I go in and ask for the old cheap versions and save a few hundredBut you still upgraded anyway... That's the magic of Apple.
People buy iPhones not because they need a phone, it's because they want the Apple brand. Thus bad economic situations won't affect luxury companies like Apple that badly. This report might "look bad" for Apple, but when we look at the rest of Apple's competitors, Apple is still doing extremely well considering what's going on around the world.
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What We Learned About Apple During Today's First Quarter Earnings Call
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You’re talking about unit share but Apple focuses on profit share. In many markets companies like Xiaomi and Oppo dominate unit share but make negligible margin. Apple dominates in smartphone profits and margins. That’s what the shareholders want.
Apple continuing command of global smartphone profits, and the lead is growing
Continuing a decade-long string of domination, Apple is again on top of the heap for smartphone profits, with the iPhone collecting 80% of all the profit in the industry.
appleinsider.com
Profit is zero: the head of Nothing says the company earns nothing from Phone smartphone sales (1) | gagadget.com
The cost of the smartphone is $360, and it sells for $450 in stores. Of the remaining $90, the manufacturer has to cover logistics and share part of it with partner channels.
gagadget.com
The iP14 pro ships at 1299€ for the 128GB model and 1429€ for the 256GB model. The bigger Max model starts at 1449€. It still ships with an ultra outdated Lightning port and nearly no improvements compared to its predecessor.
This simply isn‘t enough bang for the buck. The iP14 is even worse, same CPU, basically the iP13 with only the name changed. And it starts at 999€. 999€ should be the entry level for the pro and 799 for the normal phone. Since after all, it is nothing more than a smartphone shipping with standard technology.
This simply isn‘t enough bang for the buck. The iP14 is even worse, same CPU, basically the iP13 with only the name changed. And it starts at 999€. 999€ should be the entry level for the pro and 799 for the normal phone. Since after all, it is nothing more than a smartphone shipping with standard technology.
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Hopefully they come thru with the spring color refreshes for the iPhones and for the cases.
Wait, Tim thinks ECG and crash detection is the AI everyone is excited about?
Are Apple the best in class in any of those fields though? Jobs used to claim they wouldn't enter markets they couldn't make a difference and I don't think their effort with AI has done anything to push the industry forward as yet. Their photography results are usually pipped by Google's, and their health features are buggy. Meanwhile the core of Siri, it's ability to respond is a ghetto version of a 10 year old Google Assistant. It's an embarrassment and a PITA as an Apple user.
Despise seems like an overly emotional and unmerited reaction to a man who is doing exactly what he was hired to do. He is literally just doing his job best as he can with no malice intended.
Tim (and many silicon valley people) wants us to think if-then-else conditional statements as "AI."
But they are willing to work for far less in a non-unionized environment than entitled American workers. It won’t take long for those American workers to decry the abhorrent conditions in which they will have to struggle for their daily existence.
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Most US modern farming are done by machines, not manual labors like developing countries. So that is not relevant.
Even in China, iPhone factory workers are not "farmers." They are educated citizens who are technically trained. You cannot just convert "farmers" into workers that are required to follow high tech procedures to the t in a highly sophisticated industrial environment overnight.
Improve the products, stop gimping the base models so badly, and stop the international price gouging. 100% price increase in 10 years isn't a good look.
Edit: And resolve bugs and software flaws and disappointments, that remain for years and years, unresolved. *coughHomePod*coughAppleMusic*
Edit: And resolve bugs and software flaws and disappointments, that remain for years and years, unresolved. *coughHomePod*coughAppleMusic*
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I agree that that's what the shareholders want. Doesn't mean I like it as a consumer, thus my point stands.You’re talking about unit share but Apple focuses on profit share. In many markets companies like Xiaomi and Oppo dominate unit share but make negligible margin. Apple dominates in smartphone profits and margins. That’s what the shareholders want.
Apple continuing command of global smartphone profits, and the lead is growing
Continuing a decade-long string of domination, Apple is again on top of the heap for smartphone profits, with the iPhone collecting 80% of all the profit in the industry.appleinsider.com
Profit is zero: the head of Nothing says the company earns nothing from Phone smartphone sales (1) | gagadget.com
The cost of the smartphone is $360, and it sells for $450 in stores. Of the remaining $90, the manufacturer has to cover logistics and share part of it with partner channels.gagadget.com
The iPhone saved Apple. No question. Regardless of all services, wearables and Macs it still dominates sales. That ace in the hole will one day falter.
Apple today held its first earnings call of 2023, which covers the fourth calendar quarter of 2022. During the call, Apple CEO Tim Cook and Apple CFO Luca Maestri shared several interesting tidbits about recent product sales, services results, and more, and we've highlighted the most interesting parts of the call below.
AI
On the topic of artificial intelligence, particularly in services, Cook said that in the future, it will impact everything that the company does.
Services Revenue
While Apple's quarterly revenue was down five percent year over year, Apple's Services business hit an all-time revenue record of $20.8 billion. Services includes Apple Music, Apple TV+, Apple Arcade, iCloud+, AppleCare+, and more.
Apple now has more than 935 million paid subscriptions, up 150 million during the last 12 months. Apple also set revenue records for iCloud, payments, and Apple Music.
iPhone Sales
Apple in November issued a rare warning about iPhone 14 Pro shipment constraints, letting the market know that shipments would be lower than anticipated due to COVID-19 restrictions. The iPhone 14 Pro models were backordered throughout the holiday period, and as a result, iPhone sales were down year over year.
iPhone revenue was at $65.8 billion, down from $71.6 billion in the year-ago quarter. Production has since improved, and iPhone shipping times are shorter.
