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Apple Reports First Year-Over-Year Revenue Decline Since 2003: $10.5B Profit on $50.6B in Revenue

radiologyman said:
Apple should put those billions into R&D before it too late
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Hmmm, methinks you've never looked into Apple R&D spending.

1430757518266


Something big is coming, and Apple has been working on it for a few years.
 
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ateslik said:
To this I would sadly have to agree. While their products are still very well made, they are skimping in areas that they really should not be. They need to stop thinning everything and make the machines more powerful with longer battery life. Save the thinning for every other couple of cycles. The abandonment of the pro markets is also such a poorly thought out business decision. Average consumers always ask their "pro" friends advice on these topics - you need to bring the pros in close and keep them talking about you. It makes the other consumers feel good about their buying decision and gives them competition amnesia. Letting quicktime lapse on Windows, completely emasculating quicktime X on mac (was Compressor suppose to be the answer?!), the final cut disaster, the destruction of itunes, incessantly glaringly white interfaces everywhere, the apple music 4 billion dollar complete failure against Spotify, 5400rpm drives (!!!), the uncompelling watch, and less options for iPhone subsidies than when the phone launched are all really large missteps. Failing to secure the TV market yet has also been a mistake. I believe Steve would have definitely had that in place by now.

They are still hitting some high notes though, which is encouraging. The iPhone 6S is a beautiful piece of machinery with some really nice new features, the iPad Pro is a very satisfying experience and an incredible input device, Apple Pay works very well (and could be a big revenue stream for them long term), and iOS and OSX are still by far the nicest and most polished operating systems.

I have no point. Just my unsolicited observations.
</rant>.
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You forgot the abandonment of advanced photo enthusiasts with their elimination of support for Aperture.
 
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yentrog31 said:
A burger joint can go up 25% on a beat of expectations. That is what Wall Street is about. Not fair but the system is gamed. Use it or lose $$ when billion profit does NOT meet .
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Works both ways... short positions in Apple have increased in recent weeks. I am sure some people made a handsome profit with today's drop in price. I would say it takes skill and or balls to short Apple.
 
TheRainKing said:
I bet Apple had visions of the Apple Watch taking off like the iPad or something. I still haven't seen a single person wearing one.
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I haven't seen a watch in the wild either. Saturday at Best Buy a salesperson took a white watchband from a case. Not much to look at. I wouldn't wear it.
 
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applezulu said:
Enjoy Windows 10!
[doublepost=1461720387][/doublepost]

1) Most buyers never upgraded iPhones every year.
2) How is it Apple is doomed if iPhones are so ubiquitous?
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That's just the thing! I love Apple, and I wouldn't swap over to Windows. Apples service and attention to detail is great! Just such a long wait for some beefed up devices
 
iMi said:
That's by the way exactly why Wall Street reacted the way they have. To many people, Apple is becoming a one trick pony. Then again, that's a one hell of a trick, if you ask me. The reality though is that the Mac alone, with only 10% of the company's total, is still multi-billion dollar business. It's all about perspective.
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I heard an analyst said today that Apple "only" sold 51 million iPhones in the last quarter, with "only" $10 billion of net profit. That's crazy.
 
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JustThinkin' said:
Oh, I'm sorry, I feel so bad about that! /s

The Lakers shouldn't have fired Bryron Scott either - nor should they change anyone in the front office. After all, didn't you see Kobe's last game? That was a HUGE event, and the Lakers were killing it!
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Yeah, yeah, yeah...but Apple isn't posting 17-65 records either, nor are they having to coddle a Hall of Famer who was a battered, wounded player at the end of his career. Since we are going with sports analogies that do not quite fit, yet still resonate a little (yes I am a suffering Lakers fan also).

They do need to refresh several of the product lines that have suffered from either benign neglect and/or being worse than fifth on the list of corporate priorities. It seems like they are waiting for an intersection of technolog(ies) that may not yet be ready for Prime Time, whether that be Thunderbolt 3...or even some other I/O technology that could potentially be faster...or Xeon CPUs that are as up-to-date as the Intel consumer counterparts...

I do believe that even if the Mac Pro is a glorified vanity project that sells 100,000 units or so yearly, it is the only serious "truck" in their lineup and it deserves both a refresh with the up-to-date tech and specs, and their iterations at least deserve a refresh bump every 12 to 18 months.

If they are going to stick with the can (and I like it, the can does everything that I need for it to do), then it at least deserves the ability to be expanded with breakout boxes via Thunderbolt, and all of their Pro apps should be tuned to maximize its power. It's power efficient? Nice. Then use a 700 watt power supply and increase the height and circumference a couple of inches to accommodate two or more processors and at least eight sticks of RAM.

