“After the bell on Tuesday, Apple reported its fiscal second quarter results for the period ending April 1st,” Bill Maurer writes for Seeking Alpha. “The first thing that stands out is that iPhone unit sales came in at 50.76 million, about a million and a half units short of Street estimates. As I’ve detailed in many recent articles, it is certainly possible that consumers hold back on purchases as they wait for this year’s new phone(s) that are supposed to be major upgrades.”

“With iPhone units being a little light for Q2, I was not surprised that Apple’s guidance was below expectations. The company is forecasting revenues of $43.5 billion to $45.5 billion, and the top end of the range is just below the Street’s current $45.57 billion average,” Maurer writes. “The iPad did a bit better than expected, more than 8.9 million units versus an expectation for around 8.6 million. Mac sales came in at 4.19 million, a little light compared to estimates of 4.26 million. However, both product lines saw increases to their average selling price, with Mac ASPs up almost 10% over last year’s period, leading to a 14% rise in Mac revenues for the period.”

Apple CEO Tim Cook

Apple CEO Tim Cook

“Additionally, Apple’s services segment missed revenue forecasts by almost $100 million, while still showing 17.5% growth, but that was more than offset by ‘other products’ that came in around $650 million ahead of estimates,” Maurer writes. “On the bottom line, Apple had a nice 8 cent beat, primarily driven by lower-than-expected operating expenses, a lower-than-expected tax rate, and more “other income” than expected. EPS was up 20 cents over the prior year period, with about half due to better net income and the rest from the buyback.”

“In the end, Apple had a decent report on Tuesday, but it wasn’t good enough to keep the past year’s rally going,” Maurer writes. “While the company had an impressive bottom line beat, iPhone unit sales were light and the rest of the business couldn’t make up the difference.”

Read more in the full article here.

MacDailyNews Take: This is what not having enough new/updated products ready to sell gets you.

Cook’s Apple continues to look lazy and unprepared. Luckily for him, the money train Steve Jobs built keeps chugging along, masking the issues that longtime observers of the company can see, and have been seeing for quite some time, with crystal clarity. Would that Tim Cook had such crystalline focus on Apple’s core businesses instead of ancillary endeavors.

Apple needed/needs new iPad Pro models, new desktop Macs, AirPods in sufficient supply, and a 4K Apple TV. They needed them last fall in time for Christmas 2016. Failing that, they at least needed them in Q217. That much is painfully obvious. That they still don’t have any of them in May 2017 is evidence of blatant mismanagement that should worry even the most casual Apple investor/fan.

mismanagement

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Apple’s embarrassing Mac Pro mea culpa – April 4, 2017
Mac Pro: Why did it take Apple so long to wake up? – April 4, 2017
Apple sorry for what happened with the Mac Pro over the last 3+ years – namely, nothing – April 4, 2017
Apple’s apparent antipathy towards the Mac prompts calls for macOS licensing – March 27, 2017
Attention, Tim Cook! Apple isn’t firing on all cylinders and you need to fix it – January 4, 2017
No, Apple, do not simplify, get better – December 23, 2016
How Tim Cook’s Apple alienated Mac loyalists – December 20, 2016
Apple’s not very good, really quite poor 2016 – December 19, 2016
Apple’s software has been anything but ‘magical’ lately – December 19, 2016
Lazy Apple. It’s not hard to imagine Steve Jobs asking, ‘What have you been doing for the last four years?’ – December 9, 2016
AirPods: MIA for the holidays; delayed product damages Apple’s credibility, stokes customer frustration – December 9, 2016
Apple may have finally gotten too big for its unusual corporate structure – November 28, 2016
Apple has no idea what they’re doing in the TV space, and it’s embarrassing – November 3, 2016
Apple’s disgracefully outdated, utterly mismanaged Mac lineup is killing sales – October 13, 2016
Apple takes its eye off the ball: Why users are complaining about Apple’s software – February 9, 2016
Open letter to Tim Cook: Apple needs to do better – January 5, 2015
​Apple’s dirty little secret: Sucky software – why Apple’s entire UX/UI team needs to be fired – November 19, 2015
What Steve Jobs gave Apple that Tim Cook cannot – November 18, 2015
New Apple Pencil stock begins arriving at some U.S. Apple Retail Stores – November 17, 2015
Apple’s new iPad Pro debuts with forced reboots, missing Apple Pencils – November 16, 2015
Apple’s perplexingly incomplete launch of the iPad Pro – November 16, 2015
Apple’s major problem is Tim Cook – November 16, 2015
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Apple’s joyless iPad Pro launch: WTF are the Apple Pencils and Smart Keyboards? (4-5 weeks away) – November 12, 2015
Apple’s best days are behind it or something – November 7, 2015
Apple TV 4 is a beta product and, if you bought one, you’re an unpaid beta tester – November 5, 2015
Apple Watch has arrived for just 22 percent of preorder customers – April 28, 2015
Tim Cook’s mea culpa: iMac launch should have been postponed – April 24, 2013
Obviously, Apple’s autumn iMac launch was badly botched – March 19, 2013
Apple still seeing strong Mac sales growth as iMac supply constraints ease – March 18, 2013
The curious case of Tim Cook, operations genius, and the missing iMacs – February 4, 2013
Within hours of availability, shipping times for 27-inch iMac slip to 3-4 weeks – November 30, 2012
Tim Cook open letter: We fell short with new Maps app; we are extremely sorry – September 28, 2012
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