China and india contributed to most of the iPhone sales, iPads are down compared to q1 2015, macs are down, sold more then any PC tho, apple TV and watch were strong, international market can help the iPhone grow even more, can also help company growth in general. Q2 2016 will see a drop in iPhone sales, I expect 39m sold. Good quarter for them overall.
Record only if you insist on avoiding looking deeper. They increased inventory in the channel by 3.3million units. That makes sell-through 71.5 million units vs 74.65 in 2014. At the same time, this year the new models were available about 3 weeks sooner and Apple had far fewer shortages during the quarter. In Q1 they'll dump some more inventory in the channel but that won't be enough to mask much. All in all 2016 iphone units will be hard down vs 2015 and maybe down up to 10% over 2014. The ipad pro didn't even had a material impact on ASP, it harms the 10 incher, it harms the Mac and provides minimal upside due to it's poor price placement. The Watch did poorly , somewhere between 3.5 and 4 million units, likely closer to 3.5.
Anyway, the key metric this year will be iphone sales, folks are yet to figure out how bad those will be. And the key question is can the iphone 7 deliver. Q1 results will be interesting , folks will start to better understand the year and then some will go with "the iphone 7 will save us" while others will just accept the new reality.
Well someone on here can actually see through the Apple BS. What is interesting is the admission that higher prices in some markets have started to impact demand for iPhones. So much for the iPhone users aren't price sensitive and will never move to Android argument! One positive was the iPhone ASP being flat, seems to indicate the rumours that people were moving to the Plus models, both 6s and 6. Would explain the big discounts available on the normal 6s here in the UK as operators try to clear stocks.
In many markets outside USA, iphone sells in the price range $1000-$1500, so it is obvious that such astronomical prices will lead to some discounting to get sales going but still that's truckload of margin even with discounts as Samsung, LG etc sell their flagships for $600-$700 in those markets.
"They have now paid out $153 billion of their $200 billion capital return program."
Because to me that is $153 Billion wasted. It never bought me any extra value as a shareholder ( may be it didn't dropped so much ), Apple didn't get stronger in its product line because of it, basically in the long term or the short/medium term, that $153 billion was worth nothing.
As a shareholder, you should be grateful to have capital returned if the company has no decent investment ideas. This is the big problem in investment. There just aren't that many large opportunities that require a lot of capital, so if a company happens to have a very profitable product line (e.g. iphone), it will always have a problem knowing what to do with all the money.
This is where companies can end up blowing a lot of cash on acquisitions, just trying to buy up ideas in the hope that some will turn out to be winners.
-- As a shareholder, you should be grateful to have capital returned if the company has no decent investment ideas. This is the big problem in investment.
it's global. the CxO class has run out of brains. the cries to have governments raise interest rates (note well: capitalists used to insist that government instruments "stole" capital from them; shoe fits neatly on the other foot these days) grow louder. the 1% just "deserve" 10% return on their cash piles. and only the little people deserve to pay taxes. :)
One of the more trippy numbers I saw mentioned on the web was that Apple lost more money to currency fluctuations this quarter than Facebook made in revenue the entire quarter.
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Ken_g6 - Tuesday, January 26, 2016 - link
I thought iPhone sales were always flat. I mean, they haven't developed a curved iPhone, have they? ;)ingwe - Wednesday, January 27, 2016 - link
I'll admit it; I smiled.osxandwindows - Tuesday, January 26, 2016 - link
China and india contributed to most of the iPhone sales, iPads are down compared to q1 2015, macs are down, sold more then any PC tho, apple TV and watch were strong, international market can help the iPhone grow even more, can also help company growth in general.Q2 2016 will see a drop in iPhone sales, I expect 39m sold.
Good quarter for them overall.
jjj - Tuesday, January 26, 2016 - link
Record only if you insist on avoiding looking deeper.They increased inventory in the channel by 3.3million units. That makes sell-through 71.5 million units vs 74.65 in 2014.
At the same time, this year the new models were available about 3 weeks sooner and Apple had far fewer shortages during the quarter. In Q1 they'll dump some more inventory in the channel but that won't be enough to mask much.
