Apple Reports 4Q 2018 Results: $14.1B Profit on $62.9B Revenue, 46.9M iPhones

[iMEric984]

Gonna be a bad day when the iPhone flops

When hell freezes over.

 

[sirozha]

So the $800B in shareholder value Tim created since he took over hasn’t convinced you?

Tim created? Maybe the momentum
that was built under Steve Jobs created this value and not Tim Cook. I hope I’m wrong, but my gut feeling tells me that raising the prices is not how companies should innovate.

I’m not advocating for Apple to chase the market share with cheap devices. But, by the same token, I’m not in favor of Apple jacking up the prices in the effort to increase the profits at the expense of shrinking the market share. This is a slippery slope that ends in the abyss. Even though it may prove successful in the beginning, it will not end well.

Clearly and sadly you see the glass as half empty.
Btw It’s only logic that sales get flattened at some point.
But still no one in sight making more profit than Apple.

And Wall Street hasn’t paid much attention to the profits that Apple churns out. Conversely, Wall Street has been enamored by AMZN for years despite years of losses and recent low profits. Maybe the long-term strategy is more important than the current profits after all. It’s hard to accuse Amazon of not having a clear strategy. Amazon is firing on all cylinders while Apple has no clue what to do with its cash, and the best they can come up with is to buy back shares. I shouldn’t complain about share buybacks as a shareholder, but if the stock price comes down significantly because of the lack of clear strategy, all these buybacks will have been wasted money.

 

[Baymowe335]

Tim created? Maybe the momentum
that was built under Steve Jobs created this value and not Tim Cook. I hope I’m wrong, but my gut feeling tells me that raising the prices is not how companies should innovate.

I’m not advocating for Apple to chase the market share with cheap devices. But, by the same token, I’m not in favor of Apple jacking up the prices in the effort to increase the profits at the expense of shrinking the market share. This is a slippery slope that ends in the abyss. Even though it may prove successful in the beginning, it will not end well.

And Wall Street hasn’t paid much attention to the profits that Apple churns out. Conversely, Wall Street has been enamored by AMZN for years despite years of losses and recent low profits. Maybe the long-term strategy is more important than the current profits after all. It’s hard to accuse Amazon of not having a clear strategy. Amazon is firing on all cylinders while Apple has no clue what to do with its cash, and the best they can come up with is to buy back shares. I shouldn’t complain about share buybacks as a shareholder, but if the stock price comes down significantly because of the lack of clear strategy, all these buybacks will have been wasted money.

Yes, Tim created. He’s been in control for 7 years and has taken iPhone to the next level, along with industry leading silicon, most popular watch, and a crowned jewel services business.

Sell me your shares in the morning.

 

[MrX8503]

I had a conversation this afternoon with my wife about where AAPL is heading. I said we needed to get out of AAPL. I've been an AAPL investor for 11 years now, and have accumulated a multi-million dollar AAPL portfolio.

Here's my main concern: Apple devices have become too expensive even for us (at the physiological level) even though we can afford anything and everything that Apple makes. However, having had very humble beginnings, both of us understand the value of money, and we now consider Apple to be purely a luxury brand. We are not into luxury brands; we buy quality and refuse to buy junk, but we do not buy luxury for the sake of the brandname alone.

Apple has always made overpriced gadgets, but those gadgets offered value even at the inflated prices. I'm typing up this post on a quad-core 2.6 GHz i7 2012 Mac Mini with Fusion Drive, which is still a phenomenal device. Yes, perhaps I overpaid for that computer back in 2012 (a couple hundred bucks) compared to a similarly equipped Windows computer, but six years later, I'm using this Mac Mini and enjoy every minute of it, and it's still phenomenal with only one feature lacking compared to the most advanced Macs: not being able to be unlocked by an Apple Watch.

