This page has been archived and commenting is disabled.
Apple Reports Blowout Quarter Due To China Sales Surge, Cash Rises To $178 Billion: The Quarter In Charts
While the rest of the tech space has been sucking wind so far this quarter, Apple just reported its most blowout, and record, quarter in recent history. Their Q1 numbers are simply stunning and as follows:
- Sales of $74.6 billion, Est. $67.5 billion
- EPS of $3.06 billion, Est. $2.60 billion
- Profit margins of 39.9%, exp. 38.6%
- iPhones sold: 74.5 million, Est 64.9 million
- iPhone average selling price: $687, Est. $668
- iPads sold: 21.42MM, Est. 22.1MM
- Macs sold: 5.52MM, Est. 5.5MM
What does Apple say about the coming quarter:
- Revenue between $52 billion and $55 billion, Est. 53.72Bn
- Gross margin between 38.5 percent and 39.5 percent
- Tax rate of 26.3 percent
So where did all this growth come from? The following chart explains it, because whil the Americas remained the largest selling market with $30.6 billion in Q1, this was a growth of "only" 23% Y/Y. China? A whopping 70% growth!
The rest of the quarter in charts:
Sales:
Margins:
Product Breakdown:
And the biggest whopper of all: cash, which just rose to a stunning $178 billion.
* * *
And the reaction - a kneejerk higher (to six week highs) but a modest fade for now...
»
- 16138 reads
- Printer-friendly version
- Send to friend
- advertisements -
Apple should use that money to buy the NSA.
They're already joined at the hip.
3 billion per share? That's pretty good..... burp
"Consumers were so confident this past quarter, they stopped paying rent and bought an iphone, concluding that if worse comes to worse, they can live in their iphone"
The logical conclusion to all this is that the consumer doesn't follow logic.
Awesome. Apple beat their own earnings projections.
And to top that, I shall beat myself in Tic-Tac-Toe.
If you're name is WOPR, this should be good.
First quarter results I can remember where zh'ers aren't out in force predicting total obliteration in the near future of aapl....bearish?
Not an obliteration but 1Q 2015 sales in the US will be dramatically lower. 4thQ I think had a large amount of natural cycle turn whereas a lot of people ignored the iPhone 5 and upgraded from a 4 to 6. Now that most phone companies are requiring people to purchase the phones I would expect to see the next replacement cycle increase in length.
that's what i did ignored the 5 and went to the 6 for both me and my wife. the screen size was worth it but i won't be going to a newer iphone anytime soon unless the iOS gets so slow its unusable. thie is a blip before a massive downturn in sales.
Actually, the logical conclusion is that Apple's competitors are f**king stupid. Even when they flagrantly rip off Apple (*cough* Samsung *cough*), they can't make money. And when they don't copy, people don't want it (*cough* Windows Phone *cough*).
actually the logical conclusion is that people have a herd mentality.
empty restaurant syndrome.
iPhone average selling price: $687.
It seems you said it very politely.
With how much they have their nose pointed at that screen, they may not even notice the roof was removed from over their head.
"Hey, iPhonelover69, what is that blue thing with the white puffy splotchs on the background of your selfie!?"
I am as bearish as anyone, but those are some mind blowing numbers.
pods
And to think, all those puts that were bought at the end of the day. Idiots.
Looks like my wallet just got a little thicker. Will need to unload into PMs.
Apple is relevant for the virtual world (mostly occupied by sweet dreams and the 1%-ers). Meanwhile, CAT is for the REAL world... and the remaining 99%-ers. Many of the 99%-ers dream of joining and living in the virtual world... but they could dream at "Interstellar" as well, 'cause their chances of reaching it are similar.
How many Iphones were financed?
They are competitive if not superior product, but they are in a sweet spot as their cost is financed typically within the plan so it is paid out over a couple of years, yet the net expenditure is still relatively low to their budget.
Credit...and our need for shiny trick objects, is all that sustains this economy. That and absolute necessities.
The bigger question is, will people still demand social communication devices if everyone they know, facebook, email or talk to is depressed and needing to borrow money from them?
Just a thought
I know no one wants to talk to me.....
Meanwhile, Foxconn plans to reduce its workforce, and not through the usual method of employees killing themselves.
https://ca.news.yahoo.com/exclusive-apple-supplier-foxconn-shrink-workfo...
