Mac sales on the typically HIGHER END @ 5.4 million units.
Take note, folks.
Not only that, Cook says that the Mac revenues set a new record. And clearly they would have sold even more if they had been able to keep up with demand for the new MBP, which still had an order backlog of a few weeks at the end of the quarter.
Oh and those new MBPs are such failed products aren’t they.
Yeah, I like being called an Apple sycophant and apologist — on days like today.
The Mac results were fine but given the pent up demand for a new MBP could have been better.
Also there were more weeks in this Q right?
The real good news here is services. I'm not sure what exactly is causing the app store to continue to grow given that the hardware sales have plateaued but the projections are wild. And could mean, if true, a whole new model for Apple.
The Mac results were fine but given the pent up demand for a new MBP could have been better.
Also there were more weeks in this Q right?
The real good news here is services. I'm not sure what exactly is causing the app store to continue to grow given that the hardware sales have plateaued but the projections are wild. And could mean, if true, a whole new model for Apple.
Recurring payments from subscription-based services. All incremental sales.
The Mac results were fine but given the pent up demand for a new MBP could have been better.
Also there were more weeks in this Q right?
The real good news here is services. I'm not sure what exactly is causing the app store to continue to grow given that the hardware sales have plateaued but the projections are wild. And could mean, if true, a whole new model for Apple.
For starters, the install base continues to grow even with flatter device sales. Not all of those device sales represent people upgrading from one device to another and then effectively retiring the old one. The old devices often go to someone new to iOS, and a lot of Apple's new device sales are to people new to the ecosystem. You also have some fairly new services which are likely growing at a healthy rate - e.g., Apple Music and Apple Pay.
The Mac results were fine but given the pent up demand for a new MBP could have been better.
Also there were more weeks in this Q right?
The real good news here is services. I'm not sure what exactly is causing the app store to continue to grow given that the hardware sales have plateaued but the projections are wild. And could mean, if true, a whole new model for Apple.
The iPhone new user base continues to increase. Neil over at Above Avalon has modeled that Apple has increased its iPhone installed base by about 100M in each of the last two years. Yet hardware sales have stayed pretty flat on average. Almost no mainstream analyst does any actual "analysis" any more, so this things fly under the radar compared with the echo chamber of Apple's supposed failings.
The primary means by which Apple will increase services is to increase the installed base, which means Apple's focus will continue to be on producing great products. So no, this isn't a change of direction for Apple, but does provide a means to grow revenue, and increase the value of the ecosystem.
The Mac results were fine but given the pent up demand for a new MBP could have been better.
Also there were more weeks in this Q right?
The real good news here is services. I'm not sure what exactly is causing the app store to continue to grow given that the hardware sales have plateaued but the projections are wild. And could mean, if true, a whole new model for Apple.
For starters, the install base continues to grow even with flatter device sales. Not all of those device sales represent people upgrading from one device to another and then effectively retiring the old one. The old devices often go to someone new to iOS, and a lot of Apple's new device sales are to people new to the ecosystem. You also have some fairly new services which are likely growing at a healthy rate - e.g., Apple Music and Apple Pay.
Sure. But your second paragraph is missing. To end with...
Doubling services revenue won't be on top of a doubling of the install base ( or a tripling since a few short years ago).
The Mac results were fine but given the pent up demand for a new MBP could have been better.
Also there were more weeks in this Q right?
The real good news here is services. I'm not sure what exactly is causing the app store to continue to grow given that the hardware sales have plateaued but the projections are wild. And could mean, if true, a whole new model for Apple.
The iPhone new user base continues to increase. Neil over at Above Avalon has modeled that Apple has increased its iPhone installed base by about 100M in each of the last two years. Yet hardware sales have stayed pretty flat on average. Almost no mainstream analyst does any actual "analysis" any more, so this things fly under the radar compared with the echo chamber of Apple's supposed failings.
