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Apple Reports Q3 2019 Results: $10B Profit on $53.8B Revenue, Highest June Quarter Revenue Ever
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In line with expectations.
Which is very impressive given how high expectations are.
Interesting revenue/margin guidance for next quarter.
Which is very impressive given how high expectations are.
Interesting revenue/margin guidance for next quarter.
Apple and Huawei are different companies and growth rates spanning different companies in different markets doesn't make sense. Huawei has about 8% profit margins, meaning they will stop at nothing to increase sales. Apple
Apple showed solid growth in 4/5 businesses and posted the best June revenue ever.
- Mac 11% growth.
- Wearables staggering 48% growth.
- Services 13% growth.
- iPad 8% growth.
- iPhone 12% decline was better than expected.
Sure but two different business. Apple makes in a quarter what huawei makes in a year.
"Apple is a one-trick pony and they rely too much on the iPhone. If iPhone sales slip they're doomed."
"Apple posts record revenues, but the iPhone is now a smaller piece of the pie and other areas are taking up a bigger piece. Apple is doomed."
Do note that Huawei's numbers were for two quarters combined and just equaled what Apple pulled in for this single quarter.
So Huawei has had a $58.3 billion 1H2019 compared to Apple's $138.1 billion 1H2019.
So much for voting with our wallets
You mean the hundred disgruntled folks on MacRumors telling us to do so?
Please....
Have you paid any attention to Services revenues over the last few years? It's been going up regularly.
Huawei? This chart sheds some perspective on their numbers. Q2 has always been a strong quarter for Huawei. Not this time. Sales were flat.
Listen to the calls guys. They are extremely bullish.
Wearables and services together approach the size of Fortune 50 company.
Return to growth in mainland China, despite foreign exchange headwinds.
Active installed base of iPhone new all time high and up y/y in all of the top 20 markets.
Wearables and services together approach the size of Fortune 50 company.
Return to growth in mainland China, despite foreign exchange headwinds.
Active installed base of iPhone new all time high and up y/y in all of the top 20 markets.
That is precisely what Apple customers have done.So much for voting with our wallets
Logic says that services would actually have higher profit margins than manufacturing and spending gazillions in R&D for iPhones/Mac/hardware. Let's realize that it costs Apple almost nothing to sell an iTunes gift card or Apple cash? They sell themselves. Apple doesn't have to pay for expensive factories to churn them out. Apple also doesn't need multi-million-dollar factories to sell those AppleCare+ warranties. They pretty much sell themselves also.
Services still do cost some money… for example, the cost of maintaining the cloud servers for iCloud, the cost of paying employees that operate the iTunes Store, the cost of negotiating contracts with third party content providers (e.g. the ones that produce music, movies, etc). But it's still not much compared to the billions and billions they have to invest in hardware R&D, investing in factories with FoxConn China, investments in future 5G implementation, and dealing with the stupid costly factors like the China trade import tariffs, etc.
Here's the thing though, almost 75% of their business is based on one product line and it's supporting services. Remember Blackberry and Nokia.
Ruh roh.
Not looking good Tim.
Better dig out that time machine and invent world-changing technologies starting ten years ago.
Oh, wait, you don't have a time machine.
This is why I think they should #FIRETHEACCOUNTANT
Not looking good Tim.
Better dig out that time machine and invent world-changing technologies starting ten years ago.
Oh, wait, you don't have a time machine.
This is why I think they should #FIRETHEACCOUNTANT
Yah, they like reported lower margins. so dishonest, so dishonest. Or did you not get that power margins equate to lower net?
Only if "makes" here stands for profits (which is a correct use of the word). But it's not that simple. This quarter Huawei had US$58.26 B in revenues which is higher than Apple. If they reinvest the profits (and being a growth company, they do) this would lead to lower profits.
so they raise the prices and we all have to pay for it, then they say they made the most money ever and we're supposed to be happy about that?
Basically they just stated that they've screwed over their customers once again and the future is looking bright
Basically they just stated that they've screwed over their customers once again and the future is looking bright
These results were much better than I was expecting. Competition is fierce in phone hardware, the market is saturated and Apple phones are seriously overpriced. A 12% decline is not as bad as it could be.
That said, I hope Apple will price the phones more competitively (saturated market) to increase platform adoption, which will translate to the services business. Tim Cook suffers seriously from MARGINITIS, but the services markets (new and growing) are a tremendous opportunity that is basically infinite. A short run margin hit, or even longer target margin adjustment, could be minor given the future income possible in services. However, that only works if a lot of people are on the platform.
That said, I hope Apple will price the phones more competitively (saturated market) to increase platform adoption, which will translate to the services business. Tim Cook suffers seriously from MARGINITIS, but the services markets (new and growing) are a tremendous opportunity that is basically infinite. A short run margin hit, or even longer target margin adjustment, could be minor given the future income possible in services. However, that only works if a lot of people are on the platform.
Still a record and sequential quarters are hardly far enough to apart to see any real trend. I'm not sure how they account for services, but currency headwinds were strong too. It was 18% growth for services y/y in constant currency.
Don't think Apple is going to fall as hard as Blackberry/Nokia did anytime soon. They are sitting on a massive cash pile.
Regardless, the people that should be thrilled by the numbers should be shareholders right now. Most shareholders, including myself, love the volatility of this stock.
It just hit a record despite those declining iPhone sales, which improved as well.
In constant currency, services were up 18% y/y. Currency headwinds are no joke because of the strong dollar. I think it was solid performance from services, although it could have been a bit stronger. The new iPhone should help.
It also depends how they recognize the revenue in service, particularly as they start financial services where the margins are thin, but a lot of money can be made.
I thought that Huwei number was for Q1 + Q2 right?
Check again. This is what I heard.