Apple still generates nearly all of the smartphone profits.
They are still the most profitable PC maker but those sales were off also.
If Apple is experiencing difficulty with sales and profits, the rest of the industry is in far greater distress.
They will be fine as a company but not with the market. Value funds will stick with Apple but Growth funds will pull out. Apple's projection for end of next quarter is worse than analyst projections.
...Really the only thing that can stop this drop is the buyback....
What are you smoking???? What has the $100,000,000,000 spent on buybacks gotten us thus far? Oh - that would be the same stock price that AAPL was trading at 3.25 years ago.
Buybacks to prop up stock price is a huge sign that the markets have no confidence in the stock - and very fleeting in effect.
Given the way the iPhone releases work, it seems to me that one meaningful way to look at things is on a two-year cycle. In dollars, profits are up by ~38% over the same quarter two years ago, despite the foreign exchange difficulties and various other challenges. However, that 38% doesn't even take into consideration the share buybacks--split-adjusted EPS two years ago were $2.07 vs. $3.28 now, up well over 50%. That is very respectable growth, especially for a company this size. In the same period, the share price is up by roughly a third, which by some measures might not seem terrible, but given that it was already trading at a relatively low multiple and EPS are up well over 50% since then, it does seem pretty irrational.
You don't arrive at these numbers by accident. Just when you think Apple is slowing will they launch something and keep it hot and fresh. They have a lot of cards they're not showing. They know how to play the game of business.
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.
He mentioned the watch but not iPad. Which leads me to believe iPad Pro sales were soft.
Possibly because it costs an arm and leg and doesn't actually have much over and above the original iPad to justify that $2000 price tag. Making an "alternative to a PC" that in some cases costs more than a PC but actually does less, is hardly a recipe for success.
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
Here in Canada our currency's taken a shit kicking. When I had to purchase the iPhone 6S Plus 64GB with Apple Care +, it cost me around $1,500 (give or take) after taxes, unlocked.
I've been following this forum for ages and I've finally had enough of sog35 and his same rhetoric of getting rid of Tim Cook, even though he's presided over one of the most successful periods of Apple! It is pretty obvious that Wall Street will never give Apple a chance. More of a opportunity of Apple buying back stock at a undervalued price.
...Really the only thing that can stop this drop is the buyback....
What are you smoking???? How has the $100,000,000,000 spent on buybacks gotten us thus far? Oh - that would be the same stock price that AAPL was trading at 3.25 years ago.
Buybacks to prop up stock price is a huge sign that the markets have no confidence in the stock - and very fleeting in effect.
Buybacks increase the EPS and reduce dividend expenditures. They also take stock out of weak hands. There are a lot of weak hands but the stock would indeed be lower without the buyback.
The iPad pro is a market protection ploy. It isn't ever going to b a volume seller. Apple needs to keep the iPad mini, for the same reason, but it will lose sales to the 6s+, but I seriously doubt Apple loses any sleep about that. But the meat and potatoes iPad Air has not been upgraded. It needs some serious attention.
the iPad needs some serious attention to truly make it a laptop replacement. What functionality does it need to make it the go to device for workplaces? Apple coasted on initial success. A big mistake.
So according to Neil Cybart in my Twitter feed it looks like every product line was a miss vs. expectations and Q2 is low guidance. But CNBC isn't as negative as I thought they would be and the stock is flat after market.
Mostly because a miss was priced into the stock already, I feel.
I think you're right on that. The P/E is already really low.
Comments
Buybacks to prop up stock price is a huge sign that the markets have no confidence in the stock - and very fleeting in effect.
i'm assuming you mean iPad mini / iPad Air
the iPad needs some serious attention to truly make it a laptop replacement. What functionality does it need to make it the go to device for workplaces? Apple coasted on initial success. A big mistake.