The primary means by which Apple will increase services is to increase the installed base, which means Apple's focus will continue to be on producing great products. So no, this isn't a change of direction for Apple, but does provide a means to grow revenue, and increase the value of the ecosystem.
Have your a link for that. 100M is a lot, it means only slightly less than half the ios devices are retired any year ( and you are right the installed base is not taken into account when comparing apple vs android, most older android devices are thrown away).
That doesn't explain a doubling in service growth over the next few years though.
Why will this change their strategy? While Apple will never be a service company if they can estimate post sales revenues of say $100 over the 5 year lifetime of a device then selling cheaper (not cheap but cheaper) could be an option. That said much of the service revenue probably comes from higher end devices
The Mac results were fine but given the pent up demand for a new MBP could have been better.
Also there were more weeks in this Q right?
The real good news here is services. I'm not sure what exactly is causing the app store to continue to grow given that the hardware sales have plateaued but the projections are wild. And could mean, if true, a whole new model for Apple.
For starters, the install base continues to grow even with flatter device sales. Not all of those device sales represent people upgrading from one device to another and then effectively retiring the old one. The old devices often go to someone new to iOS, and a lot of Apple's new device sales are to people new to the ecosystem. You also have some fairly new services which are likely growing at a healthy rate - e.g., Apple Music and Apple Pay.
Sure. But your second paragraph is missing. To end with...
Doubling services revenue won't be on top of a doubling of the install base ( or a tripling since a few short years ago).
Do you mean that they aren't aiming to double services revenue per user, that they're just aiming to double services revenue in absolute terms? If so, then I'd agree. If not, then maybe you can explain what you do mean?
Anyway... Mr. Maestri indicated that App Store revenue grew 43% on a 13 week versus 13 week basis, even more based on the additional week in this past quarter. He said that's because the number of (paying) accounts grew by double (percentage) digits and that the average revenue per (paying) account grew by double digits.
How about you divide each quarter by the number of weeks and then tell us the comparison.
Yes, wasn't 2016Q1 a 13 week quarter while this is a 14 week quarter of sales.
Based on that this is quarter is quit disappointing. Sales should have grown by 7.7% (14/13).
Overall revenue should have grown from 75,872 to 81,708.3. They did 3.357 less.
In fact Services is the only area that exceeded expectations. Mac sales were ok. iPhone sales were down . and of course the iPad was down considerably. To say that Apple beat wall streets is to say that wall street had really priced in bad results.
Maybe its would have been better if they had released the AirPods earlier.
If Alphabet or Amazon had numbers like Apple had, their stock prices would have risen about 10%. Seriously, Wall Street is definitely biased. I'm not complaining because I was definitely worried Apple's stock price would tank on earnings. A three percent rise is practically a godsend. I'm just looking forward to another dividend hike even if the stock doesn't perform as well as other major tech companies do. Now if Apple could just get some cloud business which Wall Street worships so much. I'll never understand how all companies in the cloud business can do well when there will be so much competition. It's seems everything Apple doesn't get into is considered an unlimited growth business but when Apple gets into it they'll claim the cloud business is already too saturated.
Don't worry. Tomorrow the gloom and doom crowd will be back in force claiming this was the last quarter Apple will ever beat Wall Street's expectations. The doomsters will proclaim from today forward everything will be downhill for Apple and the coming iPhone X will be a sales disaster because it lacks innovation and is too expensive. They know this without ever seeing the new iPhone. They just get a bad gut feeling. Those arrogant SOBs really make me sick.
Impressive quarter. The only downside is that iPhone sales make up an even larger percentage of Apple's revenue. This poses significant downside risks, should sales flatten or not meet/exceed expectations in the future. So while this is good news for Apple shareholders, they need to double their efforts to increase Mac, iPad, and Watch sales while developing products in new categories.
iPhone sales don't seem that impressive when you consider the quarter had 14 weeks of sale, not the normal 13.
