it.

Depending on the price, I would be ok with that.

 

[Morgenland]

Impressive. Great job Apple.
Nevertheless, soon the children at Macrumors will have forgotten everything again and will start their diatribes on Cook again.

 

[Baymowe335]

Wow CNBC guests are crapping all over Apple and Tim Cook. They had like a 5 minute discussion and every guest was negative. Wall Street kept hammering Apple for not growing services. Now that Apple is growing services Wall Street is grumbling that the services won’t be any good and still obsessing over iPhone sales. CNBC is so anti-Apple it isn’t even funny.

That one is a total idiot. "I can't think of 1 thing Tim Cook invented." What about the silicon? The AirPods? The Watch? Wearables are growing at 30%.

I swear I could destroy these idiots on CNBC. How do they get airtime?

 

[lkrupp]

Why is it very good? It is slightly lower than last year.

Samsung and Google took huge hits today. GOOG dropped 8% on disappointing numbers. AAPL is up over 5% after hours. Apple did extraordinarily well compared to those two debacles. So yes, it is VERY good indeed.

 

[imac_g4_1702]

Yet again, Apple impresses us with their results. Can't believe they're not fluctuating as much.

 

[Pepe4life]

Doesn’t change the fact that their hardware quality has been worsening every year

 

[Peace]

WWDC in June.

"You are not going to want to miss this one."

You better right Tim.

 

[iAVERY]

Depending on the price, I would be ok with that.

iPhone Upgrade Program will have been just the start.

 

[triton100]

Congratulations, so apple correctly guessed how much they would make. But it is still lower than what they made last year this time. Peak iPhone has already happened.

Yes but that no longer matters. It’s of no consequence as Apple have now firmly proved they are no longer reliant on the iPhone. And they have multiple new revenue streams opening up. And no doubt working on the next transitional hardware from the iPhone in the background in the form of glasses etc.
[doublepost=1556659806][/doublepost]

Except when the experience degrades due to Apple focusing on up-selling services. I don’t want to get push notifications and ads in settings trying to upselling me on services.

When do you get that? I’ve never been upsold anything by Apple ?

 

[DeepIn2U]

A suggestion... I would love to see the progress graph with the services revenue on the bottom, since ostensibly that should be the least affected by quarterly swings. It would make it a lot easier to see the growth.

With Disney+ coming this fall you can bet Apple's services would be 'slightly' affected.
AppleTV+ vs NetFlix vs Disney+
Apple Music vs Spotiy
Hulu and many many others, epscially those bundled with others included in a carrier plan or TV plan could affect a consumers choice of spending on services as well as how many people in the Family can enjoy said service offering. maybe not quarter by quarter but we'll see the changes in September to December 2019 before settling occurs. I'm not worried for Apple though.

Apple has new hardware coming at WWDC.

Timmy wouldn't have said "We're looking forward to sharing more with developers and customers at Apple's 30th annual Worldwide Developers Conference in June."

I caught this too

Buying it in the $140's was the right move for anyone that had the money and the insight. It's above $210 in after hours...

F_F-F-F-FFFFFFFF (*&(%*&$% Missed out heavily. oh well next quarter.

[doublepost=1556660358][/doublepost]

Why is it very good? It is slightly lower than last year.

Due to recent downturn it's not been TOO far off ... hence why it's good. Services and iPad has been up as well as the latter being a record in 6yrs!

 

[TVreporter]

The numbers are always staggering, even with a slight drop. Most companies and even many countries would kill for these financial statistics. Mind boggling!

Well done again Apple - now just adjust Canadian prices so I can justify buying a new iMac!

 

[Carnegie]

They do if AppleCare is included in services. Write Tim Cook if you don't like how it's bucketed, but that's how it's done.

AppleCare revenue would be accounted for in Services revenue. But, in accordance with accounting standards, it would be amortized over time. So the cyclical effect would be dampened.

That said, yes, even Services revenue is somewhat (seasonally) cyclical. It's just not as cyclical as Products revenue.

 

[ryanwarsaw]

Congratulations, so apple correctly guessed how much they would make. But it is still lower than what they made last year this time. Peak iPhone has already happened.

The stock went up so it doesn't matter. Apple could stop making computers and start selling oranges. All the shareholder cares about is if it goes up or not. Make any argument you want but anybody that holds Apple is richer than yesterday.

 

[Rogifan]

Neil Cybart (@neilcybart)
4/30/19, 4:44 PM
Citi: Have you learned anything about pricing and margins from cutting product prices outside the U.S.?

Tim Cook: We learned that many many people want to trade in their current iPhone in our stores. People also want to pay in installments. We are learning quickly here.

Translation: iPhones are expensive and we’re trying any way we can to mask it.

 

[alexandr]

voice over needs to be able to speak tim - just so we can hear him say "billion" a couple more times.

 

[Jimmy James]

they won't "sell" hardware, it will be a service! Subscribe monthly and get all the best devices updated every 12 months. It's the best way to own apple products and we think you are really going to love it.

If they come up with a “cost effective” 3/7 program I could be interested:
-three years for iPhone.
-seven years for Mac.

 

[FFR]

Samsung and Google took huge hits today. GOOG dropped 8% on disappointing numbers. AAPL is up over 5% after hours. Apple did extraordinarily well compared to those two debacles. So yes, it is VERY good indeed.

Thought I was the only one that noticed.

Samsung mobiles operating profit has declined 40% yoy and 2018 pixels aren’t doing very well sales wise.

 

[falainber]

Samsung and Google took huge hits today. GOOG dropped 8% on disappointing numbers. AAPL is up over 5% after hours. Apple did extraordinarily well compared to those two debacles. So yes, it is VERY good indeed.

It's all relative. Alphabet reported 17% y-o-y revenue growth. Apple reported material drop in revenues. Impressive?

 

[cfurlin]

Impressive. Great job Apple.
Nevertheless, soon the children at Macrumors will have forgotten everything again and will start their diatribes on Cook again.

Don't say that. I'm not sure I can handle any more chair-potatos getting their bromance on over Jobs and uttering the phrase, "If Steve were alive...".

 

[Rogifan]

I’m surprised no one has asked about Disney yet.

 

[cfurlin]

Doesn’t change the fact that their hardware quality has been worsening every year

Passing off an opinion as a statement of fact only make you look like a fool.

But by all means, continue...

 

[macduke]

they won't "sell" hardware, it will be a service! Subscribe monthly and get all the best devices updated every 12 months. It's the best way to own apple products and we think you are really going to love it.

OMG. I just realized I'm basically doing this right now with the iPhone Upgrade Program. Dammit!

 

[Foxglove9]

When do you get that? I’ve never been upsold anything by Apple ?

The constant nagging to upgrade iCloud a few times every week for years.

 

[az431]

When people say Apple is transitioning from a product company to a services company what the heck does that mean? Why are products only defined as hardware? Is Apple Music not a product? Stupid.

This may be helpful:

https://www.merriam-webster.com/dictionary/product

https://www.merriam-webster.com/dictionary/hardware

https://www.merriam-webster.com/dictionary/service