Then where is all that "plenty of room to grow" at? Because this is the smallest growth ever and not much at all at that.
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Apple Reports Record Results: $18.4B Profit on $75.9B in Revenue for Q1 2016 on 74.8M iPhones
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Then where is all that "plenty of room to grow" at? Because this is the smallest growth ever and not much at all at that.
It dropped as soon as Tim Cook said that China sales were softer than expected. That is in contrast to what he said last quarter which was that he didn't see a China slowdown. Given that China represents most of Apple's growth, this is a BIG thing.
Seeing the way the iPhone dominates Apple's sales, I wish (in defiance of how I know the world works) that it could be spun off into a separate company. Take the iPad and Watch along if necessary due to their software ties. Which I guess is more like spinning the Macintosh off, eh? There's no way the Mac can get the strategic attention it needs when the iOS devices are so much more important to the company's bottom line. They'll get thinner and they'll get faster, because technology improves. But now that Jonny's done giving OS X a visual-design make-over, it seems like all they're doing with it lately is making it a better "accessory" to interoperate with the iPhone.
If you listened to Tim you would have heard him say that Q2 last year was artificially inflated due to supply constraints of Q1 large screen iPhones bleeding into Q2 before supply/demand balance was reached. This was an unusual spike in demand due to pent up demand for large screens by some and made Q2 last year much stronger than normal. There are also very large FX headwinds this year which amplify the disparity. So Q2 is likely to show a unit sales decline but they expect the rest of the year to fall back into the normal pattern. You may also have heard Tim say that of the people who bought phones in 2014, only 40% have upgraded to a 6 or 6s so far so that leaves 60% who are likely to buy an iPhone 7. Apple's brand loyalty will ensure that very few will migrate away from iPhone. Also he said they are seeing record numbers of Android switchers.
It's always easy to pull out a sensational headline from a company's earnings figures but if you look at the nuances you'll see that Apple is in very healthy shape and likely to continue to break records for some time to come.
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One of the reasons for Apple's success is the fact they are a functional organisation not a divisional organisation like most companies. They also famously operate with a single profit centre which encourages decisions which favour the company as a whole not just one part of it. So if you were to split out the iPhone then decision making would diverge and potential "halo effects" between hardware, software and services would be lost.
Knee jerk response, but I think Apple will lower iPhone prices a bit overseas in strategic areas similar to what it did in India recently. Also the 5se, assuming it is in fact being launched soon will drop average sale price for iPhones. Though maybe they don't launch that product until September. It would be nice if consumers had a full slate to pick from of iPhone 7, 6s and 5se and they could just decide. If they launch 5se in Spring there might be folks who will be kicking themselves for not waiting until September to buy the 7.
Apple is doomed. Obviously.
Sigh, that is it. Apple is doomed. Clearly no one buys iPhones anymore.
When isn't Apple doomed?
Quick sell your stocks! Tinfoil hats selling faster than macs and all iDevices!
Everyone panic! Apples end is near bankruptcy imminent sell those device before values plummets or start selling liquor for the HTC-Samsung-Android death to Apple celebratory party /s
I suspect there are many iPhone users who will never buy an iPhone through commercial channels that are captured by these numbers. For example, my Mom is on her second iPhone and they have both been hand downs from me. I suspect this will continue into the future. Others will buy used iPhones. So some of that 60% percentage is not really available for Apple to sell phones to. But they do drive services and those folks aren't available to switch to Android or other OSs either. The 6s because of its CPU will be a beast that will be in service for many many years.
Yes, hopefully Apple goes bankrupt then you and all the other Apple haters on MR can be happy!.
True, but Apple had better watch it's back as of this last quarter 2015:
Apple Inc.
Alphabet Inc.
Everytime you activate an iPhone, Apple would know the serial of the device and your phone number/carrier. If you login to any Apple service (iMessage, iCloud etc) they know about it. So Apple would have a very good handle on who's using which iPhone and they can analyse that.
They do, but terribly and certainly not as efficient as before thanks to the current music app on iOS. It's definitely not worth using an iPhone as an iPod anymore...
It all depends on share holders, I mean it is currently leading in the smart watch market for the moment, maybe it leads in the tablet market but with quarter less sales in that market it's hardly a roaring success, and Macs are waaaayyyyyyy behind Windows.
Maybe they are making profits still, but they won't be growing as much, so why would a big investor be interested? Especially as there would be much bigger companies out there to place there money into.
Well, as Tim Cook has announced that iPhone sales will slow down, we shall see what happens. And does anyone have any proof that Apple makes more money without the iPhone then the entire Microsoft or Google product portfolio does, or did you just think that sounded cool
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The Apple Story is over.
