Can we discuss for a moment that the Mac revenue superseded the iPad revenue this quarter?
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Apple Reports First Year-Over-Year Revenue Decline Since 2003: $10.5B Profit on $50.6B in Revenue
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Me neither. Which isn't really market research
But I found it interesting when my brother – a fan of everything with Apple logo on it – told me he wouldn't be getting the Watch. He said he just couldn't justify spending the money on what the Watch currently is. In the meantime he also got rid of his iPhone and constantly praises his S7. He still has an iPad 3.I know this is probably pure speculation but maybe, just maybe more people would be inclined to spend €2129 on an iMac 27" if it didn't have a 5400rpm hard drive? We were thinking of buying a new iMac to replace the 2011 model with maxed-out RAM, but the cheapest sensible option (base model + 2 TB Fusion drive) is €2429. Instead we got a SSD with Thunderbolt enclosure.
This was no surprise to anyone paying attention. All the sales and low resale values on eBay showed sharply reduced demand for iOS devices. But also pent up demand for large screen iPhones created a surge in buying in 2014-2015 that wasn't going to be able to be maintained 2015-2016. Sold my Apple stock back on the 15th of April and will probably buy back around $93.50 (it's at $96.50 now). They have to come out with something more than a different sized iOS device soon.
Thank goodness my daughter keeps getting drunk and losing her iPhone. At least that keeps some sales going.
Honestly, I'm glad. Which sounds ridiculous but the expectations on Apple are so sky-high that it was bound to happen at some point and maybe now the investors will go through their selling frenzy and then settle a bit rather than expecting ever growing profits. I expect sales of the iphone 7 will be down as well compared to last year and hopefully that will cool the expectations a bit.
I haven't seen anyone wearing an iPad, either—that's what the iPhone SE is for. iPad is too big for the wrist.
Only a miracle can help Apple if their "ace in the hole" for future growth is iCloud...
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From the WSJ:
Mr. Cook explained the lower-than-expected revenue forecast for the current quarter as a reflection of Apple’s plan to take $2 billion of inventory out of its sales channel because of the difficult economy, the lower average selling price of the iPhone SE and analysts being too optimistic about a sales surge for Mac computers during the back-to-school shopping season.
Mr. Cook explained the lower-than-expected revenue forecast for the current quarter as a reflection of Apple’s plan to take $2 billion of inventory out of its sales channel because of the difficult economy, the lower average selling price of the iPhone SE and analysts being too optimistic about a sales surge for Mac computers during the back-to-school shopping season.
Samsung is coming out with all good stuff? Perhaps it's just that everyone's expectations for Samsung are so low?
I'm sorry, but 3D Touch and the fact that I'm editing text in my iPhone by pressing harder on the keyboard to turn it into a trackpad is more innovative than anything Samsung introduced in I don't know how many years. Their OLED is nice but it's just incremental improvements and the Edge is a complete gimmick.
Apple's installed base is huge. There's a reason they switched away from Google Maps to Apple Maps. Even a mediocre Apple Maps generates more revenue for them (and Apple Maps has gotten a lot better over time).
The concern here isn't with the iPhone pulling Apple down, the age of the wait-in-line, gotta-have-it flagship phone is over. It was a good run, nearly nine years.
The concern is that there are no new products pulling Apple up. There are lots of things that I would buy if they existed, e.g. updated Cinema Display, convertible MacBook, desktop Mac slotting in between the Mac Mini and Mac Pro, an IOS flip phone (e.g. Samsung W2016) or even a pocket version of the Apple Watch that either works with Android or doesn't require a smart phone to function.
The concern is that there are no new products pulling Apple up. There are lots of things that I would buy if they existed, e.g. updated Cinema Display, convertible MacBook, desktop Mac slotting in between the Mac Mini and Mac Pro, an IOS flip phone (e.g. Samsung W2016) or even a pocket version of the Apple Watch that either works with Android or doesn't require a smart phone to function.
There is no company in the world, now or in the future that can continue to sustain the sort of level Apple has in the past. It was plainly obvious that sooner or later (with or without Steve Jobs) Apple would be unable to beat its previous quarter. They would have reached a ceiling at some point and I think they have done incredibly well to sustain for so long, consistently beating their previous years.
Either way Apple still make a huge profit but they have now hit that glass ceiling and I don't see that as an issue. This isn't because they don't innovate or that they are now doomed but rather the reality of what's realistically achievable as part of the economy.
