iPads ain't phones. The market is by now saturated with them, and older models are still going strong.
And the largest iPhone naturally eats into iPad sales. Pretty sure Apple is just fine with that.
But even in 2016, there are still many who don't understand Apple. Which is fine, because this crowd is most amusing come quarterly report time.
No, sorry I don't think for one minute that Apple is "just fine" with iPad sales continuing to decline every quarter. Especially in a quarter where a brand new model was released. This was a 25% YOY decline. Who would be happy with that?!?
AppleInsider said: "Our team delivered Apple's biggest quarter ever, thanks to the world's
most innovative products and all-time record sales of iPhone, Apple
Watch and Apple TV," said Tim Cook, Apple's CEO. "The growth of our
Services business accelerated during the quarter to produce record
results, and our installed base recently crossed a major milestone of
one billion active devices."
Of course the above comment about the AppleWatch could still mean a
small number of sales since it hasn't been out long at all. But the fact
Cook mentioned it at all is a good sign of sales.
Well, the skeptics and naysayers of Wall Street were wrong once again! Why don't some of these critics ever get fired over their consistently innacurate remarks and analysis? Apple is doing well, China's economy WILL recover, we are a planet of 7 billion souls and growing upward, all people will desire the new technology that this modern world brings forth.
For the current quarter ending March, Apple said it sees revenue of $50 billion to $53 billion, well below estimated revenue of $55.47 billion from analysts polled by Thomson Reuters. At the midpoint of $51.5 billion, that would mark an 11% decline from the same quarter a year earlier, the worst such decline at Apple since the summer of 2001.
What is the USD currency exchange factor compared to last year (YoY for this quarter)? Based on how it seems most currencies around the world have fallen sharply compared to USD, I would say it was substantial. Could be close to 10%.
That impacts everything - lower units shipped due to higher prices, lower revenue & earnings because of those lower shipments and also because exchange rates fall more than prices at times, and thus earning less in USD on those units.
The headline would be a bit better if foreign exchange headwinds didn't impact that ~10% - like revenue might have been over $80B USD.
Always important to look at more than the headline numbers and media blathering
No but it's not the end of the world either. The problem there is product differentiation and Apple has taken recent, public steps to address that issue with iPads specifically (the iPad Pro essentially).
If you are worried about your stock or thinking of selling it as a result, the real warning flag centres around the next iPad release. If the next version of the iPad Air and iPad mini doesn't incorporate the new features that differentiate those products from the iPhone line ... that is the time to be worried about the iPad, and Apple's future.
Personally, I think Apple's (seeming) desire to make the iPad a sort of Jack of all trades and not make any models specifically for actual work, is really Apple's achilles heel. They should be making cheaper, plastic iPads for all the "consumption" type people out there, and "pro" metal versions with greatly differentiated (hardware) features for those people who want to use them to replace their laptops. The concept that they all have to look the same, act the same, and have the same features is faulty IMO.
Great great quarter. Apple blows the doors off once again.
Correct! Yet shall Wall Street pay its respect like it does to Google and Amazon, through a vote-of-confidence for a higher stock price? I suspect not!
Really the only thing that can stop this drop is the buyback.
I still conclude that Tim Cook has done a piss poor job of controlling the narrative. Slowing revenue growth in certain quarters is a fact of life when you are the size of Apple. Yet companies like Coke, McDonalds, and AT&T do not have PE's of 10 like Apple.
I think Cook needs to be fired.
We need a CEO to lead the next chapter of Apple from being a pure hardware player to a software/services giant.
What happened to Tim Cook needs to refute these lies!!! Now you're changing your narrative because the facts were more in line with the rumors.
Really the only thing that can stop this drop is the buyback.
I still conclude that Tim Cook has done a piss poor job of controlling the narrative. Slowing revenue growth in certain quarters is a fact of life when you are the size of Apple. Yet companies like Coke, McDonalds, and AT&T do not have PE's of 10 like Apple.
I think Cook needs to be fired.
We need a CEO to lead the next chapter of Apple from being a pure hardware player to a software/services giant.
