iPhone sales are up—even without Apple Intelligence

Photo: Apple

Aside from launching the new iMac, Mac mini, and MacBook Pro, Apple has also reported its fourth quarter fiscal earnings this week. The report includes the early sales of the iPhone 16 series, which seem to be off to a good start. Apple CEO told CNBC that the sales of the iPhone 15 were "stronger than 14 in the year-ago quarter, and 16 was stronger than 15." This result comes even though Apple only just started to roll out its artificial intelligence-powered Apple Intelligence features this week.

Click to read more ...

Apple posts double-digit earnings of $39.7B behind products and services

Apple today posted their latest revenue results for its fiscal 2020 third quarter ended June 27, 2020. The iPhone maker posted quarterly revenue of $59.7 billion, an increase of 11 percent from the year-ago quarter, and quarterly earnings per diluted share of $2.58, up 18 percent. International sales accounted for 60 percent of the quarter’s revenue. Apple's strong earnings were representative of the technology sector which were the only bright lights during a day when the Dow (INDU) still closed down 0.9 percent, or 226 points, and the S&P 500 (SPX) fell 0.4 percent as a reflection of the current pandemic and unstable political climate in the US heading to the November presidential elections.

“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” said Tim Cook, Apple’s CEO. “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives," said Apple CEO Tim Cook fresh off yesterday's congressional hearings on monopolies and anti-competitive practices in the tech industry. 

Click to read more ...

Apple stock takes a 9% dive due to earnings notice

By Gadjo Cardenas Sevilla

We're quickly seeing the market react to Apple's bombshell announcement of a lower stock earnings guidance. Yesterday, Apple CEO Tim Cook issued a letter to Apple investors revising the company's earnings guidance, a move that hasn't happened since 2002.

Cook implied various macroeconomic factors, including less spending in China, a major market for Apple, for the lower earnings in Q1, usually Apple's strongest quarter. As Cook mentioned in a TV interview, there are various reasons for this lower earnings expectation, many of which were out of Apple's control.

The brewing US trade-war with China and less spending from that country, the staggered iPhone release schedule in 2018 (which saw a month's apart launch for iPhone XS and iPhone XR) slower ramping up of product for iPad Pro. Mac mini and MacBook Air, as well as the $29 battery replacement service that took a bite out of potential earnings.

Click to read more ...

Tim Cook pens letter to Apple investors informing them of lower earnings guidance

Apple CEO Tim Cook wrote a letter to Apple investors today informing them of adjustments to the company's earnings expectations. Citing fewer iPhone upgrades and headwinds from currency exchange and weak sales in China, the letter aims to clarify investor expectations.

"Today we are revising our guidance for Apple’s fiscal 2019 first quarter, which ended on December 29. We now expect the following:

• Revenue of approximately $84 billion
• Gross margin of approximately 38 percent
• Operating expenses of approximately $8.7 billion
• Other income/(expense) of approximately $550 million
• Tax rate of approximately 16.5 percent before discrete items."

Cook adds that, "While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China. In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad."

Other factors leading to lower earnings are also becaus eof supply constraints for AirPods and recently released products like the iPad Pro, the Apple Watch Series 4 and the all-new MacBook Air. 

Click to read more ...