There were questions around whether customers opted for more affordable iPhones or would upgrade in the March quarter due to the November/December shortages, and Cook said that it is difficult to predict customer behavior. "It's hard to estimate recapture because you have to know what would have happened, how many people would have bought down, and it takes awhile to get those reports in during the quarter," Cook said. He added that Apple has made its "best guess" at recapture in the insight that it gave for the March quarter.
Cook also said that iPhone revenue would have grown in Q1 2023 had it not been for the supply shortage.
Wearables Revenue
Wearables revenue came in at $13.8 billion, down eight percent year over year. Despite the drop, Cook said that Apple continues to be "excited about the long term opportunity" in the wearables category.
The wearables category includes the AirPods and the Apple Watch at this time, but in the future, it will also encompass the mixed reality headset that Apple is expected to launch this year.
Though revenue was down, Apple CFO Luca Maestri said that the Apple Watch install base saw a new all-time record, largely because there were a record number of new users who purchased an Apple Watch during the quarter.
Macs and iPads
iPad revenue was up 30 percent thanks to the launch of new M2 iPad models, but Mac revenue saw a notable drop because there were no new Macs released in the final months of 2022.
Mac revenue was $7.7 billion, down from $10.9 billion in the year-ago quarter. iPad revenue was $9.4 billion, up from $7.2 billion in the year-ago quarter. Cook said that overall, Apple has a "low share and a competitive advantage with Apple silicon," which means the company is "well positioned within the market" in the long term.
March Quarter
Apple did not provide guidance for the upcoming March quarter, but did offer some directional insights. Apple CFO Luca Maesteri said that year over year, revenue is expected to be similar to the December quarter. Services and iPhone revenue are expected to be up, while Mac and iPad revenue will decline by double digits year over year.
Maestri explained that revenue will drop in those categories because of macro headwinds and challenging comparisons to the year-ago quarter due to product release timelines.
U.S. Manufacturing
Cook was asked whether manufacturing components in the United States (such as at TSMC's upcoming Arizona plants) would be more expensive than where components are manufactured now, and he said he wouldn't necessarily expect manufacturing to be pricier, as the person asking the question implied.
"We don't know what the impact will be at this point, but we're all in in terms of being the largest customer for TSMC in Arizona," said Cook. "We're very proud to take part in that."
Higher Average Selling Price
Cook was asked whether the higher average selling price that Apple is counting on for next quarter is "sustainable" in a tough macro environment, and Cook said that people are willing to "stretch" to get the best they can afford.
Read More
A more complete picture of Apple's earnings on a per-category basis can be found in our official results article.
Article Link: What We Learned About Apple During Today's First Quarter Earnings Call
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The Macintosh saved Apple, then it was the iMac that saved Apple, then it was the iPod that saved Apple, then it was the iPhone that saved Apple.
Cheers Tim. Out of touch with reality as usual, either that or just deliberately turning a blind eye to it. Apple prices here in the UK and many other parts of the world are hilarious. Apple's never been an everyman company but their more recent delusions of grandeur, wanting to be perceived as a ultra-luxury brand, are just pathetic.
Leopard was technically an LTS release. It continued to receive updates until about 2011. That’s 5 years after it launched. Considering the Early 2020 MacBook Pro was an Intel model launched in the same year as the M1 MacBook Air and Pro, it would be strange drop it so early. It’s barely 4 years.
Apple still makes fine products, but the value isn’t there. Exorbitant prices for a MacBook with only 256 gig? Not enough useful ports, so even more $$$ to buy a hub. I used to buy every new model iPhone, iPad, Apple Watch, etc., as soon as it came out. Now I don’t replace it until it stops working.
Don’t worry it will be way lower the next quarter and every quarter after until the Great Depression ends lol
I see three issues here
1. Apple products for most are so powerful that you don’t feel the need to upgrade as much as we use to. The new features being not so essentials in our daily life.
2. In a market with no competition, Jobs was right to stretch the price as the desirability of the products were strong but in todays market, Apple is not the only one producing great products. And competition is very competitive. He is making a bad assumption.
3. The last gen of iPhones are disappointing and confusing for some and need to be acknowledged
But to be fair the results are still amazing and do we have to expect to be up every year ! …
1. Apple products for most are so powerful that you don’t feel the need to upgrade as much as we use to. The new features being not so essentials in our daily life.
2. In a market with no competition, Jobs was right to stretch the price as the desirability of the products were strong but in todays market, Apple is not the only one producing great products. And competition is very competitive. He is making a bad assumption.
3. The last gen of iPhones are disappointing and confusing for some and need to be acknowledged
But to be fair the results are still amazing and do we have to expect to be up every year ! …
Interesting read:
www.cnbc.com
Apple telegraphed that things are getting better after a tough quarter — here’s how to interpret its remarks
Apple telegraphed that things are getting better after a tough quarter — here's how to interpret its remarks
Here's how to interpret Apple CFO Luca Maestri's directional insights from its Q1 earnings call.
People ought to stop buying then. If people want to spend, the company isn’t gonna refuse their money.
Apple is struggling to make the case that users should upgrade given what is perceived to be incremental improvements on previous models.
I see no need to buy a new iphone or imac every few years.
I see no need to buy a new iphone or imac every few years.
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