Apple's Record 4Q 2015 Results: $11.1 Billion Profit on $51.5 Billion Revenue

[iBug2]

They get better, but the base is their search algorithm, capacity and ability to attract business. As fragile as this can look, it's much stronger than the sight of an iPhone upgrade going on for years and feeding the biggest company on earth. Nobody says Apple will go bankrupt, what I say is soon or later, sooner than later, the iPhone concept will be obsolete and they haven't shown other genuine revenue stream.

There aren't that many different search algorithms out there. All engines use a variation of one or the other. Bing isn't worse because it's based on a worse algorithm than Google. Neither is Duckduckgo. They are just used less.

Btw Apple's other revenue streams like the iPad and the Mac are still more profitable than Google even though you think they are not genuine.

 

[nando87]

There would be tons of companies competing to scale and completely take their place (Bing, Duck, Baidu, et.al.) and before you could blink. What Google did to AltaVista (et.al.) could happen to them.

All of them are crap in comparison. Are you saying me that if you tried to use them because you don't like google as a company, like I did, you didn't end up, sooner or later, having to use google because they're incapable?

 

[iBug2]

I didn't say it won't! What I say is that AAPL situation as the biggest company on earth is unsustainable without a genuine new and different revenue stream in maybe 5 years

This is true for Google as well. Do you think desktop search will be as relevant in 5-10 years as it is today? Search in mobile as we have seen is not the same as search on desktops already, so search is changing as well.

Or do you think Google is stupid to waste all their money making tons of acquisitions every year? They are being smart and not depending on search alone. They are trying to find other revenue streams and they seem to be in a hurry much more than Apple is.

 

[iBug2]

All of them are crap in comparison. Are you saying me that if you tried to use them because you don't like google as a company, like I did, you didn't end up, sooner or later, having to use google because they're incapable?

They are worse today because less people use them. Have 3 billion people use Bing for 2 months and see how much the results gets as varied and correct as Google. It might even take less than 2 months.

 

[firewood]

I didn't say it won't! What I say is that AAPL situation as the biggest company on earth is unsustainable without a genuine new and different revenue stream in maybe 5 years

So, is the same true for auto manufacturers? (Toyota, Ford, et.al.) How about energy companies when governments start playing with carbon caps? The world changes.

 

[nando87]

There aren't that many different search algorithms out there. All engines use a variation of one or the other. Bing isn't worse because it's based on a worse algorithm than Google. Neither is Duckduckgo. They are just used less.

Btw Apple's other revenue streams like the iPad and the Mac are still more profitable than Google even though you think they are not genuine.

A lot of people (I would say most) buy iPads and Macs because they have bought iPhones. Apple knows this, that's why they're always talking about ecosystem and make it as stickier as possible. Apple purely selling the iPad and the Mac is easily 1/7 as a company of what it's now.

 

[iBug2]

A lot of people (I would say most) buy iPads and Macs because they have bought iPhones. Apple knows this, that's why they're always talking about ecosystem and make it as stickier as possible. Apple purely selling the iPad and the Mac is easily 1/7 as a company of what it's now.

Doubt it. And 1/7 of Apple would be making around the same money as Google anyway, so that'd still be a huge business. But again, hardly doubt it. I'd say without the iPhone Apple would be around 25% of what they are now.

 

[nando87]

So, is the same true for auto manufacturers? (Toyota, Ford, et.al.) How about energy companies when governments start playing with carbon caps? The world changes.

Cars will always (as far as one can imagine) be necessary, Toyota's or Tesla's, it doesn't matter. There is no consumer electronics product that has lasted 130 years and going on. They don't have to invent new things as long as they improve their product properly. Do you think Apple can sell the same product category for 130 years upgrading it from time to time like Daimler has done? No. And once the iPhone as a concept is obsolete, which will be quite soon in terms of comparison, then what?

 

[nando87]

Doubt it. And 1/7 of Apple would be making around the same money as Google anyway, so that'd still be a huge business. But again, hardly doubt it. I'd say without the iPhone Apple would be around 25% of what they are now.

Hey, I don't give a beee about Google, what matters is that Apple has this problem.

