Apple's Q4 2023 Earnings Call Takeaways

[ChedNasad]

Sometimes I wish Apple as well as other companies could go private. The constant fixation on quarterly performance and yearly performance is really not conducive to long term planning/bets. Apple seems to handle it better than most companies but I have to imagine it tends to be limiting. The constant desire for perpetual growth in a finite environment and economy is also silly. I work for a company that went public not too long ago and the focus on launching new products or driving revenue up always seems to eclipse focus on improving reliability and customer experience of current products even though this can result in serious issues in the long term.

 

[Corefile]

The Generative AI is the buzz phrase for all companies now. It's a pity AAPL hasn't invented anything useful since the iPad which was on Steve's watch. You need to look to MSFT for innovation nowadays so AAPL could do worse than replace Tim Apple with a visionary.

 

[Wildkraut]

Vision Pro sales: 1, the one Tim Cook bought for his husband.

 

[4odomi]

I'm wondering how much of that services revenue is actually from the Google search deal and if it might go away because of the current litigation.

If it does go away, then Apple will just launch it's own search engine and make even more money.
Google as a search engine is dying!

 

[canadianreader]

So, again, I ask....who is more innovative than Apple? If you find Apple "stagnant, predictable, and boring", what company excites you? What industry figure do you think should be running Apple? Who do you think will do a better job than Cook?

So because all the other companies are stagnant, predictable and boring therefore Apple is excused. It's normal that people expect more from Apple and not from the others.

 

[BeatCrazy]

Tim, I think it’s time to go. For the past 10 or so years, you managed to keep the Apple at the top and kept the users more or less happy post Steve (and made shareholders very happy). This to me is obvious sign that someone else should take your seat. Someone with newer ideas. Someone bolder. You cannot generate more profits by playing it safe. Data doesn’t lie

If the Vision Pro is considered 'safe', I'd like to hear your idea of risky. Remember, Tim Cook's only job is to deliver value to shareholders.

 

[BeatCrazy]

Make one of the cores on the M4 iteration x86 compatible, and bring the BootCamp people back. Yes, we were only a few percent, but that few percent of us, just bought a new PC instead of a new Mac, just like I did two months ago.

ETA: either that, or make an official deal with MS to get official copies of Windows running on ARM.

ROI = 0.00%

 

[citysnaps]

So because all the other companies are stagnant, predictable and boring therefore Apple is excused. It's normal that people expect more from Apple and not from the others.

Who's excusing Apple?

There are certain factors out of Apple's control. The economy, inflation, etc. People are much more cautious making purchases. Especially in an environment where there have been massive layoffs in tech and other sectors. Apple has managed that extremely well keeping their employees employed; while other companies are *still* laying off people.

 

[Marty80]

Welcome to the 80s apple dated designs, no innovation or wow factor, costly products. Its no wonder I am still using my iphone 12 pro max & hanging onto my 2021 16” macbook pro m1 Max.

Its time Apple stops focusing on the ivision pro, makes there prices more competitive & brings life back to the iphone, ipad & mac lines by bringing something new to the table.

 

[DanVM]

I find comments like this very out of touch with reality. Who in tech is doing mad innovative work? Who would you rather see running Apple? Where is this "visionary" going to come from? What company is producing better, more innovative products than Apple?

As much as people love to lionize Jobs, he nearly destroyed Apple the first time around and he practically ran NeXT into the ground too. Had Apple not chosen NEXTSTEP, the legacy/myth of Steve Jobs would be very different.

Cook is far more than a caretaker. During his tenure Apple launched the Watch, got into Services bigtime, transitioned to Apple Silicon, and plenty more. A lot has happened under Cook. Calling him a caretaker is insulting. He's the most successful CEO in the history of business. He may not be a tech visionary, but that doesn't mean he has no vision. He certainly knows how to surround himself with great people.

So, again, I ask....who is more innovative than Apple? If you find Apple "stagnant, predictable, and boring", what company excites you? What industry figure do you think should be running Apple? Who do you think will do a better job than Cook?

I don't know if Vision Pro will "reignite the magic" (I think you and I share a similar opinion on Vision Pro), but it is a very interesting piece of technology. I'm not sure people will want it, but that doesn't mean it isn't quite groundbreaking.