Of course its far better than the NOTE 7 (HAHA). Google Pixel and Google Home must be having MS Surface size losses otherwise they probably would have been crowing about how good it was. I think Google is going to discover how much more difficult it is to sell a retail product. Amazon has millions of customers used to buying things from them. And Apple is so far far ahead because they have their own stores.
Mac sales on the typically HIGHER END @ 5.4 million units.
Take note, folks.
Not only that, Cook says that the Mac revenues set a new record.
But they didn't bust the record by enough so obviously the new MBP was an epic failure. Or at least thats what some folks will claim after saying for weeks that the mac revenues will be soft and just wait for the quarterly report. *cough*Avon*cough*.
Amazingly services revenue is now about the size of Facebook's revenue...
I hope that isn't a hacking cough you have there!
I don't have much information on the results except for the Apple press release and some headline news so perhaps I have more questions than answers.
All told, and certainly given the circumstances, I'd say the Mac unit got astonishing results.
As I have said from the beginning, the proof would be in the pudding (these results) with regards the new MBPs. Not that they wouldn't sell (with the exception of the UK) but whether Apple would change its design goals. In other words, Apple would only change track if sales were impacted.
You seem to have missed that so I will repeat it. If the new MBPs had sky rocketing sales then Apple would clearly not change anything.
So, did they? How many new MBPs were sold? Did they give any numbers?
Remember, Phil Schiller came out (a few days after release) and went on record as claiming the new MBPs were best ever sellers. Lots of prickly details in what he was actually saying but these were seemingly hot scones. Great! (for Apple) But did they follow up on that yesterday and actually give any numbers on the sales performance of the new units? If only a casual reference in the Q&A? Even without breaking the numbers down.
I haven't had time to look.
Either way, the numbers are still amazing in my book because, with the exception of the MBPs, they were selling last year's machine's (late 2015) which is an epic fail and I sincerely hope they are taken to task at next month's annual shareholder meeting as you shouldn't be judged solely on your results but also on what you could have achieved but failed to do so. Going into your best quarter with last year's machine's obviously impacted that aspect.
I read somewhere yesterday that a large amount of sales went to first time Mac buyers. I can't remember where but that is interesting.
It begs the question, how many? And if the number is significant, where were the long time Mac users during this quarter?
More questions than answers from what I've seen so far but I'm sure we will see more information seeping out in the coming days.
Also, it was interesting to see that just yesterday, HP’s Chief Technologist and VP, of Customer Experience and Portfolio Strategy said that, following extensive user surveying, they had decided to thicken some models, having reached the same conclusion as me. There are too many compromises involved in going too thin.
Also of note is the fact that the new MBPs were heavily discounted just weeks after launch and again just yesterday, new offers of up to $600 off appeared. It's only anecdotal but if there is a backlog of orders, why the discounting?
As for 'courageous' Apple, it really would be nice if they gave Apple Watch unit sales. If you provide unit info on other lines then do the same for the watch. The competitive advantage line doesn't holduch water now.
With regards to the iPhone, again Apple can be pleased but I've been doing some digging and found that one of its biggest potential competitors (Huawei) is being kept at bay in the US for political reasons. On at least two occasions, US government committees have stepped in to quash major deals involving Huawei and US carriers. Supposedly on security grounds. Recent history has shown that when Huawei gets its networking technology to carriers, sales of its entire line take an important foothold. Huawei is a formidable beast and a bigger threat than Samsung going forward. 5G is coming and it will be hard to keep the iron curtain down forever. Trump may prove to be a key ally in that regard but sooner or later, Huawei will get clearance and get its infrastructure into the US. Perhaps not near term and surely post iPhone 8 but Apple would be unwise to think that the current situation will last forever.
Mac sales on the typically HIGHER END @ 5.4 million units.
Take note, folks.
Not only that, Cook says that the Mac revenues set a new record.
