Not surprising development. COVID-19 drives sales of home entertainment (so called services) and people need new computer/iPad etc for working at home (where is that new beautiful iMac)? The hit will come when peoples money run out although I think lots of people who usually travel and eating out shift their spending on IT equipment and large screen TV. I believe impact on online services and IT and TV is nearly neutral compared to travelling and restaurants. The only exception is if there is limitations in the hardware production which hinders sales.
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Apple Reports 2Q 2020 Results: $11.2B Profit on $58.3B Revenue, All-Time Record for Services Revenue
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So the “global recession” is overstated, or people are too dumb to realize they can’t afford those products anymore ?
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Except prices didn’t go up...
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You are exaggerating things, but I agree with you.
I still love my MacBook Pro, but I was “forced” to buy a desktop PC because Apple basically isn’t selling what I need (a powerful computer with a VGA in the 5700XT/RTX 2070 class for about €2000). And for my next notebook I will think about a Windows laptop, even if I don’t like Windows at all and I’m using a Mac since 1990.
Wouldn’t say that, many are still working as normal and in fact many places even more work is coming in than it was before. Certainly in the food side of things.
The recession is there for the small companies yes...those are the ones that have to Completely rebuild but lets not overreact to think everything has come to a halt when it hasn’t.
That was my point.
Press in these days are exaggerating things speaking about a global doom. We don’t know yet how the world’s economy will react to this crisis, mostly because we don’t even know when it is going to stop.
True this is the issue is there is no timetable for this to end. I can’t imagine what is going through the heads of companies like hairdressers for example.
In addition, that’s revenue, not how many individual devices sold. They’re actually selling WAY more iPads, which likely tie directly to the Services numbers, as well.
I think an argument can be made that in difficult economic times that are perceived to be prolonged in nature, consumers become more willing to spend more on products that are perceived to be of higher quality. Reasoning being that higher-quality products can last longer, and so you can actually save more money in the long run, because you don’t have to replace them as often.
Likewise, you can only defer certain purchases for so long. We have no idea long this lockdown situation is going to last. If you know schools are going to stay closed for a while, then may as well bite the bullet and get that ipad for your child so he can do his home-based-learning, and keep himself entertained while at it. Even after this whole pandemic, you will still have a very capable tablet that will be properly supported for many years.
it’s quite fascinating that Apple still performs that well!
Let’s see if there will be some nice invention in the 20s.
it seems the consumer is not that demanding anymore ...
It is fascinating that Apple is doing better yoy in this environment. However, I believe you are far off when you say the consumer isn't very demanding. They are very demanding. It's the critics that are out of touch.
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At least fix the incorrect information in your post...sloppy.
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So you should be shorting because there are many stocks trading over 23 times, if that’s your only measure. People are paying almost 100X for AMZN earnings. There are reasons for it.
Not all earnings are equal. There are also buybacks, dividends, growth, and type of earnings that matter. Services revenues are extremely valuable.
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If Apple makes $11B profit on $58B revenue, thats almost 20%. Why do every one says Apple charges high premium and high margins?
Macs are selling just as much as iPads, an extremely dangerous sign for the Mac. Also, the company is about 50% a phone company, reminds me of the Steve Ballmer qoute:
Only proves me theory that people in higher position do not really know any better than you do.
Macs are selling just as much as iPads, an extremely dangerous sign for the Mac. Also, the company is about 50% a phone company, reminds me of the Steve Ballmer qoute:
Only proves me theory that people in higher position do not really know any better than you do.
It’s expensive to run a company, particularly when you have to make physical objects. Apple makes reasonable margins...other companies make even better margins.
then by that measure the revenue from each segment could also include out of warranty repairs or would that be part of services revenue.
when pricing for MBA/MBP drops along with iPad Pro pricing (if dropped) would potentially see slightly higher sales yet in a shorter time span (less people waiting to save up or waiting for reimbursements / deals)
Some businesses are more resistant to recession than others, just like some countries are more resistant to recession. And some countries pull out of recessions more quickly than others.
In any case, Apple’s first quarter financials are not a good way to determine the current and near-term health of world economies. The scope of the worldwide damage associated with the pandemic will become clearer over the coming months.
Predicting the future is tough. Whether the “press” is underplaying or exaggerating the situation might depend on what press your paying attention to and what their agenda is, if any.
I would like to post something radical. Apple could buy Boeing outright. It is about $78B Market cap. They have the cash and the credit demand to issue long term debt for about 50-60% of the purchase price. The combination, even as a subsidiary or wholly owned off sheet asset, would be good for both. Boeing has a consumer facing business model as well as a strong international governmental book of business. Apple might get a bit more of both. In the mean time they will buy a discounted future cash flow. Much smarter than buying back stock right now.
Boeing recently offered $25B in debt securities and it was oversubscribed and they were in mild desperation. Apple is not.
Boeing would do it simply to get a permanent low cost funder and a long term philosophy owner and willing to let specialists be specialists.
Just Jerry
Boeing recently offered $25B in debt securities and it was oversubscribed and they were in mild desperation. Apple is not.
Boeing would do it simply to get a permanent low cost funder and a long term philosophy owner and willing to let specialists be specialists.
Just Jerry
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It’s suggestions like this which strengthen the case for Apple to do even more share buybacks, so they don’t get stuck with too much money in the bank and face the temptation of engaging in frivolous acquisitions like this.
Why don’t you ask Apple to buy their own country while they are at it and move their base of operations there so they don’t have to pay any tax?
Funny how no one rails against Microsoft and their 35% net income, whereas every (per)cent of Apple’s profits are begrudged—even though they’re little more than half Microsoft’s.
Apples prices are expensive because their costs are high, not because their profits are too high. I wish posters here were a little more financially literate.
Anyway, great quarterly results. this quarter might not be quite so great, but with iPhone, Mac and iPad—and of course services—revenue should be decent.
Take a look at Visa and Mastercard margins. I was shocked and immediately bought some shares.
Because, though legally achieved, Apple and taxes amount are already good friends (almost) worldwide, except for its actual orignal country. So let them focus on other priorities.
It might be cheaper than Boeing since all the land and resources would be privately owned. Imagine a country with an annual 10% budget surplus. . . . . .
As the world's first trillion dollar company, Apple sure knows how to reap in exponential profits.