Although I agree with you he is a great CEO, I wouldn't consider him the most successful. You have to consider the Apple company he got was a strong company, running the wave of iPhone and iPad. He did a good job on keeping the company going strong. If you ask me, I have Bill Gates and Steve Jobs tied at the top of my list. Also, Satya Nadella did an excellent job on turning around MS, so I also have him over Tim Cook. Larry Page and Eric Schmidt did a great job too, specifically with Google Search. I think that's my list when talking about CEO of tech companies.

 

[Surf Monkey]

I find comments like this very out of touch with reality. Who in tech is doing mad innovative work? Who would you rather see running Apple? Where is this "visionary" going to come from? What company is producing better, more innovative products than Apple?

As much as people love to lionize Jobs, he nearly destroyed Apple the first time around and he practically ran NeXT into the ground too. Had Apple not chosen NEXTSTEP, the legacy/myth of Steve Jobs would be very different.

Cook is far more than a caretaker. During his tenure Apple launched the Watch, got into Services bigtime, transitioned to Apple Silicon, and plenty more. A lot has happened under Cook. Calling him a caretaker is insulting. He's the most successful CEO in the history of business. He may not be a tech visionary, but that doesn't mean he has no vision. He certainly knows how to surround himself with great people.

So, again, I ask....who is more innovative than Apple? If you find Apple "stagnant, predictable, and boring", what company excites you? What industry figure do you think should be running Apple? Who do you think will do a better job than Cook?

I don't know if Vision Pro will "reignite the magic" (I think you and I share a similar opinion on Vision Pro), but it is a very interesting piece of technology. I'm not sure people will want it, but that doesn't mean it isn't quite groundbreaking.

Check out the hi-fi and portable audio market in China. Just one example of companies that know how to push design and innovate. The notion that Apple is just as innovative as any other company right now is patently absurd. Apple is very notably stagnant and has been basically since Tim Cook took over.

 

[Surf Monkey]

Who's excusing Apple?

There are certain factors out of Apple's control. The economy, inflation, etc. People are much more cautious making purchases. Especially in an environment where there have been massive layoffs in tech and other sectors. Apple has managed that extremely well keeping their employees employed; while other companies are *still* laying off people.

As I said before, Apple failing to replace Jony Ive speaks volumes. Apple built its reputation on design. Solid, forward leaning design both on the software and hardware side. As one of the top five largest companies in the world and one that caters to creative professionals it’s perplexing that they don’t include at least one world class designer on their executive team. Their increasingly stale designs (including the Vision Pro) are the blatant fallout from that decision, but evidence of it exists all over iOS as well.

This one key factor alone disproves the idea that Apple is just a victim of circumstances. If they still valued cutting edge design they’d have a top flight designer leading their team.

 

[mpetrides]

It's a pity AAPL hasn't invented anything useful since the iPad which was on Steve's watch.

The Apple Watch isn't useful??? I beg to differ....

 

[JamesHolden]

Check out the hi-fi and portable audio market in China. Just one example of companies that know how to push design and innovate. The notion that Apple is just as innovative as any other company right now is patently absurd. Apple is very notably stagnant and has been basically since Tim Cook took over.

Lol. Me thinks you might be trolling...

Stagnant? Are you kidding?! You call a whole new hardware architecture stagnant? Multiple new product categories stagnant? One of the largest (if not the largest) growth runs in corporate history, both in terms of revenue and hiring stagnant? There's nothing stagnant about Apple under Cook.

So, again, I ask...who is this visionary that should lead Apple? You keep claiming Apple needs a visionary. So, who would you choose? Who do you think would do a better job than Cook?

I'm not researching the Chinese audio market in hopes of finding something innovative. You keep telling us Apple isn't innovate, so name some innovative companies who are doing better work than Apple. Should be easy for you.

 

[Marty80]

I am still happy with my 2021 macbook pro m1 max. I tend to update every 5 years with major revision changes.

But this price hike might have me inclined to hang onto my m1 for as long as mac os is compatible with my macbook pro.

 

[citysnaps]

This one key factor alone disproves the idea that Apple is just a victim of circumstances. If they still valued cutting edge design they’d have a top flight designer leading their team.