Tells you the big-screen upgrade for the iph6 was a one shot deal. Ah so go home no more work for you!
Why are you taking down the nets?
Restructuring.
pods
Apple has a blow-out quarter, ATT just beat, HAPPY TIMES ARE HERE AGAIN.
Just ignore all other data and everything will be honky-dory.
Waiting for the new I-Reality. The matrix unfolds. We merge into an alternate electronic world and simply become vegetables requiring a little nutrient water and a spritz every now an then to keep the smell down....but they probably already have an App for that.
Mortimer....BUY BUY BUY
Anybody whokeeps buying these expensive phones should look at their paychecks.
If you make less than 3000 dollars net a month and didn’t mind spending 650 dollars on a phone, you’re a idiot.
I paid 120 for my android phone, and 400 for my tablet, also a android. And I need them for work.
When I see all those kids with iPhones, 700 online friends and white pale skin because the never leave the house I keep thinking that those parents should be beaten with a stick.
Everybody is broke but they spend over 10% on phones....
Now they say that "the new economy" will be all about selli g your big date and that you’re big date is valued at minimum wage...
imagine.... if everybody stopped working and started selling their data, everybody could live for free...
I wonder when Obama will start to promote that crap... sell the info at what you buy for fiat and with that fiat you can buy crap that provides data which you can sell...
Watch as the smart asses who will sell you this crap start to show up on tv...
android versions below 4.4 appear to be compromised...
http://www.zdnet.com/article/half-of-all-android-devices-still-vulnerabl...
better shell out for a new phone
iphone 6's were as low as $49 with select plans in Canada at xmas.
I get the whole plan thing but that's how it works and how people buy $650 phones today. It doesn't matter how much they make as long as they can afford the $60-90 per month phone plan.
They should use that "calculator" app and see how much that 2 year plan costs them in total...
T-Mobile offers 0% financing on the iPhone and $50 a month plan -- NO CONTRACT
so the entire global economy can be saved by one product by one company? Don't think so.
The NSA bought Apple.
Edward Snowden Won’t Use An iPhone – Here’s Why http://www.zerohedge.com/news/2015-01-27/edward-snowden-wont-use-iphone-%E2%80%93-here%E2%80%99s-why
This will solve that 300 point Dow droop.
God bless AAPL and Kris Kyle /s
Why would China buy NSA compromised spy equipment?
This doesn't make sense unless China intends to sell these phone to Americans.
Dude, Tweeners, Teens, millenials, etc are the same the world over. Even if you tell them the new iPhone will blow up in there face, they will dismiss you as a crazy old bastard as they trample you to go buy one for each outfit.
In 20 years, if they live that long, tumors will be growing in their heads.
That will instagram right out.
These guys are flawless
There, Now we can erase todays 300 point drop by noon tomorrow. It's all Bullshit!!!
And the biggest whopper of all: cash, which just rose to a stunning $178 billion.
178 billion will be about a month of QE in the near future.
Overt QE or the covert kind?
RM always said Google would outperform Apple as it had a better business model...
He maintains its still true.
This seems to prove the opposite, whereas Google admits it has a problem to keep performing on same growth curve up.
lol The ES CFD's are up .75% after the close. What a complete shitshow!
*this is how it washes the dirty narcotics money on its skin*
Even here at Zero Hedge we give credit when it is warranted. Apple is one hell of a company and continues to perform. The question is, who is out there to buy the stock now? Almost every hedge fund, mutual fund and pension fund already own it. Now what. Great report. Do not think it will make too much difference tomorrow. Too many headwinds to fight.
the fed will note this blow out qtr..smile and say see qe worked everything is great..well I don't see this helping CAT, lowering Greece debt or making yemen safer..but we will see if wall street can look past the neg and celebrate apple.
Sorry but their numbers are bullshit and I won't give credit to a company that one audit would prove that their real sales numbers are 1/4 of what they claim. Not to mention the corporate tax dodging and other tricks that would put any one of us in jail. Apple gets away with it because of their market cap and the absolute destruction of the stock market that would happen if the stock was halved.