But they didn't bust the record by enough so obviously the new MBP was an epic failure. Or at least thats what some folks will claim after saying for weeks that the mac revenues will be soft and just wait for the quarterly report. *cough*Avon*cough*.
Amazingly services revenue is now about the size of Facebook's revenue...
I hope that isn't a hacking cough you have there!
I don't have much information on the results except for the Apple press release and some headline news so perhaps I have more questions than answers.
All told, and certainly given the circumstances, I'd say the Mac unit got astonishing results.
As I have said from the beginning, the proof would be in the pudding (these results) with regards the new MBPs. Not that they wouldn't sell (with the exception of the UK) but whether Apple would change its design goals. In other words, Apple would only change track if sales were impacted.
You seem to have missed that so I will repeat it. If the new MBPs had sky rocketing sales then Apple would clearly not change anything.
So, did they? How many new MBPs were sold? Did they give any numbers?
Remember, Phil Schiller came out (a few days after release) and went on record as claiming the new MBPs were best ever sellers. Lots of prickly details in what he was actually saying but these were seemingly hot scones. Great! (for Apple) But did they follow up on that yesterday and actually give any numbers on the sales performance of the new units? If only a casual reference in the Q&A? Even without breaking the numbers down.
I haven't had time to look.
Either way, the numbers are still amazing in my book because, with the exception of the MBPs, they were selling last year's machine's (late 2015) which is an epic fail and I sincerely hope they are taken to task at next month's annual shareholder meeting as you shouldn't be judged solely on your results but also on what you could have achieved but failed to do so. Going into your best quarter with last year's machine's obviously impacted that aspect.
I read somewhere yesterday that a large amount of sales went to first time Mac buyers. I can't remember where but that is interesting.
It begs the question, how many? And if the number is significant, where were the long time Mac users during this quarter?
More questions than answers from what I've seen so far but I'm sure we will see more information seeping out in the coming days.
Also, it was interesting to see that just yesterday, HP’s Chief Technologist and VP, of Customer Experience and Portfolio Strategy said that, following extensive user surveying, they had decided to thicken some models, having reached the same conclusion as me. There are too many compromises involved in going too thin.
Also of note is the fact that the new MBPs were heavily discounted just weeks after launch and again just yesterday, new offers of up to $600 off appeared. It's only anecdotal but if there is a backlog of orders, why the discounting?
As for 'courageous' Apple, it really would be nice if they gave Apple Watch unit sales. If you provide unit info on other lines then do the same for the watch. The competitive advantage line doesn't holduch water now.
With regards to the iPhone, again Apple can be pleased but I've been doing some digging and found that one of its biggest potential competitors (Huawei) is being kept at bay in the US for political reasons. On at least two occasions, US government committees have stepped in to quash major deals involving Huawei and US carriers. Supposedly on security grounds. Recent history has shown that when Huawei gets its networking technology to carriers, sales of its entire line take an important foothold. Huawei is a formidable beast and a bigger threat than Samsung going forward. 5G is coming and it will be hard to keep the iron curtain down forever. Trump may prove to be a key ally in that regard but sooner or later, Huawei will get clearance and get its infrastructure into the US. Perhaps not near term and surely post iPhone 8 but Apple would be unwise to think that the current situation will last forever.
Ah, the desperation of the naysayer. :-D
Oh no! Apple's Mac sales increased! It must be pent up demand (for a machine that, the naysayers claimed, no one would buy because it was too thin, it was short on memory, the ssd would burn out, the keyboard was crap, it didn’t' have touch screen, it wasn't as good as the Surface, it wasn’t as good as the Lenevo, it wasn't as good as the HP, it wasn't as good as the machines that Honest Bob puts together in his garage…)No! It must be a blip! It must be the extra week in the quarter! I need more evidence that'll fit what I want to hear!