What is the USD currency exchange factor compared to last year (YoY for this quarter)? Based on how it seems most currencies around the world have fallen sharply compared to USD, I would say it was substantial. Could be close to 10%.
That impacts everything - lower units shipped due to higher prices, lower revenue & earnings because of those lower shipments and also because exchange rates fall more than prices at times, and thus earning less in USD on those units.
The headline would be a bit better if foreign exchange headwinds didn't impact that ~10% - like revenue might have been over $80B USD.
Always important to look at more than the headline numbers and media blathering
iPhone sale in US is down 4%, which have no current impact obviously
AppleInsider said: "Our team delivered Apple's biggest quarter ever, thanks to the world's
most innovative products and all-time record sales of iPhone, Apple
Watch and Apple TV," said Tim Cook, Apple's CEO. "The growth of our
Services business accelerated during the quarter to produce record
results, and our installed base recently crossed a major milestone of
one billion active devices."
Of course the above comment about the AppleWatch could still mean a
small number of sales since it hasn't been out long at all. But the fact
Cook mentioned it at all is a good sign of sales.
He mentioned the watch but not iPad. Which leads me to believe iPad Pro sales were soft.
Well as Mr. Cook has noted in the past, Apple research indicates that the repacement cycle for iPads is far less frequent than that of a iPhone device. People will upgrade to new iPads once more compellling new features are added to a new 'must-have' iPad device.
We need a CEO to lead the next chapter of Apple from being a pure hardware player to a software/services giant.
Perhaps you overlooked this part of the story, ""The growth of our Services business accelerated during the quarter to produce record results... (Cook said).
AppleInsider said: "Our team delivered Apple's biggest quarter ever, thanks to the world's
most innovative products and all-time record sales of iPhone, Apple
Watch and Apple TV," said Tim Cook, Apple's CEO. "The growth of our
Services business accelerated during the quarter to produce record
results, and our installed base recently crossed a major milestone of
one billion active devices."
Of course the above comment about the AppleWatch could still mean a
small number of sales since it hasn't been out long at all. But the fact
Cook mentioned it at all is a good sign of sales.
Asymco reckons 5.5M last Q. And 12.4M last year. The other category (iPod, beats,the TV and the watch) grew 47%.
And I bet there's huge growth potential in the watch in future when newer versions are much improved. I might even get V3.
Comments
"Our team delivered Apple's biggest quarter ever, thanks to the world's most innovative products and all-time record sales of iPhone, Apple Watch and Apple TV," said Tim Cook, Apple's CEO. "The growth of our Services business accelerated during the quarter to produce record results, and our installed base recently crossed a major milestone of one billion active devices."
Of course the above comment about the AppleWatch could still mean a small number of sales since it hasn't been out long at all. But the fact Cook mentioned it at all is a good sign of sales.
That impacts everything - lower units shipped due to higher prices, lower revenue & earnings because of those lower shipments and also because exchange rates fall more than prices at times, and thus earning less in USD on those units.
The headline would be a bit better if foreign exchange headwinds didn't impact that ~10% - like revenue might have been over $80B USD.
Always important to look at more than the headline numbers and media blathering
If you are worried about your stock or thinking of selling it as a result, the real warning flag centres around the next iPad release. If the next version of the iPad Air and iPad mini doesn't incorporate the new features that differentiate those products from the iPhone line ... that is the time to be worried about the iPad, and Apple's future.
Personally, I think Apple's (seeming) desire to make the iPad a sort of Jack of all trades and not make any models specifically for actual work, is really Apple's achilles heel. They should be making cheaper, plastic iPads for all the "consumption" type people out there, and "pro" metal versions with greatly differentiated (hardware) features for those people who want to use them to replace their laptops. The concept that they all have to look the same, act the same, and have the same features is faulty IMO.
Perhaps you overlooked this part of the story, ""The growth of our Services business accelerated during the quarter to produce record results... (Cook said).
And I bet there's huge growth potential in the watch in future when newer versions are much improved. I might even get V3.