Apple to record levels on the last quarter of 2015 – Apple Store to all time record

Apple (AAPL:US) announced today its fourth quarter results ending September 2015. According to the press release, the company reported a new record level of iPhones sales and operating income. Apple´s sales were 51,5 billion dollars (42,1 billion in the year earlier or 49,6 billion dollars previous quarter). Operating income was 14,6 billion dollars, growth from the 11,2 billion dollars a year ago and diluted EPS was 1,97 dollars compared to 1,43 dollars. The gross margin was 39,9 (38) percent. The company sold 48 000 iPhones units compared to 47,534 units in the previous quarter.

– Fiscal 2015 was Apple´s most successfull year ever, with revenue growing 28 % to the nearly 234 billion dollars, said CEO Tim Cook in the press release.

According to the company, the near future stays positive with gross margin estimate to 39- 40 percent. Apple said its Apple Pay introduction has grown very well in the US and UK markets and Apple Store gained new record levels. The sales numbers of Apple Watch are not published but the company said it is head of expectations. The sales in China declined a little and were 12,5 billion dollars compared to 13,3 billion dollars in the previous quarter. On the other hand, the company is heading to have 40 stores in China by mid 2016 and has published a new programm for renewable energy in China.

The company annonced a new strategic partnership with Cicso in September and they are looking for the corproate markets with IBM as well.

The Apple shares were down a little, 0,63 percent to 114,55 dollars in the trading. The company market cap is huge, 653 billion dollars.

Business Finance

Apple sold 47,5 million iPhones – sales fell in China

Apple (AAPL) sold 47,5 million iPhones during the last quarter ending in June. According to the company the revenue during that period was 49,6 billion dollars and net profit was 10,7 billion dollars, 1, 85 dollars per share. 64 percent of the sales came from international markets.

According to the company guidance for the fiscal 2015 fourth quarter, Apple expects the revenue to be between 49 and 51 billion dollars and gross margin between 38,5 and 39,5 percent.

The sales in China fell during the third quarter to 13,2 billion dollars compared to 16,8 billion dollars a quarter earlier. This is a clear sign of the Chinese markets economy slowdown.

– We generated very strong operating cash flow of 15 billion dollars and we returned over 13 billion to shareholders through our capital return program, the company said in the statement.

During the reported period Apple also increased its R&D expenses to 388 million dollars compared to 313 million dollars year ago. Also the cost of sales rose to 148 million dollars compared to 115 million dollars year ago.

Apple is not publishing its Apple Watch figures but the company states in the press release that they are very confident and happy about the market debut. The company is also going to launch its Apple Pay in the UK during the couple of weeks.

The company share fell to 130,75 dollars, down 1,0 percent in New York.

Business Tech

Apple sales jump – market cap to exceed 1000 billion?

Apple announced a record quarter today. According to the company, revenues jumped to 58 billion dollars, up 27 percent and net income was 13,6 billion dollars during the second quarter ending March 2015.

Earnings per share was 2,33 dollars, when the markets were expecting 2,16 dollars according to Bloomberg.

The Sales in China exceeded the US Sales for the first time. The company sold 61,2 million units during the quarter, of which 16,8 million in China.

The Sales of IPads were down by 23 percent to 12,6 million units. This is the fifth quarter of declining sales figures for tablets.

Strong results and Apple Watch have boosted new target price, which would mean the market value of 1000 billion dollars. Apple closed up 1,8 percent to 132, 65 dollars in New York.

Business Tech

Luxury smartwatch to enter the markets – TAG Heure the latest

During the first months of this year, there has been much speculation about the new smart wearables and if the luxury watch industry will join the trend or not. Now the latest to inform about new wearable smartwatch is the TAG Heure company in co-operation with Google and Intel.

“Swiss watchmaking and Silicon Valley is a marriage of technological innovation with watchmaking credibility. Our collaboration provides a rich host of synergies, forming a win-win partnership, and the potential for our three companies is enormous,” the company said in the press conference in the BaselWorld 2015  last week. According to the company this will mean greater utility and value for people.

The markets are waiting for the Apple´s Golden Smartwatch launch this April, which will give new items for market development.

 

 

Lifestyle Tech

Apple to issue long-term bonds totally 6,5 billion dollars

Apple has issued new long-term bonds worth 6,5 billion dollars. According to the company the new series of different maturity bonds have been made to take advantage of a drop in borrowing costs to fund its aggressive share buyback programme. The company has boughts its own shares worth 45 billion dollars back during the past 12 months.

The long-term bechmark bonds have been in all time low during the recent weeks. For example the US-30 year Treasury has been 2,22 per cent, UK benchmark at 2,02 per cent and German Bunds at 0,97 per cent.

 

Finance Tech

Xiaomi is growing fast in smartphone markets in Asia

Xiaomi revealed high-end smartphone by technical features but with amazing price level in July 22. This phones’ starting price is approximately 320 dollars which is less than a new iPhone 5S or Samsung S 5. The phone is Xiaomi Mi 4, runs by MIUI which is Xiaomis’ own operating system build on Android platform. Mi 4 has 5inch screen which is very common size for new smartphones nowadays and design is iPhone look-a-like.

For technical details it’s at least as good as its’ competitors or maybe even slightly better in several category. For example front and back cameras have more megapixels than the cameras in iPhone 5S and the size of battery is bigger. According to the company, the life time of the mobile phone is 36 hours with normal use.

This company is focusing on markets in Asia and is serious challenger for Apple while its’ market share passed Samsungs’ during second quarter by Research firm Canalys. Xiaomi even has tablet called Mi pad and of course, it has the same specs as Apple iPad Mini, looks like it and it’s cheaper.

Xiaomi Inc is a privately owned Chinese electronics company founded in 2010 and headquartered in Beijing. It is one of China’s biggest electronics companies that designs, develops, and sells smartphones, mobile apps, and consumer electronics. Xiaomi is now 6th biggest smartphone manufacturer globally according to IDC.

 

Ville Koski

Tech

Apple focusing on innovation

logotestiIt seems to be that Apple is taking new steps with innovation. The recent announcements related to their interim report yesterday, co-operation with IBM with business customers and the M&A (Beats Audio) are all elements related to their earlier announcement with healthcare and new operating system.  It is really so that the autumn will be busy for all the market makers.

Apple has done a great three month period in China. For example Mac-computers and iPads showed a clear double-digit growth in China. Apple announced earlier this co-operation with China Mobile and as CEO Jim Cook said in the company presentation, China will play an important role in Apple´s growth. China Mobile has made big investments in the country´s 4 G network during the couple of years.

The stock price of Apple has increased by 20 percent during the last three months and the company has said it has been purchasing own shares by 8 billion dollars during that period. They expect the revenue to be between 37 – 40 billion dollars during the next quarter and margins 37 -38%. The markets are already looking at September when the new iPhone6 will be released.  The company also reported an increase in R&D, which was 313 million dollars.

Tech