[HN Gopher] Apple Reports Record First Quarter Results
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Apple Reports Record First Quarter Results
Author : chollida1
Score : 61 points
Date : 2020-01-28 21:39 UTC (1 hours ago)
(HTM) web link (www.apple.com)
(TXT) w3m dump (www.apple.com)
| chollida1 wrote:
| Notes:
|
| - for first time seeing analysts excited about other products,
| watch and airpods as being real drivers of bottom line revenue!!!
|
| - interesting note from Bloomberg tech reporter "Apple's new
| revenue strategy isn't a bad one. It's, basically, sell the
| customer an iPhone every three to five years, and make a bunch of
| money in the years between by selling them a new Apple Watch or
| AirPods (which only last about three years tops before you need a
| new pair -- batteries!) and services. If a user subscribes to all
| of Apple's services for two years straight, that's about equal to
| revenue from a new iPhone. So in those cases, if that user
| doesn't buy a new iPhone for a couple years, it's not a big
| deal."
|
| - apples done so well lately that the average analysts has a
| target price 5% below what apple is currently trading at
|
| - they manufacture iphones 400 km from the center of the
| coronavirus outbreak, see if this is mentioned, also about 18% of
| apple revenue so China matters
|
| - want to see what their effective tax rate is
|
| Numbers:
|
| - stocks almost back to record highs before reporting, after
| reporting it shot way past!!
|
| - 1Q Revenue is $91.8B vs estimates of $88.38B!!!!!!
|
| - 1Q EPS is $4.99 vs estimates of$4.56!!!!!
|
| - wearables was $10 vs $7.3 last year( apple just continues to
| create $10+ billion dollar business every 3-5 years. Use to be
| that only MSFT could do that and GOOG spent heavily trying to do
| that
|
| - iphone revenue for 1Q is $55.97
|
| - service revenue for 1Q is $12.72
|
| - declines in both mac($7.1 vs $7.4 last year) and iPad sales($6
| vs %6.7 last year)
|
| - iphone sales up everywhere except Japan
|
| Numbers that really impress
|
| - Cash/Equivalents have doubled from last year, that funds a lot
| of money loosing streaming shows
|
| - keeping in mind they bought back $37B in stock this year
|
| - almost $100B in term debt
|
| Supply Chain:
|
| - Qurvo up 1%
|
| - Skyworks up 1%
|
| - Cirrus up 3%
| pbreit wrote:
| "sell the customer an iPhone every three to five years"
|
| Aren't lots of people on monthly plans now with "free" annual
| upgrades?
| __abc wrote:
| I'm on this plan (the zero interest loan plan designed to
| drive an annual upgrade) and it isn't exactly free.
|
| The loan is absolutely zero interest, but I get ~$200 in fees
| when I upgrade from AT&T. It's enough where I didn't upgrade
| from the X to the 11.
|
| I have also since switched to Google Fi and don't know if
| that same fee exists with them ....
| dillonmckay wrote:
| I also wonder, when a phone is financed, who is fronting the
| cash?
|
| Is the inventory already on the books of the cellular
| provider?
|
| Is there a third party? Is it securitized?
|
| This business model seems similar to leasing a car.
| hindsightbias wrote:
| Reality doesn't matter, the naysayers will be dumping again on
| APPL very shortly. 33 Quarters since SJ died, it's over!
| iknowalot wrote:
| They stopped publishing how many units of each model of iPhone
| they sell, that's a major investor red flag.
| cdolan wrote:
| They stopped detailing their exact Mac and iPad sales too, so
| I dont see the problem.
|
| I realize iPhone is an amazing amount of their revenue, but
| they are transitioning to a services and accessory business
| built _around_ iPhone. It's less important exactly what model
| iPhone you have, in my opinion.
| tguedes wrote:
| They stopped doing that multiple quarters ago because it
| wasn't growing and they want investors to focus on other
| parts of the business and not just the iPhone.
|
| If you believe the strategy laid out in the parent comment to
| yours, then it isn't a red flag at all. For the last 10
| years, the number 1 thing that contributed to Apple's growth
| was the iPhone. They don't believe that will be the case for
| the next 10 years.
|
| I think they should release those numbers for investor
| clarity, but I don't think it's a red flag.
| scarface74 wrote:
| They've never published how many units of each model of
| iPhone they sell....
