Apple's tiny AirPods are turning in mighty big numbers and the demand still exceeds supply. After using them for over a year I now know why.
Apple could make a very funny commercial knocking off that Samesung commercial with the guy grimacing at the lightning adapter dongle: have an AirPod user grimace at a Samesung cord. But of course, Apple rightfully avoids this approach.
It was a great quarter no doubt but iPhone sales were essentially flat. I’m not sure how much more they can raise the price so they’re going to really have to ramp up services revenue even more,
It was up a few percent. With the overall smartphone market down by, I think, 2.4%, that was pretty good. I just hope that Mac sales will recover next quarter, and the one after. A decline of 13% is large, no matter what the reason. iPad sales up only 1% YoY didn’t thrill me either. I’m concerned that iPad sales are showing less unit growth each quarter. Did the $329 model just give a temporary burst? i understand that the pro was updated last June, and this year, we’re still waiting. They are likely looking at that very closely.
According to Apple’s summary PDF both iPhone and iPad units were up 1%. I would consider that essentially flat. Cook did hint at services pipeline. I’m guessing that’s their original TV programming and I won’t be surprised if they announce a news/magazine subscription service. Maybe they’ll offer a bundle for all their different services which would be slightly cheaper than buying all of them individually.i
I read somewhere that it was up 3%. Whatever, either is still growth as opposed to a slackening demand overall. Oops, I hit bold and I’m too lazy to retype it.
meanwhile, Samsung is seeing a 20% profit drop for Samsung electronics, the arm that makes their phones, memory products, etc. Despite better memory product sales, that drop in profit and sales is mostly due to a drop in the sales of the Galaxy S9 product. It’s now been 4 years that the Galaxy product has seen lowered sales. Estimates this year are that they will sell about 30 million of them. That doesn’t include, I believe, the new Note, which by itself usually sell between 5 - 7.5 million a year.
while Apple can sell a high priced product, Samsung has problems doing so to the Android market, which is mostly focused on price. It will be interesting to see how Apple’s new line will do (this is the year that we will buy three), as opposed to the Galaxy S10 which Samsung is supposedly introducing earlier next year, as it did this year with the 9, hoping to take some of Apple’s thunder. It didn’t work.
Apple's tiny AirPods are turning in mighty big numbers and the demand still exceeds supply. After using them for over a year I now know why.
How do they fit in your ears? Do you miss not having a strap for if you wanted to take them out and just wear them around your neck. I do that with my JBL wireless all the time. I would really miss not having that.
You can buy a strap so they can hand around you neck or offer some safety in the rare case that they fall out.
Looking at the graph the last quarter were the fewest sold in 6 years (and this is the best economy in US in 10 years) and the lowest Revenue in atleast two years. Seems like the desperately need to get new computers out. Mac sales appear stagnant to slightly down last 4 years.
How dare you tell the truth.
anantksundaram said: You might consider taking a look at the market for computers in general...
And what will be your excuse when it doesn't raise Mac sales YoY?
Instant apologism team! That’s amazing. “Even if Apple actually makes new computers they won’t sell any more of them.” What disturbing mental pathways.
Apple's tiny AirPods are turning in mighty big numbers and the demand still exceeds supply. After using them for over a year I now know why.
How do they fit in your ears? Do you miss not having a strap for if you wanted to take them out and just wear them around your neck. I do that with my JBL wireless all the time. I would really miss not having that.
That’s why there is more than one company making similar products, and of different designs. No matter how good a design is, and the AirPods design is very good, there will always be people who don’t like them.
i get that some people want them to have a cord, for the same reason you gave, and some will just put them in a pocket. As far as falling out of your ears go, while I don’t have them, people who do, as well as reviewers, seem to feel that it’s very difficult to get them to fall out. They just don’t.
Apple's tiny AirPods are turning in mighty big numbers and the demand still exceeds supply. After using them for over a year I now know why.
How do they fit in your ears? Do you miss not having a strap for if you wanted to take them out and just wear them around your neck. I do that with my JBL wireless all the time. I would really miss not having that.
Mine fit great. Can just leave them in and forget them, no need to take them out. I can hear perfectly well with them in, and they're so light. Never had one fall out. The auto pausing is great too.
Cool. How is the sound leakage? I have a pair of Audio Technica cans which I love but I only use them when I’m alone as the sound leaks like crazy.
I do like their retiring all of that debt this quarter. I’d rather they did more of that, and less stock buybacks.
