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What to Expect From Apple's Quarterly Earnings Report This Week
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But any iPhone purchased now gets a free upgrade to the latest iOS features, so that excuse doesn't add up
The regular tv news are also talking about future iPhones
You could also settle with a Nokia I believe. How about a design change, under the screen Face ID and fingerprint sensor. More internal RAM to be future proof, 120 hz refresh rates the whole iPhone range. And to make the list complete… let’s compare specifications with competitors to make the iPhone compelling to switch from Android to iPhone.
iPhone has been the same since iPhone 12 with some minor changes. Even the new pixel pro is better looking than the iPhone nowadays.
AI will propel Apple's stock growth for the next 5 years! I am giving it a price target of 300!
"We actually....Found a whey....to chamfer the edges of the earnings call into the thinnest earnings you've ever seen"
(Is this too dated a reference now? lol)
Apple reported fiscal third-quarter earnings on Thursday that beat Wall Street expectations, with overall revenue rising 5%.
Shares were up about 2% in extended trading.
Here’s how Apple did versus LSEG consensus estimates for the quarter ended June 29:
- EPS: $1.40 vs. $1.35 estimated
- Revenue: $85.78 billion vs. $84.53 billion estimated
- iPhone revenue: $39.30 billion vs. $38.81 billion estimated
- Mac revenue: $7.01 billion vs. $7.02 billion estimated
- iPad revenue: $7.16 billion vs. $6.61 billion estimated
- Wearables, Home, and Accessories revenue: $8.10 billion vs. $7.79 billion estimated
- Services revenue: $24.21 billion vs. $24.01 billion estimated
- Gross margin: 46.3% vs. 46.1% estimated
Apple reported $21.44 billion in net income during the quarter, versus $19.88 billion in the year-ago period.
Apple’s most important business remains the iPhone, which accounted for about 46% of the company’s total sales during the quarter. While Apple beat LSEG estimates, the product line still declined about 1% on an annual basis to $39.29 billion in revenue.
“On a constant currency basis, we grew year on year. And so that’s sort of how we look at it from an operational point of view,” Cook told CNBC’s Steve Kovach.
Cook said that while Apple doesn’t know about the positive sales impact from its newly announced Apple Intelligence service until it starts shipping to customers later this fall, he said that Apple had been increasing spending to get the service ready.
“What we’ve done is we’ve redeployed a lot of people on to AI that were working on other things,” Cook said. “From a data center point of view, as you know, we have a hybrid approach. So we both have our own and we partner with people. And so that capex would be in the partners’ financials, and we would be paying expense.”
“Certainly embedded in our results this quarter is an increase year over year in the amount we’re spending for AI and Apple intelligence,” Cook continued.
Apple showed strongest growth in its iPad division, which grew nearly 24% year-over-year to $7.16 billion in sales. Apple released new iPads during the quarter for the first time since 2022, which spurred a wave of upgrades.
Cook said that about half of iPad buyers haven’t owned one before, suggesting the tablet market is not yet saturated.
Apple’s Mac division reported $7 billion in sales, up about 2% from the year-ago quarter.
Apple Watch sales, headphones such as Beats or AirPods, and HomePod home speakers are reported under “Wearables, Home, and Accessories.” Sales in the catch-all category declined 2% to $8.10 billion during the quarter.
“A whopping two thirds of the Apple Watch buyers were new to the product. So, we’re still growing that base significantly,” Cook said.
The Services business is most important growth category for Apple and includes hardware warranties, revenue from Google, monthly cloud storage subscriptions, and the company’s content subscriptions, such as Apple TV+. The company reported $24.21 billion in Services sales, up 14% and in-line with Apple’s forecast and LSEG estimates.
Apple said in a statement that it had more active devices in each of its regions than it ever had before, without providing a specific number. Apple’s active device count is important because it signifies a group of existing Apple customers to which it can sell its profitable services. Apple said in February that it had 2.2 billion active devices.
Apple said it had 1 billion paid subscriptions, which includes subscriptions to iPhone apps through Apple’s App Store.
However, Apple sales declined 6% to $14.72 billion in greater China, a region that also includes Taiwan and Hong Kong. Apple is under pressure in mainland China as local rivals such as Huawei introduce competing products.
“Mainland China and Greater China actually had a record in the iPhone install base,” Cook said. “Kantar tells us we had the top three selling smartphones in urban China and the results in China represent an acceleration from the first half of the year.”
Apple said it spent $32 billion on dividends and share repurchases during the quarter.
So you can’t figure out why Apple keeps selling more every year without coming out with the latest, greatest crap that’s thrown against the wall by other manufacturers? Why the continued success by being constantly late to the game, behind in everything, high prices, lousy QA, unhappy customers, useless features, too much bling? Oh, and the greedy narrative?
Maybe stop accepting as fact all the blathering nonsense spewed out in tech blog forums? Just a thought.
iPad ended up being solid as exprected. Mac decent but there's nothing exciting being released so didnt expect anything big here