All in all 2016 iphone units will be hard down vs 2015 and maybe down up to 10% over 2014.
The ipad pro didn't even had a material impact on ASP, it harms the 10 incher, it harms the Mac and provides minimal upside due to it's poor price placement.
The Watch did poorly , somewhere between 3.5 and 4 million units, likely closer to 3.5.
Anyway, the key metric this year will be iphone sales, folks are yet to figure out how bad those will be. And the key question is can the iphone 7 deliver. Q1 results will be interesting , folks will start to better understand the year and then some will go with "the iphone 7 will save us" while others will just accept the new reality.
iwod - Tuesday, January 26, 2016 - link
Thx for the insight, I was thinking how the hell did they break the record, so i guess this record was pretty much self made.Speedfriend - Wednesday, January 27, 2016 - link
Well someone on here can actually see through the Apple BS.What is interesting is the admission that higher prices in some markets have started to impact demand for iPhones. So much for the iPhone users aren't price sensitive and will never move to Android argument!
One positive was the iPhone ASP being flat, seems to indicate the rumours that people were moving to the Plus models, both 6s and 6. Would explain the big discounts available on the normal 6s here in the UK as operators try to clear stocks.
BMNify - Wednesday, January 27, 2016 - link
In many markets outside USA, iphone sells in the price range $1000-$1500, so it is obvious that such astronomical prices will lead to some discounting to get sales going but still that's truckload of margin even with discounts as Samsung, LG etc sell their flagships for $600-$700 in those markets.Murloc - Wednesday, January 27, 2016 - link
which markets are these really?kspirit - Wednesday, January 27, 2016 - link
@Murloc: Pakistan for one. iPhone 6S (non-Plus) 64GB priced here at ~$1000 while the GS6/G4/M9/6P/950, etc are at half that price.Ammaross - Wednesday, January 27, 2016 - link
Well, based on their overall margins (40%), you can get a sense of their product margins...BMNify - Thursday, January 28, 2016 - link
Almost all the markets outside of USA, you cam check the pricing in many European countries and the BRIC and the other markets in Asia.iwod - Tuesday, January 26, 2016 - link
I always wished someone could tell me why"They have now paid out $153 billion of their $200 billion capital return program."
Because to me that is $153 Billion wasted. It never bought me any extra value as a shareholder ( may be it didn't dropped so much ), Apple didn't get stronger in its product line because of it, basically in the long term or the short/medium term, that $153 billion was worth nothing.
Klug4Pres - Wednesday, January 27, 2016 - link
As a shareholder, you should be grateful to have capital returned if the company has no decent investment ideas. This is the big problem in investment. There just aren't that many large opportunities that require a lot of capital, so if a company happens to have a very profitable product line (e.g. iphone), it will always have a problem knowing what to do with all the money.This is where companies can end up blowing a lot of cash on acquisitions, just trying to buy up ideas in the hope that some will turn out to be winners.
FunBunny2 - Wednesday, January 27, 2016 - link
-- As a shareholder, you should be grateful to have capital returned if the company has no decent investment ideas. This is the big problem in investment.it's global. the CxO class has run out of brains. the cries to have governments raise interest rates (note well: capitalists used to insist that government instruments "stole" capital from them; shoe fits neatly on the other foot these days) grow louder. the 1% just "deserve" 10% return on their cash piles. and only the little people deserve to pay taxes. :)
Speedfriend - Wednesday, January 27, 2016 - link
Is the tin foil hat not working today?brisskel - Wednesday, January 27, 2016 - link
You did get a dividend every quarter for the last few years. And the share buybacks mean that you own more of the company.RBFL - Wednesday, January 27, 2016 - link
Does this mean we will soon see curved iPhones to help offset the flat iPhone sales?BillBear - Wednesday, January 27, 2016 - link
One of the more trippy numbers I saw mentioned on the web was that Apple lost more money to currency fluctuations this quarter than Facebook made in revenue the entire quarter.