However, I've been looking for an upgrade path for both my MacBook Pro 2015 and my Mac Mini for years now, and I just do not see any product out there anymore that offers the value because I think the threshold of reason has been crossed by Tim Cook's Apple. There's no regard at Apple to the fact that that people have options now, the fact that Windows is not as horrible as it used to be, the fact that there are some reasonably good Android phones out there, etc. I appreciate the fact that Tim Cook has no understanding of what money means to regular people. He has been filthily rich for so long now that he has lost all sense of reality when it comes to regular people's lives and budgets. I also realize that all other Apple executives who are the decision makers at Apple have no sense of reality either, being so incredibly rich. However, my wife and I still have the sense of reality despite our newly found wealth, and we feel that paying so much money for a MacBook Pro or a new iPad, or a new Mac Mini is just throwing your money away. We are not migrating away from the Apple's ecosystem (yet), as we are now heavily rooted in it, including all the IoT devices that are anchored to the Apple's HomeKit. Migrating away from Apple would be a very disruptive process for us at this time. What is our solution? Our solution is to continue to use our older Apple devices (like the 2012 Mac Mini, the iPhone 7, the iPad Mini 2, the 2014 27" Retina iMac, etc.) without buying anything new. Not because we cannot afford it, but because we feel that it's obscene to spend so much money on these devices. I'm afraid a lot of people with similar backgrounds - whether or not they have the money to spend - are having similar feelings and are putting off their purchases of Apple devices.

So, this is my dilemma. I liked owning AAPL, but I see no plan in the Apple's leadership for the future. Tim Cook's plan for the future seems to continue to raise the prices. Unfortunately, Tim does not understand that he has passed the threshold of decency at this point for most middle class people in the US, Canada, and Europe. Since about 2016, I've been feeling that the direction that Apple has taken with raising the prices is destructive to AAPL. I know, I know, the stock price has been rising, but there's a certain degree of inertia in the behavior of the stock compared to the direction that the leadership of a corporation sets.

Maybe Apple will start using their ARM chips in the Macs come next year. Maybe that's how Apple can lower the pricing while still maintaining the profit margins, and because of the lower prices they will be able to jump-start the sales of Macs. Maybe, Apple has some new amazing gadget up their sleeve that will blow everyone away. However, for now, I see nothing at all other than their desire to keep raising the prices and hoping to show Wall Street a solid growth of gross and net revenues. I don't' think you can fool Wall Street with this strategy. Wall Street folks are not idiots.

I'm saying all of this with a very heavy heart. I love this company, and it makes me sick watching what Mr. Cook is doing with it.

You know Tim Cook personally? The fact is you don't and you don't know his level of understanding of money to regular people. According to https://www.businessinsider.com/tim-cook-net-worth-apple-ceo-2018-8

Tim Cook lives in a 2,400 sq ft home and is worth about $625M. That's modest compared to Mark Zuckerberg and Larry Page, who's worth tens of billions despite Apple being the most valuable company in the world by market cap.

Apple products are getting expensive, but if you look at every sector/market they're in, Apple is very dominant. People love their iPhones, Apple Watches, and iPads. Their weakest link is their Mac lineup, but Macs are becoming trucks and only professionals will be using them. Then layer the Apple ecosystem on top which no other competitor can rival and you've got an iron clad business model.

This is why I continue to own AAPL. I don't see the increase in prices breaking customer loyalty.

 

[pipis2010]

Apple today announced financial results for the third calendar quarter and fourth fiscal quarter of 2018.

For the quarter, Apple posted revenue of $62.9 billion and net quarterly profit of $14.1 billion, or $2.91 per diluted share, compared to revenue of $52.6 billion and net quarterly profit of $10.7 billion, or $2.07 per diluted share, in the year-ago quarter. Revenue, profit, and EPS were all-time records for the September quarter.

Gross margin for the quarter was 38.3 percent, compared to 37.9 percent in the year-ago quarter, with international sales accounting for 61 percent of revenue. Apple also declared an upcoming dividend payment of $0.73 per share, payable November 15 to shareholders of record as of November 12.

For the quarter, Apple sold 46.9 million iPhones, up slightly from 46.7 million in the year-ago quarter. iPad sales fell to 9.7 million from 10.3 million in the fourth quarter of 2017, while Mac sales dipped to 5.3 million from 5.4 million.

