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Apple Reports Record Results for 1Q 2017: $17.9B Profit on $78.4B Revenue, 78.3M iPhones

shk718 said:
1) You're missing a key point. iPhone 7 launched earlier in the year than the the iPhone 6, meaning some sales would have been eaten up by the prior quarter.

3) incorrect - services are seeing double digit growth.

6) how do you quantify "product innovation is stagnant"? By what measure? Under the hood they're innovating quite a bit. The airpods are quite innovative. You may or may not like the touchbar on the mac but its extremely innovative.
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Rivals are producing more innovative and feature rich products with comparable build quality and design to Apple's products for less cost across several categories, notably in the laptop, tablet and phone markets.

Services are growing but not by sufficient levels to offset the dominance of the iPhone and one could argue that given the size of Apple's customer base, the figure should be higher.

While I accept the short term looks deeply impressive, there are plenty of indications that the company is losing its touch in many of its former areas of strength and their reliance on the iPhone is undeniably dangerous.

Just because you're big, doesn't mean you're invincible, even with Apple's cash hoard. A major decline in the iPhone could see that cash being consumed quickly by their high operating costs.

I would be happy in the short term as an investor but watching very closely over the next 18 months.
 
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apolloa said:
Have to say that's an obscene amount of money, and nothing given back to the customer. Also shows how much of a one trick pony they still are.
Would be nice if they reduced the iPhone and iPad costs in the UK, considering the pounds gone back up but noooo.
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Um, customers pay Apple in exchange for products and services. Apple's fiduciary responsibility is to its shareholders.
 
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pat500000 said:
Go figure.....he has nothing to say about Mac Pro. Heh...isn't that why he needs few minutes to rehearse?
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Macs account for 9% of revenues, Mac Pro accounts for maybe 10% of that?
That's 0.9% of total revenue for a product with low margins, volumes and high R&D costs.

It gets repetitive to read on this forum how Tim lost focus because they don't get their shiny toy.
Instead he's focusing exactly on the products people buy and continues the sustainable growth of the company.
 
gebbl said:
Macs account for 9% of revenues, Mac Pro accounts for maybe 10% of that?
That's 0.9% of total revenue for a product with low margins, volumes and high R&D costs.

It gets repetitive to read on this forum how Tim lost focus because they don't get their shiny toy.
Instead he's focusing exactly on the products people buy and continues the sustainable growth of the company.
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I wanna hear what the number is on Mac Pro and other neglected macs.

It is repetitive but people do want to know about. I see everyday in the forum that people talk trash about the products they don't use.
 
CEmajr said:
Looks like we'll have to postpone Apple's doom for another year. Haven't they been doomed since around 2011?
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More like the early/mid 2000s. When the iPod and iPhone were first thought to be a joke. Nothing's changed here...
 
macbookhair said:
Rivals are producing more innovative and feature rich products with comparable build quality and design to Apple's products for less cost across several categories, notably in the laptop, tablet and phone markets.

Services are growing but not by sufficient levels to offset the dominance of the iPhone and one could argue that given the size of Apple's customer base, the figure should be higher.

While I accept the short term looks deeply impressive, there are plenty of indications that the company is losing its touch in many of its former areas of strength and their reliance on the iPhone is undeniably dangerous.

Just because you're big, doesn't mean you're invincible, even with Apple's cash hoard. A major decline in the iPhone could see that cash being consumed quickly by their high operating costs.

I would be happy in the short term as an investor but watching very closely over the next 18 months.
Click to expand...


double digit growth isn't enough? ok.
if its competitors are innovating so well - why doesn't Apple's sales reflect this?
your generalizing - give specifics - what are these indications?
 
gebbl said:
Instead he's focusing exactly on the products people buy and continues the sustainable growth of the company.
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A company that lives & dies by one product isn't what I would call sustainable. It's more like a house built on a cliff edge slowly eroding
 
mi7chy said:
A whole company riding on one product that's recycled three years straight. Some funny math going on.
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Is there funny math going on at Google when close to 90% of their revenue comes from ads? What happens to mobile ads when voice takes over as an interface?
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Naraxus said:
A company that lives & dies by one product isn't what I would call sustainable. It's more like a house built on a cliff edge slowly eroding
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So is Google not sustainable since close to 90% of their revenue is ad based? What about Facebook which also lives and dies by mobile ad revenue?
 