I thought of that, but I don't know when that will occur.
People who read me here, and in other places know how I don’t like stock buybacks. There is, at best, circumstantial evidence that it raises a stock more than temporarily. I’ve never seen evidence contrary since I was a kid in 1963 when I started investing.
id rather see them retire all the debt they raised to do these stock buybacks. Really, stock buybacks throw all that money into a black hole. Almost all the stock is retired. That’s like burning your money instead of investing it.
I do like their retiring all of that debt this quarter. I’d rather they did more of that, and less stock buybacks.
I thought of that, but I don't know when that will occur.
People who read me here, and in other places know how I don’t like stock buybacks. There is, at best, circumstantial evidence that it raises a stock more than temporarily. I’ve never seen evidence contrary since I was a kid in 1963 when I started investing.
id rather see them retire all the debt they raised to do these stock buybacks. Really, stock buybacks throw all that money into a black hole. Almost all the stock is retired. That’s like burning your money instead of investing it.
I'm with you on that one. They should stop buying up their own stock at these levels and put it to better use. Wait until there's another massive market crash and THEN buy up the stock like crazy.
Apple's tiny AirPods are turning in mighty big numbers and the demand still exceeds supply. After using them for over a year I now know why.
I see people of all ages wearing them.....EVERYWHERE! These are a huge success for Apple.
And remember what certain individuals who regularly spew here said about them. Apple has managed to smear egg on all their faces big time. These numbers are almost impossible to put negative spin on. Of course, they will try. They always do. I’m especially impressed with the guidance for next quarter.
Damn! Only $486 million away (up 4.04%) from the coveted $1 trillion market cap for a publicly traded company.
And this is not because of the numbers for this quarter. This is about the guidance for next quarter because Wall Street is always looking at the future, not the present. Apple is guiding for a massive quarter coming up. Keep in mind, however, that market cap is a vanity metric that means absolutely nothing really.
Apple's tiny AirPods are turning in mighty big numbers and the demand still exceeds supply. After using them for over a year I now know why.
I see people of all ages wearing them.....EVERYWHERE! These are a huge success for Apple.
And remember what certain individuals who regularly spew here said about them. Apple has managed to smear egg on all their faces big time. These numbers are almost impossible to put negative spin on. Of course, they will try. They always do. I’m especially impressed with the guidance for next quarter.
Agreed Ikrupp: The overwhelming value of Apple/AAPL is it’s integrated ecosystem. Sure, you are in a walled garden - but what a garden.
Your desktop and laptop computers, your iPhones and iPads, your watch - all connect and sync anywhere you are on the planet, all speak the same language, and all “look & feel” pretty much the same.
Forget all the trivial, “they missed the xyz Intel cpu”, “the MBP touch-bar is rubbish”, "AirPods are worthless" sort of twelve-year old wanking and concentrate on the fact that, overall, this company is doing it right.
To my knowledge, no other computer/phone/technology company provides anything approaching the usability and interactive services like this in our hyper-connected world.
MAC sales down in last quarter and will continue down because Apple didn't release Function Keys Macbook Pro.
This is not why, and this is not what's going to happen to Mac sales.
A MAC is something else entirely.
Looking at the graph the last quarter were the fewest sold in 6 years (and this is the best economy in US in 10 years) and the lowest Revenue in atleast two years. Seems like the desperately need to get new computers out.
Mac sales appear stagnant to slightly down last 4 years.
You mean like the MacBook Pro in this quarter?
Getting the MBP out was a good first step. Hopefully we see MB , MBA , iMac, and MM updated this quarter ( as I think Ming said).
Here's quick initial excerpt from p.1 of BAML analyst. [Geographically, Europe and especially Americas outperformed BAML estimates.]
Revenue guide beats Street estimates
Apple reported F3Q18 iPhone unit sales of 41.3mn which came in slightly below
our/Street estimate of 42mn. This compares to 41.0mn units iPhones sold in the year
ago quarter. Guidance also implies modest growth in iPhone shipments in the Sep qtr.
GM for F3Q18 came in at 38.3% vs. guidance range (38.0%-38.5%) and Apple guided for
roughly flat q/q GM growth at mid-pt (F4Q GM 38-38.5% vs. consensus F4Q18 GM est.
of 38.2%). Investor focus now shifts to the new iPhones to be released in the fall of
2018 and we look for any color on the earnings call regarding launch timing. Services
rev growth remained strong at 31% y/y (28% ex-one time favorable legal settlements)
vs. 22% y/y reported last year (last qtr growth was 31% y/y). Apple returned $25mn to
shareholders in F3Q18 including $20mn of buybacks. We expect the stock to be up
strongly given the overall solid performance. Reiterate Buy on strong gross profit dollar
growth, Services rev, and expected increased capital returns in the future.