I'd certainly be happy with that sort of profit, even if it did fluctuate (and it will) from year to year.
Either way Apple still make a huge profit but they have now hit that glass ceiling and I don't see that as an issue. This isn't because they don't innovate or that they are now doomed but rather the reality of what's realistically achievable as part of the economy.
I'd certainly be happy with that sort of profit, even if it did fluctuate (and it will) from year to year.
Didn't Cook tell his employees the iPad sales were finally picking up? I recalled reading this somewhere before the iPad Pro 9.7 was announced. I own one and love it. I also know lots of friends who want one, but get turned off by high price for 2GB of RAM and expensive accessories like Smart Keyboard. I feel like Apple has lost a lot of opportunities on this one. They should have learned from high Apple Watch price. Oh well.. I love Apple and that's just my two cents.
The stock buyback is concerning. There goes the pile of cash... all to shore up the stock price.
I don't feel bad. Apple has been lost for a few years now. Their software is no longer pro and what is released (besides being stripped of features) is bug ridden. Hardware is outdated and greatly overpriced. No innovation or category revolutionary products.
I'd rank Apple as an "average" company right now.
I'd rank Apple as an "average" company right now.
Apple has been coasting for far too long. Where's the last truly innovative thing they've done? Their incrementalist approach and soaking customers $200 for 32GB of storage is finally biting them in the ass.
Note to Johnny Ive. Nobody cares how you spend 1,000 hours trying to make sure that the CNC machine models of the phone cases feel perfect in the hand if you're 2 generations behind on specs and features.
Note to Johnny Ive. Nobody cares how you spend 1,000 hours trying to make sure that the CNC machine models of the phone cases feel perfect in the hand if you're 2 generations behind on specs and features.
If you're surprised, you haven't been paying attention. Some have been saying this for years now, Apple is stale and boring--it was bound to catch up.
Let's just assume the leaks for the iPhone 7 are correct--they certainly are boring enough to be legit--think of how little they've done to the design of the 6. They moved antennae band on what was an ugly boring device to begin with. That's it. Oh, and thinner, because, well no one really can ever explain that focus. You certainly can't say Apple doesn't care about making thinner crap. And the other innovation, a second camera. Seriously. We need a second camera for some dumb reason. It does something, you need, just trust them on that. It's really not a gimmick. Just like Siri and the Watch.
Now, I don't own Apple stock, so I could give a care if they make money really. I suppose I would rather see them profit, but what's so incredibly obvious is that Jobs meant everything. It wasn't just idol worship or the cult of personality. Without Jobs, Apple is just as bland and boring as Microsoft and HP. Can there be any doubt about this now?
Let's just assume the leaks for the iPhone 7 are correct--they certainly are boring enough to be legit--think of how little they've done to the design of the 6. They moved antennae band on what was an ugly boring device to begin with. That's it. Oh, and thinner, because, well no one really can ever explain that focus. You certainly can't say Apple doesn't care about making thinner crap. And the other innovation, a second camera. Seriously. We need a second camera for some dumb reason. It does something, you need, just trust them on that. It's really not a gimmick. Just like Siri and the Watch.
Now, I don't own Apple stock, so I could give a care if they make money really. I suppose I would rather see them profit, but what's so incredibly obvious is that Jobs meant everything. It wasn't just idol worship or the cult of personality. Without Jobs, Apple is just as bland and boring as Microsoft and HP. Can there be any doubt about this now?
Looking at the historical chart, there are two problems:
1) iPad sales are down
2) There's NO new category!
iPod sales predictably went away, but Other shrank rather than becoming a new category. And now they may be loosing a second category if the iPad continues its slide. It's only the steadily rising Services that has kept Apple from more decline.
As I keep saying, Apple needs something new. 'Car' in 2020 doesn't cut it. In fact, 'Car' will be the biggest departure Apple's ever made from producing computing devices, software, and service. What do they think they're doing? By 2020, who knows if people will even care about them very much anymore???!
1) iPad sales are down
2) There's NO new category!
iPod sales predictably went away, but Other shrank rather than becoming a new category. And now they may be loosing a second category if the iPad continues its slide. It's only the steadily rising Services that has kept Apple from more decline.
As I keep saying, Apple needs something new. 'Car' in 2020 doesn't cut it. In fact, 'Car' will be the biggest departure Apple's ever made from producing computing devices, software, and service. What do they think they're doing? By 2020, who knows if people will even care about them very much anymore???!
Tim (and his team) have tons of stock options. They need to prop the stock up.