iPhone sales is not “stagnant”. It’s crashing down:
iPhone sales made up $31 billion of that total amount, down from $37.5 billion during the same quarter in 2018.
I’d give Apple a lower PE given the iPhone drag, probably 12 or 13. The bright spot is wearable. Suddenly everybody in my gym is wearing AirPods, me included:
Apple’s wearables, home, and accessories category also saw revenue gains: up from $3.9 billion in Q2 2018 to $5.1 billion this quarter.
But isn’t it a one-quarter wonder? I did see a huge jump in AirPods around me. Not sure how many people are left to convert.
You don’t see many more people got AirPods now? I think many are like me, waiting forever for the new version. They should have released more often, and more colors too. Apple is minting money with these.
Tim Cook joked during Apple’s earnings call that AirPods have become “nothing less than a cultural phenomenon” among users everywhere. Over the holiday season, AirPods became a viral meme, with users taking to Twitter to joke about the growing prevalence of the truly wireless earbuds.
Furthermore, Maestri said that Apple is “working hard to catch up with incredible customer demand” for AirPods. This certainly implies that Apple thinks it could have sold even more AirPods during the second quarter of 2019 had it been able to better keep up with demand.
Like your $1T Tesla call? If you believe it so firmly shouldn’t you sell off every possession of yours and bet it all on Musk? That would certainly take you far, just not sure which direction it will be.
In an interview on CNBC’s “Squawk Box Europe” Thursday, Dialog CEO Jalal Bagherli expressed optimism in his outlook for the Chinese mobile phone market, echoing recent remarks by Apple CEO Tim Cook.
“The market for mobile phones was pretty soft particularly in China in Q1, but I think from late Q1 and going forward it has started to pick up,” he said
Morgan Stanley analyst Katy Huberty estimates that a 25% tariff on the iPhone could lead to a price increase of $160 for the iPhone XS. Or Apple could eat the tax, which could lead to a 23% decrease in earnings per share in 2020.
“Apple has one of the most significant exposures to Chinese exports to the US in our IT Hardware coverage group, given final assembly for many of its consumer electronic devices is located in China,” Huberty wrote in a note last week.
“And given the reliance on China’s established, low-cost labor force and expertise in manufacturing/tooling, a large-scale move out of the country would not only be costly, but could take multiple years to complete, potentially raising the odds of execution risk, in our view,” the note continued.
The decline is over 
