<story><title>Apple Reports Record First Quarter Results</title><url>https://www.apple.com/newsroom/2020/01/apple-reports-record-first-quarter-results/</url></story><parent_chain><item><author>chollida1</author><text>Notes:&lt;p&gt;- for first time seeing analysts excited about other products, watch and airpods as being real drivers of bottom line revenue!!!&lt;p&gt;- interesting note from Bloomberg tech reporter 
 &amp;quot;Apple’s new revenue strategy isn’t a bad one. It’s, basically, sell the customer an iPhone every three to five years, and make a bunch of money in the years between by selling them a new Apple Watch or AirPods (which only last about three years tops before you need a new pair -- batteries!) and services. If a user subscribes to all of Apple’s services for two years straight, that’s about equal to revenue from a new iPhone. So in those cases, if that user doesn’t buy a new iPhone for a couple years, it’s not a big deal.&amp;quot;&lt;p&gt;- apples done so well lately that the average analysts has a target price 5% below what apple is currently trading at&lt;p&gt;- they manufacture iphones 400 km from the center of the coronavirus outbreak, see if this is mentioned, also about 18% of apple revenue so China matters&lt;p&gt;- want to see what their effective tax rate is&lt;p&gt;Numbers:&lt;p&gt;- stocks almost back to record highs before reporting, after reporting it shot way past!!&lt;p&gt;- 1Q Revenue is $91.8B vs estimates of $88.38B!!!!!!&lt;p&gt;- 1Q EPS is $4.99 vs estimates of$4.56!!!!!&lt;p&gt;- wearables was $10 vs $7.3 last year( apple just continues to create $10+ billion dollar business every 3-5 years.  
Use to be that only MSFT could do that and GOOG spent heavily trying to do that&lt;p&gt;- iphone revenue for 1Q is $55.97&lt;p&gt;- service revenue for 1Q is $12.72&lt;p&gt;- declines in both mac($7.1 vs $7.4 last year) and iPad sales($6 vs %6.7 last year)&lt;p&gt;- iphone sales up everywhere except Japan&lt;p&gt;Numbers that really impress&lt;p&gt;- Cash&amp;#x2F;Equivalents have doubled from last year,
that funds a lot of money loosing streaming shows&lt;p&gt;- keeping in mind they bought back $37B in stock this year&lt;p&gt;- almost $100B in term debt&lt;p&gt;Supply Chain:&lt;p&gt;- Qurvo up 1%&lt;p&gt;- Skyworks up 1%&lt;p&gt;- Cirrus up 3%</text></item></parent_chain><comment><author>ksec</author><text>A lot of these were expected? Still good to see it now as fact. I have jokingly made the prediction on in 2016 that Apple will reach 1B iPhone User by 2020, turns out we are very close judging from the 1.5B Active Base.&lt;p&gt;iPhone in Japan - For those not aware iPhone has 80%+ Market Share in Japan ( Usage, not Sales ). And majority of iPhone user prefer smaller handset, that is the iPhone 4.7&amp;quot; or smaller like the iPhone SE size. So Apple hasn&amp;#x27;t really had any update for that market in 2019. Another point was Japan has passed a law that ban the subsidise phone selling with carriers. Making the cost of iPhone higher. Face ID is also not as well liked comparatively speaking, so replacement cycle are longer.&lt;p&gt;But Mac not so Good. I only posted this yesterday[1].
Basically more Mac users are leaving the platform. The Churn rate is possibly the highest in the past 10 years. I am not sure if this is because casual users are generally leaving the PC platform as a whole, or they are leaving to Windows or Linux.&lt;p&gt;[1] &lt;a href=&quot;https:&amp;#x2F;&amp;#x2F;news.ycombinator.com&amp;#x2F;item?id=22170080&quot; rel=&quot;nofollow&quot;&gt;https:&amp;#x2F;&amp;#x2F;news.ycombinator.com&amp;#x2F;item?id=22170080&lt;/a&gt;</text></comment>
<story><title>Apple Reports Record First Quarter Results</title><url>https://www.apple.com/newsroom/2020/01/apple-reports-record-first-quarter-results/</url></story><parent_chain><item><author>chollida1</author><text>Notes:&lt;p&gt;- for first time seeing analysts excited about other products, watch and airpods as being real drivers of bottom line revenue!!!&lt;p&gt;- interesting note from Bloomberg tech reporter 
 &amp;quot;Apple’s new revenue strategy isn’t a bad one. It’s, basically, sell the customer an iPhone every three to five years, and make a bunch of money in the years between by selling them a new Apple Watch or AirPods (which only last about three years tops before you need a new pair -- batteries!) and services. If a user subscribes to all of Apple’s services for two years straight, that’s about equal to revenue from a new iPhone. So in those cases, if that user doesn’t buy a new iPhone for a couple years, it’s not a big deal.&amp;quot;&lt;p&gt;- apples done so well lately that the average analysts has a target price 5% below what apple is currently trading at&lt;p&gt;- they manufacture iphones 400 km from the center of the coronavirus outbreak, see if this is mentioned, also about 18% of apple revenue so China matters&lt;p&gt;- want to see what their effective tax rate is&lt;p&gt;Numbers:&lt;p&gt;- stocks almost back to record highs before reporting, after reporting it shot way past!!&lt;p&gt;- 1Q Revenue is $91.8B vs estimates of $88.38B!!!!!!&lt;p&gt;- 1Q EPS is $4.99 vs estimates of$4.56!!!!!&lt;p&gt;- wearables was $10 vs $7.3 last year( apple just continues to create $10+ billion dollar business every 3-5 years.  
Use to be that only MSFT could do that and GOOG spent heavily trying to do that&lt;p&gt;- iphone revenue for 1Q is $55.97&lt;p&gt;- service revenue for 1Q is $12.72&lt;p&gt;- declines in both mac($7.1 vs $7.4 last year) and iPad sales($6 vs %6.7 last year)&lt;p&gt;- iphone sales up everywhere except Japan&lt;p&gt;Numbers that really impress&lt;p&gt;- Cash&amp;#x2F;Equivalents have doubled from last year,
that funds a lot of money loosing streaming shows&lt;p&gt;- keeping in mind they bought back $37B in stock this year&lt;p&gt;- almost $100B in term debt&lt;p&gt;Supply Chain:&lt;p&gt;- Qurvo up 1%&lt;p&gt;- Skyworks up 1%&lt;p&gt;- Cirrus up 3%</text></item></parent_chain><comment><author>pbreit</author><text>&amp;quot;sell the customer an iPhone every three to five years&amp;quot;&lt;p&gt;Aren&amp;#x27;t lots of people on monthly plans now with &amp;quot;free&amp;quot; annual upgrades?</text></comment>