| ogre_codes wrote:
| If you don't invest in companies that don't release hardware
| unit sales, your options are rather limited since the
| following companies don't provide that data either:
|
| Dell, HP, Microsoft, Amazon, Google, Samsung, LG... etc etc
|
| Red Flags everywhere
| InterestBazinga wrote:
| Tim Cook has added $1 trillion dollars to Apple's market cap
| since he took over.
|
| Apple's ability to sell a new IPhone every year is honestly the
| stuff of legends, it almost defies logic but they keep on
| executing it.
|
| It is a bit interesting to see misses from Macs, IPads and
| services. Which tells you Apple is still very much an iphone
| story.
| dillonmckay wrote:
| If Macs could be financed and upgraded like phones, that would
| be interesting to see.
| OrangeMango wrote:
| Mac sales drop is fair small - 3% or so. The iPad saw a drop of
| 12% or so. Fairly significant.
| dangero wrote:
| cannibalization from larger phone screens possibly
| thetinguy wrote:
| No new iPad Pro in 2019
| OrangeMango wrote:
| You are probably right. The thing is, if Apple wants to drive
| more iPad sales, they really need to open up what it is
| allowed to do. iPads from 5+ years ago are still great for
| almost anything but the most intense games.
|
| I have the 9.7" iPad Pro, which is something like 3 years old
| by now. I have no reason to upgrade. Swift Playgrounds is a
| great app and has a built-in compiler. It's very nearly an
| IDE at this point. On my iPad, it compiles slowly and really
| eats the battery. But I don't really care; it's just a toy
| app. If Apple were to allow things compiled in Swift
| Playgrounds to be run, say, via the Shortcuts app (in any
| shortcut I created), I'd be excited to start really
| developing code on the iPad, and I'd want to buy a new iPad
| to enable that.
| scarface74 wrote:
| And this is why techno-geeks don't get Apple. Apple
| "opening up" the iPad by allowing people to compile code,
| wouldn't even move the needle.
| sieabahlpark wrote:
| It'd be nice if they could sell a fixed 13 mbp like the new 16
| model
| brundolf wrote:
| Surprising (concerning?) that Mac sales didn't go _up_ , given
| the release of the Mac Pro and the MBP 16", both of which were
| poised to inject new life into the line.
| pastor_elm wrote:
| 16" pros are not popular. Nobody wants to lug that thing
| around. The Mac Pro is just too expensive. I know people who
| used to buy Mac Pros and were forced to get iMacs.
| eigenvalue wrote:
| I think the fact that Macs don't have touch screens (like MS
| Surface) is really starting to hurt them. I don't understand
| it at all... they clearly have the tech know-how. Maybe they
| are worried that doing that would kill iPad sales?
| brundolf wrote:
| macOS isn't suited for a touch-screen and it would create a
| bad experience in many contexts, which Apple has a history
| of steering clear of. Anyway, I've never understood the
| purpose of a touch-screen on a laptop if it can't transform
| completely into a tablet.
| zionic wrote:
| I'm personally holding out for high end 8+ core 10nm (or 7 at
| this point).
|
| I'm not paying $4k for skylake refreshes refresh.
|
| I would also love if they started shipping optane in their
| high end models (or at least have the option).
| swozey wrote:
| 720p camera and Wifi5 no less
| raydev wrote:
| Mac Pro was released too late for the quarter, also it starts
| at $6000.
|
| The 16" MBP is also the top tier in the notebooks, and
| despite complaints, the previous gen TouchBars are working
| _decently_ for most people. Not surprised the 16 " didn't
| have a huge impact.
|
| Updating the 13" line would have a bigger impact. iMac/iMac
| Pro also haven't seen notable updates in a while.
| whatsmyusername wrote:
| We've been buying up a shitload of 2017/2018 refurbs.
| They're perfectly fine even with the keyboard.
| brundolf wrote:
| > Mac Pro was released too late for the quarter
|
| That's fair
|
| > it starts at $6000
|
| The pricing/features can be (have been) debated ad
| infinitum, but no matter which way you slice it, it
| represents a huge new direction for the Mac line and at
| least at the high-end, industry professionals are excited
| about it. It's a big deal, and it's not a flop, so it
| should have an impact.