And the reason? Because if Apple is successful then Apple will move further away from that eight-inch thick SCSCI port laden machine that they want them to produce. Because they can't have Apple moving towards the future when they are determined to stick with the past.
And looking to HP for proof of Apple's market direction is about as desperate as you can possibly get. Of course they've reached the same conclusion as you, because you're the customer they're looking to grab. As I've said before, you've moved out of Apple's evolving customer base because you can't or won't evolve. HP has realised that they can make a load of sales of people who have moved out of Apple's core market, and that’s great news for everyone. Apple will continue to serve the younger, more adaptive, ever-evolving mobile market, and HP will pick up the folk who want fat machines with loads of wires sticking out everywhere. Trust me, it's a win win for everyone, you included.
I'm looking forward to seeing what they come up with for their desktop machines. The only thing we know for sure is that you won't like it.
I'm sorry, but the MacBeast isn't coming back, if it was ever here. Time to move on.
I think it's a little misleading when analysts like Horacio Dediu put up charts about Apple's "services" revenue with comments like ' who says Apple can't do services'. OK the majority of Apple's services revenues come from App Store downloads. I don't think that's what people are complaining about when they say Apple doesn't do "services" well. The increase in revenue from App Store downloads masks the real problems Apple has and has historically has with services.
Mac sales on the typically HIGHER END @ 5.4 million units.
Take note, folks.
Yes, though I do wish Apple would shit or get off the pot with the Mac Pro. Just stop making the product if it's too difficult to manufacturer or isn't worth the resources.
Comments
The inconvenient truth -- people really like iphones.
Also there were more weeks in this Q right?
The real good news here is services. I'm not sure what exactly is causing the app store to continue to grow given that the hardware sales have plateaued but the projections are wild. And could mean, if true, a whole new model for Apple.
The primary means by which Apple will increase services is to increase the installed base, which means Apple's focus will continue to be on producing great products. So no, this isn't a change of direction for Apple, but does provide a means to grow revenue, and increase the value of the ecosystem.
Doubling services revenue won't be on top of a doubling of the install base ( or a tripling since a few short years ago).
That doesn't explain a doubling in service growth over the next few years though.
Why will this change their strategy? While Apple will never be a service company if they can estimate post sales revenues of say $100 over the 5 year lifetime of a device then selling cheaper (not cheap but cheaper) could be an option. That said much of the service revenue probably comes from higher end devices
Anyway... Mr. Maestri indicated that App Store revenue grew 43% on a 13 week versus 13 week basis, even more based on the additional week in this past quarter. He said that's because the number of (paying) accounts grew by double (percentage) digits and that the average revenue per (paying) account grew by double digits.
Based on that this is quarter is quit disappointing. Sales should have grown by 7.7% (14/13).
Overall revenue should have grown from 75,872 to 81,708.3. They did 3.357 less.
iPhone sales were down . and of course the iPad was down considerably.
To say that Apple beat wall streets is to say that wall street had really priced in bad results.
Maybe its would have been better if they had released the AirPods earlier.
iPhone sales don't seem that impressive when you consider the quarter had 14 weeks of sale, not the normal 13.
Of course its far better than the NOTE 7 (HAHA). Google Pixel and Google Home must be having MS Surface size losses otherwise they probably would have been crowing about how good it was. I think Google is going to discover how much more difficult it is to sell a retail product. Amazon has millions of customers used to buying things from them. And Apple is so far far ahead because they have their own stores.
I don't have much information on the results except for the Apple press release and some headline news so perhaps I have more questions than answers.
All told, and certainly given the circumstances, I'd say the Mac unit got astonishing results.
As I have said from the beginning, the proof would be in the pudding (these results) with regards the new MBPs. Not that they wouldn't sell (with the exception of the UK) but whether Apple would change its design goals. In other words, Apple would only change track if sales were impacted.
You seem to have missed that so I will repeat it. If the new MBPs had sky rocketing sales then Apple would clearly not change anything.