For the full fiscal year, Apple generated $265.6 billion in sales with $59.5 billion in net income, up from $229.2 billion in sales and $48.4 billion in net income for fiscal 2017. Both figures are also all-time company records, exceeding standards of $233.7 billion in sales and $53.4 billion in net income set in fiscal 2015.Apple's guidance for the first quarter of fiscal 2019 includes expected revenue of $89-93 billion and gross margin between 38 and 38.5 percent.

Apple will provide live streaming of its fiscal Q4 2018 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference call recap ahead...


Click here to read rest of article...

Article Link: Apple Reports 4Q 2018 Results: $14.1B Profit on $62.9B Revenue, 46.9M iPhones

It seems that Apple products just keep getting more and more expensive every year! Here in Greece, the base Mac Mini i3 config is currently priced at $1,140 !!!!! With this amount of money you can get a much better spec'd Windows mini pc... Hackintosh perhaps is the way to go?

 

[sirozha]

You know Tim Cook personally? The fact is you don't and you don't know his level of understanding of money to regular people. According to https://www.businessinsider.com/tim-cook-net-worth-apple-ceo-2018-8

Tim Cook lives in a 2,400 sq ft home and is worth about $625M. That's modest compared to Mark Zuckerberg and Larry Page, who's worth tens of billions despite Apple being the most valuable company in the world by market cap.

Apple products are getting expensive, but if you look at every sector/market they're in, Apple is very dominant. People love their iPhones, Apple Watches, and iPads. Their weakest link is their Mac lineup, but Macs are becoming trucks and only professionals will be using them. Then layer the Apple ecosystem on top which no other competitor can rival and you've got an iron clad business model.

This is why I continue to own AAPL. I don't see the increase in prices breaking customer loyalty.

How can you compare Tim to Mark or Larry? The latter two are the inventors; they are the ones who came up with the idea and implemented it. They are the entrepreneurs and the visionaries. They are the Steve Jobs. Tim Cook didn’t come up with any idea or vision. He didn’t create the company. He didn’t bring it to success. He is the one who taught Steve Jobs how to outsource production to China and how not to own warehouses in the US. He was paid by Apple handsomely for that, and that’s the only thing he knows how to do well.

 

[MRrainer]

I had a conversation this afternoon with my wife about where AAPL is heading. I said we needed to get out of AAPL. I've been an AAPL investor for 11 years now, and have accumulated a multi-million dollar AAPL portfolio.

Here's my main concern: Apple devices have become too expensive even for us (at the physiological level) even though we can afford anything and everything that Apple makes. However, having had very humble beginnings, both of us understand the value of money, and we now consider Apple to be purely a luxury brand. We are not into luxury brands; we buy quality and refuse to buy junk, but we do not buy luxury for the sake of the brandname alone.

Apple has always made overpriced gadgets, but those gadgets offered value even at the inflated prices. I'm typing up this post on a quad-core 2.6 GHz i7 2012 Mac Mini with Fusion Drive, which is still a phenomenal device. Yes, perhaps I overpaid for that computer back in 2012 (a couple hundred bucks) compared to a similarly equipped Windows computer, but six years later, I'm using this Mac Mini and enjoy every minute of it, and it's still phenomenal with only one feature lacking compared to the most advanced Macs: not being able to be unlocked by an Apple Watch.

