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Apple Reports Q3 2015 Earnings of $10.7B on $49.6B Revenue: 47.5M iPhones, 10.9M iPads, 4.8M Macs
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Samsung is already in the smart watch market. And they already copy everything apple does and would copy apple watch with or without sales numbers. So....what's the reason apple won't release numbers again?
My personal guess is because Apple is sick of analysts and everybody else saying what numbers mean success and what means failure so apple is managing the perception of the apple watch. Think about it. If the public perception is being created by bloggers twisting the meaning of sales numbers to mean it's a failure and the perception is that it's a broken product, why would any new customers want to invest in a broken product? That hurts branding
That doesn't make sense. If it is successful and has sold millions, why not celebrate the success and share the good news with the world. Wouldn't that bring in more customers based on sales momentum?
Just like how Apple sells tens of millions of iPhones every quarter and its spun in new click bait articles about how growth is slowing and Apple is doomed?
All dumb customers will know is hearing iPhone sold 47million and the watch sold a few million. People suck at understanding numbers. Even if it sold well.
But I think it probably only sold moderately well because of supply constraints. Why would apple want to announce the Apple watch sold "moderately well" even if it's still better than all android wear watches combined?
From what I've seen they have thought about it and do think about it. The "problem" is that the iPhone generates an enormous amount of money. In practice it's very difficult find something similar in financial terms.
Can someone explain the difference between revenue and profit?
Isn't revenue the amount of money a company receives, and profit is the amount of money left after paying for the production, advertisement, development etc of the devices?
Does this mean apple only gains a 30-40% profit on their current iphone 6/ iphone 6+?
Isn't revenue the amount of money a company receives, and profit is the amount of money left after paying for the production, advertisement, development etc of the devices?
Does this mean apple only gains a 30-40% profit on their current iphone 6/ iphone 6+?
In the end, I think people are negative towards Apple because the recent stock market crash in China may have killed a lot of potential sales of the iPhone 6s and 6s+--in fact, the crash may have killed a lot of sales of cellphones in China in general, even among the local brands like ZTE, Huawei and Xiaomi.
One more and very important fact:
- Apple reaps 92% of the profits in the entire smartphone industry.
Doesn't everyone who want an iPad probably have one by now? And once you get one, there really is no compelling reason to upgrade. I know I have an 128 GB iPad Air that I paid $1,000 for, it'll be a LOOONG time before I upgrade - unless apple does something to gimp it - which they are doing with iOS9 not enabling the split screen feature.
this particular fact may, or maynot be a good thing. if you're a share holder, yes, it's fantastic.
but if you're a consumer who doesn't frankly care how much money Apple has in the bank, it actually paints a very unique picture.
If almost all the profits are being earned by apple, And we know the average PROFIT margin they're getting is next to 40%.
you have to look at what you're getting with their products and wondering, just how much more are you paying for something, because of Apple's 40% profits.
For example, the main competing devices from all Manu's are charging near identical for their flagship devices, but, you seemingly get "more". more features, more hardware, more tech. so yeah, the profits are higher here at Apple, but you're paying essentially a premium in pure profit for the Logo and the "feel" of Apple.
I love Apple products, but when I hear numbers like this, And hear how proud consumers are about it, I wonder if threes not some weird mindset that you don't mind essentially paying a "tax" to Apple just for the pride of saying "Apple makes the most profit!"\
Not saying companies shouldn't go for profit, duh, thats the reason for existing, but you have to question how much less are you getting for that same amount as a consumer you pay
But they said in September 2014 that they would NOT be reporting Apple Watch numbers. Does anyone remember that?
Oh and "concerns over China sales" are equally silly - they just about doubled sales in China Year-over-Year, so what is the real concern? Missing by a percent from whisper numbers that are updated up practically weekly until the financial conference call date? haha.
Such crisis haha.
Almost as big as Greece.... Oh wait, AAPL shares dropped $65B in 3 minutes. How many months has Bloomberg and CNN and CNBC spent talking about the Grexit and the Greek Debt of how many Billions there?
Great time to buy some Jan 2016 Calls for cheap (is what the suits at Goldman Sachs are doing right now I think).
They are not taking away something you had, you just can't get a feature it can't handle well ( lower RAM ).
What's interesting is last quarter when Apple released earnings they forecast $46-$48B in revenues for Q3. The analyst consensus was $47B. So Apple's $49.6B beat their own guidance and the analyst consensus back in April. What changed between then and now for analysts to expect revenues should have been $50B+? Why were the goal posts moved to something nearly impossible for Apple to beat?
A PE of 14.35 (with 200 billion in the bank) and Google nearing 34 PE, sorry but i don't see it.
it honestly sounds like analysts and the VC's who make their livings with stock, were attempting to use their clout to pump up / pump down stock value.
this isn't a new tactic. Anyone with billions, can move the needle on a stock easily by intent alone. for most of us, we see the stock as a needle for company health, but in reality, stock value often has little to do with that, and more to do with how stock traders with enough money can manipulate the market.
The smart thing to say would be that the stock has risen to reflect that sentiment but it really hasn't, there is no logical explication. My thinking is that Apple has grown so fast that there is a fear of hight, nobody can buy Apple so there is no rush to owning the stock.
The price should be double so there is also a possibility that Apple could bring the stock private, the current stock buyback also points to that direction or is such a thing near impossible to do?
I see your point.
But... As you said, most manufacturer's flagship smartphones are roughly the same price. As a result, I (and perhaps others) make purchase decisions based on value. Meaning the cost of the phone versus features, utility, quality, ecosystem, tech support, durability, style, ease of use, longevity, etc. There are other factors, such as company policies that help inform purchase decisions as well, such as commitments to social equality and renewable energy, to name just two.
As a consumer I'm not worried about profit margin. I just want the best of the attributes listed above at a competitive price. If Apple can make 40% due to process and manufacturing efficiencies, more power to them - that's their reward for their effort in gaining those efficiencies. If they were making close to 100% profit and still offering the best features of the above list and at a competitive price, I still wouldn't care.
I suspect most consumers are the same, in the end it's a value proposition. Apple's increasing sales numbers quarter after quarter seem to support that.
Nothing wrong with that. Not going to begin to tell someone they shouldn't put their own value to things and if they think it's a good value to buy it.
just saying that the toughting "BUT APPLE MAKES 92% OF THE PROFITS SO ITS BETTER THAN EVERYTHING ELSE" is....
a reallllllly bad argument that ignores reality and really should only matter to investors. and not some badge of honour for owning a specific device.
Looks okay, except for Macbooks, iPad, Apple Watch which they probably sold little numbers of.
Has anybody here in this thread touted that metric as a badge of honor? This thread is about company numbers, specifically, the ones announced yesterday, their interpretation (in relation to the health of Apple), and reactions to them.
Yes. We all remember that.
There are some who take Cook at his word for the reason for the decision to not reveal sales figures. But his claim of not wanting to give competitors valuable information defies logic and common sense. Apple wasn't the first in the smartphone market and yet they released sales numbers from the beginning. The iPad was revolutionary when it was released but they released sales numbers from the beginning. But the Apple Watch is so different?
Looking at the entire Apple Watch picture... Over-the-top promotion of it as a high-end fashion accessory, exclusivity of store experience for those purchasing the top models, the lack of inventory, and more all point to a launch that was either very conservative or sooner than preferred.
But when they say that they won't reveal sales numbers but go on to state that sales exceeded their expectations that is nothing more than self-serving marketing spin. We can acknowledge that without engaging in the Apple is doomed hyperbole.