So, did they? How many new MBPs were sold? Did they give any numbers?
Remember, Phil Schiller came out (a few days after release) and went on record as claiming the new MBPs were best ever sellers. Lots of prickly details in what he was actually saying but these were seemingly hot scones. Great! (for Apple) But did they follow up on that yesterday and actually give any numbers on the sales performance of the new units? If only a casual reference in the Q&A? Even without breaking the numbers down.
I haven't had time to look.
Either way, the numbers are still amazing in my book because, with the exception of the MBPs, they were selling last year's machine's (late 2015) which is an epic fail and I sincerely hope they are taken to task at next month's annual shareholder meeting as you shouldn't be judged solely on your results but also on what you could have achieved but failed to do so. Going into your best quarter with last year's machine's obviously impacted that aspect.
I read somewhere yesterday that a large amount of sales went to first time Mac buyers. I can't remember where but that is interesting.
It begs the question, how many? And if the number is significant, where were the long time Mac users during this quarter?
More questions than answers from what I've seen so far but I'm sure we will see more information seeping out in the coming days.
Also, it was interesting to see that just yesterday, HP’s Chief Technologist and VP, of Customer Experience and Portfolio Strategy said that, following extensive user surveying, they had decided to thicken some models, having reached the same conclusion as me. There are too many compromises involved in going too thin.
Also of note is the fact that the new MBPs were heavily discounted just weeks after launch and again just yesterday, new offers of up to $600 off appeared. It's only anecdotal but if there is a backlog of orders, why the discounting?
As for 'courageous' Apple, it really would be nice if they gave Apple Watch unit sales. If you provide unit info on other lines then do the same for the watch. The competitive advantage line doesn't holduch water now.
With regards to the iPhone, again Apple can be pleased but I've been doing some digging and found that one of its biggest potential competitors (Huawei) is being kept at bay in the US for political reasons. On at least two occasions, US government committees have stepped in to quash major deals involving Huawei and US carriers. Supposedly on security grounds. Recent history has shown that when Huawei gets its networking technology to carriers, sales of its entire line take an important foothold. Huawei is a formidable beast and a bigger threat than Samsung going forward. 5G is coming and it will be hard to keep the iron curtain down forever. Trump may prove to be a key ally in that regard but sooner or later, Huawei will get clearance and get its infrastructure into the US. Perhaps not near term and surely post iPhone 8 but Apple would be unwise to think that the current situation will last forever.
Ah, the desperation of the naysayer. :-D
Oh no! Apple's Mac sales increased! It must be pent up demand (for a machine that, the naysayers claimed, no one would buy because it was too thin, it was short on memory, the ssd would burn out, the keyboard was crap, it didn’t' have touch screen, it wasn't as good as the Surface, it wasn’t as good as the Lenevo, it wasn't as good as the HP, it wasn't as good as the machines that Honest Bob puts together in his garage…)No! It must be a blip! It must be the extra week in the quarter! I need more evidence that'll fit what I want to hear!
And the reason? Because if Apple is successful then Apple will move further away from that eight-inch thick SCSCI port laden machine that they want them to produce. Because they can't have Apple moving towards the future when they are determined to stick with the past.
And looking to HP for proof of Apple's market direction is about as desperate as you can possibly get. Of course they've reached the same conclusion as you, because you're the customer they're looking to grab. As I've said before, you've moved out of Apple's evolving customer base because you can't or won't evolve. HP has realised that they can make a load of sales of people who have moved out of Apple's core market, and that’s great news for everyone. Apple will continue to serve the younger, more adaptive, ever-evolving mobile market, and HP will pick up the folk who want fat machines with loads of wires sticking out everywhere. Trust me, it's a win win for everyone, you included.
I'm looking forward to seeing what they come up with for their desktop machines. The only thing we know for sure is that you won't like it.
I'm sorry, but the MacBeast isn't coming back, if it was ever here. Time to move on.