Again...Cook doesn't have to go. I will say that WWDC in June does need to roll out new pro hardware. The new Macbook Pro needs to cannibalize the Airs yet still have ports and flexibility (and be able to max out at 32-64 GB), new Mac Pros should be mandatory...and since it's been so long since the 2013 release, break free from the stuff used in it and go bleeding-edge stable...and if you don't want customers poking inside swapping cards or processors, let them have eGPU options.
 
Black Magic said:
Why do specs need to be upgraded yearly? I think gamers harp on specs but the Mac isn't a gaming system either. I have a late 2014 iMac Retina 5K and it works just fine for what I do. In fact, I wouldn't anticipate upgrading this for at least 4 years unless something compelling occurs.

I imagine there are many folks out there that think similar to me versus the other side of the coin where folks blow their money every year on the latest and greatest.
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It isn't to get users to buy a new computer every year or two. Nobody is expecting that. But it is to make sure the hardware you have available to sell is as compelling as it can be. Apple is competing against a host of PC manufacturers. It is also competing against its own old machines. By keeping its lineup fresh they can get sales that would otherwise go to PC or they can pull forward refresh and upgrade purchases that would otherwise stand still and limp along for another year or two.

And lets face it, in a company the size of Apple, why can't they find the resources or the business case to upgrade the Mac Mini? Why is this a challenge? The new Intel CPU comes out and it should go into the appropriate Macs. It isn't like the folks doing that are the same folks working on the iPhone.
 
haruhiko said:
I heard an analyst said today that Apple "only" sold 51 million iPhones in the last quarter, with "only" $10 billion of net profit. That's crazy.
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In some ways, it might be a better long game to let the FUD fly and the stock (artificially) tank...let all of the nattering nabobs of negativity have their way...there could eventually be a confluence between deflated stock prices and the cash reserves...where a controlling stake of shares could be bought back and the company could be taken private.

Then the company would no longer have to kowtow to Wall Street vulture capitalism and shareholder growth over great products and user experience.
 
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Proof that Apple is a one trick pony. Apple is doomed in becoming the next Microsoft when Microsoft went stale for like 20 years.

Did someone say Apple Watch? Lol
One year in and everyone knows it's not a hit. These watches ain't selling at a rate to move the needle for Apple. Not even a drop in the bucket.
 
mrhick01 said:
In some ways, it might be a better long game to let the FUD fly and the stock (artificially) tank...let all of the nattering nabobs of negativity have their way...there could eventually be a confluence between deflated stock prices and the cash reserves...where a controlling stake of shares could be bought back and the company could be taken private.

Then the company would no longer have to kowtow to Wall Street vulture capitalism and shareholder growth over great products and user experience.
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Not sure a Spiro Agnew reference was the best to go with here... o_O
 
keysofanxiety said:
Have no doubt: if this was a different Apple, one which didn't have a 3-year-old flagship Mac, for instance, then the majority of people here would be saying "who cares about profits, it's about the great products". And that would be absolutely true.

The fact we're all pro-Apple, and for one reason or another, we're all users of their products — yet seem to be revelling in this negative news today — tells a much bigger story, about how it's really necessary to see those profits go back into the products.

I hope I speak for everybody here when I say nobody wants Apple to fail; we just want them to get a wakeup call, and stop taking advantage of their consumers and ecosystem.
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Couldn't agree more. Being an investor myself, please Apple keep the freaking dividend, forget about even raising it and simply invest it wisely in improved products!
 
Not sure how Apple is going to make ends meet.

They only made $10+ Billion in profit in the last quarter.

The shame of it all. #doomed
 
drewsof07 said:
But the cost of the monthly service did not decrease proportionate to the higher outright cost of the device... That was my point. I get that the price of the phone was hidden in the service contract, but my AT&T contract didn't decrease when the device was removed from the equation; ergo making the iPhone more expensive to own.
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That was the bad part of signing a contract. The "phone payments" were included in your bill and people didn't realize it. And you actually got screwed if you didn't upgrade after two years since you kept making the hidden "phone payments" each month.

Now... thanks to payment plans... you actually see what you're paying for. It's much more transparent.

$27 a month for iPhone 6S
$80 a month for service
-----
$107 a month

And after the phone is paid off and you decide to keep the phone for a while... you only have to pay the $80 just for the service.

This is how it should be.
 
SusanK said:
Yes and taking on debt to do buybacks and pay dividends. If the stock falls the CEO does too.
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If the stock falls there go the engineers who are paid to a significant extent in stock options. They won't stick around for stock options to vest if those options are deep underwater.
 
TallManNY said:
If the stock falls there go the engineers who are paid to a significant extent in stock options. They won't stick around for stock options to vest if those options are deep underwater.
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Engineers in Silicon Valley don't get options anymore. Certainly not for public companies. They get RSUs instead. And they can never go underwater. They're always worth something.
 
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