 

[iBug2]

Cars will always (as far as one can imagine) be necessary, Toyota's or Tesla's, it doesn't matter. There is no consumer electronics product that has last 130 years and going on. They don't have to invent new things as long as they improve their product properly. Do you think Apple can sell the same product category for 130 years upgrading it from time to time like Daimler has done? No. And once the iPhone as a concept is obsolete, which will be quite soon in terms of comparison, then what?

I'd answer this question by looking at what happened to Apple after their last big thing (iPod) became obsolete.

Nothing.

 

[nando87]

I'd answer this question by looking at what happened to Apple after their last big thing (iPod) became obsolete.

Nothing.

Well, because they released the iPhone. Once they release a game changer like the iPhone was, then we'll be able to relax for another several years. But the thing is, when will that be? Wasn't that supposed to be the Apple Watch? Maybe it will be the car, but until then...

 

[iBug2]

Well, because they released the iPhone. Once they release a game changer like the iPhone was, then we'll be able to relax for another several years. But the thing is, when will that be? Wasn't that supposed to be the Apple Watch? Maybe it will be the car, but until then...

I doubt that the watch was ever intended to be the next iPhone. Phones will be the center of our tech life for at least one more decade if not more.

 

[cocky jeremy]

and we get 5400RPM hard drive on iMac.

If only you had the option to change that, huh?

 

[firewood]

Don't live in USA.

Interesting, the number of non-U.S. banks (and entire countries) that were affected by the U.S. 2008 financial problem. Where do you (your parents, etc.) put your savings?

 

[nando87]

I doubt that the watch was ever intended to be the next iPhone. Phones will be the center of our tech life for at least one more decade if not more.

Releasing a new different product with a 40% margin, about 700 USD of average selling price, and sell 50M every quarter seems quite complicated, that's why AAPL always has a low PER

 

[iBug2]

Interesting, the number of non-U.S. banks (and entire countries) that were affected by the U.S. 2008 financial problem. Where do you (your parents, etc.) put your savings?

I think our savings were just in savings accounts. We don't buy stocks.

 

[Rogifan]

Btw, for everyone fretting over Apple being all about iPhone, iPhone as a proportion of revenue has shrunk for three successive quarters, and is substantially down from last year.

 

[iBug2]

Releasing a new different product with a 40% margin, about 700 USD of average selling price, and sell 50M every quarter seems quite complicated, that's why AAPL always has a low PER

It's not easy, obviously, since only Apple can do it.

But I don't have a clue about the reasons behind AAPL being high or low.

 

[iBug2]

Btw, for everyone fretting over Apple being all about iPhone, iPhone as a proportion of revenue has shrunk for three successive quarters, and is substantially down from last year.

Noticed this as well.

 

[nando87]

Btw, for everyone fretting over Apple being all about iPhone, iPhone as a proportion of revenue has shrunk for three successive quarters, and is substantially down from last year.

I said it before but I'll say it again. Do you think they'll sell the same number of accessories if they stop selling iPhones? The same number of services? The same number of Macs iPads and Apple TVs? Really? Don't be naive.

 

[VARTV]

I suspect Apple Shares will drop, as the 'Analysts' will say it did not meet their forecasts (or more exactly, did not meet the numbers they pulled out of a hat)

Man... hope NOT... We have 660.8 shares...

 

[iBug2]

I said it before but I'll say it again. Do you think they'll sell the same number of accessories if they stop selling iPhones? The same number of services? The same number of Macs iPads and Apple TVs? Really? Don't be naive.

They won't. But they won't sell much less either. At the very best Mac user base grew 10% in the last 7 years.

 

[iBug2]

Man... hope NOT... We have 660.8 shares...

Do what Apple did. They bought 14 billion worth of their shares in Q4 taking advantage of the dip.

 

[citysnaps]

Well, because they released the iPhone. Once they release a game changer like the iPhone was, then we'll be able to relax for another several years. But the thing is, when will that be? Wasn't that supposed to be the Apple Watch? Maybe it will be the car, but until then...

Nope, not even close. Nobody, at least within Apple or people who understand what the watch is really about, would even think that. That's like saying the Apple Watch needs a killer app, when in fact that's simply not how it derives it's utility and appeal.

 

[firewood]

There is no consumer electronics product that has lasted 130 years and going on.

Things do have to be updated a bit. But Westinghouse still makes lighting products, and AT&T (Bell subsidiaries) still offers (or at least brands) POTs landline phones. Even spinning record players are making a come-back.