It doesn't disprove anything. Economic circumstances are real. As are people delaying decisions to update their tech. Simply open your eyes and look around at the health of other tech companies and their massive layoffs and resulting performance.

Regarding Ive somehow causing Apple's demise, that's merely your opinion and not worth very much.

 

[latweek]

Mismanagement for Dummies: The Tim Cook Story

Its a testament to how successful Apple was that its taken about 10 years to expose that they haven't had a real CEO. Maybe if Apple could retire him like Ballmer at MS, they could turn things around. The first step to solving that problem is admitting they have one.

 

[Pirate!]

My feeling is that the customer no longer comes first. Superficially they may seem to but a look through the hardware product line soon establishes that Apple produce purely what they want to sell whilst considering how it connects to lucrative services. After premature failure of a number of products and the deliberate policy of making the once simple replacement of items like batteries so difficult I no longer feel valued as a customer. What do I therefore do? I hang on to stuff as long as possible.

A great quarter, tons and tons of money, but perhaps not enough to satisfy the avaricious machine of capitalism that demands endless, significant year-over-year growth.

Sometimes I wish Apple as well as other companies could go private. The constant fixation on quarterly performance and yearly performance is really not conducive to long term planning/bets. Apple seems to handle it better than most companies but I have to imagine it tends to be limiting. The constant desire for perpetual growth in a finite environment and economy is also silly. I work for a company that went public not too long ago and the focus on launching new products or driving revenue up always seems to eclipse focus on improving reliability and customer experience of current products even though this can result in serious issues in the long term.

Record revenue on services announced shortly after pretty steep increases in those services while offering pretty much nothing additional for that extra fee. That leaves a pretty bad taste in my mouth (and that’s not just apple these days).

Having said that, I’m pretty locked in to the eco system, for better or worse. If anyone has any better places to go, I’m all ears.

 

[JamesHolden]

Although I agree with you he is a great CEO, I wouldn't consider him the most successful. You have to consider the Apple company he got was a strong company, running the wave of iPhone and iPad. He did a good job on keeping the company going strong. If you ask me, I have Bill Gates and Steve Jobs tied at the top of my list. Also, Satya Nadella did an excellent job on turning around MS, so I also have him over Tim Cook. Larry Page and Eric Schmidt did a great job too, specifically with Google Search. I think that's my list when talking about CEO of tech companies.

Jobs nearly bankrupted both Apple and NeXT. He certainly did a great job the third time around... Like I said earlier, if Apple hadn't bought NeXT in the 11th hour, the legacy/myth of Jobs would be very different today.

Sometimes being a great leader is just not screwing up what you inherited. I agree, Cook took over a very healthy Apple, but that does not negate his many accomplishments. He has brought several new platforms to market and the AS transition was no small feat. He has shepherded Apple through what will probably be its greatest growth run ever. How many new products and services have launched under Cook? More than under any other Apple CEO.

Cook has turned Apple into one of the most, if not the most, financially successful companies in history. Apple is a cultural icon today. Back in the 80s and 90s, the idea that Apple would one day be the most valuable and respected company in tech was laughable.

I agree that all of the names you mention are great CEOs, but I think Cook can hold his own against any of them. He might not be the techie that each of them are/were, but under his leadership Apple has become more successful than any of their companies, so he must be doing something right.

Finally, this is a general comment and not directed at you or your response (which was most reasonable). I think most of the hate Cook gets boils down to homophobia. Cook runs circles around 99% of corporate CEOs, yet the peanut gallery is full of people telling us he's just a caretaker, he's not an innovator, he's ruining Apple, etc. Really?? It sure doesn't look that way unless one has some kind of bias and homophobia just seems the obvious answer.

 

[JamesHolden]

So because all the other companies are stagnant, predictable and boring therefore Apple is excused. It's normal that people expect more from Apple and not from the others.

No it's not normal. Expecting more is entitled, that's all. Back in reality, anyone can see that Apple is doing a lot of very interesting work. Whether you're interested in it or not, Vision Pro is pretty insane from a technological standpoint. No other company is close to delivering what Apple has accomplished. There's nothing stagnant, predictable or boring about that.