I've enjoyed the ride. What a magical time it's been from 1997-2011.
Here's to the crazy ones.
I've enjoyed the ride. What a magical time it's been from 1997-2011.
Here's to the crazy ones.
The shares are down now. Investors are realistic.
Where are all the people that said iPhone would decline this time round?
That prediction wasn't about the sales already counted during the quarter.
The prediction was about production during the quarter, which would be reflected in lower sales for the next quarter.
E.g. "Apple will cut production on the iPhone 6s and 6s Plus by approximately 30 percent in the first calendar quarter of 2016, reports Nikkei. " - MacRumors
That's likely why Apple's guidance is lower than expected for next quarter.
We'll know next quarter.
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Apple: changing the subject
http://www.ft.com/cms/s/3/ad786560-c477-11e5-808f-8231cd71622e.html#axzz3yOlM3pDu
http://www.ft.com/cms/s/3/ad786560-c477-11e5-808f-8231cd71622e.html#axzz3yOlM3pDu
DOOOMED DOOOOOOMED I SAY, DOOOOOOOOOOMED
Dem numbers though.
Wonder how little tax they're going to get away with paying
next year is going to be very interesting.
China was expected to slow down due to saturation this year, but that didnt materialize, so it's possible that it'll happen this year
Other nations are seeing price shock with international prices going up this year 30% on many devices, that might have big impact. Expect to see Canadian iPhone sales decline as the 30% price shock in addition to the carrier oligopoly manipulation as many of them are getting rid of subsidies on devices (Going towards a tab based system)
My quick analysis of the previous quarter:
iphone sales still are uncomfortably their goose egg. While even without the iPhone's revenues, they bring in great numbers the question I have is how much of some of the other categories depend on iPhones. For example how much of the "services" revenue is based on services that are provided via iPhones. If sales of those go down, Services may drop as well. THe Watch for example requires an iPhone, so less sales of that, could also impact sales of watches. There is also the brand recognition, with decreased sales, could Mac sales also be impacted? Apple products aren't ina vacume from eachother and decrease in iPhone could hurt other areas.
Apple doesn't seem to be able to truly penetrate the "PC" market as they are intentionally staying out of enterprise, gaming, custom and other entertainment computing
Other contains Multiple products, and Apple will not break it down. Ipods, Watches, Accessories, beats products and other things that are not in the other defined categories are here. Without a breakdown, it is impossible to tell which product is doing well and which isn't. My belief is that the Watch has done ok, but not the runaway sucess expected. iPod is mostly a dead market. Accessories is likely healthy, Beats probably isn't dramatically impacting much (Just my opinion). Accessories usually does very well.
Ipads will probably end up more like their PC business, but thats just the nature of the product. People don't seem to be replacing iPads like they do their phones. They're expensive devices tha can last years before really feeling the need to replace. the 2nd gen iPad as probably tOO good for the time and is probably still the most used device. I am not surprised the Pro didn't change the fortune as the Pro doesn't fundamentaly change the iPad lineup other than offering a larger version. Question is, does the Apple pencil count towards iPad sales or Accessories in Other?
E nd result is that Apple once again had record profits. Another giant growth. But, The same question remains, When is Apple going to do something with the stockpiled profit? Profit that sits and stagnates is ultimately bad for Apple, an bad for the economy. The APple car could be exactly what this money is being saved for, As entry to the automotive market won't be cheap. With forecasts for next year showing decline in iPhone sales, Expect Apple to try and diversify further outside the smartphone market with new products in other existing categories.
At the end of the year, Tim Cook might not have the same "Vision" for products that Jobs had. But He is utlimately the better CEO and knowns how to steer a large corporation and supply lines. He is more the traditional corporate CEO and has been extremely succesful, with very little doubt at this point about his chops at running Apple.
Dem numbers though.
Wonder how little tax they're going to get away with paying
next year is going to be very interesting.
China was expected to slow down due to saturation this year, but that didnt materialize, so it's possible that it'll happen this year
Other nations are seeing price shock with international prices going up this year 30% on many devices, that might have big impact. Expect to see Canadian iPhone sales decline as the 30% price shock in addition to the carrier oligopoly manipulation as many of them are getting rid of subsidies on devices (Going towards a tab based system)
My quick analysis of the previous quarter:
iphone sales still are uncomfortably their goose egg. While even without the iPhone's revenues, they bring in great numbers the question I have is how much of some of the other categories depend on iPhones. For example how much of the "services" revenue is based on services that are provided via iPhones. If sales of those go down, Services may drop as well. THe Watch for example requires an iPhone, so less sales of that, could also impact sales of watches. There is also the brand recognition, with decreased sales, could Mac sales also be impacted? Apple products aren't ina vacume from eachother and decrease in iPhone could hurt other areas.
