Of the iPhone figures cited, “we believe less than 10% of that is the 8,” says Daniel Ives, an analyst with GBH Tech Research. The rest would be other iPhones like the 6S, 7 and 7 Plus, as well as the entry-level SE edition.
Apple didn’t break out sales of the various iPhones, and declined the invitation to do so, despite many requests from analysts on a conference call. Apple CEO Tim Cook did say that that once the iPhone 8 and 8 Plus went on sale, they “became our two most popular iPhone models and have been ever since.”
Hmmm, sure Tim, sure. Give us the data then… Don’t you want to rub it into sfdragonboy’s face? Or, you can’t?
So Apple can sell more phones even though everyone knew the 8 and X were coming very soon. That’s insane. Apparently a lot of people just go to the store and buy whatever is there without paying attention to new releases that are coming.
Like @Elt1 mentioned from personal experience, I believe he bought the 7 or 7s because of the reduced pricing. I am sure you saw the reports out of China that they were discounting the 8s already. Does one discount anything that walks on water?
Look, you guys can make all the money you want and you will. I just have a beef with the marketing botch-up with my favorite number. The 8 should be the X…
Guidance
Revenue $49B-$52B, actual $52.8B, yay!
Ops Exp $6.7B-$6.8B, actual $6.8B, inlined
OIC $0.5B, actual $0.8B, wow!
GM 35.5-38%, actual 37.9%, not bad
Exactly that is why launching iPhone 8s together with iPhone X is brilliant. Tim Cook doesn’t think quarter by quarter, nor year by year, is continuous, correct this year, may not be that smart next year… business is not a snapshot.
Oh my Bezos, the Tenderloin junkie crack dealer is smarter than Tim Cook. He gets the idea of no dilution of product. Yes, first one, maybe even second one is free or cheap but that’s it. You pay full price for one, pure product. No choices. This ain’t no cafeteria…
iPad 11% (unit sale), 14% (revenue)- Supposed to have shrunk
Mac 10% (unit sale), 25% (revenue) - Still so high 25% revenue increase, wow!
Services 34% (revenue)
Other Products 36% (revenue)
There seems to be a renewed interest in Apple products. Could be all the talks about internet and network security… just a wild guess… please share if you know why.
Don’t forget you’re paid 2% dividends annually while enjoying the share appreciation. Just like a Cupertino house , low yield, high appreciation.
There seems to be a renewed interest in Apple products. ==> Quality. Hope Apple touches 1 Trillion before Mar 2008.
I made a little speculative move today by selling some of my profitable stocks and made a bulk purchase (adding more) AAPL and (adding more) ANET (It was deep down today).
Some liberal arts journalists love to claim that Apple is essentially an iPhone maker… may be is true last year but… look at this quarter,
Revenue from iPhone - $28.846B i.e. 54.9%
Revenue from other products - $23.733B i.e. 45.1%
For Q4 2016, iPhone $28.16B i.e. 60.1% and other products $18.692B i.e. 39.9%
The high growth rate of other products mean, it won’t be long before their revenue would be higher than that of iPhone. Focusing on unit sale and revenue of iPhone is missing where the puck is going.
Direct rev from iPhones is 55%. Services is 16%. But what are these services? Things like iCloud storage fees, Apple music, App Store revenue 30% cut etc. There will be no services revenue if not for iPhones. “iPhone” + “Service” = 71%.
Services is what Apple makes from old iPhones, iPhone direct revenue is what Apple makes from new iPhones.
iPhone ASP is flat this quarter YoY, but many people observed iPhone 8 is not selling particularly well. How’s that possible?
First of all, iPhone 8 only started selling on 9/22. So this quarter only covers 9 days of iPhone 8 sales. Most normal people buy their phones by wandering into a store, be it Apple store or carrier store. Only enthusiasts order them online first week of the release. I bought my 8+ in late October. No reason to hurry. My point is this quarter only has very little iPhone 8 sales, and last year’s 3Q only had a very tiny mix of iPhone 7 sales.
Second, Tim Cook indicated indirectly the plus model is selling better this year compared to last year. Of the people buying the new 8, more buy the more expensive plus model. Price of the 8+ is also more expensive than 7+. So a mix tilt towards 8+, price increase YoY, and a lower adoption of 8 can still give you flat ASP. These things are not contradictory.
It seems Apple has solved the X’s production problem. The wait time is getting shorter. Apple has proven to be the zen master of mass production, unlike certain other company. (cough Tesla cough) That’s bullish for Apple.
Not exactly correct but I got the point. When people use iPhone maker, the word iPhone refers to the handset You are fond of redefining commonly accepted usage of terms Saying Apple is an iOS company would be more correct, I think iOS and macOS should be merged within 3 years So Mac is an iOS device soon.
Services are for all Apple products. iOS devices have its own app store, Macs also have its own app store.
Quite often, new iPhones are purchased with AppleCare Old iPhones are selling well too so iPhone direct revenue includes older iPhones.
Good point. Of course we don’t expect specific sale number to be released for competitive reasons.
25% revenue increase, wow!
, low yield, high appreciation.
Saying Apple is an iOS company would be more correct, I think iOS and macOS should be merged within 3 years