Apple uses the shipped as sold business model and channel stuffs more than GM. There are tens of millions of iPhone sitting in shipping crates around the world with profit already booked on them. Apple's numbers in China are completely bogus. I was in China two more months ago. There were a ton of iPhone 4s but everyone was buying Xiaomi phones. People in China want to buy Chinese products now, not American bullshit brands that are nothing more than a label.
Here is what the Chinese were telling me. "Why should I buy an iPhone and pay more than twice the price. We make the iPhone and we make Xiaomi. The Xiaomi is superior in spec and build quality and is Chinese."
By next year Apple will be second hat or worse in China. Apple is the most overvalued corporation in history, a problem that needs to right itself.
But Apple is an American company and would NEVER lie or deceive for profit, and as all American corporations do, adhere to the strictest reporting methods...they call it non-GAAP, or fill in the gaap, as it were.
One question: Have you visted all three stores in Hong Kong?
Perhaps you think it is unnecessary to reach your conclusions.
Do you know that the traffic is so heavy that you can't just walk in and buy an iPhone. You have to get online and make an appointment and you are limited in the number you can buy per day.
The stores are still packed. And this are very big retail spaces.
Outside the stores there are people who make a business getting in Q buying phones then selling them on a mark up. I thought they would dissappear. Not three months later they are still there.
I also know that all the lusury retailers are worried because among the young Chinese it is now considered more important what hardware you carry than what watch or handbag.
Am I an expert on APPL?
Hardly.
However, I know enough that I am not surprised by these numbers. And I would have to do tons of homework to verify your conclusions. I would start by trying to figure out how much cash they have in the bank. Not very easy for them to cook that number. Afterall, they are not a bank...at least not yet.
There are two perfectly valid ways of viewing APPL.
As a trade or as a matter of principle (the Snowden approach).
People should not get the two mixed up.
Just sayin.
I-Don't give a shit.
If Apple starts selling ammo, freeze dried food, Gold and Silver then I will care.
Screw Apple and there Chineese sweatshop job, nets around the building, asses. They may be doing well, but are they creating good paying jobs, especially in the US? Fuck No.
Look at the mac pro: made in America!
And how much tax will Apple pay in the US this year? Most of the investment is overseas and benefits other countries.
Why would any one want to own an Apple Spyphone? I own no Apple products.
Thats why sales grows in China: They have the great firewall that blocks all NSA traffic. The only country where the spyphone cant spy.
Android (Google) isn't any better. Every app you have a slew of notifications that the app requires access to your call log, address book, camera, microphone, pictures, and on, and on. Creepy. And not creepy in a good way like me.
Who wants to voluntarily tether themselves to the State no matter where you go? I say no just on general principle. I have/had a computer at work, and I have one at home. Admittedly, smart phones and the data services offered by the telecommunications industry is among the greatest mass marketing (creating demand) successes in history.
apple is what is wrong with merica.
great company, just not my cup of tea- the whole enterprize to the end pooser..
ALL IS WELL AGAIN!!
YAYY!!!
I thought China was doing so bad? Guess not, sure are buying lot's of those phones they produce.
I think they have lots of empty warehouses and Iphones are a great source of loan collateral. Multiple times...
Apple makes them in China, ships them from the factory to a holding warehouse owned by Chinese nationals who then use these unsold devices as proof of collateral to make or extend even more loans. If per chance they do sell them, it just becomes another empty warehouse when the banks show for foreclosure. I wonder what Apple's accounts receivable looks like.
My conjecture based on ADR's post
I saw this coming. This was conspicuous consumers wanting to be seen. Apple has already proven their resilience.
Ahhhh... So THIS is why Apple is DOWN 3.5% today. Blowout quarter = stock sell-off. Terrible quarter = stock up. Black is white. Up is down. Dear Leader Obama is great. Thinking people are bad.
Perhaps people sense 'this is as good as it gets'?
As good as it gets?! one word: iPhone7
I wonder if stock existed on American native Indians, what would happened to the stock value when the first Indians traded their land for shiny glass beads? Bullish for the Indians?
Smart phone sales are not an indicator of prosperity but distraction, more of the bread and circuses we have become so accustomed. We might as well track ice cream sales as an indicator of prosperity or economic viability.
i-t-s-a-l-l-r-i-g-g-e-d
Well no, buy the rumor and sell the news. Profit taking
OK. After hours trading - Apple up 5%. Making sense now. A lot of damn slow, or drunk, traders today. "News? What news? <hic...> Another martini..."