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apolloa said:
Our pound has gone back up actually, our economy is doing fantastic. I blame Apple using it as a p*** poor excuse to increase profits, not leave voters!
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1.26 is up from 1.22, but is massively down from 1.47. Looks like basic arithmetic skills are down as well.
 
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Rogifan said:
Is there funny math going on at Google when close to 90% of their revenue comes from ads? What happens to mobile ads when voice takes over as an interface?
[doublepost=1485903412][/doublepost]
So is Google not sustainable since close to 90% of their revenue is ad based? What about Facebook which also lives and dies by mobile ad revenue?
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Not that we are talking about google...in any event they are both vulnerable to a market shift.
 
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shk718 said:
double digit growth isn't enough? ok.
if its competitors are innovating so well - why doesn't Apple's sales reflect this?
your generalizing - give specifics - what are these indications?
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I'm talking about predictions regarding long term trends. What is happening right now is the short term, which looks healthy. I am referring to the longer term possibilities based on my observations of Apple.

At the end of the day, time will tell if either of us are correct or not.
 
Tumbleweed666 said:
Id love to see the pie chart only instead of revenue per product line, gross profit. The services segment must be bigger by proportion and growing disproportionately larger each year.
I'm guessing Apple don't break it down like that, have any analysts done estimates ?
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Apple doesn't do that. I don't think any analysts do those kind of estimates.

Let's take for example the iPod touch (iPods are no longer a separate category, are lumped into Other, along with AirPods, Apple TV, Magic Trackpad, etc.). You'd have to know the specific quantity of every iPod touch model sold (128GB, 64GB, etc.), the COGS associated with each one, what channel they were sold (online, Apple retail stores, channel partners, etc.), which country, current exchange rates at the time of sales, etc. In order to get an accurate number, you'd need to have deep knowledge about certain data points that are company confidential.

Maestri alluded to the fact that the margins are widely different for the various Service components, but did not elaborate on which ones were more profitable than others.

And to what end? Are you going to shell out money to read a 1000-page research note only to decide that you aren't going to invest in AAPL because their gross margin on the 64GB iPod touch only went up by 0.05%? Or as a consumer, are you going to decline from buying a 13" MacBook Air because COGS came out $0.75 more than you expected? That level of minutiae really isn't relevant to people here.

It's like asking chicken processors to divulge the gross margin between chicken wings, boneless skinless thighs, bone-in thighs with skin, boneless skinless breasts, bone-in breasts with skins, etc.
 
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"iPad looked like it was going to turn positive, but it went negative, and ASP dropped. Cook: ... We are still currently in a shortage issue, and I'm not projecting to get totally out of it this quarter, so it will dampen things this quarter. But I'm very bullish."

Since when were/are iPads in a shortage position at the retail level - just NOW, with Cook ducking the question?

Hell, every damned reseller has had constant sales on iPads - does that sound like a shortage position?
 
InlineRanger said:
Apple's YOY profit is down ~2.7%.

Apple did more business and made less money. Good? Bad? Go!
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I think Apple indirectly explained it. In a number of markets, currency was against them for some of the quarter. This would have eaten into margins until they adjusted prices which they didn't do until mid-quarter for most products. So whilst units and overall sales are up, profits would have been lost in currency exchange - or at least some them anyway!
 
"And we've got exciting things in the pipeline."
Come on Cook, you could avoid this silly comment....Just make it happen. Less talk, more action.
 
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ani4ani said:
Not that we are talking about google...in any event they are both vulnerable to a market shift.
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No but no one ever says Google is doomed because most of their revenue comes from ads.

It's not surprising that in the holiday quarter when new iPhones are launched it would have the highest % of revenue. There was one quarter last year where iPhone was only 54% of total revenue.
 
Bart Kela said:
And to what end? Are you going to shell out money to read a 1000-page research note only to decide that you aren't going to invest in AAPL because their gross margin on the 64GB iPod touch only went up by 0.05%?
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Yes, that information would be invaluable to an investor. Apple (and everyone else) only release what they are required to by law.
 
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