Is this the end for Apple?
It's revenue fell 1.4% YoY, and this is the 3rd straight quarter of declines.
Stock prices also dip after the announcements and earnings call.
So what can investors find solace in the latest results?
1. Pulled down by lackluster hardware sales
As much as Apple tries to reinvent tech, it is still predominantly a hardware tech company in terms of revenue contribution.
74% of its revenue is coming from products.
A deep dive into the product section saw almost all of its product sales decline.
iPhone, Mac, and iPad sales plummet, with iPad dropping the most.
The 2 silver linings are better wearables and services growth.
2. Gross margins improved
Even though sales came down, one surprise that investors might miss out on is the gross margins. Gross margins improved YoY, from 43% to 44%.
Apple is not slashing prices but increasing prices to achieve better gross margins.
3. Lesser provision for income taxes and lower shares outstanding improved earnings per share
Apple look set to miss its net income and EPS growth. Luckily due to lesser provisions from income taxes and lower outstanding shares, net income climbed to USD 19.8 billion, while basic EPS hit USD 1.27 per share.
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The information available in this article/report/analysis is for sharing and education purposes only. This is neither a recommendation to purchase or sell any of the shares, securities, or other instruments mentioned; nor can it be treated as professional advice to buy, sell or take a position in any shares, securities, or other instruments. If you need specific investment advice, please consult the relevant professional investment advice and/or for study or research only.
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Mr Careful : they need to get someone like Steve jobs at the helm. otherwise, 5 yrs on, it might just become a utilities company. 10 yrs on, it might just be another Nokia.
101847688 : thanks
Asphen : am selling puts 160 and 150 and when AAPL break lower, will sell lower strikes too. likely end up 140 to 130.