Apple: Revenue will be lower due to China (updated)

The US mobile phone manufacturer Apple (AAPL) has lowered its forecast for the fiscal-first quarter revenue outlook due to the China market. Apple says that it expects the revenue to be 84 billion dollars in the quarter. According to Bloomberg estimates, the revenue expectation was 91,3 billion dollars in average.

– 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, Apple´s CEO Tim Cook said in an investor letter on Wednesday.

According to Cook, the other figures “remain broadly in line with our earlier estimates”. He also pointed out, that the revenue stream outside of the iPhone grew almost 19 % year-on-year. For example Wearables grew almost 50 % on annual basis. Also the services generated over 10,8 billion dollars during the quarter and according to Cook the company is on track to achieve its goal of doubling the size of this business from 2016 to 2020.

In spite of the cutting forecast, Cook expects to set all-time revenue records in several developed countries, including the United States, Canada, Germany, Italy, Spain, the Netherlands and Korea. – And, while we saw challenges in some emerging markets, others set records, including Mexico, Poland, Malaysia and Vietnam, he added.

Apple´s stock fell in after-hours trading about 7 % to 147 dollars.  Apple is to publish its final first fiscal quarter, ended 29th December 2018,  on the 29th January 2019.

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Apple to reach records with average selling price

The Californian tech company Apple  (AAPL) is making against all odds. Company announced on Thursday its quarterly figures, which showed that the average selling price hit new records during the last three monts ending on December. The new average selling price was 796 dollars.

According to the company press release, the most popular iPhone was the iPhone X. Although the shippments were down by 1 %, but the revenues were up 13 % to 88,3 billion dollars. This is also all-time-high record.  The diluted EPS was 3,89 dollars, up +16%.

Apple sold 77,3 million iPhones during the period and 65 % of the sales came from international markets. Company is also making a quidance for the next period saying that the gross margin would be 38-38,5 %.

Other products, which include also Apple Watch & Apple TV, were up +36 % from the year earlier and were 5,4 billion dollars. Research and Development were 3,4 billion dollars, up nearly 19 %.

– We’re thrilled to report the biggest quarter in Apple’s history, with broad-based growth that included the highest revenue ever from a new iPhone lineup. iPhone X surpassed our expectations and has been our top-selling iPhone every week since it shipped in November,” said Tim Cook, Apple’s CEO.

The company stock ended in New York to 170,85 dollars, up 0,21 %. Apple´s market cap is 853 billion dollars and return has been over 32 % during the year.

 

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Apple Watch sales exceeded the first year sales of iPhones

According to Apple (AAPL),  the sales of Apple Watch have exceeded the first year sales of iPhones during their first year after the product launch. The company spokesmen said that they are very optimistic about the smartwatch and its development. Company made their remarks in the conference calls with financial markets at the end of April.

Apple also marked the new colors and styles of the Watches and said that 94 percent of the smartwatch users are very satisfied with the product itself.

The second quarter (ended March 26)  of Apple was the first time when the company noticed the overall smartphone stagnation globally. The CEO Tim Cook pointed out, that they have seen many swifters from another platforms and that they believe the markets to show more growth again. The company said it will also stay active in the capital markets in M&A  with products/services that can enhance their own offering.

Apple Services, like Apple Music and Apple Pay, showed rapid growth during the quarter and the company said that the growth is one million users per week in Asia. The company has sold over one billion devices with iOs operating system.

The company share price closed to 92,72 dollars last Friday in New York,  down 25 percent year on year.

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Apple in the economic unstability -sales fell

Apple´s (AAPL) second quarter net sales were 50,5 billion dollars compared to 75,8 billion dollars in the previous quarter. Net sales were hit by declining sales of iPhones, but also other iproducts. For example the sales of AppleWatches showed declining trend.

International sales accounted for 67 percent of the quarter’s revenue and the global economic unstability was showing in the figures. All the major sales areas were showing declining trend, also the Greater China. The sales in Japan were more stable.

– Our team executed extremely well in the face of strong macroeconomic headwinds, said Tim Cook, Apple’s CEO in the press release.

– We are very happy with the continued strong growth in revenue from Services, thanks to the incredible strength of the Apple ecosystem and our growing base of over one billion active devices, he continued.

The services sector showed 20 per cent increase annually but 1 per cent decline from the previous quarter. This sector includes for example the Apple Care and Apple Pay -services. This is also one of the areas the Finnish Nokia announced yesterday a small acquisition with healthcare it-company.

Apple is estimating that the revenue for the third quarter would be between 41-43 billion dollars and the gross margin between 37,5 – 38 percent, while it has been 39,4 percent in the second quarter.

So, Apple is not expecting any big changes in the economic outlook for this year and the company said that it is focusing on R&D, but also acquisitions. The company share fell 8,5 percent to 95,51 dollars after the report.

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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.

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