So what do you expect from Apple? What would you like to see them do? Surely if you can pass judgment on how boring, stagnant and predictable they are, you must have LOTS of ideas about what they should be doing instead and who would be doing a better job of leading them.

Let's hear some. Otherwise your words are pretty cheap.

 

[citysnaps]

Finally, this is a general comment and not directed at you or your response (which was most reasonable). I think most of the hate Cook gets boils down to homophobia. Cook runs circles around 99% of corporate CEOs, yet the peanut gallery is full of people telling us he's just a caretaker, he's not an innovator, he's ruining Apple, etc. Really?? It sure doesn't look that way unless one has some kind of bias and homophobia just seems the obvious answer.

Spot on assessment. I remember years ago, before MR management put a stop to it, the really hateful homophobic comments people were slinging here about Cook. I suspect those views still run deep today. Sometimes a few still slip through.

 

[iPhoneFan5349]

Make one of the cores on the M4 iteration x86 compatible, and bring the BootCamp people back. Yes, we were only a few percent, but that few percent of us, just bought a new PC instead of a new Mac, just like I did two months ago.

ETA: either that, or make an official deal with MS to get official copies of Windows running on ARM.

lol that’s actually the reason why I haven’t bought a Mac. I was so desperate to buy the M1 until I realized they didn’t have boot camp. It’s been 3 years and it’s still the same.

 

[DailySlow]

I sense exhaustion of vision. The mad sprint to 3NM is done. We’re all sweating and meandering about. What’s next?

 

[tomtad]

Make no mistake we’re about to see the end of Tim Cook.

Thanks for the memories but it’s time to go

 

[HobeSoundDarryl]

Make one of the cores on the M4 iteration x86 compatible, and bring the BootCamp people back. Yes, we were only a few percent, but that few percent of us, just bought a new PC instead of a new Mac, just like I did two months ago.

ETA: either that, or make an official deal with MS to get official copies of Windows running on ARM.

As a working Mac customer, Windows is a must while macOS is a (preferred) want. I wish I could do everything for clients on Mac but clients generally want Windows compatibility, Windows file exchanges, etc. So in embracing Silicon for the Mac side, I also did something I haven't done in 20+ years: purchased a PC to be "old fashioned bootcamp."

That need led to choosing a monitor that could accommodate BOTH, which was not ASD, so I bought a non-Apple monitor too.

The monitor featured a hub that basically allowed shared keyboard and mouse, so I went with a NOT Apple keyboard to best straddle the fence between Mac and Windows.

The PC could have been a relatively cheap with "good enough" power for all office-type apps but I decided to go ahead and go for "gaming" PC power too. For the price of what Apple charges to upgrade a Mac to 8TB, I got the ENTIRE gaming PC with graphics card and 10TB of SSD + 32GB of RAM... a harsh reminder of customer value when there is more than one seller of RAM & SSD: competition is good for us consumers. No competition in any single seller situation is always incredibly lucrative for the lone supplier.

The point: Bootcamp was a gigantic benefit for some of us, not fully replicated with Paralells running ARM Windows (which is not full Windows). In losing full Windows, the choice becomes doing a little gambling on ARM Windows being "good enough" or doing what I did... which then can lead into accessory purchases like a NOT Apple monitor and NOT Apple keyboard to take better advantage of the NEED side of things vs. the WANT side.

This should not be underestimated. Mac Silicon is great but we're back to some segment NEEDING a PC vs. WANTING a Mac. Intel Macs were have your cake and eat it too. When need vs. want clash and there is only budget for one, need often wins.

What is the answer here? I doubt Apple would restore functional bootcamp in hybrid Silicon. So I believe buying a PC with money that could have gone to Apple is best overall option. And if that leads to choosing monitor and other accessories to better work with both, that's also lost Apple sales.

Is this some kind of doom thing? Not at all- just illustrating that for all of the great benefits of Silicon, tangible things are left behind, including competition influenced pricing for core components. And for those who MUST have full Windows compatibility, bootcamp is a BIG loss when replacing an Intel Mac. If I couldn't afford BOTH, I would have had to choose the PC. And if my next laptop need doesn't offer more competitive value in things like SSD and RAM, I may choose a PC laptop over the wonder that is MB. I already do not want to carry TWO laptops when on the road for clients... and again, one is basically a need.