F4Q guide for rev of $60-62bn compares to our $62.4bn prior est and implied EPS of
$2.76 (mid-pt of range $2.67-$2.84) was just slightly lower than our prior $2.78 est. The
Street was expecting a F4Q rev/EPS guide of $59.5bn/$2.65. On the call, we look for
color on the following: 1) inventory growth of iPhones in the channel, 2) iPhone ASP in
Sep qtr, 3) whether Services rev growth can sustain, and 4) strength of other devices
such as Apple Watch and HomePod, and 5) gross margin bridge of flat despite new
launch headwinds.
Services revenue strength greater than expected
F3Q18 GM of 38.3% was 20bps higher than our est. of 38.1%. F4Q18 GM guide of
38.3% at mid-point is higher than our prior est. of 37.8%, and compares to Street est. of
38.2%. Services F3Q18 rev of $9.6 billion (digital content, AppleCare, Apple Pay,
licensing, other services) grew 31% y/y as reported, similar to the 31% y/y growth in the
prior quarter on an adjusted basis (28% ex-one time). iPhone rev was up 20% y/y, driven
by higher ASP, while iPhone units increased 1% y/y to 41.3mn.
Greater China rev strong, up for the 4th qtr in a row
F3Q rev from Greater China (China, Hong Kong, Taiwan) of $9.6bn grew 19% y/y (down
27%q/q). Revfromtheregioncontinuedtoshowanimprovinggrowthtrendsincethe
Sep 2017 quarter, and had previously been plagued by y/y declines for six straight
quarters (between F2Q16-F3Q17). The 19% y/y growth in the June qtr is slightly lower
than the 21% y/y growth seen in F2Q but much stronger than the 10% y/y decline seen
in the June year ago qtr.
Other takeaways: iPad units above expectations
iPad units came in at 11.6mn vs. our/Street estimate of 10.7/10.0mn. Revenue from
iPads came in at $4.7bn and declined 5% y/y. iPad revenue declined after having grown
y/yinthepriorfourqtrs. ApplereportedMacunitsalesof3.7mnvs.ourest.of4.3mn.
Apple's tiny AirPods are turning in mighty big numbers and the demand still exceeds supply. After using them for over a year I now know why.
How do they fit in your ears? Do you miss not having a strap for if you wanted to take them out and just wear them around your neck. I do that with my JBL wireless all the time. I would really miss not having that.
No device fits all ears, but they fit mine. I had zero/zilch/no interest in them until I kept reading about folks with little interest buying and loving them. Tried them in the store. Bought them. Don’t want to be without them. I have not run with them in, but have run across a street with them without issue. I don’t do sweaty workouts with them as I revere them, but less sweaty stuff and much more I do. Hooked. Love them. Coolest new invention in a while. And it’s not just the buds, but the whole interaction with the charging case and the phone and the other Mac devices. My girlfriend had no interest. Got her some. Hooked. Unique device that matches that old saying that the whole is greater than the sum of the parts.
It was a great quarter no doubt but iPhone sales were essentially flat. I’m not sure how much more they can raise the price so they’re going to really have to ramp up services revenue even more,
It was up a few percent. With the overall smartphone market down by, I think, 2.4%, that was pretty good. I just hope that Mac sales will recover next quarter, and the one after. A decline of 13% is large, no matter what the reason. iPad sales up only 1% YoY didn’t thrill me either. I’m concerned that iPad sales are showing less unit growth each quarter. Did the $329 model just give a temporary burst? i understand that the pro was updated last June, and this year, we’re still waiting. They are likely looking at that very closely.
I think the compelling feature that a lot of people want is FaceId. So they may be waiting for that. Of course I am not sure how worth it is to upgrade the iPad every year. I think a two year cycle is fine.