|
| > and despite complaints, the previous gen TouchBars are
| working decently for most people
|
| Most people probably won't be trading in their 2018 MBPs
| for the new 16-inch, but given the strong feelings out
| there about the keyboard and airflow I'd bet some people
| will.
|
| And more importantly there are people like me, who were
| holding off on a long-coming upgrade for a moment exactly
| like this, when Apple's solved the biggest issues with the
| design. It should've represented a sales bump.
| zyang wrote:
| It pains me to see how much iPad is lagging. I thought we would
| all be coding on iPads by 2020.
| 013a wrote:
| I'm considering a Surface Pro X for this purpose. Better
| aspect ratio, better first-party thin keyboard, bundled LTE,
| fair price relative to the iPad Pro, better developer tool
| support (though, its still ARM Windows so...)
|
| My dream is an ultra-thin, low/medium power device that
| essentially just runs the editor, plus a full local CLI
| environment and maybe some basic stuff like compilers/etc,
| move all the super hungry stuff like containers, databases,
| queues etc to the cloud. iPad is kind of there, though you're
| probably still going to be editing off of an SFTP share if
| you want to use one of the mediocre editors available on the
| App Store; Surface Pro X feels much closer to this dream.
| kotrunga wrote:
| Just a little sad to see how much value they put into the iPhone
| and services while iPad and Mac software is lacking. Obviously,
| they're making money, and that's their goal. However, I think
| sales could be boosted for the iPads and Macs if they increased
| the quality of the software for those devices.
|
| Great example explanation within here:
| https://daringfireball.net/2020/01/the_ipad_awkwardly_turns_...
| mooreds wrote:
| Do you think it'd make sense to spin off the mac business, or
| is it too integrated (with the app store)?
| raydev wrote:
| 12% drop for the iPads. Unsurprising.
|
| The people who want the lower end of the price range are still
| perfectly happy with their 5-7 year old iPads. Top of the line
| suffers in that most people in that market are probably fine or
| even better off with a MacBook Air/Pro, and they may even save a
| few dollars instead of buying a Smart Keyboard/folio.
|
| Related to the 10 year anniversary: the iPad should be so much
| more capable than it is. I don't think the people behind shipping
| the first iteration are happy with its current state a decade
| later.
| jandrewrogers wrote:
| The astounding thing about Apple is not the scale at which they
| operate, though that is impressive. It is the rate at which they
| still grow revenue concurrent with insane profitability and
| revenue diversification at that scale. Incredible business
| execution.
|
| Their slow creep into healthcare is a particularly interesting
| longterm play, due to the size of the market if nothing else.
| ardit33 wrote:
| I was playing indoor soccer, and I noticed one of the opposing
| players had an apple watch on. I wanted to complain the ref
| about it (jewelry and wearables are not allowed during games),
| but then I realized that at least 1/3rd of the players had some
| kind of watch (including my teammates).
|
| You didn't see them during games a couple of years ago... so I
| guess they opened a new market and people are used to them.
| onetimemanytime wrote:
| Wow! AAPL has been buried so many times, only to surprise people.
| $91,000,000,000 in sales over 3 months, we're almost talking
| about real money :)
| keyle wrote:
| I'm happy for apple, but I'm annoyed at 'service' growing.
|
| The free plan offering hasn't increased as far as I know, and the
| devices require more and more icloud backup space, so why would
| you be surprised in an increase of 'service' revenues?
| reaperducer wrote:
| The devices don't _require_ _any_ iCloud backup space. You are
| free to back up your device on your local machine.
|
| Or if you want to live dangerously, you don't have to turn on
| iCloud backups at all.
|
| In fact, you don't have to turn on iCloud, period.
| dangero wrote:
| They are blocking competition in backups and cloud storage
| using private apis that would bring the cost down.
| whatsmyusername wrote:
| I do this. Mostly because I just dump MP3s into my phone and
| don't use any of their online services except notes,
| contacts, and imessage.
| 40acres wrote:
| Apple finally decided to start capturing some of the value add of
| the iPhone itself (App store fees are solid revenue I suppose but
| a tiny fraction of the overall potential value of an iPhone) and
| now somehow an unstoppable force has gotten even more successful.
| I don't think I've ever seen such a tentpole product. No doubt in
| my mind that Apple will be the one takes AR and possibly VR to
| the next level.
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