However, I've been looking for an upgrade path for both my MacBook Pro 2015 and my Mac Mini for years now, and I just do not see any product out there anymore that offers the value because I think the threshold of reason has been crossed by Tim Cook's Apple. There's no regard at Apple to the fact that that people have options now, the fact that Windows is not as horrible as it used to be, the fact that there are some reasonably good Android phones out there, etc. I appreciate the fact that Tim Cook has no understanding of what money means to regular people. He has been filthily rich for so long now that he has lost all sense of reality when it comes to regular people's lives and budgets. I also realize that all other Apple executives who are the decision makers at Apple have no sense of reality either, being so incredibly rich. However, my wife and I still have the sense of reality despite our newly found wealth, and we feel that paying so much money for a MacBook Pro or a new iPad, or a new Mac Mini is just throwing your money away. We are not migrating away from the Apple's ecosystem (yet), as we are now heavily rooted in it, including all the IoT devices that are anchored to the Apple's HomeKit. Migrating away from Apple would be a very disruptive process for us at this time. What is our solution? Our solution is to continue to use our older Apple devices (like the 2012 Mac Mini, the iPhone 7, the iPad Mini 2, the 2014 27" Retina iMac, etc.) without buying anything new. Not because we cannot afford it, but because we feel that it's obscene to spend so much money on these devices. I'm afraid a lot of people with similar backgrounds - whether or not they have the money to spend - are having similar feelings and are putting off their purchases of Apple devices.

So, this is my dilemma. I liked owning AAPL, but I see no plan in the Apple's leadership for the future. Tim Cook's plan for the future seems to continue to raise the prices. Unfortunately, Tim does not understand that he has passed the threshold of decency at this point for most middle class people in the US, Canada, and Europe. Since about 2016, I've been feeling that the direction that Apple has taken with raising the prices is destructive to AAPL. I know, I know, the stock price has been rising, but there's a certain degree of inertia in the behavior of the stock compared to the direction that the leadership of a corporation sets.

Maybe Apple will start using their ARM chips in the Macs come next year. Maybe that's how Apple can lower the pricing while still maintaining the profit margins, and because of the lower prices they will be able to jump-start the sales of Macs. Maybe, Apple has some new amazing gadget up their sleeve that will blow everyone away. However, for now, I see nothing at all other than their desire to keep raising the prices and hoping to show Wall Street a solid growth of gross and net revenues. I don't' think you can fool Wall Street with this strategy. Wall Street folks are not idiots.

I'm saying all of this with a very heavy heart. I love this company, and it makes me sick watching what Mr. Cook is doing with it.

But you see, that is no problem at all.
I don't think even Tim Cook expects every user to buy every gadget they produce (and subscribe to every service) at the day they release it. I think he has even alluded to that in interviews.

It's perfectly OK to use a MacMini for six years or more and an iPhone for five etc.pp.

Given the number of users, enough people still buy the new hardware every year.

This is nothing Apple specific.

It affects all companies that, generally speaking, live by extracting money from their customers.

 

[dilbert99]

Sure they are thrilled because consumers are still buying their products, can’t say the same for the completion.... you know because they have also increased their prices yoy, but consumers aren’t purchasing it.

Must be a correlation in there somewhere.

Yay, prices are going up. double yay.
Moves that are good for the shareholder are not in customers interest.

I find it strange when Apple fans gloat about higher prices.
[doublepost=1541146058][/doublepost]

When hell freezes over.

Apple are making great products but all companies die. Apple has been there before.
What goes up, must come down.

 

[Abazigal]

Yay, prices are going up. double yay.
Moves that are good for the shareholder are not in customers interest.

I find it strange when Apple fans gloat about higher prices.
[doublepost=1541146058][/doublepost]
Apple are making great products but all companies die. Apple has been there before.
What goes up, must come down.

This is like me telling you to your face every day that you are going to die. That will definitely happen one day to you and me. But that doesn’t mean anything. It just means we are human.

Of course nothing lasts forever in the greater scheme of things.

And I did mention it before. Keeping parroting the refrain that “Apple is doomed” and yes, one day, you might eventually be proven right. It might happen next year, it might happen 10 or 20 years from now. It might not even happen in our lifetime.

But in the process, as Apple continues to prosper, the critics will have gotten their analysis of Apple wrong enough times that in the greater scheme of things, they would have been wrong.

It just doesn’t work that way.

 

[FFR]

I wonder if Samsung makes more money off selling APPLE OLED Panels, versus their smartphone sales. That would be classic.

They actually do.

Samsung display actually bends over backwards for apple, what alternatives do they have? Their other customers such as Samsung mobile and google pixel aren’t selling.