Comments
I read somewhere that it was up 3%. Whatever, either is still growth as opposed to a slackening demand overall. Oops, I hit bold and I’m too lazy to retype it.
meanwhile, Samsung is seeing a 20% profit drop for Samsung electronics, the arm that makes their phones, memory products, etc. Despite better memory product sales, that drop in profit and sales is mostly due to a drop in the sales of the Galaxy S9 product. It’s now been 4 years that the Galaxy product has seen lowered sales. Estimates this year are that they will sell about 30 million of them. That doesn’t include, I believe, the new Note, which by itself usually sell between 5 - 7.5 million a year.
while Apple can sell a high priced product, Samsung has problems doing so to the Android market, which is mostly focused on price. It will be interesting to see how Apple’s new line will do (this is the year that we will buy three), as opposed to the Galaxy S10 which Samsung is supposedly introducing earlier next year, as it did this year with the 9, hoping to take some of Apple’s thunder. It didn’t work.
I see people of all ages wearing them.....EVERYWHERE! These are a huge success for Apple.
Instant apologism team! That’s amazing. “Even if Apple actually makes new computers they won’t sell any more of them.” What disturbing mental pathways.
i get that some people want them to have a cord, for the same reason you gave, and some will just put them in a pocket. As far as falling out of your ears go, while I don’t have them, people who do, as well as reviewers, seem to feel that it’s very difficult to get them to fall out. They just don’t.
id rather see them retire all the debt they raised to do these stock buybacks. Really, stock buybacks throw all that money into a black hole. Almost all the stock is retired. That’s like burning your money instead of investing it.
Revenue guide beats Street estimates
Apple reported F3Q18 iPhone unit sales of 41.3mn which came in slightly below our/Street estimate of 42mn. This compares to 41.0mn units iPhones sold in the year ago quarter. Guidance also implies modest growth in iPhone shipments in the Sep qtr. GM for F3Q18 came in at 38.3% vs. guidance range (38.0%-38.5%) and Apple guided for roughly flat q/q GM growth at mid-pt (F4Q GM 38-38.5% vs. consensus F4Q18 GM est. of 38.2%). Investor focus now shifts to the new iPhones to be released in the fall of 2018 and we look for any color on the earnings call regarding launch timing. Services rev growth remained strong at 31% y/y (28% ex-one time favorable legal settlements) vs. 22% y/y reported last year (last qtr growth was 31% y/y). Apple returned $25mn to shareholders in F3Q18 including $20mn of buybacks. We expect the stock to be up strongly given the overall solid performance. Reiterate Buy on strong gross profit dollar growth, Services rev, and expected increased capital returns in the future.
Guidance suggests slightly fewer iPhones, GM strong
F4Q guide for rev of $60-62bn compares to our $62.4bn prior est and implied EPS of $2.76 (mid-pt of range $2.67-$2.84) was just slightly lower than our prior $2.78 est. The Street was expecting a F4Q rev/EPS guide of $59.5bn/$2.65. On the call, we look for color on the following: 1) inventory growth of iPhones in the channel, 2) iPhone ASP in Sep qtr, 3) whether Services rev growth can sustain, and 4) strength of other devices such as Apple Watch and HomePod, and 5) gross margin bridge of flat despite new launch headwinds.
Services revenue strength greater than expected
F3Q18 GM of 38.3% was 20bps higher than our est. of 38.1%. F4Q18 GM guide of 38.3% at mid-point is higher than our prior est. of 37.8%, and compares to Street est. of 38.2%. Services F3Q18 rev of $9.6 billion (digital content, AppleCare, Apple Pay, licensing, other services) grew 31% y/y as reported, similar to the 31% y/y growth in the prior quarter on an adjusted basis (28% ex-one time). iPhone rev was up 20% y/y, driven by higher ASP, while iPhone units increased 1% y/y to 41.3mn.
Greater China rev strong, up for the 4th qtr in a row
F3Q rev from Greater China (China, Hong Kong, Taiwan) of $9.6bn grew 19% y/y (down 27%q/q). Revfromtheregioncontinuedtoshowanimprovinggrowthtrendsincethe Sep 2017 quarter, and had previously been plagued by y/y declines for six straight quarters (between F2Q16-F3Q17). The 19% y/y growth in the June qtr is slightly lower than the 21% y/y growth seen in F2Q but much stronger than the 10% y/y decline seen in the June year ago qtr.
Other takeaways: iPad units above expectations
iPad units came in at 11.6mn vs. our/Street estimate of 10.7/10.0mn. Revenue from iPads came in at $4.7bn and declined 5% y/y. iPad revenue declined after having grown y/yinthepriorfourqtrs. ApplereportedMacunitsalesof3.7mnvs.ourest.of4.3mn.