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

Great numbers, no doubt partly caused by ramping up prices everywhere (especially in the UK).

It's sad to see that, although it's still a $7bn business for Apple, they're ignoring the Mac so much.

The iPhone and iPad wouldn't exist without the Mac. ALL of the apps for them are written on Macs.

If Apple ignore the Mac as much as they did in 2016 (and let their pro machine languish with 3-year-old tech at today's prices) who will bother or be able to afford to upgrade?

A developer's current Mac will only be supported for so long, and if prices are too steep for a developer to afford, will they bother to keep writing apps? I'm not sure I would. Most developers don't make any money in the App Stores because they're individuals with no marketing budget, whose work is hidden in a sea of apps made and promoted by mega-corporations. Apple haven't helped app discovery in a long time.

Why is Apple also giving up on its ecosystem? Where are the routers and monitors? The new LG UltraFine monitors (one with a bug meaning Wi-Fi interferes with them, and the other gimped with no camera, no speakers, and slower ports) are okay, but they're missing the usual Apple 'magic'.

As an example, I have an Asus 4K display that doesn't receive a video signal over DisplayPort if it's on when the Mac is turned on, but it will get a signal over HDMI. Once logged into macOS Sierra, the monitor is mirroring over both ports and it slows the machine down terribly. I have to unplug the HDMI cable, leaving the DP connection. I can't adjust the volume unless I use the on-screen display using a little joystick hidden behind the screen. There's no OS integration at all.

My machine is no slouch, either. It's a Late-2013 Mac Pro 3.5GHz 6-core Intel Xeon E5, 64GB RAM, dual AMD FirePro D700s with 6GB VRAM each. And I'm getting a jittery mouse and dropped Bluetooth!

If Apple can no longer be bothered to make computers 'just work', then we will all experience niggles and issues with our computers because we won't be buying Apple anymore. One day you replace the monitor, then the router, then the keyboard and mouse, and pretty soon Apple have no reason to make monitors, routers, keyboard, mice, and Macs anymore, because they think the future is the iPad.

Apple lost my money when I bought the Asus monitor because they failed to release an updated display in a reasonable time (I gave them four years). They already had 5K iMacs - couldn't they have made a 5K monitor in the same style? They are likely to lose my money on my next computer purchase, too, because I won't be paying £4,000 for a laptop. And I don't think I'm alone.
 
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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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If you gave Apple money and they gave nothing to you in return you should ask for a refund. Typically when a customer gives them money they give the customer some product. Your experience of receiving nothing from Apple as a customer is atypical.
 
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I'd like to see an effort for the Mac line to grab 10% of the market share and the iPad back to growth.
 
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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There is no way Mac Pro even accounts for 10% of Mac Sales. Of the 5m units shifted, most will be MacBooks (all variants). I'd be surprised if Mac Pro sales even reached 50k units.
 
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All eggs in the iPhone basket, way too scary.
 
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Nunyabinez said:
9% is Mac share of revenue. If anyone is unclear about why there is little love for the Mac, there's your answer.

P.S. figure out what percentage of the 9% is the Mac Pro.
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I will bet you Apple has never made profit on the nMP. The global workstation market is less than a million machines a quarter.
 
wovel said:
If you gave Apple money and they gave nothing to you in return you should ask for a refund. Typically when a customer gives them money they give the customer some product. Your experience of receiving nothing from Apple as a customer is atypical.
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Wonder how many more will say the same thing in here? Is there some sort of corrupt AI on here or something?
 
haydn! said:
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!
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There are a number of factors that cut different ways. But, yeah, currency rates hurt the YoY comparison.

On the other hand, the extra week helped the YoY comparison. There was also the Samsung judgment, it was accounted for in the year ago quarter - $548 million. That hurt the YoY comparison. Even net of the corresponding tax effect, that would represent most of the drop in YoY net earnings. There's also the reality that Apple pushed an extra $1.5 billion worth of iPhones into (but not out of) the channel in the year ago quarter. That too hurt the YoY comparison for this just-reported quarter.

There are no doubt other factors that we could point to as well.
 
InlineRanger said:
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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If that level of detail was that critical to investors, the SEC would have regulations that would make corporate disclosure far closer to that level of detail.

