Luca just said that well over 100% of increase in "other" revenue was due to Apple Watch.
The problem with Apple being the iPhone company is if they don't beat Wall Stree's estimates (even if they're a joke) the stock tanks.
Below Apple's guidance? Did Apple guide to 50-53M iPhones this quarter? Where did analysts get that guidance from? And since when is a 35% increase in sales a disappointment. I'm sure most Fortune 500 companies would love a growth rate like that.
Apple said from day one they wouldn't be reporting Watch figures. And let's not forget it didn't launch until the end of April and was severely supply constrained. iPhone sales were up 35% YOY, revenues in general were up 33% and EPS was up 45%. None of that warrents an 8% drop in the stock.
I was worried when the stock ran up over the past few days. I knew it meant expectations were sky high even if they probably weren't realistic. And Tim Cook said he expects Watch to be a big hit for the holidays which the analyst crowd is spinning as it's not selling right now. Listening to CNBC makes me want to vomit though. Revenues were up 33% in a seasonally average quarter and somehow that's worthy of a 7% drop in the stock?
I have a hard time believing the VMAs brought down Apple's servers. Mostly because I don't think that many people are interested in the VMAs.Anyway I've said it before and will say it again, I think Cook needs to poach someone from Microsoft, Google or Amazon to be SVP of Cloud at Apple and take that off Eddy Cue's plate. Let him manage TV, ,Pay Apple music, iTunes and give the backend stuff to someone with more experience in that area.
It's amazing how certain publications write something and the rest of the media runs with it. I've seen so many Watch D&G stories referencing this NY Slimes story as though Facebook is the deciding factor on whether Watch is a success or not. Honestly I'd rather have developers take the time to figure out what's right for the watch than just make an app for it just for the sake of it.
But where does Apple grow in the consumer gadget industry? iPhone is close to 70% of Apple's revenue. I'm not sure that's a good thing (outside of massive iPhone profits funding the R&D for the next big things). Maybe the Watch or TV will become a significant revenue drivers but I see those more as accessories not major drivers of growth when iPhone inevitably slows. So where else does Apple go? Virtual reality or Microsoft Hololens AR type stuff? I'm sure Apple is...