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What to Expect From Apple's Earnings — First Revenue Decline Since 2019?

Here you go

www.cnbc.com

Apple sales drop 5% in largest quarterly revenue decline since 2016

Apple's overall sales for the holiday quarter were about 5% lower than last year's, the first year-over-year sales decline since 2019.
www.cnbc.com www.cnbc.com

Apple missed expectations for revenue, profit, and sales for many of its lines of business on Thursday, sending the stock lower in extended trading. Apple’s overall sales for the holiday quarter were about 5% lower than last year’s, the first year-over-year sales decline since 2019.

Apple CEO Tim Cook said three factors impacted the results: A strong dollar, production issues in China affecting the iPhone 14 Pro and iPhone 14 Pro Max, and the overall macroeconomic environment.

“On the third factor, I would say was just the challenging macroeconomic environment, and you’re hearing that from, I would think, everybody,” Cook told CNBC’s Steve Kovach.

Here’s how Apple did versus Refinitiv consensus expectations:

  • EPS: $1.88 vs. $1.94 estimated, down 10.9% year-over-year
  • Revenue: $117.15 billion vs. $121.10 billion estimated, down 5.49% year-over-year
  • iPhone revenue: $65.78 billion vs. $68.29 billion estimated, down 8.17% year-over-year
  • Mac revenue: $7.74 billion vs. $9.63 billion estimated, down 28.66% year-over-year
  • iPad revenue: $9.40 billion vs. $7.76 billion estimated, up 29.66% year-over-year
  • Other Products revenue: $13.48 billion vs. $15.23 billion estimated, down 8.3% year-over-year
  • Services revenue: $20.77 billion vs. $20.67 billion estimated, up 6.4% year-over-year
  • Gross margin: 42.96% vs. 42.95% estimated
Apple did not provide guidance for the current quarter ending in March. It hasn’t provided guidance since 2020, at first citing uncertainty caused by the pandemic. Analysts expected Apple to guide to about $98 billion in sales in the company’s fiscal second quarter.
 
macdisciple said:
With the widely held opinions earnings will be down, why is AAPL trading higher today - before the earnings report at 1:30 Pacific time?
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Lower earnings, or even negative earnings, are not necessarily a bad thing for a stock. It more depends on where the earnings come in relative to street estimates/expectations, as well as the future outlook.
 
webkit said:
Apple doesn't typically adjust prices every month or quarter (up or down) to reflect exchange rate changes. However, sometimes when prices are set, they are actually LOWER in the UK then they are in the U.S.

For example, when the iPhone 14 launched in mid-September, the exchange rate was around 1 GBP = $1.15. The pre-VAT price of a 128GB iPhone 14 in the UK is £707 which put the price in USD at around $813. The pre-sales tax price of the same phone in the U.S. is $829. The price in the UK was actually LOWER than the price in the U.S. That was hardly "favoring the home market" or "passing on the costs to those outside the U.S."
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Can't corroborate that claim but what of the other products? If that is true one phone being £5 cheaper is laughable.

Also the iPhone 14 had a £70 price increase alongside a £160 price increase on the Pro models.

In terms of pricing I don't look at products other than the flagships as those are the ones most people buy and where price is usually most ridiculous. So MacBook Pro, iPhone Pro, iPad Pro etc.
 
People buy Apple hardware because its lasts longer -> because its lasts longer people do not rebuy soon enough ->Apple plan obsolete their electronics with software updates.

solution:- boycott if you do not like, or bend over and pay their price. The choice is yours.
 
MacBH928 said:
People buy Apple hardware because its lasts longer -> because its lasts longer people do not rebuy soon enough ->Apple plan obsolete their electronics with software updates.

solution:- boycott if you do not like, or bend over and pay their price. The choice is yours.
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Apple hardware lasts longer precisely because they offer such long software support.
 
MacBH928 said:
whats your definition of long software support? 2 years?
Windows 11 minimum requirements are 1Ghz CPU and 4GB RAM
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5+ years.

You absolutely wouldn’t want to run windows 11 on a 1ghz CPU with 4GB of RAM, it would be a terrible and frustrating experience.
 
mrochester said:
5+ years.

You absolutely wouldn’t want to run windows 11 on a 1ghz CPU with 4GB of RAM, it would be a terrible and frustrating experience.
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I wouldn't call 5 years long support, unless you expect people to upgrade their whole household computers every 3-4 years. Macbooks airs are like $1300 starting , so a family of 4 will have say 3 computers thats a bill of $3900 every 3 years not to mention iphones or ipads around.

Apple would love that purchase cycle though.
 
MacBH928 said:
I wouldn't call 5 years long support, unless you expect people to upgrade their whole household computers every 3-4 years. Macbooks airs are like $1300 starting , so a family of 4 will have say 3 computers thats a bill of $3900 every 3 years not to mention iphones or ipads around.

Apple would love that purchase cycle though.
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Good job your Mac will last you a lot longer than those 5 years then 👍
 
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