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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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WOW! Only 10.5 Billion-with-a-B dollars of pure profit...In what possible bizarro-world is that bad news?
Because, after many years of unprecedented growth, it might be the canary in the coal mine. No doubt it's an awesome haul, but if you're an investor it's troubling. Not panic-inducing troubling. But troubling. When a company is reliant on a single product for the vast majority of it's income, anything that rattles confidence in that product is going to be seen negatively.
I'm growing somewhat pessimistic about Apple's future. We haven't seen anything particularly innovative in a while and competitors have largely caught up. The Watch and Apple TV4 were both underwhelming. I wonder if they are diverting too many resources to the mystery car project and if key players like Cook and Ive are more interested in the car than the rest of the product line.
Wow. With cell phones effectively reaching the point of diminishing returns that the PC market hit 10 years ago I wouldn't want to rely on 65% of my revenue stream coming from a market which will probably take a similar, if not larger, hit than PC sales are seeing. People just aren't going to pay $700-$1,000 for incremental upgrades in large enough numbers.
Well, I guess my $100 Limit order for 10 shares will probably execute tomorrow then, lol. I see these sell offs as long-term opportunities
Cook: "Installed base up 80%."
Shocking figure for a company only growing 60%.
Cook: "I'll say we've long been a strong proponent of tax reform, and we're optimistic we'll see that point where reform happens. And at that point, hopefully we can be more flexible with our capital. We're seeing increasing numbers of people in both parties look toward tax reform." [last word]
See my post on taxes.
cite:
https://forums.macrumors.com/thread...pay-50-tax-rate.1968991/page-12#post-22834483
Shocking figure for a company only growing 60%.
Cook: "I'll say we've long been a strong proponent of tax reform, and we're optimistic we'll see that point where reform happens. And at that point, hopefully we can be more flexible with our capital. We're seeing increasing numbers of people in both parties look toward tax reform." [last word]
See my post on taxes.
cite:
https://forums.macrumors.com/thread...pay-50-tax-rate.1968991/page-12#post-22834483
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If those young men on stage during Apple press events would just TUCK IN THEIR SHIRTS, things would be better.
None of this is surprising and the conventional forum wisdom that Apple products don't have some specific spec standards that other companies products do seem to completely miss the big picture.
Apple launched a series of generation defining platforms, most important of which was the iPhone.
But since 2007, smartphones have become increasingly commoditized and most people who want and could afford one now have one.
PC and tablet are dying and watch is seemingly a niche market at best, a companion product for the main product, which is the smartphone.
Apple's entry into cars could be interesting but it's unclear whether Apple without Steve jobs can come up with a new product category that creates a new dominant computing platform, such as PC, iPod, smartphones, and although it was short lived, the tablet was.
Smartphones of today are similar to perhaps where the PC was in 1995 or so. There's still room to grow, as third world plebians come out of poverty, there will be more people owning smartphones, the top end of which will be mostly Apple.
But what will Apple do to create new markets?
If current price to earnings ratio is any indication, the market doesn't believe Apple can do anything beyond the smartphone.
Apple launched a series of generation defining platforms, most important of which was the iPhone.
But since 2007, smartphones have become increasingly commoditized and most people who want and could afford one now have one.
PC and tablet are dying and watch is seemingly a niche market at best, a companion product for the main product, which is the smartphone.
Apple's entry into cars could be interesting but it's unclear whether Apple without Steve jobs can come up with a new product category that creates a new dominant computing platform, such as PC, iPod, smartphones, and although it was short lived, the tablet was.
Smartphones of today are similar to perhaps where the PC was in 1995 or so. There's still room to grow, as third world plebians come out of poverty, there will be more people owning smartphones, the top end of which will be mostly Apple.
But what will Apple do to create new markets?
If current price to earnings ratio is any indication, the market doesn't believe Apple can do anything beyond the smartphone.
Not a surprise, but no reason it couldn't have kept growing. Over 7 billion people on the earth and at least a couple billion don't have Internet access yet.
To put it another way, more electronic gadgets will be sold next year than this year, and more the following year than next. There is no finite growth boundary condition, they're just stagnating, which was bound to happen if you notice how risk averse their products have been the past 5 years now.
2.25% yearly dividend - no biggy - I'm bringing in 3.04% on no risk guaranteed income certificates.
Hang in there! This will save the day!
How is it proof that up until today Apple had no intentions for further updates?
If that thing is released, ever, I will switch to Windows Vista.
While I don't think the iPhone SE is the example I'd use (I think they did it right), I wholeheartedly agree with your premise:
Apple is using Accountant thinking.
While Accountants may not quite deserve all the jokes about them being 'boring,' they certainly aren't appropriate candidates to run Apple!
And yes, for a few years now I've observed that people inside and outside of Apple are lying to themselves about Apple's decline. In the historical chart above, today's date is indicative of where Apple actually was about two years ago. Where they actually are today is about two years further down the decline - it just won't show up in the charts for a couple of years. While it's possible they're quietly turning around internally, we see NO signs that this is happening - in fact we see quite the opposite (e.g. today's article about how they're laying off most of their recruiters, and grossly cutting the incentives for the ones who remain).
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Actually, Swift is the one bright spot. Is it perfect? No, but its really good.
This is what happens when you remove the 3.5mm headphone jack.
Sure they've made a lot of money in this quarter, $10bil is nothing to sneeze at, but investors never like to see a drop of this size, even during transitional periods. 2014/2015 really did inflate metrics and expectations
I agree. It's obvious that Tim Cook has turned Apple into simply a cash machine nowadays.
Result is always the same: huge profits for awhile, then it all comes apart.
Focusing on making the best products possible at the best value possible is what ensures long-term growth. Jobs understood that.
Revolutionary, you are the new Steve Jobs!!!
When Android phone is just as good as iPhone and iPhone is no longer as attractive as before, yeah lower price and increase base storage is option.
Unless there is great selling point, i don't see how iPhone can ever pick up again.
Apple is a company that will fail fast when they stop innovating. Unless Apple drastically change its business model. You can except people paying top dollars for a average product, especially competitors offers comparable products at lower price point.
"For the quarter, Apple posted revenue of $50.6 billion and net quarterly profit of $10.5 billion"
I don't think that equals "doom" in anyone's universe.
The exceedingly slow pace of updates to the Mac line, show that Apple isn't very concerned with updates in a timely fashion. Please show me where this trend starts to pick up. WWDC is coming, but then, recent trends show that we'll be stuck with that basic release, for years to come.