Apple reports best March quarter ever with $61.1B in revenue, 52.2M iPhone sales

13»

Comments

  • Reply 41 of 48
    carnegiecarnegie Posts: 1,078member
    melgross said:
    carnegie said:
    melgross said:
    eightzero said:
    k2kw said:
    Great freaking quarter. Although, Apples inventory soared a whopping 164% Y/Y. 
    Isn't 164% growth good?
    I'd say "yes".
    Why is it good? 
    You have a problem with 164% growth? Are you kidding?
    This isn’t growth. It’s the amount of product in the channel waiting to be delivered to distributors, retailers, and customers. It’s, to an extent, yet unsold inventory. When it grows too much, it means that production is exceeding demand. Companies want a certain amount of channel supply to account for fluctuations in demand. But if that increases too much, it can mean that either demand is too low, or production is too high. For many products, Apple looks for 4-6 weeks of inventory in the channel.
    To be clear, the inventories number we're referring to (i.e. that which is accounted for as an asset on Apple's balance sheet) is not the same as the channel inventory that Apple tells us about. It is the latter which Apple looks to keep in the range of 5-7 weeks worth. The value of inventories from Apple's balance sheet is considerably smaller than the the value of Apple's channel inventory. iPhone channel inventory, e.g., is now something like 20 million units likely worth considerably more than $10 billion. That channel inventory was reduced by 1.8 million units this past quarter and is something like a half million units larger than it was a year ago.

    Inventories can fluctuate from quarter to quarter for a number or reasons. Apple might, e.g., decide that it makes sense to buy an excess of certain components in a given quarter because of current (and expected future) pricing. Apple could also, of course, overproduce products in a given quarter. But that isn't necessarily what the reported inventories number comes from. In this case, Apple has suggested that the large increase in inventories was caused by the former.

    Anyway, I just wanted to be clear that channel inventory as Apple reports on it is not the same as the inventories number we're talking about here. Channel inventory represents products sold by Apple and accounted for in current revenues. Inventories can be unsold Apple products or, e.g., unused purchased components or third-party products (stocked in Apple stores).
    Actually, it’s channel inventory That they were talking about, and when questioned about it at the conference, Apple stated that they intended to draw it down. All inventories, including those in the channel, unless marked as sold, are listed as an asset.

    inventores are draw down as a matter of course. There is little inventory other than what’s in the channel. Companies attempt to keep a certain amount of product there so that inflow mostly matches outflow. At way they ca poor pull inventory as needed as a result of an unexpected momentary jump in demand, or a slowdown. If a com-any has massive amounts of finished product in inventory, then it’s doing a very bad job in managing that, and likely doesn’t know much about its own sales.
    The inventories which sirlance99 referred to as increasing 164% YoY (and which was the subject of this string of quotes) is the inventories listed under assets on the balance sheet. That is not the channel inventory which Apple refers to regularly and which Apple states it wants to keep in a 5 to 7 week range. Channel inventory wouldn't be counted as part of that inventories number or as an asset. Channel inventory is, from Apple's perspective, sold. It isn't sold to the end user, but it's sold by Apple and revenue from it is counted in current reporting.

    That inventories number was discussed during the conference call by Mr. Maestri in response to a question. He indicated that the large increase was a temporary event, that Apple had made purchasing decisions based on market conditions, and that it would unwind over time. He confirmed, in response to a follow up question, that it was about component purchases.
    StrangeDaysnetmagebrucemc
  • Reply 42 of 48
    fastasleepfastasleep Posts: 6,435member
    zone said:
    Apple still can't get any love. Any, any other company with these kinds of results the stock would be up a ton. If it was Amazon it would be up 30%. Great job Apple but really sad that they will struggle to break all-time high. Now the talk begins on how the next quarter will fall. Total manipulation by the ones who control the markets. Apple might as well file for bankruptcy!
    Does it normally shoot up in after-hours trading after good results, or is that more next-day?
  • Reply 43 of 48
    StrangeDaysStrangeDays Posts: 12,925member
    wizard69 said:
    This is surprisingly robust.    Across the board success except for the Mac lineup and there we all know why Mac sales suck.

    Now if only Apple would release some new products!    Looking forward to new iPads and Iphone SE models for one.   They might even offer up a Mac that I would buy.
    It’s not surprising at all.

    Apple is releasing new products, including iPads - is March not new enough for you? X and 8 last fall? 
    watto_cobra
  • Reply 44 of 48
    johnbearjohnbear Posts: 160member
    aapl 3% only in after hours? hard to impress, I guess they needed 161 billions for the stock to go 10-12% 

    on another note, about time to pay their taxes in EU 
  • Reply 45 of 48
    brucemcbrucemc Posts: 1,541member
    johnbear said:
    aapl 3% only in after hours? hard to impress, I guess they needed 161 billions for the stock to go 10-12% 

    on another note, about time to pay their taxes in EU 
    I don't think analysts/WS are fully pricing in the impact that increased share buybacks will have over the next 3-5 years on outstanding shares, EPS, increasing dividends w/out as big a hit on total costs, etc.
  • Reply 46 of 48
    linkmanlinkman Posts: 1,036member
    zone said:
    Apple still can't get any love. Any, any other company with these kinds of results the stock would be up a ton. If it was Amazon it would be up 30%. Great job Apple but really sad that they will struggle to break all-time high. Now the talk begins on how the next quarter will fall. Total manipulation by the ones who control the markets. Apple might as well file for bankruptcy!
    Does it normally shoot up in after-hours trading after good results, or is that more next-day?
    It normally goes down after hours and also next day after results are announced. It doesn't matter how good the results are, Wall St. is in the thinking "Apple did really well, but they can't do it again. I'll have to sell." With the profits AAPL has had over the last 7-8 years Apple stock should be over $1000/share with the current split. The P/E simply has no comparison to any company in this size class.
  • Reply 47 of 48
    maestro64maestro64 Posts: 5,043member
    Kuyangkoh said:
    So those analysts that predicted doomsday are still employed....what a bunch of cracked 

    Of course they are, they drove down the stock $15 and got their friend to buy in at the bottom and they just made $10 to $15 in a few short weeks, not a bad profit all because they and write fake news the sheep believe.
    watto_cobra
  • Reply 48 of 48
    19831983 Posts: 1,225member
    Another bumper quarter for Apples! Everybody keeps on saying their revenue is down for whatever dubious reason, but Apple always prove the naysayers wrong. Even I got sucked into the iPhone X is not selling BS! All those bloody analysts incorrect as usual.
    edited May 2018 watto_cobra
Sign In or Register to comment.