Larger screen, lots of people upgraded their iphone....this is last quarter. Downhill from here.
Toys are a good business to be in.
Well GM sells more cars when they practically give them away. All holiday season you could buy an iPhone 6 for $1. Sprint ran special deals where you got $10 off your monthly bill if you bought an iPhone.
Most people skipped the iPhone5. And most people will skip the iPhone7. Even more people are waking up to the fact iPhones are overpriced garbage. The OnePlus, BluMobile, and Xiaomi phones are going to take over the entire spectrum of smartphone price points.
Now that providers are dropping the subsidized pricing model, people are not going to be paying $600 for phones when superior $200 options are available. Most people do not know that the phone subsidy for a $20 flip phone and $600 iPhone was the same. All the 80 year olds with flip phones were subsidizing the kids with iPhone. Since flip phones are dead, there isn't enough pawns to cover the tab for expensive phones. Just like Social Security.
Anyone that adds $30 a month to their cell phone bill to have an iPhone is an imbecile.
adr are you calling the chinese imbeciles?? apple got $600/smart phone, it says right here smart phone..them folks who bought em must be smart.
Likely the flip phone buyers are subsidizing the smart phone buyers.
Economy is so strong people need to finance a f'ing phone. What a joke
Only true judge of the state of our economy based upon economic activities is to watch what people are willing to pay cash for. People on their death bed have no adversion to signing a thirty year loan. Credit purchases mean nothing if the purchaser has no problem defaulting on a loan. People who pay cash will walk through glass to avoid debt. They are the only sustainable indicator. All others are false positives. Bet on the credit consumer at your own risk (bankers are backed by the government, so they have no risk).
Apple Earnings Under Scrutiny https://www.youtube.com/watch?v=Wog4zhGrMn4
I guess Apple and the ChiComs found a way to stop those ungrateful factory slaves from jumping off those plant roofs?
They now build the buildings underground and have the roofs at ground level. Solved. For the children...
</s>
Between Chinese sales and their investments in the maket they'll have another blow out quarter, nothing can go wrong.
They bought back $17B of shares in Q4...anyone know if this share buyback program was contined into Q1?
Please, remain confident.....
Mighty AAPL. The last hope for the bull to keep the sixth year rally going on the Qs and SPY.
If only until April.
Where is Reggie Middleton??? Need to talk him before I do a back flip in the endzone and spike the ball and scream in his face TOUCHDOWN!!!
Wondering what happened to his Ultra Coins or whatever...
https://ca.finance.yahoo.com/news/exclusive-apple-supplier-foxconn-shrin...
Labor isn't cheap enough
http://www.businessinsider.com/foxconn-will-replace-workers-with-robots-...
.05mm = 0.001969 in = 1/508 of an inch
.02mm = 0.0007874 in = 1/1270 of an inch
Targeted Manufacturing Processes
http://www2.mae.ufl.edu/designlab/Lab%20Assignments/EML2322L-Tolerances.pdf
Some articles say the accuracy isn't there, but it is there for a lot of the production processes. They will be able to start installing robotics to replace most of the 1.3 million.
Robotics will continue to take over the world and not even china's cheap labor can compete with electrons.
Computers and robotics will destroy the the world economies.
This has to be address NOW.
I sure am glad I bought a ton of it a few years ago, just pissed I didn't buy 10 tons of it. I really have an orgasmic experience when the clods that they parade through CNBC stating their Ouija Boards are 100% sure Cook is nothing more than an Auburn clod and cannot possibly be worth a shit without an Ivy League degree.
Poison Ivy Keynesians, they are.
Someone in China must be filling warehouses full of iPhones and using them for collateral.
this particular quarter is an anomaly and here's why, the bigger screen. i had an iphone 4s and my wife a 4 and the screens are a bit small so the 6 was the right opportunity to get a bigger screen. sure its a little faster but so what? apple is playing catch up with a bigger screen is all and once they burn through all the folks like my wife and myself who won't be buying the 7 or the 8 for that matter cause what else is a 'must have' you'll see the numbers drop. and the iWatch? please. just another version of tech porn which the masses by and large have no use for.