Let's face it: it's not invaluable to an investor. Let's say the wholesale price of the Bluetooth chip in an iPod touch goes up $0.02. Is that going to make or break Apple? Is that information "invaluable to an investor" [sic]? No, it is not.
 
StyxMaker said:
What irony? Maybe you should check a dictionary.
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The irony of his comment is that the OP was complaining about Apple's lack of focus on the Mac and the the reply said if you don't like leave and then posted a link to a site promoting Android.

Does that not seem ironic to you? Maybe you should read more carefully before making a rude post.
 
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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Question: Do you think people will continue to carry around a personal mini computer with them? (That is what an iPhone is.)

Question: Do you think Apple will be able to continue to make one of the best personal mini-computers? (I'm talking top five and not necessarily the best, just in the ballpark.)

If the answer to both of those questions is yes, then there isn't much to worry about Apple relying on that one product. The smartphone isn't going anywhere. And Apple has economies of scale and other advantages to mean that it will always make a very good smartphone. Now it might not be able to charge as much down the road. Or maybe the margins will squeeze. But no one is going to make a smartphone so good that folks won't buy iPhones. And we aren't going to stop carrying smartphones anytime soon.
 
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.
Click to expand...
That's rather odd. I would go to an Apple Store nearby. Did you at least get the box to your Apple Product?
EDIT: I didn't see the other posts. Sorry ;)
 
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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.
Click to expand...

And not much given back to share holders as well.
Apple has over 200 Billions in the bank, so why are they only giving 1/6th of the profits to their share holders?
To throw the rest on top of the 200.000.000.000 $ pile of cash instead of giving it to the rightful owners?
 
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MacRumors said:



Apple today announced financial results for the first fiscal quarter of 2017, which corresponds to the fourth calendar quarter of 2016. For the quarter, Apple posted revenue of $78.4 billion and net quarterly profit of $17.9 billion, or $3.36 per diluted share, compared to revenue of $75.9 billion and net quarterly profit of $18.4 billion, or $3.28 per diluted share, in the year-ago quarter. Both revenue and earnings per share were company records in what is traditionally Apple's strongest quarter due to the launch of new iPhone models.

Gross margin for the quarter was 38.5 percent compared to 40.1 percent in the year-ago quarter, with international sales accounting for 64 percent of revenue. Apple also declared an upcoming dividend payment of $0.57 per share, payable on February 16 to shareholders of record as of February 13.

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Apple sold a record 78.3 million iPhones during the quarter, up slightly from 74.8 million a year earlier, while Mac sales rose slightly to 5.4 million units from 5.3 million units in the year-ago quarter. iPad sales continued their recent declines, falling to 13.1 million from 16.1 million.Apple's guidance for the second quarter of fiscal 2017 includes expected revenue of $51.5-53.5 billion and gross margin between 38 and 39 percent. Revenue guidance is slightly below analyst expectations.

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Apple will provide live streaming of its fiscal Q1 2017 financial results conference call at 2:00 PM Pacific, and MacRumors will update this story with coverage of the conference call highlights.

Conference call starts at 2:00 PM Pacific - No need to refresh
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Article Link: Apple Reports Record Results for 1Q 2017: $17.9B Profit on $78.4B Revenue, 78.3M iPhones
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So they party about falling profits even with much higher revenue? For me it's a sign, that products are far more often returned, because of bugs and problems.
 
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.
Click to expand...

Cause introducing a more "normal" Mac Pro costs a huge pile of cash??? They could use Intel's reference motherboards, add a little special sauce, a nice case and price it REASONABLY and it would be a hit. You know like all the previous Mac Pro's before the trashcan!

It will be interesting to see how the next quarter plays out. Going by the Internet noise lots of people bought last year's MacBook Pro's as they were the better machine. It shows if you look at the sellouts in the Apple refurb store. On another forum I visit, a top Photography site I notice an uptick in the #s of people posting questions that start out with "I came from a Mac and need help with this PC.". Usually the reasoning is that the new machines are too expensive for the lackluster tech they ship with. I even reverse switched back to Windows (Mac guy since '02 and shareholder) and so far am enjoying the experience.

I really hope Apple can keep this up but I feel that their products as of late have been quite lackluster.
 
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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.
Click to expand...
Why should they give anything back? Don't buy their products if you don't like their style. And you gotta admit it's a great one trick pony.
 
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