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Apple Reports 4Q 2016 Results: $9B Profit on $46.9B Revenue, 45.5M iPhones

Stock has dropped more since the earnings call started. For a while there Tim was really great on these calls. But the past few he's been quite lackluster. This call he was asked about the auto industry and TV (content) industry and gave complete non-answers. Of course no one expects him to give away specefic products in the lab but give us something more than "ah...it's something we're ah...interested in". Give us some kind of vision. Tim sounds very lethargic, almost bored on the call.
 
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keysofanxiety said:
Not going to happen.
Click to expand...

Yes, Um, as I said I'm concerned, apple are literally pricing themself out of the market.
This is getting silly money for a phone imagine a young lad trying to justify this purchase.
They'll be forced to go android, apple will lose out to the next genetation youngsters and these youngsters are the future.
Careful Tim with your pricing or in 5 years time there maybe redundancies on the Mothership no apple lover (like me) wants that.
 
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Both hyperbole extremes, "oh noes, Apple is doomed!" and "Apple's doing great! No worries!" are not helpful and miss what is going on. When a company that was riding high falls, it usually falls quickly and it falls hard. To dismiss flat or a slight downturn is to do so at their own peril.

Apple doesn't need to panic, but one could make the case that there are some issues with their product lines that have gone unaddressed for a bit too long. Hopefully the Oct 27 presentation will be the first in many steps towards addressing those issues.
 
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time for tim to resign, jobs wouldn't have done this, worst keynote ever, not interested in iphone 7, bring back the jack, tim is an accountant not a visionary like jobs, macs haven't been updated in ten years, where is oled iphone, bring back mag safe, apple is doomed, apple has lost its way, I really miss jobs, I really miss the old apple, I remember when apple was about making macs not watchbands, the AW is a failure, moar watchbands, watchbands, safari feels snappier, where is updated mac pro, asus makes much better laptops than apple now, i'm switching to pc, eddy cue is a moron, everyone tuck in your shirts, apple is doomed, less project titan more macs,
 
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The most disturbing thing?
Services: 13%
Macs: 12%.

Apple is way behind in the "Services" area, it's just 1% more than a very outdated line for Macs...
 
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"At some point the strong dollar becomes the new normal and we need to work with that."

Hopefully this means prices will become a little more reasonable for us non-US customers. It's the reason I can't justify buying an Apple Watch (among other products).
 
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65c67e4572494f70b8f0ebdc25cd2420.png


I think this news article sums it all up
 
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BuddyTronic said:
What interest rate do "some people think" Apple pays on that 80B debt?

Do "some people think" Apple will pay full tax on the 237 Billion cash when they bring it back to the USA?

I think they will get a discount on the tax to repatriate that money eventually. If not, the USA loses out. As for the debt - I think it's very smart to load up debt right now with interest rates approaching zero. The Apple bond sales do just that I believe.

There has never been a company with such a balance sheet. Please compare to all other companies side by side.
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Company stashing cash is a clear indication that management has no idea what to do with it. It's much better when company re-invests cash into its business with good returns. Just compare the performance of AAPL to that of Amazon lately. That's a smart use for cash.

As for a tax break, US government may not be willing to go for a tax "vacation" as easily this time around. Sooner or later Apple will have to repatriate the profits either to buy back stock or raise the dividend because AAPL share holders are not going to stay happy for long with mediocre stock price performance.
 
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Rogifan said:
Stock has dropped more since the earnings call started. For a while there Tim was really great on these calls. But the past few he's been quite lackluster. This call he was asked about the auto industry and TV (content) industry and gave complete non-answers. Of course no one expects him to give away specefic products in the lab but give us something more than "ah...it's something we're ah...interested in". Give us some kind of vision. Tim sounds very lethargic, almost bored on the call.
Click to expand...


Yeah, but after hours is very volatile. Give it a couple of days and we'll see AAPL above 120 - it takes this long for the suits to realize:

1. Services revenue is growing fast (20% +) and is already big money

2. Guidance for December will be bigger than last year $76 - $78 Billion - "return to growth"


Line up the great financial statements and compare to any and all other companies on the planet and you have a great investment with lots of upside with very little downside. Holding AAPL is smart
 
falainber said:
It's much better when company re-invests cash into its business with good returns.
Click to expand...