The galaxy note 9 and the s9 are duds, they just don’t sell. And it’s gong to get worse next quarter.

“For the fourth quarter, Samsung expects smartphone shipments to rise, but warned that earnings will likely be hurt by increased promotional costs.”

They are basically going to ship more phones next quarter but will eat most of the costs by labeling it a promotional, if they didn’t do that their smartphone business would collapse. Awkward for Samsung mobile and their customers.

 

[RedCloud2017]

Translation: prices will keep going up.

 

[FFR]

Yay, prices are going up. double yay.
Moves that are good for the shareholder are not in customers interest.

I find it strange when Apple fans gloat about higher prices.
[doublepost=1541146058][/doublepost]
Apple are making great products but all companies die. Apple has been there before.
What goes up, must come down.

Yes prices going up, not profit margins you do understand the distinction?

Perhaps not, anyway as a consumer, I love the direction apple is headed, I keep buying more and more of their products because of it. As a consumer it’s great when companies don’t cheap out and rip off the consumer, you know like increase prices while offering products with cheaper and inferior components, like Samsung does.

 

[The Game 161]

Crushing it as always

Samsung and google having similar prices is not helping them sales wise.

 

[FFR]

Crushing it as always

Samsung and google having similar prices is not helping them sales wise.

True but they are selling smartphone with the same prices but with inferior components compared to apple. Which makes sense why they aren’t selling as much.

 

[dilbert99]

It just doesn’t work that way.

What percentage of companies from years ago are still around?
[doublepost=1541149636][/doublepost]

Yes prices going up, not profit margins you do understand the distinction?

Perhaps not, anyway as a consumer, I love the direction apple is headed, I keep buying more and more of their products because of it. As a consumer it’s great when companies don’t cheap out and rip off the consumer, you know like increase prices while offering products with cheaper and inferior components, like Samsung does.

Apple always cheaps out, offering 64GB storage in the phone is a bit of a joke.
Samsung makes the displays for the iPhone.

Perhaps not, maybe I am missing something but if I do a google, in 2015 profit was 41%, today it is about 38%.
So Apple is increasing prices to compensate for for selling more older devices and less newer devices.
It is also stopping breaking down prices because of this.

Have I got that right or am I missing something? I'm no expert, - I'm more technical that financial

Apple has increased its phone prices 125% in 6 years - half from price increases and half from currency fluctuations in Australia.

 

[TallManNY]

I am actually seriously considering my exit from AAPL. Obviously not tomorrow, and judging by what happened to the stock tonight probably not until late January early February or perhaps even in a year from now. But yes, I don't think I should stay long in AAPL anymore unless something amazing happens between now and when the stock price hits $230.

I've also pushed against those who predicted gloom for AAPL, but frankly, Tim Cook irks me, and being a technical person, I see major issues in the Apple's cloud offerings that others may not see. I see sloppy software update releases getting sloppier every year. I can't help but wonder what those tens of thousands of Apple engineers are doing on the daily basis. I see nothing new being produced software-wise besides minor improvements to existing platforms. Maybe they are all working on something revolutionary, or maybe they have lost their way. I don't know how to interpret that, but I am starting to side with those who predicted this a while back.

I don't believe in Tim Cooks' CEO leadership skills. He is a great supply chain guy, but he has neither clue nor vision. Steve Jobs was not an engineer, but he had a tremendous vision. Tim Cook has nothing other than being able to manage the supply chain well. That's my opinion, but I don't believe the ship has a captain in Tim Cook.

Some interesting stuff in your posts on this thread. So I thought I’d join the discuss. Also I am a long time Apple user and for many years now an Apple shareholder. Not nearly as much as you, but still it is an outside position in my portfolio because it has grown so much in the last ten years. I sold 20% of it about two years ago, but mainly just to diversify and to hold some cash for reasons unrelated to Apple. (Obviously, this was a bad trade, but it made sense at the time.)

