“After three quarters in a row of year-over-year revenue declines, Apple returned to growth in its most recently reported quarter,” Daniel Sparks writes for The Motley Fool. “First-quarter revenue and EPS increased 3% and 2%, respectively, compared to the year-ago period. With the tech giant returning to growth, shares have soared about 20% in the past three months.”
“Now, with Apple’s second-quarter earnings report coming up next week, investors will look to see if Apple can sustain its upward growth trajectory,” Sparks writes. “As usual, Apple’s iPhone sales for the quarter will be key.”
“In Apple’s second quarter of 2016, the company sold 51.2 million iPhones, generating $32.9 billion in revenue,” Sparks writes. “Therefore, Apple will need to beat these figures for the company to continue growing the important segment on a year-over-year basis.”
Read more in the full article here.
MacDailyNews Take: On January 31, 2017, Apple provided the following guidance for Q217:
• revenue between $51.5 billion and $53.5 billion
• gross margin between 38 percent and 39 percent
• operating expenses between $6.5 billion and $6.6 billion
• other income/(expense) of $400 million
• tax rate of 26 percentIn Q216, Apple posted quarterly revenue of $50.6 billion. Gross margin was 39.4 percent.
So, Apple expects the growth to continue.
as an aapl investor I am happy there was a surge in the stock over the last few months BUT the truth is Apple’s last quarter ‘growth’ was due to the extra week in the fiscal quarter.
If you break it down by week:
(as detailed in the Morningstar investing site):
The weekly EPS calculations:
Q4 2016 EPS (Apple’s fiscal Q1 2017) weekly results EPS/14 = $3.36/14 = $0.24 per week.
Q4 2015 EPS weekly results EPS/13 = $3.28/13 = $0.252 per week.
0.24 eps last quarter vs 0.25 the year before so the earnings went down.
The counter argument to support Apple’s success was that in the year before there was a large one time half billion Patent dispute earnings and some channel inventory issues. But I think the one time Samsung ‘exploding phone’ in 2016/17 might have cancelled that out.
Taken by per week basis most product units also went down.
2016 was also on entire year basis a ‘contraction’ year after many years of growth.
Tim Cook and gang need to buckle down and maybe a bit less sponsoring of fashion shows, Coffee Table books, Christmas trees and one and half years to design the door handles for the New Campus (as reported by Reuters) and deal products like he Mac better (Apple’s second largest hardware money maker). Like I always complain they don’t even bother to update some Macs or even MARKET them (like run ads… ).
clearly AAPL’s EGG trajectory continues to rise (+-BUN). Classic, really, as long as you adjust for BUN. I wouldn’t therefore be surprised to see the next SAMN spike in Q2 ’18 after a temporary dip.
Don’t underestimate the issues with the DAMN effect. The EGG on a nice BUN adding CHEESE & HAM will sizzle & satisfy and will really see market consumption in Q4 ’18.
How about the fact samsung made a dud and people needed to buy something..
Samsung made a dud last year, yes. This year, once again, Samsung was out of the gate before Apple with a cell phone that supposedly corrects all the sins of the last model.
All rumors of the next iPhone are pointing to Apple using a Samsung OLED display and integrating other Samsung features. So while it is nice Apple has its own iOS, it’s very hard to brag about Apple hardware leadership. Apple designers seem to have run out of innovative ideas there.
NO! Simply because CONTINUAL growth doesn’t exist.
It is about the principle of the hourglass: once the sand exhausted, you’ll have to turn the thing.
One more item of note: people who claim that Apple’s iPhone business is primed for a “super cycle” are forgetting that Samsung is holding all the cards for the success of the next flagship iPhone. As sole supplier of the OLED display, Samsung primarily determines the yields Apple will achieve. If the newest high margin phone is late or unavailable in quantity, then iPhone customers will have little choice but to buy older stale models. Just like Mac buyers!
I think the board needs to clean house. Apple leadership apparently thinks that once again putting all its eggs in the Samsung basket for this next phone is a risk worth taking and that other existing models of iPhone will sell well enough to offset the potential risks of poor OLED iPhone availability.
One would think that a company with as much cash as Apple would be able to manufacture its own displays. Or partner with other suppliers who are not direct phone competitors. Apple sate by and allowed Hon Hai to buy Sharp after all. Panasonic and Sony, both companies desperate for new income, also make class leading displays. And longtime Apple Display panel supplier, Lucky Goldstar, is also in the business. But no, the “supply chain genius” has chosen to once again reward Samsung with a sole source contract. Unbelievable.
If only a phone had other components besides a display. I don’t know, like chips, and sensors, and cameras, and radios, and, what do you call it, software?
Just because a unit of Samsung makes the display doesn’t make Apple beholden to Samsung, since there are probably a host of other vendors who’d LOVE to take Apple’s billions in parts sales.