Got to disagree here and I think Bill Gates does too.
Dont put 'all your eggs in one basket'.
Have a trusted shrewd investor investing in OTHER companies (as Bill has done with his MS share sales).
Bill maybe not the best comparison as ironically if he had kept all his MS shares then he may be more wealthy but you get his and mine idea.
 
Why did you not make as much money as last time?

Well you have to factor in inventory constraints, dollar value increase, and the samsung award.

Oh, i see, but why didn't you make more money?

Don't worry, we will pick it up next quarter?

Oh, but you are not expecting to pick up as much as we want you to. Why?

End of conference call....

These calls are a bit funny to me. Still I do worry about three quarters of less sales (even with all the usual excuses). As many have said, they are still pulling in more than entire countries, but the direction seems off. I also agree that so far Apple has seemed to focus more on new products and less on the older lines like desktops and laptops. I hope to see something later this week that give me an indication that they are hitting on all cylinders, because the phone/watch/tablet cylinders are misfiring right now. Apple pay seems to be the only one firing well.
 
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falainber said:
Company stashing cash is a clear indication that management has no idea what to do with it. It's much better when company re-invests cash into its business with good returns. Just compare the performance of AAPL to that of Amazon lately. That's a smart use for cash.

As for a tax break, US government may not be willing to go for a tax "vacation" as easily this time around. Sooner or later Apple will have to repatriate the profits either to buy back stock or raise the dividend because AAPL share holders are not going to stay happy for long with mediocre stock price performance.
Click to expand...


I do wish they would raise the dividend.

They are doing big share buybacks.

They can consider some large purchases I suppose - but that's complicated! They have the goose that layed the golden egg with their current business. If they have zero growth, they are still bringing in the Billions quite dependably. The Stock Market reacts to small percentages, but just look at Apple's Revenue. Wow. Compare the scale of it to all other companies. They can buy AT&T easily if they want to. Look at the news all the talk about "big" business, and there is Apple. Bigger.

They do not necessarily have to bring that money back to the USA. And political and economic conditions in the USA might push Apple and other companies away (check out what Trump says about it - he is actually right).
 
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Pretty awful results.

If you compare to two years ago, revenue is up over 10%, but profits only 5%. This reflects the decrease in margins that Apple suffered last quarter. They have also guided substantially lower margins and flat revenue. This is the commoditisation of the phone.

All products are down, the first time that I have known that to be the case. Macs are down badly, iPad is down, iPhones are down but not too much, and Other Products are down dramatically—that includes the Apple Watch. Only services showed good growth, though I doubt it will continue; it includes Apple Music, which only launched recently, and Pokemon Go. It will be hard to sustain the user base if all products are selling worse than last year.

Revenue and profits are down significantly over last year. China is down 30%.

Cook sounded terribly lethargic and gloomy; it was the worst I have heard him on a call by far. He sounded defeated. It's time for him, Cue and Ive to go.
 
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bozzykid said:
Except where their profits declined 23% compared to the same quarter last year.
Click to expand...
I'm sure they'll lower prices to get that market share back.

Oh, wait, that would mean cutting those fat margins, it'll never happen, those are Holy.
 
Attirex said:
time for tim to resign, jobs wouldn't have done this, worst keynote ever, not interested in iphone 7, bring back the jack, tim is an accountant not a visionary like jobs, macs haven't been updated in ten years, where is oled iphone, bring back mag safe, apple is doomed, apple has lost its way, I really miss jobs, I really miss the old apple, I remember when apple was about making macs not watchbands, the AW is a failure, moar watchbands, watchbands, safari feels snappier, where is updated mac pro, asus makes much better laptops than apple now, i'm switching to pc, eddy cue is a moron, everyone tuck in your shirts, apple is doomed, less project titan more macs,
Click to expand...

Excellent post. You took the words right out of my mouth.

Would that it were not so.
 
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