Setting aside that you probably should sell some Apple stock to diversify for diversity sake and because Apple’s market cap rising significantly above its current 1 Trilllion dollars seems unlikely, I don’t think you are quite right in your analysis. I see some very impressive hardware improvements from Apple and incredible execution on the hardware side. The main thing is the chips that power the iOS devices. They are just beasts. They also seem to be able to bring to market incredible screens and sell them for affordable prices (see the screens in the iMacs or the LCD in the XR).

On the business line and execution, well Apple “owns” the wearable market with the Watch. No one can touch that hardware in terms of quality and overall performance. The potential growth in this area is huge.

As for vision, I think it is pretty clear. Sell a very good product and provide a high level of support for it. Use those two features to charge a premimium and make a very good profit on the initial sale. Then support that product so that over a long life for the product (side note, your 2012 Mini really drives home the quality thesis) and collect some additional revenues from services. Tim Cook seems great at this part.

As for innovation, I think Apple will lead the adoption of AR/VR if that can actually become a market segment of significant size. The combination of screen, camera, and mainly CPU technology that Apple has is going to combine into a wearable device at some point that no other manufacturer is going to be able to touch. Apple could do it now, I think, but the market would be games and porn which Apple won’t do as the focus use case for one of their products. They keep showing us these AR games in their keynotes, but I’m pretty sure they don’t actually expect anyone to sit there for any significant period of time holding their phone or iPad in front of them to play a game. But there must be a reason they keep coming back to this stuff. I assume it will be a wearable set of goggles eventually.

The other innovation, which is probably sooner, will be using their custom chips in the Mac instead of leaving them only in iOS devices. That will give Apple laptops with power and battery life that their competitors can’t touch. If governments allow Apple to lock down these devices with the App Store, the revenue stream will be off the charts. But I’m skeptical that Apple will be able to avoid anti-trust monopoly challenges for much longer.

I will agree that on the software side, Google is doing great. But that company has its own problems. 10’s of thousands of their employees walked out on Thursday complaining about their corporate culture on sexual harraseement. But Google sure can program!

Anyway, yes you should sell a bunch your Apple stock to diversify and protect your gains. You are rich enough that the upside of being richer because Apple stock out performs the market isn’t worth taking downside risk of being over exposed to one stock. Apple is in great shape, but all it would take is one major mess up with the iPhone which requires a recall and that stock will tank 20% or more.

Also, go out and get a replacement for your Mini. You got great value out of your last one, it isn’t much of a leap that you will enjoy the new one and get great value out of it as well.

 

[I7guy]

What a coincidence so am I, apple is killing it this quarter, have you seen the guidance for next quarter?

Android oems must be pissed right about now.... you know because no is buying their phones.

But, but, but market share, the important metric.

 

[FFR]

What percentage of companies from years ago are still around?
[doublepost=1541149636][/doublepost]
Apple always cheaps out, offering 64GB storage in the phone is a bit of a joke.
Samsung makes the displays for the iPhone.

Perhaps not, maybe I am missing something but if I do a google, in 2015 profit was 41%, today it is about 38%.
So Apple is increasing prices to compensate for for selling more older devices and less newer devices.
It is also stopping breaking down prices because of this.

Have I got that right or am I missing something? I'm no expert, - I'm more technical that financial

Apple has increased its phone prices 125% in 6 years - half from price increases and half from currency fluctuations in Australia.

No Samsung manufactures the panels to apple specification, it not an off the shelf Samsung component like you seem to be insinuating, but actually an apple display fabricated by Samsung.

Perhaps you don’t understand what I mean when I said cheap out regarding components.

I will take a 64gb nvme any day of the week over 128 gb ufs even if the 128 gb was cheaper. Android oems cheap out using inferior components and materials but sell the devices for the same price as iPhones. As a consumer I’m more than willing to pay for superior components and design, you know because i can instead of getting ripped off paying the same prices for inferior components.

No, you don’t understand profit margins or asp and thier relation to price per unit sold or the 29% increase in revenue, Apple is increasing prices while profit margins remain flat and asp has risen to almost $800. Your assertion about “apple compensating” makes absolutely no sense, it’s basically incoherent gibberish.