Apple doesn't seem to be able to truly penetrate the "PC" market as they are intentionally staying out of enterprise, gaming, custom and other entertainment computing
Other contains Multiple products, and Apple will not break it down. Ipods, Watches, Accessories, beats products and other things that are not in the other defined categories are here. Without a breakdown, it is impossible to tell which product is doing well and which isn't. My belief is that the Watch has done ok, but not the runaway sucess expected. iPod is mostly a dead market. Accessories is likely healthy, Beats probably isn't dramatically impacting much (Just my opinion). Accessories usually does very well.
Ipads will probably end up more like their PC business, but thats just the nature of the product. People don't seem to be replacing iPads like they do their phones. They're expensive devices tha can last years before really feeling the need to replace. the 2nd gen iPad as probably tOO good for the time and is probably still the most used device. I am not surprised the Pro didn't change the fortune as the Pro doesn't fundamentaly change the iPad lineup other than offering a larger version. Question is, does the Apple pencil count towards iPad sales or Accessories in Other?
E nd result is that Apple once again had record profits. Another giant growth. But, The same question remains, When is Apple going to do something with the stockpiled profit? Profit that sits and stagnates is ultimately bad for Apple, an bad for the economy. The APple car could be exactly what this money is being saved for, As entry to the automotive market won't be cheap. With forecasts for next year showing decline in iPhone sales, Expect Apple to try and diversify further outside the smartphone market with new products in other existing categories.
At the end of the year, Tim Cook might not have the same "Vision" for products that Jobs had. But He is utlimately the better CEO and knowns how to steer a large corporation and supply lines. He is more the traditional corporate CEO and has been extremely succesful, with very little doubt at this point about his chops at running Apple.
I don't agree with this assessment of Tim Cook. He has done an admirable job of running the business that Jobs built. But he as failed, to date, to create another new revenue stream that would allow Apple to diversify away from the iPhone. Maybe the TV or Car or a major acquisition will be it. He's known this day would come and those products haven't yet materialized in any sizable form. Everything else is actually declining.
Tim Cook doesn't have the vision or drive that Jobs had. Cook is just your average bottom-line CEO type. With Jobs, you could truly see that he was genuinely invested with making amazing products and services. However with Cook, his phony enthusiasm is not very convincing and I highly doubt he's as involved with Jony and his team as Jobs clearly was. Cook is a competent bean counter but that's not the type of person who should be running Apple.
It all depends on share holders, I mean it is currently leading in the smart watch market for the moment, maybe it leads in the tablet market but with quarter less sales in that market it's hardly a roaring success, and Macs are waaaayyyyyyy behind Windows.
Maybe they are making profits still, but they won't be growing as much, so why would a big investor be interested? Especially as there would be much bigger companies out there to place there money into.
Well, as Tim Cook has announced that iPhone sales will slow down, we shall see what happens. And does anyone have any proof that Apple makes more money without the iPhone then the entire Microsoft or Google product portfolio does, or did you just think that sounded cool
Apple revenue without iPhone = $24 billion
Microsoft revenue = $25 billion expected
Google revenue = $18 billion
So... They pretty much do.
2015 Felt like a year of price gouging at Apple and it's has turned me away from making any Apple purchases aside from a 6S and an Apple TV (not even sure why I bought one of these. it has made 0 change in the way I consume entertainment on my TV). As a designer the Pencil is right up my alley but the price of it and the iPad Pro (which conveniently lacks a 64GB option, the most sensible option for a professional to get everyone to shell out for the 128GB) don't make sense for me. For my budget sense to outweigh my fanboyism is alarming for me. Same with the Watch, the new mouse and keyboard, the iPhone battery case. It all felt like a last-ditch price grab to pump up the $ numbers by the end of the year, very transparently. Apple feels like a "normal" company now, beholden to the market and investors. I'm aware thats always been the reality but it's never been this apparent as a consumer.
I think this is an important, and critical threshold for Apple
With ultimately, sales numbers starting to flatten out, To see another record profits, it means margins themselves are where some of the extra profit has come from.
Increased margins can be done by either decreasing costs, or increasing revenues. Either way, For apple to maintain a specific target Margin, Apple had to charge enough margin on their devices. At somepoint, forced Margins for Wallstreets sake is going to start to feel like the old days with the old "Apple Tax"< where you'r paying a premium exclusively to put more cash in a very few number of peoples pockets.
I think Apple is going to have to either drop margins slightly into the future. If Cook is already setting everyone up that next year wont have record profit growth, it might be the time to set the expectations that margins will also decrease.
Boasting record profits, while raising prices is not a good way to impress customers.