No I’m afraid you haven’t got that right or even close to it. If you can’t understand the difference between nvme and ufs (let alone the basic principles of financials), after our numerous exchanges in the past, I wouldn’t say your proficient in either “technical” matters or “financial” issues when it comes to properly analyzing a companies financials or thier incentives behind thier numerous business decisions, most of your assertions are rather infantile and usually revolving around disdain concerning Your individual pricing sensitivity and how the market and apple should adhère to it or fail miserably and “die”....which just to be clear isn’t happening, you have been consistently wrong with your assertions and predictions about apple and thier performance predicated on your price sensitivity and individual preference.

No idea what the Australian market has anything to do with what you just said, but apple are actually doing great in Australia, that’s according to cook on yesterday’s conference call.

Furthermore what you stated is factually incorrect adding a new pricing tier to the iPhone range is not “increasing prices by 125%” especially when profit margins are flat over the same time frame.

You either don’t want to understand or admit that superior components cost more than inferior components, and Therein lies the crux of your disdain for apple and the consumers that buy it.

Good luck to you.

 

[Burger Thing]

20% revenue growth and 40% EPS growth.

With iPhone and Mac sales basically stagnant and iPad sales falling, it means that we are all idiots paying a corporation way too much. But let’s don’t be sour about it and cherish the great news from which we will all be benefiting

 

[I7guy]

20% revenue growth and 40% EPS growth.

With iPhone and Mac sales basically stagnant and iPad sales falling, it means that we are all idiots paying a corporation way too much. But let’s don’t be sour about it and cherish the great news from which we will all be benefiting

Or if this really bothers you, you can stop buying Apple products and sell your shares.

 

[dilbert99]

No Samsung manufactures the panels to apple specification, it not an off the shelf Samsung component like you seem to be insinuating, but actually an apple display fabricated by Samsung.

calm down mate, I was not insinuating anything. You said Android phones use inferior parts, I was simply pointing out that Samsung manufactures Apples displays. There was no malice, manipulation etc intended on my part.

Perhaps you don’t understand what I mean when I said cheap out regarding components.

I will take a 64gb nvme any day of the week over 128 gb ufs even if the 128 gb was cheaper. Android oems cheap out using inferior components and materials but sell the devices for the same price as iPhones. As a consumer I’m more than willing to pay for superior components and design, you know because i can instead of getting ripped off paying the same prices for inferior components.

You state that argument a lot.
It is factual that Apple gouges in its storage prices within the different tiers of the same device.

No, you don’t understand profit margins or asp and thier relation to price per unit sold or the 29% increase in revenue, Apple is increasing prices while profit margins remain flat and asp has risen to almost $800. Your assertion about “apple compensating” makes absolutely no sense, it’s basically incoherent gibberish.

Calm down mate - its not a good look.
I may not understand a lot of things relating to business/finance.

But from what I read, Apples profit margin have almost remained flat, but actually decreased while device prices have risen. So they are selling more older phones and less newer ones. It is just that the newer ones are more expensive to compensate.
If device price goes up, do does profit. If it stays flat, they are selling less devices or more of the cheaper devices.

No I’m afraid you haven’t got that right or even close to it. If you can’t understand the difference between nvme and ufs

I don't care about the difference in this context, you bring this argument up all the time - look up straw man.

(let alone the basic principles of financials), after our numerous exchanges in the past, I wouldn’t say your proficient in either “technical” matters or “financial” issues when it comes to properly analyzing a companies financials or thier incentives behind thier numerous business decisions, most of your assertions are rather infantile and usually revolving around disdain concerning

calm down mate. you know nothing about me. I have no worries relating to my intelligence or maturity level.

Your individual pricing sensitivity

I have no issues affording Apple gear, doesn't mean I have to bend over and ...

and how the market and apple should adhère to it or fail miserably and “die”....which just to be clear isn’t happening, you have been consistently wrong with your assertions and predictions about apple and thier performance predicated on your price sensitivity and individual preference.

In your view

No idea what the Australian market has anything to do with what you just said, but apple are actually doing great in Australia, that’s according to cook on yesterday’s conference call.

I have never said anything to the contrary that Apple is doing great. Only a fool would state otherwise at present.

Furthermore what you stated is factually incorrect adding a new pricing tier to the iPhone range is not “increasing prices by 125%” especially when profit margins are flat over the same time frame.

You make a lot of factual rebuttal without using fact, only your own opinion.

Apple when taking in to account currency changes has increased the price of the top tier iPhone 125% over the last 6 years, half of that is related to the currency fluctuations of USD vs AUD an half to Apples price increases, that I why I mentioned the Australian market. It is relevant because that is where I purchase my iPhones.
Check out my other earlier post where I present my calculations.
Why don't you show your detailed rebutal calculations to keep this on a factual level rather than name calling...

You either don’t want to understand or admit that superior components cost more than inferior components, and Therein lies the crux of your disdain for apple and the consumers that buy it.

Good luck to you.

I have never said that Apple uses anything but great components. Keep on fact rather than your own bias against my dislike of Apple as an Apple customer.

I won't go in to it because we already had that discussion where you offered no calculations as to my Apple doesn't gouge in storage costs. You keep using the same straw man that Apple uses expensive components compared to Android manufacturers. Yet you gloss over the fact that the calculations in storage costs were done using the same iPhone model, just different storage option e.g. 64GB vs 128GB vs 256GB type comparison which all use the same memory type.

If you insist on slagging me off, I will no longer converse with you. Please keep it civil and factual.
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Or if this really bothers you, you can stop buying Apple products and sell your shares.

Do people have to use that argument all the time to try to put down people who criticise Apple?
Apple customers can be disgruntled too.

 

[tromboneaholic]

I’m not advocating for Apple to chase the market share with cheap devices. But, by the same token, I’m not in favor of Apple jacking up the prices in the effort to increase the profits at the expense of shrinking the market share. This is a slippery slope that ends in the abyss. Even though it may prove successful in the beginning, it will not end well.

Apple is looking to grow their installed user base. They mentioned this yesterday during the call, and it's a huge part of growing the Services business. Making premium products that not only last longer, but wind up being bought second hand, is part of the strategy to increase the installed user base.

 

[FFR]

But, but, but market share, the important metric.

Tell me about. Its profits that make business go round, without profit companies would collapse or exit the market, and where does that leave the consumer?

Just like HTC, Nokia, Motorola, essential, lg mobile, and Sony mobile.

Its not a difficult concept yet some people’s seem to be struggling quite a bit to grasp.

Apple is looking to grow their installed user base. They mentioned this yesterday during the call, and it's a huge part of growing the Services business. Making premium products that not only last longer, but wind up being bought second hand, is part of the strategy to increase the installed user base.

Astute observation.

 

[I7guy]

...Do people have to use that argument all the time to try to put down people who criticise Apple?
Apple customers can be disgruntled too.

It’s a suggestion for posters who repeatedly profess complete disdain for everything Apple. I have to wonder if one dislikes Apple why bother posting or buying their products? Wait we’ve down this road...Apple gets its requirements from online forums.

 

[LordVic]

Share prices dropping now.

View attachment 800382

Seems to happen post every release. wouldn't read much into right now.

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Financials look good for now. I'm expecting that the XR will be a supercycle for them financialy.

The question will be sales volumes and number of units shipped. Last few quarters we've seen that slow down dramatically. Most of the revenue/profit increases were based on higher asking prices, and not higher movement of volume.

Is that the case here? Or did we see a big set of movement of the Xs and Xs+. One thing Apple migth have to be careful with is as volume declines (usually what happens if you start raising prices especially in a maturing market like mobile phones) is the potential of driving away customers. There's an equilibrium that needs to be found. But this is generally the part where Tim Cook shines as CEO, the financial decisions.

XR I believe will do extremely well due to the price point. it's the first Apple "Notched" phone available at the standard iPhone price points. Those who bought the 7 or 8 and have a ceiling of $750 for what they're willing to spend will likely buy it as it's the first visual redesign in 4 years.